Healthcare professional network Doximity (NYSE:DOCS) will be announcing earnings results tomorrow after market close. Here's what to look for.
Doximity beat analysts' revenue expectations by 6.1% last quarter, reporting revenues of $135.3 million, up 17.4% year on year. It was a weaker quarter for the company, with revenue guidance for the next quarter missing analysts' expectations.
Is Doximity a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Doximity's revenue to grow 4.9% year on year to $116.4 million, slowing from the 18.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Doximity has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.8% on average.
Looking at Doximity's peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Olo delivered year-on-year revenue growth of 27.3%, beating analysts' expectations by 3.5%, and Unity reported a revenue decline of 8%, topping estimates by 6.2%. Olo's stock price was unchanged after the results, while Unity was down 10.3%.
Read our full analysis of Olo's results here and Unity's results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 4.9% on average over the last month. Doximity is down 5.7% during the same time and is heading into earnings with an average analyst price target of $29.8 (compared to the current share price of $23.63).
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