Earnings To Watch: Doximity (DOCS) Reports Q2 Results Tomorrow

Adam Hejl /
2022/11/09 2:15 am EST

Healthcare professional network Doximity (NYSE:DOCS) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Doximity reported revenues of $90.6 million, up 24.7% year on year, beating analyst revenue expectations by 1.1%. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.

Is Doximity buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Doximity's revenue to grow 26.4% year on year to $100.3 million, slowing down from the 75.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

Doximity Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.11%.

Looking at Doximity's peers in the vertical software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 14.2% year on year, missing analyst estimates by 1.37% and 2U reported revenue decline of 0.05% year on year, exceeding estimates by 0.09%. Q2 Holdings traded down 5.64% on the results, and 2U was up 1.88%. Read our full analysis of Q2 Holdings's results here and 2U's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.2% over the last month. Doximity is down 15.4% during the same time, and is heading into the earnings with analyst price target of $41.40, compared to share price of $24.99.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.