Healthcare professional network Doximity (NYSE:DOCS) will be reporting earnings tomorrow afternoon. Here's what you need to know.
Doximity beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $118.1 million, up 6.4% year on year. It was a weak quarter for the company, with management forecasting growth to slow and a miss of analysts' billings estimates.
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 10.5% year on year to $119.9 million, slowing from the 19.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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 2.5% on average.
Looking at Doximity's peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Toast delivered year-on-year revenue growth of 27%, beating analysts' expectations by 1.7%, and Olo reported revenues up 27.6%, topping estimates by 4.1%. Olo traded up 12.7% following the results.
Read our full analysis of Toast's results here and Olo's results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 4.8% on average over the last month. Doximity is down 5% during the same time and is heading into earnings with an average analyst price target of $29.5 (compared to the current share price of $26).
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