Earnings To Watch: Doximity (DOCS) Reports Q4 Results Tomorrow

Radek Strnad /
2022/05/16 7:46 am EDT

Healthcare professional network Doximity (NYSE:DOCS) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Doximity reported revenues of $97.8 million, up 66.7% year on year, beating analyst revenue expectations by 13.4%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

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 35.2% year on year to $90.1 million, slowing down from the 83.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 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 since going public on average by 11.8%.

Looking at Doximity's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Toast delivered top-line growth of 52% year on year, beating analyst estimates by 9.07% and Unity reported revenues up 36.3% year on year, missing analyst estimates by 0.31%. Toast traded up 5.18% on the results, Unity was down 32.5%. Read our full analysis of Toast's results here and Unity's results here.

Tech stocks have had a rocky start in 2022 and software stocks have been swept alongside with it, with share price down on average 18.8% over the last month. Doximity is down 33.3% during the same time, and is heading into the earnings with analyst price target of $65.9, compared to share price of $31.98.

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.