Doximity’s Q3 numbers beat estimates; Jefferies ‘surprised at weakness’ in shares By Investing.com

Doximity Inc. (NYSE:) reported better-than-anticipated earnings and revenue for the fiscal third quarter and hiked the outlook for the full year. Still, the company’s shares fell nearly 4% in after-hours trading.

The firm reported an earnings per share (EPS) of $0.29, topping the consensus estimate of $0.24. Its revenue for the quarter reached $135.3 million, surpassing the projected $127.5 million.

For the fiscal fourth quarter of 2024, Doximity anticipates revenue to be in the range of $115.9 million to $116.9 million, slightly below the expected $118.1 million. The company also projects its adjusted EBITDA to fall between $50.5 million and $51.5 million.

Looking at the full year, Doximity has revised its revenue forecast upwards to between $473.3 million and $474.3 million, from an earlier range of $460 million to $472 million. This adjustment brings the forecast above $467.2 million expected by analysts.

Furthermore, the company has adjusted its expected adjusted EBITDA to between $224.5 million and $225.5 million, up from the previously forecasted range of $207 million to $219 million, exceeding the consensus forecast of $214.3 million.

“Appreciating the Dec qtr is the strongest seasonally, DOCS reported revs and EBITDA well ahead of consensus. We are surprised by the neg reaction in after-market,” Jefferies analysts said in a note.

“We believe investors are focused on the mgt’s more tepid outlook for F4Q and the prelim comments on the C24 outlook. With many recent qtrs marked by inconsistent execution and miscommunication, we like mgt taking the conservative route and expect to see a full recovery and then some in the shares,” they wrote.