Shares of Doximity (NYSE: DOCS)the social network for doctors, saw a sharp rise today after the company comfortably beat estimates in its first-quarter earnings report.
Following the news, the stock was up 33.1% by 1:04 p.m. ET.
Doximity Joy
The social media company reported a 17% increase in revenue to $126.7 million for the period ended June 30, easily beating the consensus estimate of $119.9 million.
Earnings growth also soared, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rising 42% to $65.9 million, giving the company an EBITDA margin of over 50%.
The bottom line was that adjusted earnings per share rose from $0.19 to $0.28, beating expectations of $0.22.
CEO Jeff Tangney said, “We are pleased to deliver strong gains and record engagement in the latest quarter,” citing a record 590,000 providers using Doximity tools such as artificial intelligence, telemedicine and appointment scheduling.
Can Doximity continue to grow?
Doximity also provided better-than-expected guidance, projecting revenue of $126.5 million to $127.5 million in the fiscal second quarter, representing 12% growth on the mid-market and better than estimates of $124 million. The company also projected adjusted EBITDA of $62.5 million to $63.5 million.
For the full year, the company expects revenue of $514 million to $523 million, representing a more modest growth of 9% on average but above estimates of $512.2 million, and adjusted EBITDA of $248.5 million to $257.5 million.
Doximity is still well below its pandemic-induced peak and investors would like to see faster growth, but its high margins speak to its strength.
If the company can continue to grow its user base and engagement, the stock price should continue to rise.
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Jeremy Bowman does not own any stocks mentioned. The Motley Fool owns and recommends Doximity. The Motley Fool has a disclosure policy.
Why Doximity Stock Soared Today was originally published by The Motley Fool
