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Key Takeaways
- Doximity shares surged Friday morning after the company’s second quarter results and outlook for the rest of its fiscal year beat estimates.
- The company said over 600,000 medical professionals used its networking and productivity tools in the quarter.
- Doximity’s third-quarter revenue projections beat estimates, and the company lifted its full-year outlook for revenue.
Doximity (DOCS) shares jumped nearly 40% in premarket trading Friday after the medical tech company’s earnings and outlook came in above what analysts expected.
Doximity, which provides software tools for medical professionals, reported $136.8 million in revenue for the second quarter of fiscal 2025, a 20% increase from the same time last year and above the $128.4 million analysts had expected. Profits also beat estimates at $44.2 million, better than the $37.9 million analysts projected, according to estimates compiled by Visible Alpha.
CEO Jeff Tangney said the company’s “clinical workflow tools saw record use” in the quarter with over 600,000 users.
Doximity’s outlook is also fueling its rise Friday, as the company provided better-than-expected projections for the third quarter and lifted its full-year outlook. Third quarter revenue is projected between $152 million to $153 million, above the $142.7 million analysts had expected, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $83 million to $84 million, compared to the consensus projection of $69.65 million.
For the full year, Doximity lifted its revenue range to $535 million to $540 million, up from $514 million to $523 million previously.
Shares were up 38.6% to $60.19 Friday morning, putting Doximity on track for its highest opening price since March 2022.