Stock Story -
What Happened: Shares of healthcare professional network Doximity (NYSE:DOCS) jumped 35.9% in the morning session after the company reported second quarter earnings results. Doximity exceeded analysts' revenue expectations this quarter. Moving on, next quarter's revenue guidance came in higher than Wall Street's estimates. Overall, we think this was a decent quarter, with some key metrics above expectations.
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What is the market telling us: Doximity's shares are very volatile and over the last year have had 8 moves greater than 5%. But moves this big are very rare even for Doximity and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 9 months ago, when the stock gained 29% on the news that the company reported a classic "beat and raise" quarter that investors love. Third quarter results beat Wall Street's expectations for revenue and handily beat expectations for Adjusted EBITDA and EPS.
Additionally, it was good to see Doximity's optimistic revenue and adjusted EBITDA guidance for the next quarter, which exceeded analysts' expectations. Lastly, revenue and adjusted EBITDA guidance for the full year were both raised from the previous outlook given last quarter. Overall, we think this was a strong quarter with no major flaws that should satisfy shareholders.
Doximity is up 18.1% since the beginning of the year, and at $33.66 per share, has set a new 52-week high. Investors who bought $1,000 worth of Doximity's shares at the IPO in June 2021 would now be looking at an investment worth $636.39.
