Doximity Surpasses Earnings Estimates with Strong Q2 Financials
- Doximity reported Q2 revenue of $136.83 million, exceeding estimates of $127.15 million.
- The company had an adjusted EPS of 30 cents, outperforming the expected 25 cents.
- Doximity's strong financial results led to a significant increase in its share price after-hours.
Doximity Inc announced its second quarter financial results, revealing stronger than anticipated performance. With a revenue of $136.83 million, the company exceeded the forecast of $127.15 million, marking a 20% increase year-over-year. Its adjusted EPS also surpassed expectations at 30 cents, compared to the estimated 25 cents. The achievement was supported by a significant rise in operating cash flow of $68.3 million and free cash flow of $66.8 million, which is a remarkable 475% growth year-over-year. The increase in revenue and cash flow is attributed to the heightened use of Doximity's clinical workflow tools, with over 600,000 unique active prescribers. CEO Jeff Tangney highlighted that these tools assist physicians in saving time, ultimately enhancing patient care. Given the robust performance in Q2, Doximity has set optimistic guidance for the third quarter, expecting revenue between $152 million and $153 million and adjusted EBITDA of $83 million to $84 million. Looking ahead, Doximity provided full-year revenue projections ranging from $535 million to $540 million, with full-year adjusted EBITDA forecasted between $274 million and $279 million. The company’s strong financial health indicates a positive trajectory, appealing to investors, as reflected in a significant post-earnings rise in its stock price. As of the time of publication, Doximity shares saw an increase of 37.91% in after-hours trading, which illustrates the market's favorable reception to these impressive results. These developments will likely strengthen Doximity's position in the healthcare technology space.