Thursday after close, Doximity Inc DOCS, a provider of digital platforms for U.S. medical professionals, reported third-quarter 2024 revenue of $135.3 million, up 17% compared to the previous year, surpassing the consensus of $127.49 million and management guidance of $127 million-$128 million.
The company reported adjusted net income of $58.5 million, compared to $45.8 million a year ago, with an impressive margin increase from 39.7% to 43.2%. Adjusted EPS stood at $0.29, beating the consensus of $0.23.
Adjusted EBITDA reached $73.3 million, up 32% year-over-year, surpassing the management guidance of $61 million-$62 million.
“We’re proud to deliver another quarter of double-digit engagement growth across our entire platform, with a beat and raise on both our top and bottom lines,” said Jeff Tangney, co-founder and CEO of Doximity. “Our clinical workflow tools continue to drive daily use among doctors, and we now count 17 of the top 22 U.S. hospitals as enterprise software clients.”
Financial Outlook: Doximity expects the fiscal year 2024 revenue of $473.3 million-$474.3 million compared to the consensus of $467.32 million.
The company expects adjusted EBITDA between $224.5 million and $225.5 million.
Doximity sees fourth quarter 2024 revenue of $115.9 million-$116.9 million versus the consensus of $117.884 million.
Adjusted EBITDA is expected to be between $50.5 million and $51.5 million.
Wells Fargo analyst Stan Berenshteyn maintained Doximity with an Equal-Weight rating but raised the price target from $25 to $27.
Price Action: DOCS shares are up 1.70% at $28.72 on the last check Friday.
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