Healthcare professional network Doximity (NYSE:DOCS) is set to announce its latest earnings tomorrow, and analysts have high hopes for the company based on previous performance. Last quarter, Doximity exceeded revenue expectations by a significant 9.6%, reporting $168.6 million in revenues, marking a 24.6% increase year over year. This positive growth also came with strong EBITDA guidance for the upcoming quarter.
For the current reporting period, analysts anticipate a more modest revenue growth of 13.2% year-on-year, projecting total revenues of $133.6 million, compared to a 6.4% increase from the same quarter last year. Adjusted earnings are expected to hit $0.27 per share.
The confidence in Doximity is reflected in analysts’ consistent reaffirmation of their estimates over the past month, indicating an expectation that the company will maintain its performance. Notably, Doximity has only missed revenue estimates once in the past two years, exceeding expectations by an average of 3.8%.
Comparatively, peers within the vertical software segment have also been reporting their Q1 results. For instance, Toast achieved a year-on-year revenue growth of 24.4% but fell short of expectations by 0.8%, while Upstart saw a remarkable 67% increase in revenue, coming in above projections by 5.2%. Following their results, Toast’s shares rose by 11.6%, while Upstart experienced a downturn of 9.7%.
The overall sentiment among investors in the vertical software sector has been positive, with an average rise of 19% in share prices over the last month. In alignment with this trend, Doximity’s share price has also risen by 13.7%, currently sitting below the average analyst price target of $71.12 compared to its current price of $60.52.
This earnings report could further illuminate the growth trajectory of Doximity, a company that has shown resilience and promise in an evolving market landscape.
The outlook for Doximity suggests a sustained path for growth, buoyed by the positive investor sentiment and the increasing importance of technology in healthcare.