Doximity Surges 18% on Earnings Beat and Strong OutlookDoximity shares ( NYSE:DOCS ) surged 18% after the company beat quarterly earnings forecasts, provided a better-than-expected current-quarter outlook, and unveiled a share buyback program. The provider of curated medical news and telehealth tools reported adjusted earnings of 25 cents per share for the fiscal fourth quarter ending March 31, comfortably topping Wall Street estimates of 20 cents a share. Revenue in the period of $118.1 million improved 6% from a year earlier and beat analysts' expectations of $116.4 million. Subscription revenue in the quarter increased to $112.7 million, up 9% from $103.2 million in last year's corresponding period, helping to boost top-line growth.
Doximity ( NYSE:DOCS ) expects current-quarter net sales to range between $119.5 million and $120.5 million, with the lower end surpassing forecasts of $119.2 million. For the full year, it projects revenue of $506 million to $518 million, below the $520.8 million Street consensus. The San Francisco-based company said it had been incorporating artificial intelligence (AI) and automation into its workflow tools as it looks to sign on more healthcare professionals.
Doximity ( NYSE:DOCS ) also unveiled a stock buyback program, announcing that it had authorized the purchase of up to $500 million of its Class A common stock. Since early March, the Doximity ( NYSE:DOCS ) share price has traded within a falling wedge, a bullish chart pattern suggesting potential upward price movement. Investors should watch the $28 level, an area where the stock may find overhead resistance from a horizontal line connecting a series of price actions over the past 13 months.
