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Doximity, Inc. (DOCS)
:DOCS
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Doximity
(NYSE:DOCS)
79Outperform
Positive Factors
Market Share
DOCS can continue to take share in the pharma advertising market with its ability to reach healthcare professionals.
Product Growth
Newer products like Point of Care and Formulary are experiencing significant growth, contributing to 20% of new sales.
Profitability
DOCS' strong incremental margin profile is still not fully appreciated by investors and provides opportunities for upside to EBITDA.
Negative Factors
Growth Normalization
Next year, growth is expected to normalize to about 2x the market rate, which is in line with the past 4 years, suggesting a potential slowdown compared to the current growth rate.
Revenue and EBITDA Margins
4Q implied revenue growth of 13% at midpoint and adj-EBITDA margin of 47.4% is a step-down from the last two quarter levels, indicating potential normalization.
Revenue Growth
There is an element of conservatism in the FY4Q'25 guidance, with expected year-over-year revenue growth of roughly 11%.
Doximity (DOCS) vs. S&P 500 (SPY)
Market Cap
$11.89B
Dividend YieldN/A
Average Volume (3M)3.12M
Price to Earnings (P/E)62.3
Beta (1Y)1.69
Revenue Growth17.47%
EPS Growth49.87%
CountryUS
Employees827
SectorHealthcare
Sector Strength76
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)1.00
Shares Outstanding133,502,330
10 Day Avg. Volume2,248,608
30 Day Avg. Volume3,120,178
Financial Highlights & Ratios
PEG Ratio1.25
Price to Book (P/B)N/A
Price to Sales (P/S)21.62
Price to Cash Flow (P/CF)45.60
P/FCF Ratio45.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$72.50Price Target Upside16.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Doximity Business Overview & Revenue Model
Company DescriptionDoximity Inc is a digital platform for U.S. medical professionals. Its cloud-based platform provides members with tools specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers.
How the Company Makes MoneyDoximity generates revenue through a multi-faceted business model that includes subscription fees, advertising, and telehealth services. A significant portion of its income comes from pharmaceutical companies and healthcare organizations that pay for targeted digital marketing and advertising to reach its network of medical professionals. Additionally, Doximity offers a telehealth platform that allows doctors to conduct video visits with patients, for which healthcare providers pay subscription fees to access premium features and services. The company also leverages partnerships with hospitals and healthcare systems to expand its service offerings, further enhancing its revenue streams.
Doximity Financial Statement Overview
Summary
Doximity presents a robust financial position with consistent revenue growth, high profitability margins, and low leverage. Effective cash flow management and a high equity ratio further strengthen its financial health. Optimizing cash reserves could enhance capital efficiency.Income Statement
Doximity's income statement shows a strong performance with a consistent revenue growth, illustrated by a 16% increase in TTM revenue compared to the previous annual report. The company maintains robust profitability with a high gross profit margin of 90.2% and a net profit margin of 36.6% for TTM, indicating effective cost management. The EBIT and EBITDA margins are also solid at 40.2% and 42.0%, respectively, reflecting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Doximity is stable, with a debt-to-equity ratio of 0.01, indicating low leverage and financial risk. The company has a strong equity ratio of 88.0%, showing a high level of asset financing through equity. Return on Equity (ROE) is impressive at 19.5%, demonstrating effective use of shareholders' funds. However, the relatively high cash reserves might suggest underutilized capital.78
Positive
Cash Flow
Doximity exhibits strong cash flow health with a free cash flow to net income ratio of 1.19 for TTM, indicating robust cash conversion. The operating cash flow to net income ratio of 1.19 further supports efficient cash generation from operations. Free cash flow growth is substantial, reflecting effective capital management and operational scaling.82
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 550.17M | 475.42M | 419.05M | 343.55M | 206.90M | 116.39M | Gross Profit |
| 496.19M | 424.75M | 365.56M | 303.76M | 175.70M | 101.49M | EBIT |
| 221.17M | 163.88M | 125.11M | 113.54M | 53.30M | 22.16M | EBITDA |
| 231.20M | 182.08M | 125.11M | 113.54M | 63.90M | 26.41M | Net Income Common Stockholders |
| 201.34M | 147.58M | 112.82M | 154.78M | 50.21M | 29.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 844.94M | 762.90M | 841.00M | 798.11M | 142.53M | 86.45M | Total Assets |
| 1.17B | 1.08B | 1.14B | 991.36M | 251.72M | 138.92M | Total Debt |
| 12.95M | 14.55M | 15.64M | 1.09M | 1.25M | 2.28M | Net Debt |
| -152.32M | -82.24M | -142.39M | -111.72M | -65.14M | -46.15M | Total Liabilities |
| 141.04M | 177.98M | 170.77M | 112.76M | 184.98M | 137.78M | Stockholders Equity |
| 1.03B | 901.40M | 966.12M | 878.59M | 66.74M | 1.14M |
| Cash Flow | Free Cash Flow | ||||
| 238.77M | 178.29M | 173.42M | 120.88M | 78.36M | 21.95M | Operating Cash Flow |
| 240.40M | 184.10M | 179.60M | 126.58M | 82.97M | 26.20M | Investing Cash Flow |
| -81.00M | 31.19M | -59.92M | -640.57M | -70.42M | -13.10M | Financing Cash Flow |
| -117.22M | -276.52M | -74.46M | 560.41M | 5.41M | 1.72M |
Doximity Technical Analysis
Neutral
62.43
Price Trends
63.36
Negative
56.93
Positive
45.30
Positive
Market Momentum
-1.10
Positive
43.83
Neutral
23.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Neutral. The current price of 62.43 is below the 20-day moving average (MA) of 68.39, below the 50-day MA of 63.36, and above the 200-day MA of 45.30, indicating a neutral trend. The MACD of -1.10 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 23.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOCS.
Doximity Risk Analysis
Doximity disclosed 66 risk factors in its most recent earnings report. Doximity reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Doximity Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.89B | 62.32 | 21.24% | ― | 17.47% | 49.87% | |
79 Outperform | $38.00B | 54.07 | 13.63% | ― | 16.20% | 34.71% | |
73 Outperform | $7.36B | 64.87 | 30.71% | ― | 69.33% | ― | |
49 Neutral | $6.86B | 0.01 | -55.93% | 2.48% | 24.36% | -2.88% | |
45 Neutral | $1.50B | ― | -52.46% | ― | -1.26% | -338.56% | |
43 Neutral | $124.26M | ― | -54.13% | ― | -1.81% | 70.88% |
* Healthcare Sector Average
Performance Comparison
DOCS
Doximity
62.43
34.55
123.92%
VEEV
Veeva Systems
236.96
8.53
3.73%
TDOC
Teladoc
8.87
-6.25
-41.34%
HIMS
Hims & Hers Health
34.69
19.01
121.24%
AMWL
American Well
8.20
-9.16
-52.76%
Doximity Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 7.16% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with significant revenue and EBITDA growth, driven by high client retention and successful new product launches. However, potential challenges include dependency on integrated programs and tougher future revenue comparisons.Highlights
Significant Revenue Growth
Doximity, Inc. reported $169 million in revenue for Q3 FY2025, marking a 25% year-on-year growth and a 10% beat from the high end of their guidance range.
Record Adjusted EBITDA Margin
The company achieved a record adjusted EBITDA margin of 61%, or $102 million, which was up 39% year-on-year and 21% above the high end of guidance.
Top Clients Showing Strong Growth
The top twenty clients grew 122% on a trailing twelve-month basis, reflecting strong client retention and expansion.
Strong Engagement and Network Growth
Unique active users reached new heights with double-digit percent growth year-on-year. The AI tools saw over 1.8 million prompts, growing rapidly.
Successful New Product Launches
New point of care and formulary products grew over 100% in Q3, accounting for over 20% of pharmaceutical sales.
Incremental Commercial Achievements
Doximity's commercial initiatives, including new products, integrated programs, and the client portal, contributed to strong calendar year-end sales.
Lowlights
Dependence on Integrated Programs for Continued Growth
The company's growth strategy heavily relies on integrated programs and new product traction, which could pose risks if adoption rates slow or market dynamics shift.
Potential Challenges with Tougher Comparisons
The higher percentage of January launches due to integrated programs could lead to tougher revenue comparisons in fiscal 2026.
Health System Business Growth Uncertainty
Although there was some marginal improvement, the health system business is not expected to materially change in growth rate in the near future due to ongoing macroeconomic uncertainties.
Company Guidance
During Doximity, Inc.'s fiscal 2025 third quarter earnings call, the company reported impressive financial performance with $169 million in revenue, marking a 25% year-on-year growth and a 10% beat from the high end of their guidance range. The top twenty clients demonstrated significant growth, with a net revenue retention rate of 122% on a trailing twelve-month basis. The adjusted EBITDA margin was at a record 61%, translating to $102 million, a 39% year-on-year increase. Doximity's network engagement reached new heights, with over one million unique active prescribers utilizing the news feed and 610,000 using workflow tools. The company's new point of care and formulary products saw over 100% growth, contributing to 20% of pharmaceutical sales. For the fourth fiscal quarter of 2025, revenue is expected to be between $132.5 million and $133.5 million, with an adjusted EBITDA margin projected at 47%. For the full fiscal year, the revenue is anticipated to range between $564.6 million and $565.6 million, with an adjusted EBITDA margin of 54%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.