Why Doximity Stock Plunged 29% This Week
Shares of Doximity (NYSE: DOCS) fell 29.4% this week, according to data from S&P Global Market Intelligence, after the healthcare-centric online networking specialist's solid fiscal results for the first quarter of 2024, ended June 30, were overshadowed by planned layoffs and disappointing forward guidance.
Doximity stock was down nearly 23% on Wednesday alone, after the company said second-quarter revenue climbed 20% year over year, to $108.5 million. That translated to GAAP net income of $28.4 million, or $0.13 per share, and adjusted (non-GAAP) net income of $40.6 million, or $0.19 per share. Analysts, on average, were looking for lower adjusted net income of $0.15 per share on revenue of $107 million.
Doximity seemed to be enjoying some operating leverage as it scales as well, seeing adjusted EBITDA climb 39% year over year, to $46.6 million. Adjusted EBITDA margin was 42.9%, expanding from 37% in the same year-ago period. The company also generated healthy cash flows during the quarter, with operating cash flow rising 28% to $57.2 million, and free cash flow growing 31% to $55.6 million.
Source Fool.com
