Shares in Doximity (DOCS) saw a significant jump of nearly 40% in premarket trading on Friday, following a second-quarter earnings report and future outlook that exceeded analyst projections.
Doximity, a provider of software tools for medical professionals, reported Q2 revenues of $136.8 million, representing a 20% increase from the same period in the previous year and surpassing the estimated $128.4 million by analysts. Profits also beat estimates, reaching $44.2 million compared to the projected $37.9 million, as per data gathered by Visible Alpha.
The company's CEO, Jeff Tangney, revealed that their clinical workflow tools recorded "record use" during the quarter, exceeding 600,000 users.
Investor sentiment was further bolstered by Doximity's optimistic outlook. The company's promising projections for Q3 and an increased full-year outlook contributed to its stock rise. The revenue for Q3 is forecasted between $152 million and $153 million, topping the analysts' estimate of $142.7 million. The adjusted EBITDA is projected between $83 million and $84 million, better than the consensus projection of $69.65 million.
For the complete fiscal year, Doximity revised its revenue predictions to a range of $535 million to $540 million, an increase from the prior $514 million to $523 million estimate.
The excellent performance saw the company's shares rise by 38.6% to $60.19 on Friday morning, setting Doximity on course for its highest opening price since March 2022.