Why Doximity Stock Is Falling After Hours

Doximity Inc DOCS shares are trading lower in Thursday's after-hours session after the company reported third-quarter financial results and issued weak fourth-quarter guidance. Doximity also lowered its full-year outlook.

What Happened: Doximity said fiscal third-quarter revenue increased 18% year-over-year to $115.3 million, which beat average analyst estimates of $111.51 million, according to Benzinga Pro. The healthcare technology company reported quarterly earnings of 22 cents per share, which beat consensus estimates of 18 cents per share.

Free cash flow increased 85% year-over-year to $47.5 million. Operating cash flow was up 78% year-over-year.

"Our clinical workflow tools saw record use last quarter, including our telehealth platform, which served 375,000 unique active clinicians," said Jeff Tangney, co-founder and CEO at Doximity.

Doximity sees fourth-quarter revenue between $109.6 million and $110.6 million versus estimates of $123.08 million. The company lowered its full-year revenue outlook to a range of $417.7 million to $418.7 million versus estimates of $427.14 million.

See Also: Why Cloudflare Stock Is Rising After Hours

DOCS Price Action: Doximity has a 52-week high of $64.95 and a 52-week low of $22.91.

The stock was down 8.79% after hours at $33.20 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Doximity.