Online Networking Service Doximity Stock Soars On Q2 Performance - Here's Why

Doximity Inc DOCS shares are trading higher in Thursday's after-hours session on the heels of the company's fiscal second-quarter results.

What Happened: Doximity reported second-quarter revenue of $113.6 million, up 11% year-over-year, beating the consensus of $109.09 million. The company reported quarterly adjusted earnings of 22 cents per share versus 17 cents per share in the prior year's quarter, exceeding the consensus of 18 cents. 

Net income was up 16% year-over-year, and adjusted EBITDA was up 18%. 

Doximity's board also authorized a buyback of up to $70 million. The repurchases are expected to be made over the next 12 months.

The company generated $12.9 million in operating cash flow and $11.6 million in free cash flow. 

"We're proud to make medicine mobile, with another quarter of record engagement across our entire platform," said Jeff Tangney, co-founder and CEO of Doximity.

"Over 550,000 unique providers used our generative AI, telehealth, messaging, and scheduling workflow tools in Q2 to provide better care for their patients."

Outlook: Doximity expects fiscal third-quarter revenue to be between $127 million and $128 million, versus the consensus of $123.05 million. Third-quarter adjusted EBITDA is expected to be between $61 million and $62 million.

The company anticipates full-year revenue of $460 million to $472 million versus a consensus of $461 million. Full-year adjusted EBITDA is expected to be between $207 million and $219 million. 

Management will hold a conference call to discuss these results at 5 p.m. ET.

See Also: Plug Power Q3 Earnings Highlights: Revenue Miss, EPS Miss, 'Unprecedented Supply Challenges'

DOCS Price Action: Doximity shares were up 31.80% after hours at $27.01 at the time of publication, per Benzinga Pro.

Photo: Darko Stojanovic from Pixabay.