Why Doximity Shares Are Trading Higher Premarket Today?

Doximity Inc DOCS posted Q3 FY22 sales of $97.9 million, an increase of 67% Y/Y, beating the consensus of $86.27 million.

• The adjusted EPS of $0.29 came ahead of the consensus of $0.13 and $0.07 a year ago.
• Non-GAAP net income rose to $63.6 million, versus $19.5 million last year, representing a 65% margin.
• Adjusted EBITDA of $47.0 million increased 119% Y/Y, representing adjusted EBITDA margins of 48%.
• Doximity generated an operating cash flow of $27.3 million versus $24.0 million, and a free cash flow of $25.6 million, versus $22.9 million.
• "We had a strong Q3 led by our existing clients as our net revenue retention rate hit 171%," said Jeff Tangney, co-founder & CEO. "Our telehealth platform grew to 350,000 active providers."
• Acquisition: Doximity has acquired Amion, an on-call physician scheduling site. Deal terms were not disclosed.
• Amion manages nearly 200,000 physician schedules at thousands of hospitals.
• Guidance: For Q4 FY22, Doximity expects revenue of $89.0 million - $90.0 million, compared to the consensus of $89.26 million.
• It expects adjusted EBITDA of $34.0 million - $35.0 million.
• For FY22, the Company forecasts revenue of $338.9 million - $339.9 million, versus the consensus of $327.6 million, with adjusted EBITDA of $144.9 million - $145.9 million.
• The Company also issued interim guidance for FY23 with revenue of approximately $450 million and an adjusted EBITDA margin of over 40%.
• Price Action: DOCS shares traded 9.17% higher at $54.38 during premarket trading on Wednesday.