Doximity Inc. (NASDAQ: DOCS) is a social networking platform exclusively designed for U.S. healthcare professionals. It's a cross between Meta Platforms Inc. (NASDAQ: META) owned Facebook and Microsoft Co. (NASDAQ: MSFT) owned LinkedIn. The community has grown to over 580,000 medical providers as the company has integrated artificial intelligence (AI) and automation functions.
Doximity competes with telehealth platforms in the medical sector, such as Teladoc Health Inc. (NYSE: TDOC), American Well Co. (NYSE: AMWL) and privately held Sermo, which purports to have over 1 million physicians worldwide on its network.
The Growing Uses of Doximity
[content-module:CompanyOverview|NASDAQ`:DOCS] Doximity offers a wide range of tools that enable medical professionals to get the latest healthcare and medical news, as well as career advancement and professional development help. The platform also enables physicians to conduct virtual visits.
Professionals can use the app to send HIPAA-compliant messaging about patient care, connect with people, grow their professional medical network, share medical records and research, communicate with peers, make phone calls and send faxes. Doctors can also connect with patients confidentially with the app's dialer without revealing their phone numbers.
One testimonial from Dr. Gavin Harris mentions how he was able to transfer a patient to another hospital and fax over patient information and medical records all through the Doximity app to a colleague admitting the patient into the ICU at 3 a.m.
The Growing Doximity Community
Doximity is a one-stop shop for members of the medical community. Its members include not only doctors, nurses and healthcare professionals but also hospitals, healthcare organizations, research groups, insurance carriers and pharmaceutical companies. Doximity boasts an 80% membership of doctors and a 60% market share of nurse practitioners and physician assistants (over 550,000) in the country. The more healthcare professionals use it, the more it grows. Doximity claims to be the #1 app for clinicians.
Daily Descending Triangle Breakout Pattern
DOCS triggered a daily descending triangle breakout pattern. The descending trendline formed at $28.90 as shares fell, making lower highs towards the flat-bottom lower trendline at $22.96. As shares approached the apex point, DOCS gapped 18% on its Q1 2024 earnings release. This triggered a breakout through the $23.96 resistance as it gapped up to close at $28.03, forming a gap fill at $26.21. The daily relative strength index (RSI) surged to the 70-band. Pullback support levels are at $26.21, $23.96, $22.96 and $21.15.
Growing Steadily in Fiscal Q4 2024
Doximity reported fiscal Q4 2024 EPS of 25 cents, beating consensus analyst estimates by 5 cents. Net income rose 32% to $40.6 million, and adjusted EBITDA rose 15% YoY to $30.7 million, representing a margin of 34.4%. Non-GAAP net income was $51 million, representing a 43.2% margin. Revenues rose 6.4% YoY to $118.1 million, beating $116.41 million consensus estimates. Operating cash flow rose 37% YoY to $62.3 million.
A Solid Fiscal 2024
Fiscal full-year results for 2024 included net income of $147.6 million and net margin of 31% and non-GAAP net income of $195.6 million and net margin of 41.2%. Adjusted EBITDA rose 25% YoY to $230.5 million with adjusted EBITDA margins of 48.5%. Non-GAAP diluted EPS was 95 cents. Operating cash flow rose 3% YoY to $184.1 million. Free cash flow rose 3% YoY to $178.3 million.
Mixed Financial Outlook
Doximity issued a mixed outlook. For fiscal Q1 2025, the company expects revenues of $119.5 million to $120.5 million versus $118.86 million consensus estimates. The company expects adjusted EBITDA to fall between $55 million to $56 million. However, it expects fiscal 2025 revenues to be between $506 million and $518 million, falling shy of the $520.19 million consensus estimates. Fiscal full-year 2025 adjusted EBITDA is expected to be between $238 million and $250 million. To make the full-year estimates more palatable, Doximity authorized a $500 million stock buyback program.
Becoming the Standard Tool for Medical Professionals
Doximity Co-Founder and CEO Jeff Tangney pointed out how the company added more than 400,000 registered healthcare professionals onto its platform in fiscal 2024. This is the second-largest growth year in its history, rivaled only by the COVID surge of 2021. It underscores how Doximity is becoming the standard tool for looking up colleagues, checking calendars and calling patients among hospitals. Its newsfeed continues to be its most used feature, with over 900,000 unique prescribers scrolling the feed to stay up to date with the latest developments in the medical field. The Doximity app has over 165,000 reviews and 4.8 stars on the Apple Inc. (NASDAQ: AAPL) App Store.
Integrating Proximity AI Integrations into Doximity
Doximity launched a new integration with its AI answer engine, Proximity AI. Doctors use it to get answers to questions regarding the latest publicly available citations and sources. Doctors can ask about recent guideline changes and get quick links to medical society websites with full guideline postings. Tangney commented, "Unlike other popular AI models, this gives doctors the latest up-to-the-minute information and its sources. Our physicians tell us that this ability to double-check their sources easily is a key requirement in making clinical decisions."
Doximity analyst ratings and price targets are on MarketBeat.
