Doximity (NYSE:DOCS) shares dropped almost 10% in pre-open Wednesday after the company offered softer-than-expected guidance.
The company posted adjusted EPS of $0.20, ahead of the Street at $0.17. Revenue grew 18% year-over-year to $111 million while analysts were looking for $110.09M.
“With the public health emergency officially over, we’re proud to emerge with a record number of providers using our physician cloud in Q4 to power their scheduling, fax, e-signature, and telehealth needs,” said Jeff Tangney, co-founder and CEO at Doximity. “We’re also thrilled to welcome Craig Overpeck and Ben Greenberg to our senior leadership team, as we continue to grow and scale our commercial businesses.”
For this quarter, Doximity sees revenue of $107M and adjusted EBITDA of $39.5M. This is lower than the expected revenue of $111.8M and adjusted EBITDA of $45M.
For FY24, the company updated its guidance so it now expects revenue of $503M (up or down $3M) and adjusted EBITDA of $219M (up or down $3M). Analysts were expecting $501.8M and $215.8M, respectively.
Wells Fargo analysts highlighted the lower-than-expected guidance.
“F2024 may become a pivotal year as wallet share expansions with existing clients increasingly hinge on ROI of new products; they're showing positive early results, but are still unproven at scale,” they wrote in a note.
Needham & Company analysts said the outlook is likely conservative while “upsells could drive upside.”
“We believe this level of conservatism sets a beatable bar for FY24, enabling management to resume their prior cadence of beat and raises. We would be buyers on the weakness and ahead of DOCS' IDay on June 6th, where we expect positive updates on recent innovations and GTM initiatives,” they said.