Doximity Inc (NYSE: DOCS) is up about 25% on Friday after the online network for medical professionals reported encouraging results for its fiscal second quarter.
Doximity announces a stock buyback programme
Part of the rally this morning was related also to the monthly inflation data a day earlier that came in better than expected and create some room for the Fed to consider slowing its pace of rate hikes that have been a pain for the tech stocks this year.
Also on Friday, Doximity announced a $70 million share repurchase programme and said it will be buying back stock periodically over the next twelve months. In the press release, CEO Jeff Tangney said:
We were pleased to beat on top and bottom lines while delivering our first nine-figure revenue quarter. Our telehealth platform grew to a record 370,000 active clinicians. We’ll continue to invest in building tools to help physicians save time.
Despite the surge, Doximity stock is still down about 45% versus its year-to-date high.
Doximity stock up on solid revenue growth
Net income tanked 27% year-on-year to $26.3 millionPer-share earnings also sank from 17 cents to 12 centsRevenue was $102.2 million – a 29% annualised growth.Free cash flow more than doubled to $37.7 million
For the full financial year, Doximity is calling for $424 million to $432 million in revenue, including up to $111.7 million it expects to generate in the third quarter. Adjusted EBITDA, it forecasts, will fall between $178 million and $186 million in fiscal 2023.
It might still not be too late to buy Doximity stock considering the Wall Street sees upside in it to $40 on average. That’s up another 20% from here.