Doximity’s (NYSE:DOCS) Q3: Beats On Revenue But Stock Drops

Core Insights - Doximity reported Q3 CY2025 revenue of $168.5 million, a 23.2% year-on-year increase, exceeding analyst estimates by 7.2% [1][7][8] - The company anticipates next quarter's revenue to be approximately $180.5 million, aligning closely with analyst expectations [1][8] - Non-GAAP profit per share was $0.45, surpassing consensus estimates by 18.7% [1][7] Company Overview - Doximity operates a digital platform with over 80% of U.S. physicians as members, facilitating collaboration, medical news updates, career management, and virtual patient visits [4] Revenue Growth - Doximity has achieved an annualized revenue growth of 32.8% over the past five years, outperforming the average software company [5] - The company reported a 17.7% annualized revenue growth over the last two years, indicating healthy demand despite being below the five-year trend [6] Financial Performance - Adjusted operating income was $98.99 million, with a margin of 58.7%, exceeding analyst estimates by 15.9% [7] - The company raised its full-year revenue guidance to $643 million from $632 million, reflecting a 1.7% increase [7] - EBITDA guidance for the full year is set at $354 million, above analyst estimates of $348.5 million [7] - Operating margin decreased to 37.8% from 38.8% year-on-year [7] - Free cash flow margin improved to 54.3%, up from 41.2% in the previous quarter [7] - Market capitalization stands at $11.99 billion [7] Future Outlook - Analysts project a 7% revenue growth over the next 12 months, indicating a deceleration compared to the previous two years [9]