Jeff Tangney, CEO of Doximity on the New York Stock Exchange for its IPO, June 24, 2021.
Doximity shares jumped as much as 10% in extended trading on Tuesday after the online health company, which debuted on the stock exchange in June, said its quarterly earnings had doubled.
Here’s how the company fared in its first fiscal quarter compared to StreetAccount’s estimates:
- Income: $ 72.7 million against $ 63.6 million expected
- Earnings: 11 cents per share adjusted
Doximity, which provides professional networking and telehealth tools to healthcare professionals, doubled revenue in the quarter and said full-year sales would be between $ 296.5 million and $ 299.5 million. That’s an annual increase of at least 43% from $ 206.9 million.
The company increases revenue by providing more targeted marketing services to drugmakers and hospitals, which can reach specialized audiences on the Doximity news feed. In addition, Doximity offers a new telehealth offering so that physicians can communicate securely with their patients.
Although Doximity did not disclose specific revenue figures for its telehealth product, the company said it now serves more than 30% of all U.S. doctors with its paid offering.
Doximity’s news feed includes company-published articles from mainstream news sources and medical and scientific journals. The comments section is open to its user base of doctors, nurse practitioners, medical assistants, medical students, pharmacists, and other healthcare workers.
Like other social networks, Doximity faces the challenge of dealing with increased misinformation related to the Covid-19 vaccine and masks in the comments, CNBC reported last week. Doximity CEO Jeff Tangney said in a statement to CNBC after the results Tuesday that such claims came from less than 0.1% of its users.
“Unfortunately, we have seen an increase in comments that we had to delete because we found that they contained violations of our community guidelines, which explicitly prohibit the posting of medical misinformation,” Tangney wrote. “Although commentators making inaccurate statements represent a minority (
Doximity shares hit $ 58.20 in after-hours trading before falling to $ 56.25. The stock closed at $ 52.93 on Tuesday.
Clarification: This story has been updated to remove a comparison between reported and actual earnings per share. CNBC does not compare reported EPS to Wall Street analysts for a company’s first report since its IPO.
LOOK: CEO of Doximity during its IPO