After financial markets closed yesterday, digital medical platform company Doximity Inc. (DOCS:NYSE), which developed and now operates a digital platform utilized by more than 80% of U.S. medical professionals across all states and every medical specialty, announced financial results for the second quarter of 2023 ended September 30, 2022.
The company's Co-Founder and CEO Jeff Tangney remarked, "We were pleased to beat on both our top and bottom lines while delivering our first nine-figure revenue quarter…Our telehealth platform grew to a record 370,000 quarterly active clinicians. We will continue to invest in building tools to help physicians save time, so they can provide better care for their patients."
Doximity reported that total revenue in Q2/23 increased by 29% year-over-year to US$102.2 million, compared to US$79.4 million in Q2/22.
The company stated that for Q2/23 it recorded net income of US$26.3 million, or US$0.12 per diluted share, versus US$36.1 million, or US$0.17 per diluted share during Q2/22. The firm indicated that net income margin during the latest quarter was 26%, which was down from 45% in the prior year's corresponding quarter.
The firm indicated that in Q2/23 it had non-GAAP net income of US$36.2 million, or US$0.17 per diluted share, compared to US$41.6 million, or US$0.19 per diluted share in Q2/22.
Doximity highlighted that adjusted EBITDA in Q2/23 increased by 40% y-o-y to US$46.0 million, up from US$32.8 million in Q2/22 and noted that adjusted EBITDA margins improved to 45%, versus 41% in the prior year's comparative quarter.
In addition, the company noted that during Q2/23 operating cash flow increased 106% y-o-y to US$39.5 million and similarly free cash flow rose by 109% y-o-y to US$37.7 million.
The company offered some forward guidance and advised that for Q3/23 it expects revenue of US$110.7-111.7 million and adjusted EBITDA of US$47.7-48.7 million.
Doximity added that it is also reiterating its estimates for FY/23 ending March 31, 2023. The company advised that it expects that for FY/23 revenue will be in the range of US$424.0-432.0 million with adjusted EBITDA coming in at US$178.0-186.0 million.
Doximity advised that during Q2/23 its Board of Directors authorized at the firm's discretion the repurchase of up to US$70 million of the company's Class A common stock, which it expects to complete over the next 12 months when market conditions warrant it.
Doximity is based in San Francisco, Calif. and operates what it claims to be "the leading digital platform for U.S. medical professionals." The firm's integrated network is utilized by over 80% of U.S. physicians nationwide across all practice areas and medical specialties.
The company states that its primary mission is to enable physicians to increase productivity and deliver a higher level of care to patients. The firm stated that it has designed its technology and cloud-based platform to provide its verified clinical membership with digital tools built specifically for addressing medicine and healthcare needs.
The company says that it endeavors "to put physicians first by giving them the mobile and clinical workflow tools to better serve their patients." The firm's platform allows physicians and other medical professionals to collaborate with colleagues, manage their careers, stay up to date with developments in medical research, and securely and privately conduct virtual patient visits and coordinate patient care.
Doximity started the day with a market cap of around US$5.09 billion with approximately 110.47 million shares outstanding. DOCS shares opened 17% higher today at US$30.82 (+US$4.49, +17.05%) over yesterday's US$26.33 closing price. The stock traded today between US$28.50 and US$35.43 per share and closed for trading at US$34.99 (+US$8.66, +32.89%).
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