According to data provided by S&P Global Market Intelligence, the "Bloomberg platform for medical professionals," Doximity (NYSE: DOCS), saw its shares spike 34% as of 11:20 a.m. ET Friday.
The healthcare upstart rocketed past analysts' expectations on both the top and bottom lines and guided for a rosier upcoming quarter than anticipated.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
However, a few nuggets hidden in Doximity'searnings callmay be the real reason for the market's exuberant reaction today.
Doximity's investment thesis looks better than ever
Doximity counts roughly 80% of physicians and 60% of nurses in the United States as members of its platform. Providing a tailored, healthcare-focused newsfeed, the ability to network with peers, and a suite of workflow and productivity solutions, the company has quickly become a must-have for medical professionals.
Thanks to this adoption among the medical professional community, Doximity's platform is an attractive marketing space for pharmaceutical companies and hospital systems that want to reach physicians with their products.
Doximity's third-quarter results showed that this investment thesis continues to gain steam as it delivered sales growth of 25% -- its highest mark since 2022 and more than three times faster than the industrywide growth rate.
Best yet, this growth isn't just coming from new customers. The revenue retention rate among Doximity's top 20 customers was 122%, meaning that Doximity's existing customers increased their spending by 22% compared to last year -- even after accounting for customers lost to churn.
Simply put, the best and brightest minds at the behemoth pharmaceutical and hospital firms acknowledge the oustize return on investment provided by advertising with Doximity and continue to flock to its offerings. With the pharmaceutical industry still only spending one-third of its budget on digital ads -- compared to a 70% digital spend in most other industries -- Doximity still has ample growth ahead.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $333,669!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,168!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $547,748!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of February 3, 2025
Josh Kohn-Lindquist has positions in Doximity. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
