By Shares of Doximity experienced a significant boost in late trading on Thursday following the company’s announcement of an improved outlook for the year and plans for a share repurchase. The stock soared by 24% to reach $25.49, after closing the regular market session with a 2.7% decline to $20.50. This year alone, the shares had seen a decrease of 15%.
Doximity, based in San Francisco, is a digital platform that caters to doctors and other medical professionals. The company now anticipates revenue between $460 million and $472 million for its current fiscal year, which ends on March 31. These figures surpass the earlier estimated revenue range of $452 million to $468 million.
Furthermore, Doximity is expecting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to fall between $207 million and $219 million this year. This updated guidance exceeds the previous range of $193 million to $209 million.
As part of its efforts to further benefit shareholders, Doximity’s board has approved a program to repurchase up to $70 million of the company’s Class A common stock over the next 12 months.
These positive developments were revealed alongside Doximity’s second-quarter financial results, which boasted revenue and adjusted EBITDA that surpassed the company’s initial forecasts.
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