Why Doximity Stock jumped on Monday

What happened

Actions of Proximity (NYSE: DOCS) traded higher on Monday, climbing to 14.8% on rising investor enthusiasm, although the stock ended the trading session up 14%. The cloud-based service for doctors and other healthcare professionals hasn’t climbed on any specific news, but has been riding a wave of positive sentiment that began with its first financial report as a public company. In total, the stock has gained more than 60% since the publication of its results on August 10.

So what

For its first quarter of fiscal 2022 (which ended June 30), Doximity generated revenue of $ 72.7 million, up 100% year-over-year, accelerating from annual growth of 36% and 78% in fiscal 2020 and 2021, respectively. The company also generated earnings per share of $ 0.09, up from the breakeven quarter of the previous year.

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Doximity also benefited from positive comments from CNBC’s Jim Cramer. The TV personality and former hedge fund manager said investors should “absolutely” buy Doximity shares, calling her a “star” and “the best of the best.”

“Their EBITDA [earnings before interest, taxes, depreciation, and amortization] the margin was 43%, ”added Cramer. “Analysts were only looking for 30%. It’s extraordinary.”

Now what

Investors are also celebrating Doximity’s strong outlook for its fiscal second quarter and full year. The company expects revenue of $ 73.5 million at the midpoint of its forecast, beating analysts’ consensus estimate of $ 71.8 million. Additionally, for fiscal 2022, Doximity forecasts revenue of between $ 296.5 million and $ 299.5 million, ahead of analyst expectations of $ 295.5 million.

The company’s acceleration in revenue, earnings growth and positive commentary from analysts have sparked investor enthusiasm for its outlook.

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