Doximity tumbles 28% after cutting full-year forecast; earns 2 downgrades

Doximity (NYSE:) reported FQ1 results that topped analyst expectations, however, the lowered guidance sent shares tumbling in pre-market Wednesday.

The company a profit per share of 19 cents for its first fiscal quarter, topping the consensus for 14 cents. Revenue rose 20% year-over-year to $108.5 million versus the consensus estimate of $107M.

“We’re pleased to report another quarter of record engagement across our entire platform, with over 525,000 unique providers using our workflow tools in Q1,” said Jeff Tangney, co-founder and CEO at Doximity. “Looking ahead, we are focused on streamlining our client workflows, so we can fully capitalize on our long-term potential.”

For this quarter, the company guided for revenue of $109M, missing the forecast of $121.3M. For FY24, Doximity lowered its revenue forecast to $460M from $503M.

Moreover, the company announced plans to reduce its current workforce by approximately 100 employees, representing 10% of its workforce.

At least, two Wall Street analysts lowered their ratings on DOCS stock. Needham & Company analysts downgraded to Hold.

“The macro and small shifts in customer marketing priorities drove significantly lower bookings leading the company to reduce its revenue growth guidance to ~7% for the balance of the year versus our prior ~20% estimate,” the analysts said in a note.

“While we believe the updated guidance is likely kitchen-sinked, 1Q was DOCS fifth consecutive quarter in reducing the next quarter’s growth assumptions leading us to “Cry Uncle” until demand becomes more predictable.”