Doximity, Inc. (DOCS) shares experienced a pre-market plunge of 20.86% on Thursday, extending significant losses from the previous trading session.

The sharp decline follows the company's release of its fiscal fourth-quarter financial results, which revealed adjusted earnings of $0.26 per share, missing the analyst consensus estimate of $0.28. The earnings shortfall was attributed to a substantial increase in operating expenses, which rose to $101.1 million from $75.1 million a year earlier, pressuring profitability despite a 5% year-over-year revenue increase to $145.4 million.

Investor sentiment was further weighed down by Doximity's revenue guidance for the upcoming periods, which fell short of market expectations. The company expects first-quarter revenue between $151 million and $152 million, below estimates of approximately $153.8 million, and forecasts full fiscal year 2027 revenue in the range of $664 million to $676 million, well below the consensus estimate of about $697.4 million. The weak outlook prompted analyst actions, including price target cuts from JP Morgan and Needham.