Shares of Doximity sank 19.6% in premarket trading on Thursday after the telehealth company’s fiscal fourth-quarter profit came in below Wall Street expectations, with fiscal 2027 revenue guidance falling well short of analyst forecasts.
The telehealth company posted adjusted earnings of 26 cents a share, compared with 36 cents a share a year ago and just below Wall Street’s expectations of 28 cents a share. Revenue grew 5% to $145.4 million, slightly beating the analyst consensus call for $144 million, according to FactSet.
Looking ahead, Doximity forecast revenue between $151 million and $152 million and adjusted Ebitda of $68.5 million to $69.5 million for the fiscal first-quarter, ending June 30. Wall Street expects first-quarter sales of $153.8 million, according to FactSet.
For the full fiscal year—ending March 31, 2027—the company predicts revenue of $664 million to $676 million and adjusted Ebitda totaling between $323 million and $335 million. The full-year guidance was a big miss, with analysts calling for fiscal 2027 revenue totaling $697.4 million.
Doximity operates an online platform that offers its members curated medical news, telehealth tools, and case collaboration. Its mobile app also allows health professionals to prescribe medication and communicate with patients via secure video calls and texting. The company also launched artificial intelligence tools in 2023.
Prepared remarks from Doximity executives Wednesday did not touch much on the financials, instead focusing on AI integration.
“We’re thrilled to announce that we reached a new engagement record of over 800,000 active prescribers using our workflow tools in Q4,” CEO Jeff Tangney said in the earnings release. “Nearly half of those providers used our clinical AI last quarter, while our prompts per user nearly doubled from January to April alone.”
The company also announced Wednesday it is “integrating” with Aledade, a company that helps physicians and health centers transition to value-based care—a system that pays doctors and hospitals based on patient health outcomes.
Through the agreement, Doximity will integrate components of its clinical AI suite—including its notetaking tool and clinical AI assistant—into Aledade’s systems.