Doximity, Inc. (DOCS) experienced a severe pre-market plunge of 34.48% on Friday, extending heavy losses from the previous trading session.

The healthcare technology company's stock came under intense selling pressure following the release of its fiscal third-quarter financial results after the market close on Thursday. While Doximity reported revenue of $185.1 million (up 10% year-over-year) and adjusted earnings per share of $0.46, both beating analyst expectations, investors focused on concerning trends including an 18% year-over-year decline in net income to $61.6 million.

The primary catalyst for the sell-off appears to be weak forward guidance. Doximity provided fourth-quarter revenue guidance of $143 million to $144 million, significantly below the consensus estimate of approximately $150.4 million. Additionally, the company narrowed its full-year revenue outlook to a range of $642.5 million to $643.5 million, which falls short of analyst expectations. Adding to investor concerns, the company disclosed that Chief Financial Officer Anna Bryson is taking a temporary medical leave, creating uncertainty around financial leadership during a challenging period. Analyst downgrades from firms including BTIG and JP Morgan, which cut their price targets on the stock, further contributed to the negative sentiment.