Doximity (NYSE:DOCS) stock is falling hard on Wednesday after the medical cloud services company released earnings for its fiscal first quarter of 2024.
The drop in DOCS stock is despite the company reporting adjusted earnings per share of 19 cents. That’s better than the 15 cents per share that Wall Street was expecting. It’s also an improvement from the 14 cents per share reported in the same period of the year prior.
To go along with that EPS, Doximity reported revenue of $108.5 million. Yet again, that’s above the $107.03 million in revenue that analysts were looking for. It’s also a 20% jump year-over-year from $90.6 million.
Jeff Tangney, cofounder and CEO of Doximity, said the following about its earnings report:
“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. Looking ahead, we are focused on streamlining our client workflows, so we can fully capitalize on our long-term potential.”
Guidance Slams DOCS Stock
Unfortunately for investors in DOCS stock, the company’s guidance isn’t as high as hoped. That has it expecting revenue to range from $108.5 million to $109.5 million in its fiscal Q2 2024 earnings report. That would see it missing Wall Street’s estimate of $121.35 million for the quarter.
In addition to that, Doximity lowered its outlook for the full year of fiscal 2024. As such, it now expects revenue for the year to come in between $452 million and $468 million. That would also fail to reach analysts’ estimate of $501.63 million for the period.
Finally, traders will note that Doximity announced layoffs in its latest earnings report. The company is reducing its workforce by 10%, or 100 employees. This is part of its plan to simplify operations and better align its resources.
DOCS stock is down 22.5% as of Wednesday morning.
Investors can catch up on all of the latest stock market news below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
