2024-04-28 22:34:47 ET
Summary
- Doximity's revenue and earnings are growing, but the company's slowing revenue growth and customer churn remain concerns.
- The company's robust product pipeline and focus on AI-led innovation are positive factors for future growth, along with hiring of Lisa Greenbaum as Chief Commercial Officer.
- However, declining customers with $100K+ in subscription revenue and weakening Net Retention Rate, along with macroeconomic headwinds, are challenges for Doximity's growth story.
- While the company has the potential to revive its growth story, the management hasn’t provided clear forward guidance, which is why, I will remain on the sidelines and rate it a “hold”.
Introduction & Investment Thesis
Doximity ( DOCS ) is a cloud platform for US medical professionals that has severely underperformed the S&P 500 and Nasdaq 100 YTD. I initiated a “hold” rating on the stock on January 16, and it predicated on my belief that the company was seeing its revenue growth slow, despite displaying financial robustness by improving margins....
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For further details see:
Doximity: Significant Upside Remains, But Not Until The Growth Story Returns