Where is Doximity Inc. (NYSE: DOCS) stock headed?

Summary

• The California-based Doximity, Inc. launched its platform in 2012.
• The stock jumped 104% on the IPO opening day to close at US$53.
• Its revenue has been growing for the last three consecutive fiscal years and has more than 1.8 million members as of March 31, 2021.

After a resounding trading success at the IPO, health-tech company Doximity, Inc. (NYSE:DOCS) is set for an eventful year ahead. What’s driving investors’ attention to the stock is its incredible response in the market, coming at a time when the pandemic has accentuated the need for a robust healthcare system.

More importantly, a pandemic like situation can occur anytime in the future, and virtual medical care could possibly be better equipped to take care of the needs. In this context, Doximity’s launch has been well-timed, which promoters might have carefully selected to drive maximum weightage.    

The company aims to demolish geographical boundaries to bring modern tools to the medical fraternity through its cloud-based platform to serve the patients better and at a scale.

The Doximity stock opened with a bang on Thursday, touching a high of US$53.89 on its first day of listing on NYSE before closing at US$53. The trading volume was 17,305,870.

The company’s proposed maximum aggregate offering price was US$616,285,000; however, the climbing stock price pushed its market capitalization higher to US$9.4 billion. The stock jumped 104% on the first day. It was down 6.56% to US$49.52 at 10:09 am ET as of June 25. 

Doximity is the largest healthcare professionals’ network in the US, with more than 80% of US physicians and over 50% of US nurse practitioners and physician assistants subscribed to the platform.

Its platform had more than 1.8 million medical professional members at the end of March 31, 2021.

Source: Pixabay.

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The cloud-based platform provides tools to its members to conduct virtual patient visits, coordinate patient care, collaborate with colleagues, and stay updated with the latest medical news and research.

These tools are for patient care and treatment, professional networking for connecting with other healthcare professionals and getting the latest information related to the medical field.

The company does not charge any fee for membership from physicians. Its revenue comes primarily from pharmaceuticals manufacturers and healthcare systems. Its platform can be used on various devices, such as iPhone, Apple Watch, iPad, Android device and computer, to connect with other healthcare professionals, and for patient treatment and career growth. 

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Doximity has earned revenue of US$206.9 million in the fiscal year ended March 31, 2021, compared to US$116.4 million in the fiscal year 2020, nearly 78% growth year over year. Its revenue for FY 2019 was US$85.7 million. The company has been performing well on the revenue front, as per the last three years data. The only point to consider is that a considerable revenue comes from only a few clients.

Its net income attributable to common stockholders, basic and diluted, has been rising too, as per the last three years data. It was US$595,000 in the fiscal year 2019, US$10.8 million in the FY 2020, and US$21.56 million for the fiscal year ended March 31, 2021, an almost 100% increase in 2021 from last year.

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DOCS launched its platform in 2012. Its employee headcount increased from 323 in 2019 to 713 as of March 31, 2021. Its competitors are other technology companies providing open networking tools, such as LinkedIn, Facebook, Google, Twitter, and many other smaller companies. The uniqueness of DOCS is that it is focusing on healthcare professional members only.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.