Doximity stock plummets after forecast, heads lower than IPO price for first time

Shares fell as much as 25% in the extended session, selling for less than the $26 price in Doximity’s initial public offering less than a year ago, after closing at $33.89. Its shares have never traded for less than $27.06 in a regular session since going public, and have never closed lower than $28.46, according to FactSet records.

The software platform focused on helping healthcare professionals collaborate and communicate otherwise beat expectations with the report. Doximity executives reported fourth-quarter earnings of $36.7 million, or 17 cents a share, as sales increased 40% from last year. After adjusting for stock compensation and other factors, Doximity reported earnings of 21 cents a share, beating the consensus estimate of 15 cents a share, according to FactSet.

While executives’ first-quarter guidance missed analysts’ expectations, their annual revenue forecast increased a tad — from roughly $450 million to a range of $454 million to $458 million — and topped the average estimate of $452.2 million. Guidance for profit also beat: Executives predicted $192 million to $196 million in adjusted Ebitda this fiscal year, while analysts on average were modeling $180.8 million, according to FactSet.

Digital tools for the healthcare field have faced a tougher crowd on Wall Street as they predict sales for year three of the COVID-19 pandemic. Teladoc Health Inc.
TDOC,
+3.53%
shares fell more than 30% after executives provided annual guidance last month, taking related stocks such as American Well Corp.
AMWL,
+1.94%
down with it.