Doximity, Inc. (DOCS) saw its shares soar more than 30% in pre-market trading on Friday, following the company's impressive third-quarter fiscal 2025 results that exceeded analyst expectations. The stock's surge was driven by Doximity's robust financial performance, accelerated network growth, and the continued success of its new products and integrated programs.

For the quarter ended December 31, 2024, Doximity reported revenue of $168.6 million, significantly outpacing the consensus estimate of $152.8 million. The company's adjusted earnings per share of $0.45 also surpassed analyst projections of $0.34, reflecting strong profitability.

Robust Financial Performance and Network Engagement

Doximity's top line growth was fueled by a 25% year-over-year increase in revenue, reaching $169 million. The company's adjusted EBITDA margin hit a record 61%, translating to $102 million, marking a 39% year-over-year growth. Moreover, Doximity's unique active users on a quarterly, monthly, and weekly basis all reached new highs, with double-digit percent growth year-over-year.

New Product Momentum and Integrated Programs

Contributing to Doximity's strong performance was the success of its new point-of-care and formulary products, which grew over 100% in Q3 and contributed to over 20% of pharmaceutical sales. Additionally, the company's newer integrated programs, which leverage data science to create personalized campaigns for doctors, saw significant traction, leading to larger deal sizes and driving growth.

Doximity's client portal also played a crucial role, providing clients with a single trusted platform to test strategies, see results, and gain insights into their return on investment. Over half of the company's brand clients now have access to the portal, solidifying Doximity's role as a strategic partner.

Industry Recognition and Future Outlook

Notably, Doximity's telehealth platform, Doximity Dialer, was named the #1 Best in KLAS in the Video Conferencing Platforms segment for the fourth consecutive year, further cementing the company's leadership in delivering reliable and user-friendly virtual care solutions.

Looking ahead, while the digital market growth is expected to remain at 5% to 7%, Doximity aims to continue growing ahead of the overall market, driven by its strong competitive positioning and record engagement. With its robust platform, new product offerings, and integrated programs, the company believes it is well-positioned for another year of market share gains.