Doximity Inc (NYSE:DOCS), the leading digital platform for U.S. medical professionals, stock fell 6.72% (As on May 17, 11:11:18 AM UTC-4, Source: Google Finance) after the company offered softer-than-expected guidance. Non-GAAP net income of $42.1 million, versus $44.9 million, representing a margin of 38.0%, versus 47.9%. Adjusted EBITDA of $48.9 million, versus $39.4 million, an increase of 24% year-over-year, representing adjusted EBITDA margins of 44.1%, versus 42.0%

DOCS in the fourth quarter of FY 23 has reported the adjusted earnings per share of 20 cents, beating the analysts’ estimates for the adjusted earnings per share of 17 cents. The company had reported the adjusted revenue growth of 18 percent to $111 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $110.9 million.

For this quarter, Doximity sees revenue of $107M and adjusted EBITDA of $39.5M. This is lower than the expected revenue of $111.8M and adjusted EBITDA of $45M.

For FY24, the company updated its guidance so it now expects revenue of $503M (up or down $3M) and adjusted EBITDA of $219M (up or down $3M). Analysts were expecting $501.8M and $215.8M, respectively.

Wells Fargo analysts highlighted the lower-than-expected guidance. F2024 may become a pivotal year as wallet share expansions with existing clients increasingly hinge on ROI of new products; they’re showing positive early results, but are still unproven at scale.

Needham & Company analysts said the outlook is likely conservative while “upsells could drive upside.” The analyst believe this level of conservatism sets a beatable bar for FY24, enabling management to resume their prior cadence of beat and raises. We would be buyers on the weakness and ahead of DOCS’ IDay on June 6th, where the analyst expect positive updates on recent innovations and GTM initiatives.

Meanwhile, DOCS has announced an integration with MEDITECH, one of the most widely used electronic health record (EHR) systems in the United States. The integration enables medical professionals to launch a Doximity Dialer voice or video telehealth visit directly from MEDITECH’s physician-facing native app, Expanse Now. With this easy-to-use native app integration, medical professionals can conveniently access patient records and virtually communicate with patients all from a single screen. Physicians can set a custom caller ID, and eliminate the need to look up and manually dial patient phone numbers, which helps save time and improve patient pick-up rates.