Doximity Inc (DOCS) stocks have been making headlines in the stock market for all the right reasons. The healthcare technology company has recently witnessed a surge in its share price, and it doesn’t seem like it is going to slow down any time soon. In this highly speculative bullish article, we will dive deep into the reasons why investing in Doximity could be a smart decision for investors.
Overview of Doximity
Before jumping into the reasons why Doximity’s stock price has risen, let us first understand the company and its operations. Doximity is a healthcare technology company that operates a secure communication network for doctors and other medical professionals. Launched in 2011, Doximity’s app is a networking platform where doctors can discuss patient cases, share medical knowledge, and earn continuing medical education credits. The company’s goal is to connect doctors and other medical professionals to collaborate care and improve patient outcomes.
Rapidly Growing Market
The first reason why Doximity’s stock price is soaring is the sheer size of the market it operates in. With the ever-increasing demand for telemedicine, the healthcare industry has witnessed rapid growth in recent times. The global telemedicine market is expected to reach USD 191.7 billion by 2025, growing at a CAGR of 25.1% from 2020 to 2025. Doximity is well-positioned to benefit from this growth trend as its telemedicine platform has been widely adopted by doctors in the US.
Strong Financial Performance
Another reason why Doximity’s stock price is skyrocketing is the impressive financial performance it has demonstrated in the past few quarters. Doximity’s Q2 2021 financial report showed a revenue growth of 69% YoY, beating the market’s expectations. The company’s net losses also improved, indicating that the company’s operating costs are under control. Doximity’s gross margin improved to 77% in Q2 2021, from 74% in Q2 2020, indicating that the company is profitable.
Doximity’s Platform Growth
Doximity’s telemedicine platform has gained significant momentum in recent times, and this is another reason why its stock price is soaring. While telemedicine was already growing before COVID-19, the pandemic accelerated its adoption. People who were hesitant to use telemedicine before the pandemic are more likely to use it now. This has led to an uptick in patients requesting telemedicine services. Doximity provides a convenient platform for healthcare providers to provide telemedicine services to their patients, leading to wider adoption of the platform.
Partnerships and Acquisitions
Doximity is also expanding its reach through partnerships and acquisitions. The company has partnered with Epic Systems, an electronic medical record (EMR) system, to provide seamless integration of Doximity’s telemedicine platform into Epic’s EMR system. The integration will make it easier for doctors to use the platform within the workflows they are accustomed to. This partnership will likely increase the adoption rate of Doximity’s telemedicine platform.
In addition, Doximity recently acquired THMED LLC, a leading healthcare staffing company. The acquisition is expected to expand Doximity’s healthcare talent marketplace, enabling more healthcare professionals to connect with employers while also providing employers with access to a broader range of healthcare professionals.
Future Outlook
Looking ahead, Doximity has a bright future. The company is expected to continue experiencing growth, driven by various factors, including:
• Increasing demand for telemedicine: As telemedicine becomes mainstream, the demand for Doximity’s platform is expected to continue increasing.
• Expansion through partnerships and acquisitions: Doximity is well-positioned to expand its offerings through partnerships and acquisitions, increasing its share in the healthcare technology market.
• Exploring new markets: Doximity has the potential to expand beyond the US market and into other countries, providing an entirely new revenue stream.
• Leveraging Artificial Intelligence (AI): Doximity can leverage AI to improve the platform’s functionality and enhance the user experience, making it easier for doctors to collaborate and deliver patient care.
The bottom line
The reasons discussed above point to the fact that investing in Doximity could be a smart decision for investors. The healthcare technology company is experiencing impressive growth and is well-positioned to continue growing. With telemedicine becoming mainstream and the healthcare technology market expanding, Doximity is a company worth keeping an eye on. The company’s increasing partnerships, acquisitions, financial performance, and platform growth provide ample evidence that its stock price may continue to rise in the long term.
