Doximity, Inc.
| Company Name | Doximity, Inc. |
| Stock Symbol | DOCS |
| Class Period | February 09, 2022 to April 01, 2024 |
| Lead Plaintiff Motion Deadline | June 17, 2024 |
On August 8, 2023, Doximity released its first quarter fiscal year 2024 financial results and disclosed that it expected fiscal year 2024 revenue of between $452 million and $468 million, down from prior guidance of between $500 million and $506 million, representing year-over-year revenue growth of only between 7.9% and 11.7%. The Company also disclosed that it expected adjusted EBITDA of between $193 million and $209 million, down from prior guidance of between $216 million and $222 million, representing year-over-year adjusted EBITDA growth of only between 4.9% and 13.6%. Additionally, the Company announced that it would be reducing its workforce by approximately 10%, which was expected to cost between $8 million to $10 million.
On this news, Doximity’s stock price fell $7.49, or 22.8%, to close at $25.30 per share on August 9, 2023, thereby injuring investors.
Then, on April 1, 2024, Jehoshaphat Research published a report alleging, among other things, that “Doximity’s underlying sales . . . are declining at a negative 3-6% rate, but that this decline has been masked through accelerated revenue recognition.”
On this news, Doximity’s stock price fell $1.11, or 4.1%, over two consecutive trading days to close at $25.80 per share on April 2, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants: (1) repeatedly touted the Company’s business prospects and the sustainability of the Company’s revenue growth and profitability, while downplaying the impact of competition and tightening macroeconomic conditions on the Company and Doximity’s reliance on “upselling” products and services (such as additional advertising) to existing customers to sustain the Company’s performance and future growth; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Submit Your Information
If you suffered a loss on your Doximity, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.