Doximity: Ticking Many Boxes For Investors In This Environment

Jan. 05, 2023 5:41 PM ETDoximity, Inc. (DOCS)13 Comments
Bert Hochfeld profile picture
Bert Hochfeld
21.12K Followers

Summary

  • Doximity is a rare IT vendor who reported positive business trends when it released its Q3 results at the start of November, 2022.
  • The company's big pharma and hospital customers showed increased appetite for Doximity solutions.
  • The company is one of the most profitable IT vendors of which I know, and as a concomitant, its Rule of 40 metric is near 70 or in the mid 70's.
  • The company enjoys a strong presence in providing digital marketing solutions for hospitals and big pharma and those organizations are migrating rapidly to digital solutions.
  • The company has been led by its 3 founders for more than a decade; all of these leaders have significant experience and positive records in this space.

Sick woman at home video conferencing with doctor using telmedicine digital tablet

Luis Alvarez

Doximity: Managing headwinds in a profitable fashion

2022 was, simply put, a disastrous year for investors in high growth IT stocks - the software ETF fell by 36% and the WCLD ETF fell by 52%. Why

This article was written by

Bert Hochfeld profile picture
21.12K Followers
Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which provided research services to major institutions including Fidelity, Columbia Asset, SAC Capital, and many other prominent institutions and hedge funds. He also operated the Hepplewhite Fund, a hedge fund that specialized in technology investments. Hedge Fund Research, an independent 3rd party firm that specializes in ranking managers, rated the Hepplewhite Fund as the best performing small-cap fund for the 5 years ending in 2011. In 2012, Mr. Hochfeld was convicted of misappropriating funds from a hedge fund he operated. Mr. Hochfeld has published more than 500 articles on Seeking Alpha, all dealing with companies in the information technology space. Highly esteemed for his investment wisdom accumulated over decades, Mr. Hochfeld ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes.

Disclosure: I/we have a beneficial long position in the shares of DOCS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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