Can AI supercharge this growth stock?

For years, companies across industries have been researching how artificial intelligence (AI) can make their lives and that of their customers easier. And in many cases, these companies have already introduced AI into their business.

Recently, a fast-growing healthcare company mentioned a new tool it was testing.i am talking Doximity (document 1.14%) AI writing helper for doctors. Today, over 80% of US doctors are already using her Doximity. Could this new AI tool secure Doximity’s market leadership and ultimately send its stock price skyrocketing?

social media, etc.

First, a little background on Doximity. The company offers a platform for doctors to connect with each other similar to social media, but with a variety of options specifically related to healthcare. Physicians can transfer patient files, receive research studies directly related to their areas of interest, and conduct virtual visits directly from their mobile phones. It’s kind of an extension of their practice.

How much do doctors pay for all this? Zero. Doximity derives its revenue from pharmaceutical companies and hospital systems. They advertise on platforms to reach doctors. For example, a pharmaceutical company aims to inform doctors about the latest medicines.

And with so many doctors, nurses, medical students, and physician assistants using Doximity, pharmaceutical companies and hospitals are flocking to the platform to connect with them. In fact, Doximity’s clients include the top 20 pharmaceutical companies and the top 20 hospital systems.

As a result, Doximity’s revenue growth has skyrocketed. In the most recent quarter, total revenue, operating cash flow and free cash flow each increased by double digits. Adjusted EBITDA also posted a significant increase in the quarter, up 18% to bring him over $55 million. Revenues have also increased over time.

DOCS Earnings (Annual) Data by YCharts

written by AI

Let’s take a look at Doximity’s new AI efforts. The company created a beta site called DocsGPT. As with the chatbot ChatGPT, it’s all about saving time by letting AI do the writing. According to Doximity, after DocsGPT drafted an appeal to an insurance company about the patient, a doctor raved about it, and the insurance company approved him for a better medication within an hour.

Doximity now calls DocsGPT a “little test project”. But the company hopes this is just the beginning of using AI to make doctors’ jobs easier.

Doximity CEO Jeffrey Tangney said on a recent earnings call that there are many ways to ultimately monetize the DocsGPT product. It’s clear that such a product would save a doctor time: As Doximity points out, more than 75% of his medical documents in the US are sent by fax or traditional mail. The company could ultimately help transform the way these documents are handed over, saving doctors a lot of time.

So could AI supercharge Doximity stock? Alone, no. But the company’s strong earnings track record and ability to bring back doctors and advertisers, along with its strengths in AI, could help boost this stock.

reasonable price

What does this mean for you as an investor? Now is the perfect time to join Doximity. A year ago he was more than 75 times his future earnings expectations, but he is down 44 times. This is reasonable considering the company’s revenue growth and customer list.

Doximity shares rose after its 2021 initial public offering. However, they have since fallen, disappointing investors and potential investors. Over time, Doximity’s revenue growth, new products, some AI-based, and membership and customer growth should drive the stock price of this innovative company higher.