Doximity Inc (DOCS)

Gross profit margin

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Gross profit (ttm)	US$ in thousands	424,753	416,552	395,194	383,316	365,562	350,161	335,216	316,640	303,761
Revenue (ttm)	US$ in thousands	475,422	468,331	448,309	436,882	419,052	401,739	384,353	361,518	343,548
Gross profit margin		89.34%	88.94%	88.15%	87.74%	87.24%	87.16%	87.22%	87.59%	88.42%

March 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $424,753K ÷ $475,422K
= 89.34%

The gross profit margin of Doximity Inc has been consistently strong over the past several quarters, ranging from 87.16% to 89.34%. This indicates that the company is effectively controlling its direct costs of goods sold relative to its revenue generation. The consistent high gross profit margin suggests efficient production processes, effective pricing strategies, or potentially superior product differentiation. This metric reflects positively on the company's operational efficiency and ability to generate profits from its core business activities. It is important for investors and analysts as it provides insights into the company's cost structure and pricing strategy, which are vital components of evaluating a company's overall financial health and performance.