Doximity Inc (DOCS)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	185,202	173,965	151,878	145,192	133,156	124,345	119,209	111,571	114,005
Revenue (ttm)	US$ in thousands	475,422	468,331	448,309	436,882	419,052	401,739	384,353	361,518	343,548
Pretax margin		38.96%	37.15%	33.88%	33.23%	31.78%	30.95%	31.02%	30.86%	33.18%

March 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $185,202K ÷ $475,422K
= 38.96%

Pretax margin measures a company's efficiency in generating profit before accounting for taxes. Doximity Inc's pretax margin has shown a generally positive trend over the past nine quarters, starting at 33.18% in March 2022 and reaching a high of 38.96% in March 2024. This indicates that the company has been effectively managing its expenses relative to its revenue. The incremental improvement in pretax margin suggests that Doximity Inc has been successful in increasing profitability over time. However, fluctuations in pretax margin between quarters may indicate varying cost structures or revenue streams impacting the company's financial performance. Overall, a pretax margin consistently above 30% demonstrates Doximity Inc's ability to generate healthy profits before taxes, signaling operational efficiency and financial strength.