Shares of Doximity (NYSE: DOCS) were skyrocketing 15.9% higher as of 10:54 a.m. ET on Friday. The big gain came after the healthcare technology company announced its fiscal 2024 fourth-quarter and full-year results following market close on Thursday.

Doximity reported fiscal Q4 revenue of $118.1 million, a 6% year-over-year increase. This topped the consensus revenue estimate of roughly $116.5 million.

The company posted fiscal Q4 earnings of $40.6 million, or $0.20 per share, based on generally accepted accounting principles (GAAP). Non-GAAP earnings came in at $51 million, or $0.25 per share — well above the average analysts’ estimate of $0.20 per share.

What investors liked even more about Doximity’s update

Investors applauded Doximity’s revenue and earnings beats. However, they probably liked the company’s guidance even more.

Doximity projects fiscal Q1 revenue of between $119.5 million and $120.5 million. It looks for full-year revenue of between $506 million and $518 million. The midpoints of both ranges reflect solid year-over-year growth.

The company also announced that its board of directors has authorized up to $500 million of stock buybacks. This is a positive sign of the board’s optimism about Doximity’s future.

Is Doximity stock a buy after its good news?

Doximity has a strong business model as the leading digital platform for U.S. medical professionals. I like the company’s improving financial picture and its plans to buy back shares. Is Doximity stock a buy after its good news?

I’m still reluctant to jump aboard for one reason: valuation. The stock trades at over 31.6 times forward earnings. My concern is that Doximity’s growth doesn’t justify this premium multiple.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy.