What happened

Shares of Doximity (DOCS -1.24%) are on the move after an encouraging fiscal first-quarter earnings report. Investors excited about the niche healthcare networking platform's expanding profit margins drove the stock 21.9% higher as of 1:06 p.m. EDT on Wednesday.

So what 

Doximity made its stock market debut just a couple of months ago, so this was its first quarterly earnings report as a publicly traded company. Expectations were high, but the company exceeded them anyway.

Healthcare professionals  look at a tablet.

Image source: Getty Images.

During the company's fiscal first quarter ended June 30, 2021, total revenue more than doubled compared with the previous year to $72.7 million. The stock probably would have risen even further, but management also told investors to expect revenue during the fiscal second quarter to land in a range between $73 million and $74 million.

Now what

For the entire fiscal year, Doximity expects adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, to land in a range between $106 million and $109 million. With an $11.4 billion market cap at the moment, you're probably thinking this stock's valuation is absolutely insane.

This company's unique position in America's gigantic healthcare system gives Doximity a pretty good chance to grow into its valuation. That's because out of around $4 trillion in annual U.S. healthcare spending, around three-quarters is heavily influenced by physician decisions. Doximity already counts among its members more than 80% of the nation's physicians.

In addition to being in a great place to market products and services to physicians, Doximity also operates a rapidly growing telehealth solution. Despite being relatively new to the game compared with companies like Teladoc Health, Doximity delivered 63 million telehealth visits last year. With diverse contributors to a high-margin revenue stream that's growing fast, this might be one of the best stocks you can buy right now.