What happened

Doximity (DOCS 1.53%) shareholders trounced a rallying market last month. The stock rose 48% in August compared to 3% spike in the S&P 500, according to data provided by S&P Global Market Intelligence. The rally was sparked by a blockbuster earnings report from the healthcare tech platform.

So what

Doximity said on August 10 that sales had doubled in fiscal Q1, its first as a public company. Revenue landed at $73 million as more physicians turned to its platform to handle higher caseloads.

The company achieved robust market share gains, too, with roughly 30% of all U.S. physicians using its paid telehealth services. "The shift to digital among our clients continues," CEO Jeff Tangney said in a press release.

A patient consults a doctor using a video conferencing app.

Image source: Getty Images.

Unlike many growth stocks, Doximity is solidly profitable and generating plenty of cash. That success combined with the strong sales to push shares much higher in August and for the wider 2021 year.

Now what

The momentum appears to be continuing, with sales now set to reach roughly $300 million for the fiscal year that ends in late March. Investors don't have much of a track record to dissect for the business, including how it might fare during times of less intense growth in the industry. The stock is also valued at a huge multiple of its annual sales, implying high expectations from Wall Street over the next few years.

Still, shares could continue climbing if Doximity can keep pairing market-thumping revenue gains with improving profitability.