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They told investors in a note that there is a developing risk to the company’s FY24 guidance, even if the company has a “best in class platform, growth and profitability.”
“Specifically, we are concerned about the $35.3M mid-year upsell burden embedded in DOCS’ FY24 revenue guidance,” the analysts wrote. “We believe this burden will fall almost entirely on Newsfeed; where current traffic may not be able to support it.”
Expanding on the topic, they reiterated that they do not believe the current Newsfeed traffic can support this level of mid-year upsells without bloating ad loads and impairing customer ROIs.
At the time of writing, DOCS shares are down over 2%, trading not far above the $33 mark.
