11:21 AM EDT, 04/01/2024 (MT Newswires) -- Doximity ( DOCS ) business is under pressure because of multiple reasons including declining underlying sales, Jehoshaphat Research said in a note to clients.

The research firm believed that the company's underlying sales are falling at a negative 3% to 6% rate, the report added.

Senior executives' departure from the company, including the chief revenue officer, is another underlying issue for Doximity's ( DOCS ) business under pressure, the report said.

The research firm also highlighted that the company's return on investment is declining due to two factors: a decrease in overall user engagement, and an ad inventory in excess.

"Doximity ( DOCS ), unlike say Instagram or Facebook, is not an app that users sit on and scroll for hours a day. The amount of ads that can be served on a platform like this is naturally limited," the report added.

Jehoshaphat also termed LinkedIn as a "viable threat" to Doximity ( DOCS ) as marketers have switched to using the LinkedIn platform than the latter's platform.

The research firm was short on the company's stock.

Doximity's ( DOCS ) shares slipped 4% in recent Monday trading.

Price: 25.84, Change: -1.07, Percent Change: -3.99