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DocuSign (DOCU) Reports Q1: Everything You Need To Know Ahead Of Earnings

StockStory - Wed Jun 7, 2023

DOCU Cover Image

E-signature company DocuSign (DOCU) will be reporting results tomorrow after market close. Here's what to expect.

Last quarter DocuSign reported revenues of $659.6 million, up 13.6% year on year, beating analyst revenue expectations by 3.14%. It was a mixed quarter for the company, with a decent beat of analyst estimates but underwhelming guidance for the next year.

Is DocuSign buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting DocuSign's revenue to grow 9% year on year to $641.7 million, slowing down from the 25.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.

DocuSign Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.62%.

Looking at DocuSign's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Box delivered top-line growth of 5.65% year on year, beating analyst estimates by 1.03% and Five9 reported revenues up 19.5% year on year, exceeding estimates by 5.03%. Box traded up 3.85% on the results, Five9 was up 10.1%. Read our full analysis of Box's results here and Five9's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 18% over the last month. DocuSign is up 19.4% during the same time, and is heading into the earnings with analyst price target of $65.6, compared to share price of $59.15.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.

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