DocuSign (DOCU) reported strong third-quarter figures, that beat analysts’ expectations on revenue, net income and billings. CEO Allan Thygesen said that the company was making “continued progress against our critical priorities.” Here are the key points:
Total revenue increased by 18% to $645.5 million. Analysts’ expectations were for revenue of $627 million
Subscription revenue was $624.1 million, an increase of 18% year-over-year.
Professional services and other revenue was $21.4 million, an increase of 27% year-over-year.
GAAP net loss per basic and diluted share was $30 million or $0.15 compared to $0.03 in the third quarter of 2021
Non-GAAP net income per diluted share was $0.57 down from $0.58 in Q3 last year. Wall Street expectations were for $0.42 per share
Billings were $659.4 million, an increase of 17% (YoY) beating the analysts expectations of $588.6 million
GAAP gross margin was 80% compared to 79% in the same period last year
Net cash provided by operating activities was $52.5 million compared to $105.4 million in the same period last year
Free cash flow was $36.1 million compared to $90.0 million in the same period last year
Cash, cash equivalents, restricted cash and investments were $1.1 billion at the end of the quarter
DOCU Fourth Quarter Forecasts
The company now sees revenue of $637 million to $641 million in the fourth quarter, the consensus is for $641 million. Bookings are expected between $705 million to $715 million, while analysts’ expectations are for $707 million.
DocuSign Stock Price
DocuSign stock closed today’s trading session 3.97% higher at $43.75. The market cap is at $8.45 billion. DocuSign stock has a 52-week trading range between $39.57 and $163.77. Since the beginning of the year, DOCU has lost 71.28% of its value. In the last three months is down 24.50%.
DocuSign technical picture remains bearish and only a break above the 50-day moving average at $47.06 could boost sentiment. Today’s strong third-quarter earnings report could attract some bids for the next critical resistance at $54.95 the 100-day moving average.
On November 30, Jefferies initiated the coverage of DocuSign at Hold rating and a price target of $50 as you can see in our Stock Upgrades and Downgrades section.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).