February 24, 2024
London, UK

DocuSign (DOCU) Reports Strong Third Quarter Results

DOCU DocuSign

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.

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