Ticker Symbol: DOCU
DocuSign Inc, the application software company that provides electronic signature and e-filing storage solutions, reported second-quarter financial results that broadly beat consensus estimates. The company’s shares were last trading at $62.22, up over 7% for the day. The company’s shares have declined by 58.6% this year but are up roughly 17% from the bottom hit on September 6th. DocuSign trades at a forward price to sales multiple 5 times, which is generally considered cheap in the software industry.
The company reported second-quarter revenue of $622.2 million, up 22% from the same period last year and well ahead of Wall Street’s estimates for $603.4 million. The company reported a subscription revenue of $605.2 million, which was also ahead of the $584.4 million that was expected.
Billings, most critically, rose to $647.7 million, up 8.8% year over year and ahead of the estimated $603 million. The company also reported an adjusted gross margin of 82%, ahead of the 80.4% forecast, and free cash flow of $105.5 million also handily beat the $91.5 million that analysts had been anticipating.
The company reported adjusted earnings per share of 44¢, ahead of the expected 42¢. DocuSign provided third-quarter guidance that slightly missed investors’ expectations. It sees revenue for the period ending on October 31st to be between $624 million and $628 million. At the midpoint of that range, the firm’s revenue would climb 14.7% from the third quarter of 2021. The consensus forecast by analysts was for revenue of $627.5 million. The company also sees billings to be between $584 million and $594 million, against an estimate of $601 million.
For the full year, the software company projected revenue to total between $2.47 billion and $2.48 billion, which is higher than investors’ expectations of $2.46 billion. Management also predicted that billings for fiscal 2022 would be between $2.55 billion and $2.57 billion. It previously saw billings of $2.52 billion to $2.54 billion. Wall Street estimated that billings would come in at $2.53 billion. At the midpoint of its revenue guidance, DocuSign’s top line would climb a strong 17.5% year over year.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
Featured CoursesRecent news
ServiceNow and Software Stocks Lead Sector Recovery on AI Hopes
Software stocks are making a comeback. ServiceNow jumped 8.8% on Monday, marking its largest one-day gain in over a year. This surge followed BofA Securities reinstating coverage with a Buy rating, which helped restore investor confidence in a sector that faced pressure in 2026 over concerns that AI might replace, not support, enterprise software. Here’s […]
GE Aerospace Stock Rises as AI Cuts Hypersonic Engine Design Time
GE Aerospace is showing investors what artificial intelligence looks like when applied to one of the world’s most technically demanding industries. Shares rose 1.58% Tuesday as the company revealed that researchers at its Niskayuna, New York, facility used an in-house generative AI tool to produce a preliminary hypersonic ramjet engine design, compressing a process that […]
Nvidia Shares Slip 1.1%: Why a 3-Day Losing Streak Could Be Good News
Nvidia is heading into its most anticipated earnings report of the year on the back foot, and that may be exactly what the stock needs. Shares fell 1.1% in premarket trading Tuesday, extending a three-day pullback from last Thursday’s closing high of $235.74. For investors watching closely, a lower entry point ahead of Wednesday’s results […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.