Virtual document signing platform DocuSign Q2 revenue beats estimates
Overview
DocuSign fiscal Q2 revenue rises 9% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for fiscal Q2 beats consensus
Company repurchased $201.5 mln of common stock during the quarter
Outlook
DocuSign expects Q3 revenue between $804 mln and $808 mln
Company forecasts Q3 subscription revenue of $786 mln to $790 mln
DocuSign projects FY revenue of $3.189 bln to $3.201 bln
Company anticipates FY subscription revenue of $3.121 bln to $3.133 bln
Result Drivers
AI INNOVATION - Launches of AI-powered IAM capabilities drove strong performance across eSignature, CLM, and IAM businesses
GO-TO-MARKET CHANGES - Recent changes in go-to-market strategies contributed to one of DocuSign's highest growth and profitability quarters
NEW CAPABILITIES - Introduction of features like Docusign ID Verification with CLEAR and Custom Extractions in Navigator enhanced agreement management efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $800.60 mln | $780.20 mln (14 Analysts) |
Q2 Adjusted EPS | Beat | $0.92 | $0.84 (15 Analysts) |
Q2 EPS | $0.3 | ||
Q2 Gross Margin | 79.3% | ||
Q2 Adjusted Gross Margin | 82.0% | ||
Q2 Billings | $818 mln | ||
Q2 Free Cash Flow | $217.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 16 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for DocuSign Inc is $85.50, about 11.2% above its September 3 closing price of $75.90
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 25 three months ago
Press Release:
