DocuSign beats Q4 revenue estimates; increases share buyback

Reuters
03/18
DocuSign beats Q4 revenue estimates; increases share buyback

Overview

  • U.S. e-signature platform's Q4 revenue grew 8% yr/yr, beating analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

  • Company announced $2.0 bln increase to share repurchase program

Outlook

  • DocuSign sees current-qtr revenue between $822 mln and $826 mln, up 8% YoY

  • Company expects full-yr revenue between $3,484 mln and $3,496 mln, up 8% YoY

  • DocuSign guides full-yr non-GAAP gross margin to 81.5% to 82.0%

Result Drivers

  • AI-NATIVE PLATFORM EXPANSION - Co said FY growth was driven by continued evolution of its Intelligent Agreement Management platform, including integration of AI-native features across the agreement lifecycle

  • SUBSCRIPTION REVENUE GROWTH - Subscription revenue rose 8% yr/yr, helping drive overall revenue growth in Q4

Company press release: ID:nPn4y9K5Qa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$836.90 mln

$827.84 mln (16 Analysts)

Q4 Adjusted EPS

Beat

$1.01

$0.95 (17 Analysts)

Q4 EPS

$0.44

Q4 Gross Margin

79.7%

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 17 "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 $75.00, about 60.2% above its March 16 closing price of $46.82

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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