Overview
DocuSign fiscal Q3 revenue grows 8% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance
Company repurchased $215.1 mln in common stock, indicating financial confidence
Outlook
DocuSign expects Q4 revenue between $825 mln and $829 mln, up 7% YoY
Company projects full-year revenue of $3,208 bln to $3,212 bln, an 8% increase
Result Drivers
IAM PLATFORM GROWTH - Over 25,000 customers now using DocuSign's AI-native IAM platform, contributing to revenue growth
AI ECOSYSTEM INTEGRATIONS - New integrations with AI platforms like ChatGPT and Microsoft Copilot enhance IAM capabilities
API LAUNCHES - Navigator and Maestro APIs launched to connect third-party systems, boosting IAM platform utility
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $818.40 mln | $806.91 mln (15 Analysts) |
Q3 Adjusted EPS | Beat | $1.01 | $0.92 (16 Analysts) |
Q3 EPS | $0.40 | ||
Q3 Gross Margin | 79.2% | ||
Q3 Adjusted Gross Margin | 81.8% | ||
Q3 Billings | $829.5 mln | ||
Q3 Free Cash Flow | $262.9 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "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 $90.61, about 28.3% above its December 3 closing price of $70.62
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago
Press Release: ID:nPn8z6kVka
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(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.)