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Earnings per Share (EPS) is expected to be $0.92, marking a 2.2% increase from the previous year.Projected revenue growth of 6.8% to $807.4 million, indicating strong demand for DocuSign's services.The company's financial metrics reveal a high P/E ratio of 49.74 and a low debt-to-equity ratio of 0.064, suggesting a premium valuation and conservative debt strategy.DocuSign, Inc. (NASDAQ:DOCU) is a leading provider of electronic signature technology and digital transaction management services. The company ena ...

Analysts on Wall Street project that DocuSign (DOCU) will announce quarterly earnings of $0.92 per share in its forthcoming report, representing an increase of 2.2% year over year. Revenues are projected to reach $806.13 million, increasing 6.8% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company re ...

Core Insights - Both Skillsoft (SKIL) and Docusign (DOCU) are focusing on enterprise software and productivity solutions, with SKIL providing cloud-based learning and DOCU offering eSignature and contract lifecycle management solutions [1] Group 1: Skillsoft (SKIL) - SKIL's revenue trajectory has shown improvement, with a 4% increase in revenues after a 7.4% sequential dip in Q1 FY2026 [2] - The Talent Development Solutions (TDS) segment remained flat at $101 million, while the TDS Enterprise Solution has seen four consecutive quarters of revenue growth, contributing over 90% to the TDS segment [2] - The Global Knowledge segment reported $28 million in revenues, down 10% year-over-year but up 12% sequentially [2] - Adjusted EBITDA margin expanded by 70 basis points and 60 basis points, attributed to prudent expense management and operational enhancements [3] - SKIL experienced a 50% year-over-year increase in technology learners, with AI learners and AI learning hours surging 74% and 158% year-over-year, respectively [3] - Management has cut the revenue outlook to $510-$530 million from $530-$545 million due to macroeconomic and geopolitical instability [4] - SKIL reported a net loss of $23.8 million in Q2 FY2026, an improvement from a $39.6 million loss in the same quarter last year [4] - The company faces competition from established players like Coursera and Udemy, necessitating rapid investments that could lead to further losses [4] Group 2: Docusign (DOCU) - DOCU's revenue increased by 9% year-over-year and 4.8% sequentially in Q2 FY2026, reflecting strong subscription revenue growth [5] - Subscription revenues, which account for 98% of total revenues, rose 9% year-over-year and 5% sequentially, indicating robust customer retention [5] - Billing climbed 13% year-over-year, outpacing revenue growth, showcasing strong demand and pricing power [5] - Dollar net retention increased to 102%, reinforcing customer base retention [5] - Management raised the fiscal 2026 revenue guidance to $3.189-$3.201 billion from $3.151-$3.163 billion [5] - DOCU maintains a solid balance sheet with cash reserves of $844 million and no current debt, generating $218 million in free cash flow during Q2 FY2026 [6] - Despite strong revenue growth, DOCU faced a 20-basis point decline in adjusted gross margin and a 240-basis point drop in adjusted operating margin, raising concerns about sustainable profitability [7] - Competition from major players like Adobe Acrobat Sign poses additional risks to DOCU's growth potential [8] Group 3: Comparative Analysis - The Zacks Consensus Estimate for SKIL indicates a year-over-year decline of 2.8% in sales and 19.6% in EPS for fiscal 2026 [9] - In contrast, DOCU's estimates show a year-over-year increase of 7.3% in sales and 3.9% in EPS for fiscal 2026 [10] - SKIL is trading at a 12-month forward price-to-earnings ratio of 2.16, lower than its median of 3.95, suggesting it may be undervalued compared to DOCU, which has a forward P/E ratio of 17.26 [11] - Both companies present compelling growth narratives, with SKIL showing consistent growth and momentum in AI learning, while DOCU benefits from strong customer retention and a solid balance sheet [13] - SKIL is anticipated to offer better growth potential due to its undervaluation, providing a margin of safety that lowers downside risks [14]

Core Business Performance - Docusign's core subscription business has shown strength, with a dollar net retention rate increasing to 101% in Q1 and 102% in Q2 of fiscal 2026, up from 99% a year ago, indicating improved customer retention and expansion [1][7] - Revenue growth was 8% year-over-year in Q1 and 9% in Q2 of fiscal 2026, reflecting a shift towards a recurring and high-margin model [2][7] - Billings increased by 13% year-over-year in Q2, demonstrating traction in acquiring new agreements and expanding existing contracts [2] Customer Base and Profitability - Docusign expanded its customer base by 9% year-over-year, surpassing 1.7 million customers by the end of Q2 fiscal 2026 [3] - The number of customers spending $300,000 annually rose by 7% year-over-year to 1,137, enhancing profitability prospects [3] - The non-GAAP operating margin improved to 29.8% in Q2, up 30 basis points from the previous quarter, driven by increased revenues and effective expense management [3] Market Position and Valuation - Docusign's performance indicates the strength and scalability of its subscription model, supported by customer retention and significant billings growth [4] - The stock has declined by 22.7% over the past year, underperforming compared to industry peers [5] - Docusign trades at a forward price-to-earnings ratio of 16.53, which is lower than the industry average of 31.05 and cheaper than Appian and Arlo Technologies [9]

Core Insights - Docusign (DOCU) has transitioned from an e-signature product to an Intelligent Agreement Management (IAM) platform, aiming to capture the entire lifecycle of agreements, with early financial metrics indicating success [1] Financial Performance - Docusign reported $800.6 million in revenue for Q2 fiscal 2026, marking a 9% year-over-year increase, while billings grew by 13% compared to the same quarter last year, driven by demand for the AI-driven IAM platform [2] - The dollar net retention rate increased to 102% in Q2 fiscal 2026 from 101% in the previous quarter, and up from 99% year-over-year, indicating strong customer inclination towards the IAM platform [3] - Gross margin and operating margin improved by 40 basis points and 20 basis points, respectively, with free cash flow rising to $217.6 million from $197.9 million in the same quarter last year, showcasing financial efficiency during the business model transformation [4] Market Performance - Docusign's stock has declined by 26% over the past six months, underperforming its industry, which saw a 3.7% dip, and also lagging behind competitors Appian (APPN) and StoneCo (STNE), which experienced growth of 27.6% and 8.6%, respectively [5] Valuation Metrics - Docusign trades at a 12-month forward price-to-sales ratio of 3.83, which is lower than the industry average of 4.61, but higher than Appian's 3.77 and StoneCo's 1.49 [9] - The Zacks Consensus Estimate for DOCU's fiscal 2026 EPS is $3.69, with a slight increase over the past 60 days, and for fiscal 2027, the estimate is $4.06, also reflecting a marginal rise [12]

Core Viewpoint - Docusign Inc. is currently experiencing a stock price of $64.40, reflecting a slight increase of 0.61% in the current market session, but has seen a significant decline of 10.46% over the past month and 25.14% over the past year, raising questions about its valuation despite current performance [1]. Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS), and is used to assess performance against historical data and industry benchmarks [5]. - Docusign Inc. has a P/E ratio of 48.49, which is lower than the software industry average of 55.66, suggesting that the stock may be undervalued or could perform worse than its peers [6]. - A low P/E ratio can indicate potential undervaluation but may also reflect weak growth prospects or financial instability, emphasizing the need for a comprehensive analysis beyond just this metric [9][10].

Core Insights - Docusign has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Contract Life Cycle Management (CLM) for the sixth consecutive year, highlighting its strong market position and capabilities [1][3] Company Performance - Docusign's Intelligent Agreement Management platform leverages AI to transform agreement data into actionable insights, enhancing productivity throughout the agreement process [2] - The company has over 1.7 million customers and serves more than a billion people across 180 countries, indicating a broad and diverse user base [7] Recognition and Awards - Docusign's recognition as a Leader is based on its Ability to Execute and Completeness of Vision, underscoring its commitment to delivering significant business impact through innovation [3] - The company has also been named the 1 Most Trustworthy Software and Telecommunications company in America by Newsweek and featured in Fortune's Future 50 list for long-term growth prospects [3]

Core Insights - Docusign will release its third quarter fiscal 2026 results on December 4, 2025, after market close, followed by a conference call to discuss the results [1] - The company has over 1.7 million customers and more than a billion users in over 180 countries, emphasizing its global reach and impact [2] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) [1] - A live webcast will be available on the Docusign Investor Relations website, with dial-in options for domestic and international participants [1] Company Overview - Docusign is recognized as the leader in electronic signature and contract lifecycle management, providing solutions that enhance business efficiency [2][5] - The company aims to unlock business-critical data trapped in documents, which can lead to significant time and cost savings for businesses [2]

Core Insights - Docusign, Inc. (DOCU) shares have declined 23.1% over the past six months, contrasting with a 1.1% growth in the industry and a 19.5% rally in the Zacks S&P 500 composite [1] - Recently, DOCU shares have increased by 1.5% in the past month, indicating a potential end to the correction phase [4] Company Performance - Docusign has partnered with Microsoft and Salesforce to enhance its Intelligent Agreement Management (IAM) platform, improving integration capabilities and optimizing agreement workflows [5][6] - The integration with Microsoft 365 and Salesforce's CRM suite simplifies contract processes, enhancing decision-making and collaboration among legal, sales, and procurement teams [6][9] - IAM has evolved beyond an e-signature solution to a comprehensive digital agreement hub, facilitating swift document movement through automated workflows [7] Valuation and Returns - Docusign's stock is currently priced at 17.44 times forward 12-month price-to-earnings, significantly below the industry average of 34.09 times, suggesting potential undervaluation [10] - The company's return on equity stands at 38%, surpassing the industry's 33.4%, indicating effective capital utilization and enhancing competitive edge [12][14] Financial Outlook - The Zacks Consensus Estimate for DOCU's fiscal 2026 revenues is $3.2 billion, reflecting a 7.3% year-over-year growth, with fiscal 2027 anticipated to grow by 3.9% [16] - The consensus estimate for fiscal 2026 EPS is $3.69, indicating a 3.9% year-over-year growth, with a projected 9.9% growth for 2027 [16][17] Investment Recommendation - Despite recent share price weakness, the stock is recommended for purchase as it has ended its correction phase and is expected to rise in the long term [18] - The collaboration with tech giants is expected to strengthen customer relationships and provide a competitive edge in the software-as-a-service landscape [9][19]