Artificial intelligence is spreading, and it's transforming some businesses you might not have expected. Artificial intelligence (AI) could be the most revolutionary technology in a generation. Chatbots like OpenAI's ChatGPT have already boosted productivity in a number of industries thanks to their ability to instantly generate text, images, videos, and even computer code with plain language prompts. Many companies -- including some you might not expect -- now deploy AI software applications, some with con ...

DocuSign (DOCU) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this provider of electronic signature technology is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between ...

DocuSign (DOCU) is an eSignature solution provider that has performed well in the past three months and has the potential to sustain momentum in the near term. The stock has gained 12% in the said time frame compared with the 10% growth of the industry. What Makes DOCU an Attractive Pick? Solid Rank: DOCU currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities for investors. Earnings Surprise History: DOCU has an ...

Wall Street is currently riding on high expectations of the beginning of the interest rate cut regime by the Fed in the September FOMC meeting scheduled next week. The existing range of 5.25-5.5% marks a 23-year high level. If the Fed initiates a rate cut, it will be the first one since March 2020, at the onset of COVID-19. The CME FedWatch tool currently shows a 100% probability of a 25-basis point interest rate cut in September. For November, market participants estimate a 100% probability that the total ...

Why DocuSign could be poised to rally. DocuSign (DOCU 2.13%) shares continue to tread water despite the electronic signature-solutions provider recently reporting better-than-expected second-quarter results. The stock is down about 5% year to date. Let's dive into the company's most recent quarterly results to see if this is a buying opportunity. Solid revenue growth, but bookings guidance disappoints For it fiscal second quarter, DocuSign's revenue jumped 7% year over year to $736 million. Subscription rev ...

DocuSign (DOCU) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this provider of electronic signature technology have returned -0.5% over the past month versus the Zacks S&P 500 composite's +4% change. The Zacks Technology Services industry, to which DocuSign belongs, has gained 8.3% over this period. Now the key question is: Where could the stock be headed in the nea ...

Docusign, Inc. (DOCU) shares have gained 6.3% over the past three months against the marginal decline of the industry it belongs to and compared with the marginal rise of the Zacks S&P 500 composite. DOCUreported impressive second-quarter fiscal 2025 results. EPS (excluding $3.29 from non-recurring items) was 97 cents, which surpassed the Zacks Consensus Estimate by 21.3% and increased 34.7% from the year-ago quarter. Total revenues of $736 million beat the consensus mark by 1.4% and gained 7% from second-q ...

Docusign stock is on the road to recovery, but it's still a long way from its all-time high. Docusign (DOCU -2.64%) has built an entire portfolio of digital document software to handle every stage of the agreement lifecycle, from contract drafting to final signatures. Its platform was a hit during the pandemic because it helped businesses close deals even though their employees couldn't physically meet. As a result, Docusign stock soared from $80 to $310 between March 2020 and September 2021. Unfortunately, ...

Docusign, Inc. (DOCU) reported impressive second-quarter fiscal 2025 results, wherein earnings per share (EPS) and revenues surpassed the Zacks Consensus Estimate. The stock price has not witnessed any significant impact of the earnings beat since the company released results on Sept. 5, 2024. DOCU's EPS (excluding $3.29 from non-recurring items) was 97 cents per share, which surpassed the Zacks Consensus Estimate by 21.3% and increased 34.7% from the year-ago quarter. Total revenues of $736 million beat th ...

Revenue Growth - Total revenue for the three months ended July 31, 2024, was $736.0 million, an increase from $687.7 million for the same period in 2023, representing a growth of approximately 7.0%[95] - Subscription revenue accounted for 97% of total revenue for both the three and six months ended July 31, 2024, and 2023, indicating a stable revenue model[91] - The number of customers increased to approximately 1.6 million as of July 31, 2024, up from over 1.4 million a year earlier, reflecting a growth of about 14.3%[93] - Subscription revenue increased by $48.0 million, or 7%, in the three months ended July 31, 2024, and by $100.2 million, or 8%, in the six months ended July 31, 2024[114] - Total revenue for the three months ended July 31, 2024, was $736.0 million, a 7% increase compared to $687.7 million in the same period of 2023[114] - Total billings for the period reflect strong sales to new customers and subscription renewals, contributing to the overall revenue growth[144] Profitability - Net income for the three months ended July 31, 2024, was $888.2 million, significantly higher than $7.4 million for the same period in 2023[95] - Gross profit for the three months ended July 31, 2024, was $580.6 million, representing a gross margin of 79%[112] - Non-GAAP gross profit for the three months ended July 31, 2024, was $605,036, compared to $565,791 for the same period in 2023, reflecting an increase of 6.9%[146] - GAAP income from operations for the three months ended July 31, 2024, was $57,801, significantly up from $6,612 in the same period of 2023[147] - Non-GAAP income from operations for the six months ended July 31, 2024, was $439,245, compared to $345,635 for the same period in 2023, representing a growth of 27.1%[147] - GAAP net income for the three months ended July 31, 2024, was $888,211, a substantial increase from $7,395 in the same period of 2023[148] - Non-GAAP net income for the six months ended July 31, 2024, was $373,837, compared to $299,835 for the same period in 2023, indicating a rise of 24.7%[148] - Free cash flow for the three months ended July 31, 2024, was $197,928, up from $183,637 in the same period of 2023[149] Expenses and Cost Management - Total costs and expenses for the three months ended July 31, 2024, were $678.2 million, slightly lower than $681.1 million for the same period in 2023, reflecting cost management efforts[95] - Total operating expenses for the three months ended July 31, 2024, were $522.8 million, a decrease of 2% compared to $535.5 million in the same period of 2023[112] - Research and development expenses increased to $147.6 million, or 20% of total revenue, compared to $136.0 million, or 20% of total revenue, in the same period of 2023[112] - Sales and marketing expenses decreased to $287.5 million, or 39% of total revenue, compared to $294.8 million, or 43% of total revenue, in the same period of 2023[118] - Cost of subscription revenue increased by $16.2 million, or 14%, in the three months ended July 31, 2024[115] - Cost of professional services revenue decreased by $6.3 million, or 21%, in the three months ended July 31, 2024[117] - General and administrative expenses decreased by $16.8 million, or 16%, in the three months ended July 31, 2024, primarily due to reductions in professional fees and stock-based compensation[121] Cash and Liquidity - The company had approximately $1.0 billion in cash, cash equivalents, restricted cash, and investments as of July 31, 2024, providing a strong liquidity position[95] - As of July 31, 2024, the company had $938.4 million in cash and cash equivalents and short-term investments, with no outstanding borrowings under its $500 million credit facility[123] - Cash provided by operating activities was $475.0 million for the six months ended July 31, 2024, compared to $444.7 million for the same period in 2023[130][131] - Net cash used in investing activities was $236.9 million for the six months ended July 31, 2024, primarily due to the acquisition of Lexion for $143.6 million[132] - Cash used in financing activities was $408.9 million for the six months ended July 31, 2024, mainly for repurchasing 6.3 million shares of common stock at an average price of $55.02 per share[133] - The company repurchased 6.3 million shares for $350.8 million during the six months ended July 31, 2024, as part of its stock repurchase program[127] Strategic Initiatives - Docusign's IAM platform was introduced on a user-based subscription basis, with plans for continued rollout across additional segments and geographies, enhancing product offerings[90] - The company plans to continue investing in research and development to accelerate product innovation and enhance operational efficiency, supporting long-term growth strategies[96] - The company continues to focus on operational efficiency and strategic investments to drive future growth and market expansion[143] - Future capital requirements will depend on growth rate, customer retention, and potential acquisitions, with a possibility of seeking additional equity or debt financing[125] Tax and Regulatory - The company recognized a $837.7 million income tax benefit due to the release of a valuation allowance related to U.S. deferred tax assets[111] - The provision for income taxes showed a significant benefit of $(816.3) million in the three months ended July 31, 2024, primarily due to the release of $837.7 million of valuation allowance related to U.S. deferred tax assets[122] - The projected non-GAAP tax rate for fiscal 2024 and 2025 is set at 20%, providing consistency across reporting periods[142] Market and Foreign Currency - International revenue represented 28% of total revenue for the three and six months ended July 31, 2024, compared to 26% for the same periods in 2023, showing an increase in global market penetration[100] - A hypothetical 100 basis point increase in interest rates would lead to an approximate $2.7 million decrease in the fair value of the investment portfolio[152] - The company has not engaged in hedging foreign currency transactions to date, although it may consider this in the future[153] - Foreign currency translation adjustments are accounted for as a component of "Accumulated other comprehensive loss" within "Stockholders' equity"[153] - The company does not believe that a 10% increase or decrease in the relative value of the U.S. dollar to other currencies would have a material effect on its operating results[153]