Core Viewpoint - Docusign reported improved business stability and efficiency, achieving record operating profit and launching its Intelligent Agreement Management platform, which received positive early feedback from customers [2]. Financial Highlights - Total revenue for the second quarter was $736.0 million, a 7% increase year-over-year [2]. - Subscription revenue reached $717.4 million, also up 7% year-over-year [2]. - Professional services and other revenue amounted to $18.7 million, a 2% increase year-over-year [2]. - Billings were $724.5 million, reflecting a 2% year-over-year increase [2]. - GAAP gross margin was 78.9%, slightly up from 78.8% in the same period last year [2]. - Non-GAAP gross margin was 82.2%, down from 82.3% year-over-year [2]. - GAAP net income per basic share was $4.34, compared to $0.04 in the same period last year [2]. - Non-GAAP net income per diluted share was $0.97, up from $0.72 year-over-year [2]. - Free cash flow was $197.9 million, compared to $183.6 million in the same period last year [2]. Operational Highlights - Docusign announced the general availability of its Intelligent Agreement Management (IAM) platform, which aims to streamline and automate agreement processes [3]. - IAM applications include IAM Core, IAM for Sales, and IAM for Customer Experience, with a rollout planned for various customer segments throughout the fiscal year [4]. Executive Changes - Paula Hansen was appointed as President and Chief Revenue Officer, previously serving at Alteryx [4]. - Sagnik Nandy joined as Chief Technology Officer, coming from Okta [4]. Guidance - For the quarter ending October 31, 2024, Docusign expects total revenue between $743 million and $747 million [5]. - Subscription revenue guidance is set between $722 million and $726 million [6]. - Billings are projected to be between $710 million and $720 million [6]. - Non-GAAP gross margin is expected to be between 81.0% and 82.0% [6]. - For the fiscal year ending January 31, 2025, total revenue is anticipated to be between $2.94 billion and $2.95 billion [7].

Core Viewpoint - DocuSign, Inc. is set to report its second-quarter fiscal 2025 results on September 5, with earnings expected to grow by 11.1% year-over-year and revenues projected to increase by 5.6% [1][12]. Financial Performance - The Zacks Consensus Estimate for earnings is 80 cents, with revenues estimated at $726.2 million [1]. - Subscription revenues are expected to reach $706.8 million, indicating a 5.7% year-over-year growth, while professional services and other revenues are pegged at $19.4 million, reflecting a 5.6% increase [6]. - In the first quarter of fiscal 2025, DocuSign reported a 14% year-over-year increase in non-GAAP earnings per share to 82 cents and a 7% rise in total revenues to $710 million [10]. Market Position and Strategy - The company has a strong earnings surprise history, surpassing estimates in the trailing four quarters with an average surprise of 15.7% [2]. - Customer acquisition is expected to be a key driver for revenue growth, with initiatives aimed at increasing sales from both existing and new customers [5]. - Recent product innovations, such as AI-enabled identity verification, and partnerships with Salesforce and Microsoft have strengthened DocuSign's market position [11]. Valuation Metrics - DocuSign's stock has gained 10.5% over the past three months, outperforming the industry and the S&P 500 [7]. - The stock is trading at an EV-to-EBITDA ratio of 26.6X, significantly lower than the industry average of 50.6X, and a forward Price/Earnings ratio of 17.6X, above the industry's 35X [8][14]. Long-term Growth Potential - The growing demand for eSignature services presents significant opportunities for global expansion, despite the market being largely untapped [9]. - The company's strategic goals include accelerating product innovation and improving operational efficiency, which are expected to support long-term growth [10][14].

Core Insights - Wall Street analysts expect DocuSign (DOCU) to report quarterly earnings of $0.80 per share, reflecting an 11.1% year-over-year increase [1] - Projected revenues for the quarter are $726.15 million, which represents a 5.6% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1] Revenue Estimates - Analysts estimate 'Revenue- Professional services and other' to be $19.41 million, indicating a 5.9% increase from the prior-year quarter [4] - The 'Revenue- Subscription' is projected to reach $706.75 million, reflecting a 5.6% increase from the year-ago quarter [4] Non-GAAP Metrics - Estimated 'Non-GAAP billings' are projected at $720.57 million, compared to $711.19 million reported in the same quarter of the previous year [5] - Analysts expect 'Non-GAAP subscription gross profit' to be $591.58 million, up from $569.25 million in the previous year [5] Stock Performance - DocuSign shares have increased by 10.1% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.5% [5] - With a Zacks Rank 3 (Hold), DOCU is anticipated to closely follow overall market performance in the near term [5]

DocuSign (DOCU) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this provider of electronic signature technology have returned +5.6% over the past month versus the Zacks S&P 500 composite's +2.2% change. The Zacks Technology Services industry, to which DocuSign belongs, has lost 0.6% over this period. Now the key question is: Where could the stock be hea ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Group 1 - DocuSign will release its second quarter fiscal 2025 results on September 5, 2024, after market close [1] - A conference call to discuss the financial results will be held at 2:00 p.m. Pacific Standard Time [1] - A live webcast of the event will be available on the DocuSign Investor Relations website [1] Group 2 - DocuSign serves over 1.5 million customers and more than a billion users across 180 countries [2] - The company offers solutions that accelerate business processes and simplify lives through its e-signature and Contract Lifecycle Management services [2] - DocuSign IAM platform enables businesses to manage agreements and unlock critical data trapped in documents [2]

DocuSign Inc (NASDAQ:DOCU) is 1.5% higher at $56.41 this afternoon, extending a bounce off support at the $49 region. The equity is about to hit familiar pressure at the $57 region, however, and could add to its 5.2% year-to-date deficit, as the recent uptick has it flashing a historically bearish signal. More specifically, DocuSign stock just came within one standard deviation of its 100-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, five similar signals occ ...

Core Viewpoint - The tech sector has seen significant growth driven by artificial intelligence, e-commerce, and online advertising, but many companies face risks of declining revenue growth and overvaluation, leading to potential losses for investors [1][2]. Group 1: Company Performance - Etsy reported a 2.1% year-over-year decline in consolidated gross merchandise sales, despite a 3.0% increase in overall revenue due to higher fees and advertisements, indicating unsustainable growth [4]. - Year-to-date, Etsy's shares have decreased by 32% and have fallen over 80% from their peak, suggesting a troubling trend in revenue and merchandise sales [5]. - Zoom's revenue increased by only 3.2% year-over-year in Q1 FY25, with shares down approximately 90% from their peak and 20% year-to-date, highlighting a lack of competitive advantage in the video conferencing market [6][7]. - DocuSign's revenue growth has slowed significantly, reporting only 7% year-over-year growth in Q1, with billings growing by just 5% year-over-year, raising concerns about its long-term growth potential [9][10]. Group 2: Valuation Concerns - DocuSign's P/E ratio is currently above 100, indicating a high valuation that may not be justified given its low growth prospects, suggesting potential for further declines in stock price [11]. - The decision to authorize a $1 billion stock buyback by DocuSign may provide short-term support for the stock price but does not address long-term growth challenges [11].

SDI Productions/E+ via Getty Images DocuSign (NASDAQ:DOCU) is down around -8.7% year-to-date and I see this as an opportunity to buy at a fair valuation with a strong cash flow and balance sheet. Second quarter earnings coming soon DocuSign is slated to report its second-quarter earnings on September 5 and this is a good time to analyze the potential for stock gains. The company reported its first-quarter eamings on June 6 and the stock suffered due to concerns over its gross margins and guidance. For the q ...

DocuSign (DOCU) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this provider of electronic signature technology have returned +2.5% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Technology Services industry, to which DocuSign belongs, has lost 1.9% over this period. Now the key question is: Where could the stock be headed in the near term? ...