DocuSign (DOCU 1.58%) reported better-than-expected results late last week that went a long way toward convincing investors that the business is on firmer ground. Wall Street is chiming in with its own encouraging words on Monday, helping to push the shares up 3% as of 1 p.m. ET.Stabilizing growth and improving profitabilityDocuSign's e-signatures had their moment during their pandemic, and the stock soared higher as a result. But those growth rates weren't sustainable, and the shares today are 80% below th ...

DocuSign, Inc. (DOCU) reported impressive fourth-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.The stock jumped 4.5% since the company released the better-than-expected results and gave impressive guidance on Mar 7.For first-quarter fiscal 2025, DOCU expects revenues of $704-$708 million. The mid-point ($706 million) of the company’s guidance is above the Zacks Consensus Estimate of $703.5 million. For fiscal 2025, it expects revenues of $2.92-2 ...

Next-generation document verification specialist DocuSign (DOCU 4.50%) recorded convincing beats on both the top and bottom lines for its latest reported quarter. Investors rewarded this feat by pushing the company's share price up by nearly 5% in Friday trading, a rate that vastly overshadowed the S&P 500 index's 0.7% decline.Rises and beats for the fourth quarterFor its fourth quarter of fiscal 2024, DocuSign earned just over $712 million in revenue, representing 8% growth over the same period the previou ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Key TakeawaysDocuSign shares jumped more than 11% in extended trading Thursday after the e-signature and document management company topped fourth-quarter estimates and issued better-than-expected current-quarter and full-year sales outlooks.The company said closing several deals earlier than expected boosted billings during the quarter.The DocuSign share price may encounter resistance from the top trendline of a trading range around $64.50 and a countertrend high near $77. DocuSign (DOCU) shares jumped mor ...

Financial Data and Key Metrics - Q4 revenue was $712 million, up 8% YoY, while full-year revenue was $2.8 billion, up 10% YoY, both exceeding expectations [86] - Q4 non-GAAP operating margin rose to 25%, up 1 point YoY, while full-year non-GAAP operating margin improved by 5 points to 26% from 21% in fiscal 2023 [13] - Free cash flow more than doubled in fiscal 2024 to nearly $900 million, with a 32% free cash flow margin [13][45] - Q4 billings grew 13% YoY to $833 million, the highest YoY billings growth in over a year [101] - GAAP diluted EPS for fiscal 2024 was $0.36, compared to negative $0.49 in the prior year [46] Business Line Performance - DocuSign CLM growth significantly outpaced overall revenue in Q4, with strong adoption among enterprise customers [16][119] - The company surpassed 1.5 million total customers across digital and direct channels, with direct customers growing 15% YoY to 242,000 [14][43] - The number of customers spending over $300,000 annually rose to 1,060 in Q4, increasing sequentially for the second quarter in a row [20] - Q4 bookings for customers with total contract value over $1 million increased by more than 50% YoY [20] Market Performance - International revenue grew more than twice as fast as total revenue, now representing 27% of total revenue, up from 25% last year [89][124] - Key verticals such as technology, insurance, business services, financial services, and healthcare grew faster than the total business baseline [42] - The company launched global participation in Microsoft Azure's marketplace, enabling co-selling to Microsoft's enterprise customers [37] Strategic Direction and Industry Competition - The company is focused on three strategic pillars: accelerating product innovation, enhancing go-to-market initiatives, and strengthening financial and operational efficiency [7][121] - DocuSign was named the e-signature industry leader by IDC and a leader in Gartner's Magic Quadrant for contract lifecycle management for the fourth consecutive year [39] - The company is investing in moving its platforms to the public cloud, specifically Microsoft Azure, and reimagining the agreement journey for companies [153] Management Commentary on Operating Environment and Future Outlook - Management highlighted stabilization in the business, with improving customer usage and large customer spending behavior [19][20] - The company expects non-GAAP operating margin to reach 27%-28% for Q1 and 26.5%-28% for fiscal 2025, driven by restructuring and efficiency improvements [47] - Management anticipates free cash flow margin to more closely approximate non-GAAP operating margin in the future [21] Other Important Information - The company ended Q4 with $1.2 billion in cash, cash equivalents, and investments, with no debt on the balance sheet [23][126] - DocuSign repurchased $146 million of common stock and used $144 million to pay taxes due on RSU settlements in fiscal 2024 [21] - The company announced a reduction in force of approximately 400 employees, or around 6% of its employee base, to streamline operations [47] Q&A Session Summary Question: Drivers of Q4 billings outperformance and NRR trends [108] - Approximately half of the billings acceleration came from renewals timing, including early renewals from fiscal 2025, while the other half came from strong net new growth [109] - Dollar net retention trended downward to 98% in Q4, but the pace of decline slowed substantially in fiscal 2024, with expectations for further moderation in fiscal 2025 [109][123] Question: International growth and regional breakdown [144] - International growth is led by the direct channel, with significant opportunities in digital and partner channels, particularly in top 10 markets outside the US [60][81] Question: Free cash flow drivers and future expectations [163] - Free cash flow was driven by working capital improvements, including better collections and reduced agings, with expectations for free cash flow yield to align more closely with operating margin in the future [78] Question: CLM adoption and R&D investment priorities [138] - CLM growth accelerated YoY from Q3 to Q4, with strong adoption among enterprise customers, and the company is investing in reimagining the agreement journey and moving platforms to the public cloud [153][157] Question: Enterprise licensing structures and their impact [161] - The company has leaned into competitive large enterprise deals, with improved motions and senior leadership involvement, but enterprise licensing remains a small part of the business [77][162] Question: AI and LLM training policies [61] - The company does not use customer data for training AI models without specific contractual consent, ensuring high trust and data security [160]

For the quarter ended January 2024, DocuSign (DOCU) reported revenue of $712.39 million, up 8% over the same period last year. EPS came in at $0.76, compared to $0.65 in the year-ago quarter.The reported revenue represents a surprise of +2.05% over the Zacks Consensus Estimate of $698.05 million. With the consensus EPS estimate being $0.64, the EPS surprise was +18.75%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

DocuSign (DOCU) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.75%. A quarter ago, it was expected that this provider of electronic signature technology would post earnings of $0.61 per share when it actually produced earnings of $0.79, delivering a surprise of 29.51%.Over the las ...

DocuSign (DOCU) is an eSignature solution provider that has performed well over the past three months and has the potential to sustain its momentum in the near term. The stock has gained 6% in the said time frame.What Makes DOCU an Attractive Pick?Solid Rank: DOCUcurrently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.Positive Earnings Surprise ...

DocuSign, Inc. (DOCU) is scheduled to report its fourth-quarter fiscal 2024 results on Mar 7, after the bell.The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 24.7%.Expectations This Time AroundThe Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $698.1 million, indicating 5.8% year-over-year growth. We expect an increase in revenues from existing cus ...