Accessibility StatementSkip Navigation SAN FRANCISCO, Dec. 4, 2025 /PRNewswire/ -- Docusign, Inc. (NASDAQ: DOCU) today announced results for its fiscal quarter ended October 31, 2025. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast. "Q3 was a strong quarter with growing customer investment into the IAM platform, where we now have more than 25,000 customers," said Allan Thygesen, CEO of Docusign. "Continu ...

DocuSign, Inc. (NASDAQ:DOCU) will release earnings results for the third quarter after the closing bell on Thursday, Dec. 4.Analysts expect the San Francisco, California-based company to report quarterly earnings at 91 cents per share, up from 90 cents per share in the year-ago period. The consensus estimate for DocuSign's quarterly revenue is $807.42 million, compared to $754.82 million a year earlier, according to data from Benzinga Pro.On Oct. 30, DocuSign announced it will integrate its intelligent agre ...

DocuSign, Inc. (NASDAQ:DOCU) will release earnings results for the third quarter after the closing bell on Thursday, Dec. 4.Analysts expect the San Francisco, California-based company to report quarterly earnings at 91 cents per share, up from 90 cents per share in the year-ago period. The consensus estimate for DocuSign's quarterly revenue is $807.42 million, compared to $754.82 million a year earlier, according to data from Benzinga Pro.On Oct. 30, DocuSign announced it will integrate its intelligent agre ...

Core Viewpoint - DocuSign is not expected to provide rapid returns, indicating a more stable growth trajectory rather than explosive short-term gains [1] Group 1: Company Performance - The electronic signature company experienced significant growth during the pandemic and has continued to expand even after the lockdowns ended [1]

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Core Viewpoint - DocuSign is a leading provider in the electronic signature and digital transaction management market, with strong growth expectations reflected in its upcoming earnings report and financial metrics [1][2][3]. Financial Performance - Earnings per share (EPS) is projected to be $0.92, representing a 2.2% increase from the previous year, indicating analyst confidence in the company's performance [2][6]. - Revenue is expected to reach approximately $807.4 million, reflecting a 6.8% growth from the same quarter last year, driven by strong demand for digital transaction solutions [3][6]. Valuation Metrics - The company has a high price-to-earnings (P/E) ratio of 49.74, suggesting that investors are willing to pay a premium for its earnings due to high growth expectations [4][6]. - The price-to-sales ratio stands at 4.47, and the enterprise value to sales ratio is 4.32, indicating positive investor sentiment regarding the company's sales performance [4]. Debt and Liquidity - DocuSign maintains a low debt-to-equity ratio of 0.064, reflecting a conservative approach to debt management [5][6]. - However, the current ratio of 0.74 may indicate potential liquidity challenges, as it suggests the company may struggle to cover short-term liabilities with current assets [5].

Core Insights - Analysts project that DocuSign (DOCU) will report quarterly earnings of $0.92 per share, reflecting a year-over-year increase of 2.2% [1] - Revenue is expected to reach $806.13 million, marking a 6.8% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - 'Revenue- Professional services and other' is projected to be $17.91 million, indicating an 11% decrease from the previous year [4] - 'Revenue- Subscription' is expected to reach $788.21 million, suggesting a year-over-year increase of 7.3% [4] - 'Non-GAAP billings' are estimated at $791.22 million, compared to $752.31 million from the year-ago quarter [4] Customer Metrics - Total Customers are projected to reach 1.78 million, up from 1.60 million reported in the same quarter last year [5] - 'Enterprise & Commercial Customers' are expected to be around 275.08 thousand, compared to 256.00 thousand in the same quarter of the previous year [5] Profit Estimates - The consensus for 'Non-GAAP subscription gross profit' is $652.57 million, compared to $619.11 million from the previous year [6] - 'Non-GAAP professional services and other gross profit' is expected to be -$0.63 million, down from $3.26 million reported in the same quarter last year [6] Stock Performance - DocuSign shares have shown a return of -5.2% over the past month, while the Zacks S&P 500 composite has changed by -0.5% [6] - With a Zacks Rank 3 (Hold), DOCU is anticipated to perform in line with the overall market in the near future [6]

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]