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 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]

Core Insights - Docusign, Inc. (DOCU) has experienced a significant stock decline of 24% year to date, contrasting with an 18% increase in its industry and a 14% gain in the Zacks S&P 500 composite [1][7] - The current market conditions may present a buying opportunity for investors looking for long-term growth [2][14] Company Developments - Docusign is enhancing its Intelligent Agreement Management (IAM) platform through integrations with Microsoft and Salesforce, aiming to optimize agreement workflows and deliver AI-driven insights [3][4] - The deeper integration into familiar tools like Microsoft 365 and Salesforce's CRM suite allows for seamless agreement management, simplifying contract processes and improving collaboration among legal, sales, and procurement teams [4][5] Financial Performance - In fiscal Q2, Docusign reported total revenues of $800 million, reflecting a 9% year-over-year increase, with $784.4 million derived from subscriptions, indicating a stable SaaS model [9][10] - The company generated $218 million in free cash flow during the same quarter, resulting in a healthy 27% margin, showcasing its profitability and capital discipline [10] Growth Outlook - The Zacks Consensus Estimate for fiscal 2026 earnings per share is projected at $3.69, representing a 4% increase from the previous year, with further earnings growth of 10% anticipated in fiscal 2027 [11][13] - Revenue expectations indicate a 7% increase in fiscal 2026 and a 6.6% rise in fiscal 2027, suggesting a solid growth trajectory for Docusign [11][12] Investment Recommendation - Despite the recent stock decline, Docusign is viewed as a strong buy opportunity due to its strategic integrations, robust subscription base, and consistent cash generation [14][15] - The company's focus on intelligent automation and expanding ecosystem positions it well for renewed growth momentum, making the current dip an attractive entry point for investors [15]

Core Insights - Docusign (DOCU) is evolving from being known solely for e-signatures to redefining agreement management through its Intelligent Agreement Management (IAM) platform, which is the fastest-growing new product in the company's history [1][7] Group 1: Intelligent Agreement Management (IAM) Platform - IAM is characterized by deep enterprise integration with major technology companies like Microsoft and Salesforce, enhancing workflow automation and operational efficiency [2][3] - The integration with Microsoft 365 allows users to manage agreements without leaving their workspace, thus improving operational agility [3] - Within Salesforce, IAM facilitates real-time collaboration among sales, legal, and procurement teams, which accelerates deal cycles and reduces contract turnaround time [3][4] Group 2: Strategic Importance and Market Position - IAM is central to Docusign's transformation into a comprehensive digital agreement platform, managing the entire contract lifecycle from creation to post-signature analytics [4][5] - By embedding IAM into widely used business platforms, Docusign has created a robust ecosystem that is challenging to displace, positioning IAM as a critical enabler of digital transformation [5] Group 3: Financial Performance and Valuation - Docusign's stock has declined by 22.5% year to date, contrasting with a 19% rally in the industry [6][7] - The company trades at a forward price-to-earnings ratio of 17.71, significantly lower than the industry's 37.61, indicating potential undervaluation [12]

Core Insights - Docusign has achieved FedRAMP Moderate authorization for its Intelligent Agreement Management (IAM) platform, facilitating federal agencies' adoption of secure and compliant agreement solutions [1][3][5] - The IAM platform aims to modernize critical agreement processes for federal agencies, enhancing efficiency, reducing costs, and improving service delivery [2][3][4] - Docusign's commitment to the public sector is further demonstrated through discounted pricing programs via the GSA OneGov initiative [4][5] Company Overview - Docusign serves over 1.7 million customers globally, with its solutions utilized by more than a billion people across 180 countries [6] - The IAM platform is designed to unlock business-critical data trapped in documents, streamlining agreement workflows and enhancing operational efficiency [6][8] - Docusign has been recognized for its long-term growth prospects, being named to Fortune's 2025 Future 50 list [9]

Core Insights - Docusign is leveraging AI to drive growth after experiencing a decline post-pandemic, with a focus on its Intelligent Agreement Management (IAM) platform [1][4][11] Financial Performance - In fiscal Q2 2026, Docusign reported a 9% increase in revenue to $800.6 million and a 9% rise in subscription revenue to $784.4 million, while professional service revenue grew by 13% to $16.2 million [5] - Adjusted earnings per share (EPS) decreased by 5% to $0.92, surpassing analysts' expectations of $0.85 [6] - Billings increased by 13% to $818 million, exceeding prior guidance [7] Customer Metrics - The total number of customers grew by 9% year over year to over 1.7 million, with large customers spending over $300,000 annually increasing by 7% to 1,137 [8] - Dollar revenue retention improved to 102%, indicating existing customers are spending slightly more than the previous year [8] Cash Flow and Guidance - Docusign generated $246.1 million in operating cash flow and $217.6 million in free cash flow, ending the period with $1.1 billion in cash and investments and no debt [9] - The company raised its full-year guidance for revenue, subscription revenue, and billings, projecting revenue for fiscal Q3 between $804 million and $808 million [10] Market Position and Valuation - Docusign's stock trades at a forward P/E ratio of just over 20 and a P/S ratio of under 5, with nearly 7% of its market cap in cash [12] - The company is seen as slightly undervalued given its growth potential, but needs to accelerate growth to attract more investor interest [12]

Docusign is still recovering from its post-pandemic slump, but it's been building momentum again lately with help from its AI offerings.Docusign (DOCU -2.34%) stock was a pandemic darling. Its stock price peaked at around $310 in 2021, a tenfold gain from its 2018 IPO price of $29. Lockdowns and social restrictions triggered by COVID-19 drove explosive demand for the company's digital contract management tools, which helped businesses close deals even when participants could not meet face to face.But Docusi ...

Core Viewpoint - DocuSign Inc. is positioned as a value play in an overvalued technology sector, showing signs of growth with its recent earnings report and the adoption of its Intelligent Agreement Management (IAM) platform [1][2][3]. Financial Performance - DocuSign reported revenue of $801 million, exceeding expectations of $780.35 million, marking a 13% year-over-year increase [4]. - Earnings per share were 92 cents, surpassing estimates of 84 cents, and reflecting a 16% year-over-year growth [4]. - The company generated nearly $3 billion in revenue for FY2025, representing an 8% year-over-year increase with a net margin exceeding 35% [9]. Market Position and Strategy - The company has transitioned from its e-signature business to include IAM, which is expected to contribute a double-digit percentage to subscription revenue by the end of FY2026 [6]. - DocuSign's subscription revenue accounts for 98% of total revenue, with a gross margin of over 80%, indicating strong recurring revenue potential [8]. - The IAM platform positions DocuSign within the broader workflow automation market, competing with established players like Adobe and Microsoft [11]. Valuation and Analyst Sentiment - DocuSign is valued at 14 times earnings, making it attractive compared to other SaaS and cloud software stocks known for high valuations [9]. - The stock has a 12-month price forecast of $93.14, indicating a potential upside of 17.07% from its current price [12]. - Citigroup recently upgraded its price target for DocuSign from $110 to $115, reflecting bullish sentiment among analysts [13].

SAN FRANCISCO, Aug. 21, 2025 /PRNewswire/ -- Docusign (NASDAQ: DOCU) today announced it has been named a Leader in the IDC MarketScape: Worldwide AI-Enabled Buy-Side Contract Lifecycle Management Applications 2025 Vendor Assessment (doc # US53575125, June 2025). DocusignCLM, powered by the Intelligent Agreement Management (IAM) platform, helps manage every step of the contract process with its secure, AI‑powered platform—from document generation and collaborative negotiation to workflow automation and elect ...