Category: DOCU

DOCU – DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know

DocuSign (DOCU Free Report) closed at $308 in the latest trading session, marking a +1.71% move from the prior day. This change outpaced the S&P 500’s 0.2% gain on the day.

Heading into today, shares of the provider of electronic signature technology had gained 10.19% over the past month, outpacing the Business Services sector’s loss of 14.43% and the S&P 500’s gain of 3.28% in that time.

DOCU will be looking to display strength as it nears its next earnings release. On that day, DOCU is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 129.41%. Our most recent consensus estimate is calling for quarterly revenue of $482.48 million, up 40.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.68 per share and revenue of $2.03 billion. These totals would mark changes of +86.67% and +39.39%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DOCU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DOCU is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note DOCU’s current valuation metrics, including its Forward P/E ratio of 180.71. For comparison, its industry has an average Forward P/E of 31.43, which means DOCU is trading at a premium to the group.

Also, we should mention that DOCU has a PEG ratio of 3.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 2.51 as of yesterday’s close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

DOCU – Why DocuSign Surged by 38.7% in June

What happened

Shares of DocuSign (NASDAQ:DOCU) surged by 38.7% in June, according to data provided by S&P Global Market Intelligence.

The electronic signature company has risen more than 50% from its low in mid-May and is now up around 25.7% year to date.

Person signing a medical document electronically as another person holds the tablet.

Image source: Getty Images.

So what

DocuSign had just released a sparkling set of numbers for its fiscal 2022 first-quarter earnings report. Total revenue surged 58% year over year to $$469.1 million, with subscription revenue making up more than 96%, up from 94.6% in the prior year. Gross margin improved from 75.1% to 77.6% and the company significantly narrowed its net loss from $47.8 million to $8.4 million.

Operating cash flow more than doubled year over year from $59.1 million to $135.6 million, while free cash flow more than tripled over the same period to $123 million. DocuSign also reported impressive growth in its customer base, with a 51% jump in total customers to 892,000 at the end of its fiscal 2021. Within just three months, total customers rose another 10.8% to hit 988,000. The company’s net dollar retention rate also hit the highest level in the last eight quarters at 125%. 

Now what

It’s no surprise that DocuSign’s suite of services is witnessing soaring demand as the pandemic forces a wide swath of businesses to digitize. The company is also focusing on international expansion, with international markets making up one-fifth of total revenue. International revenue growth also accelerated quicker than overall revenue, jumping by 84% year over year.

Growth will be further driven by new features introduced by the company such as data visualization tools and improved data verification. Its new remote online notarization service provides an additional value-added service for customers, too. Plus, DocuSign’s recent acquisition of Clause, a smart legal contract pioneer, promises to introduce elements into existing contracts that add value through the entire agreement process, making the company’s services even more compelling for customers. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

DOCU – 1 Big Reason to Buy DocuSign Stock

If you aren’t intimately familiar with DocuSign (NASDAQ:DOCU), your experience with the company might consist of using the platform to sign some mortgage documents or other types of agreements. But in this Fool Live video, recorded on June 23, Fool.com contributor Brian Withers talks about the most important part of DocuSign’s business that investors should know about. 

Brian Withers: A lot of people have gone: “Oh yeah, DocuSign. I used it for my mortgage paperwork or whatever or signing some document that I had.” But you know what? You as a consumer customer, really almost don’t matter to DocuSign. Let me tell you why. Here’s their revenue over the last five quarters. This blue bar, which is bigger than this dark blue bar, that’s the enterprise and commercial revenue — that makes up 88% of the business. It’s not just their current business, but it’s also their future business. Look at total customers: Total customers is 988,000, almost 1 million customers. Interestingly enough, only 14% of its customers are  enterprise in commercial, but they make up 88% of the revenue. Look at where DocuSign is headed. Everybody knows DocuSign for the e-signature piece, and they have like a couple of dots here in this $25 billion addressable market. This prepare, act, and managed: That’s really about managing contracts from beginning to end, and executing them in a corporate environment. This second act for DocuSign is really focused on its corporate customer and digitizing and making contracts like a living piece of software versus just a piece of paper. That’s all about corporate customers. Why is it all about corporate customers? Well look: Almost every single department across the enterprise has agreement as part of their doing business. Think of all the things for HR that you signed when you start with the company. Finance has a bunch of stuff, sales tax, procurement, obviously with suppliers and whatnot. But even facilities setting up lawn services or HVAC maintenance, IT operations. Think about supporting their services with cloud services. All of these things have agreements and contracts. That’s really why DocuSign has focused on this area of the business.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

DOCU – Why This DocuSign Analyst Is Bullish

A Wedbush Securities analyst is bullish on shares of DocuSign, Inc (NASDAQ:DOCU). Here’s what investors need to know. 

The DocuSign Analyst: Daniel Ives maintained an Outperform rating on shares of DocuSign and raised the price target from $260 to $290.

The DocuSign Takeaways: DocuSign addresses a key issue that many organizations face in trying to accelerate moves to digital platforms, Ives said.

IT decision makers at many enterprises are prioritizing the use of DocuSign’s solution set and e-signature platform as a way to manage contracts and paperwork with remote workers, the analyst said. 

Going forward, as work from home continues to become a more common choice for employees, DocuSign’s ability to “further penetrate existing as well as new customers” has largely increased, he said. 

This penetration stems from DocuSign’s software based cloud platform’s ability to streamline traditional contracting processes for companies looking to cut down on the time involved with this contracting and typical highly redundant costs, the analyst said.

Additionally, DocuSign’s Agreement Cloud and its contract lifecycle management offering SpringCM continue to expand the company’s software offerings throughout entire deal processes — a major differentiator in this environment, he said. 

In a broad view of the company, Ives said its “plug and play features, ease of use, brand awareness, high technical expertise, and network effect (APIs)” are key drivers for DocuSign’s success in building its strong market presence.

DOCU Price Action: DocuSign shares gained 5.3% Friday, closing at $274.43. 

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DOCU – Ark Invest On DocuSign Says Confident Pandemic-Induced Transition To e-Agreements 'Not A Temporary Shift'

Cathie Wood-led Ark Investment Management believes the e-signature company DocuSign Inc (NASDAQ: DOCU) could continue pulling more customers beyond the COVID-induced transition to online electronic agreements.

What Happened: The San Francisco, California-based company’s shares jumped 19% on Friday after reporting strong earnings, surpassing expectations on both revenue and earnings. It also raised guidance for the second quarter and fiscal year. 

The New York-based investment firm Ark, which holds about 2.59 million shares, worth about $503.9 million, in DocuSign, said it believes the company appears to be gaining traction in international markets and the growth in its Agreement Cloud amid COVID-19 is not a temporary shift. 

“Additions to the management team and clear strategic roadmaps have bolstered our confidence in the company,” the investment firm said in a note.

DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.

Why It Matters: Online or electronic agreements have become increasingly popular with organizations during the pandemic.

BofA Securities had in April estimated that DocuSign will “continue benefiting from a strong adoption cycle, stemming from demand for a cloud based solution which reduces contract execution cycles time from weeks to less than a day.”  

See Also: Why BofA Is Bullish On DocuSign Stock

Price Action: DocuSign shares closed 19.76% higher at $233.24 on Friday. 

Photo by Cory Doctorow on Flickr

Latest Ratings for DOCU

Date Firm Action From To
Jun 2021 Citigroup Maintains Buy
Jun 2021 Wedbush Maintains Outperform
Jun 2021 Morgan Stanley Maintains Overweight

View More Analyst Ratings for DOCU

View the Latest Analyst Ratings

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

DOCU – DocuSign (DOCU) Gains But Lags Market: What You Should Know

DocuSign (DOCU Free Report) closed the most recent trading day at $212.97, moving +0.33% from the previous trading session. This change lagged the S&P 500’s 0.77% gain on the day.

Heading into today, shares of the provider of electronic signature technology had lost 3.27% over the past month, lagging the Business Services sector’s gain of 0.5% and the S&P 500’s gain of 7.34% in that time.

Investors will be hoping for strength from DOCU as it approaches its next earnings release. On that day, DOCU is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 125%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $434.87 million, up 46.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $1.97 billion, which would represent changes of +47.78% and +35.62%, respectively, from the prior year.

Any recent changes to analyst estimates for DOCU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.74% higher. DOCU currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 154.84 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 29.71.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

DOCU – DocuSign (DOCU) Gains As Market Dips: What You Should Know

In the latest trading session, DocuSign (DOCU Free Report) closed at $265.16, marking a +1.6% move from the previous day. This change outpaced the S&P 500’s 0.19% loss on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.07%.

Investors will be hoping for strength from DOCU as it approaches its next earnings release. The company is expected to report EPS of $0.22, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $406.76 million, up 47.97% from the year-ago period.

Investors should also note any recent changes to analyst estimates for DOCU. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.82% lower. DOCU currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 241.1 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 35.22.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.