Stock Story -
E-signature company DocuSign (NASDAQ:DOCU) will be reporting results tomorrow after market hours. Here’s what you need to know.
DocuSign met analysts’ revenue expectations last quarter, reporting revenues of $709.6 million, up 7.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ ARR (annual recurring revenue) estimates and a solid beat of analysts’ billings estimates.
Is DocuSign a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting DocuSign’s revenue to grow 5.8% year on year to $727.8 million, slowing from the 10.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DocuSign has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.
Looking at DocuSign’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Dropbox delivered year-on-year revenue growth of 1.9%, meeting analysts’ expectations, and Box (NYSE:BOX) reported revenues up 3.3%, in line with consensus estimates. Dropbox traded up 3.3% following the results while Box was also up 10.7%.
Read the full analysis of Dropbox’s and Box’s results on StockStory.
There has been positive sentiment among investors in the productivity software segment, with share prices up 6.4% on average over the last month. DocuSign is up 14.1% during the same time and is heading into earnings with an average analyst price target of $62 (compared to the current share price of $57.7).
