E-signature company DocuSign (DOCU) will be reporting earnings tomorrow after market hours. Here's what investors should know.
Last quarter DocuSign reported revenues of $645.5 million, up 18.3% year on year, beating analyst revenue expectations by 2.88%. Despite the stock rising on the results, it was a mixed quarter for the company, with a meaningful improvement in gross margin but underwhelming revenue guidance for the next quarter.
Is DocuSign buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting DocuSign's revenue to grow 10.1% year on year to $639.5 million, slowing down from the 34.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.93%.
Looking at DocuSign's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 5.89% year on year, beating analyst estimates by 0.92% and Box reported revenues up 9.91% year on year, inline with analysts' estimates. Dropbox traded down 1.13% on the results, Box was down 10.7%. Read our full analysis of Dropbox's results here and Box's results here.
Tech stocks have had a rocky start in 2023 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.35% over the last month. DocuSign is down 1.86% during the same time, and is heading into the earnings with analyst price target of $65.5, compared to share price of $64.95.
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The author has no position in any of the stocks mentioned.