DocuSign (DOCU) Reports Q3: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/12/07 5:28 am EST

E-signature company DocuSign (DOCU) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter DocuSign reported revenues of $622.1 million, up 21.5% year on year, beating analyst revenue expectations by 3.3%. It was a solid quarter for the company, with a decent beat of analyst estimates.

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 14.9% year on year to $627.2 million, slowing down from the 42.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.

DocuSign Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 4.31%.

Looking at DocuSign's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 7.41% year on year, beating analyst estimates by 0.82% and Box reported revenues up 11.5% year on year, missing analyst estimates by 0.68%. Dropbox traded up 4.88% on the results, Box was down 1.09%. Read our full analysis of Dropbox's results here and Box's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.58% over the last month. DocuSign is up 1.62% during the same time, and is heading into the earnings with analyst price target of $64.20, compared to share price of $41.83.

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The author has no position in any of the stocks mentioned.