DocuSign (DOCU) Reports Q4: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/03/09 6:04 am EST
Add to Watchlist

E-signature company DocuSign (DOCU) will be reporting results tomorrow after market close. Here's what investors should know.

Last quarter DocuSign reported revenues of $545.4 million, up 42.4% year on year, beating analyst revenue expectations by 2.67%. It was a mixed quarter for the company, with an exceptional revenue growth but an 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 30.3% year on year to $561.5 million, slowing down from the 56.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 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 5.37%.

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. Box delivered top-line growth of 17.3% year on year, beating analyst estimates by 2.08% and Dropbox reported revenues up 12.1% year on year, exceeding estimates by 1.27%. Box traded up 6.2% on the results, Dropbox was up 7.78%. Read our full analysis of Box's results here and Dropbox's results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have been swept alongside with it, with share price down on average 17.5% over the last month. DocuSign is down 24.1% during the same time, and is heading into the earnings with analyst price target of $183.9, compared to share price of $93.4.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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