DocuSign (NASDAQ:DOCU) Releases Earnings Results, Misses Expectations By $0.08 EPS

DocuSign (NASDAQ:DOCU – Get Rating) issued its quarterly earnings results on Thursday. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.08), Briefing.com reports. DocuSign had a negative net margin of 4.00% and a negative return on equity of 19.06%. The business had revenue of $588.69 million for the quarter, compared to analysts’ expectations of $581.85 million. During the same period in the previous year, the business posted ($0.03) earnings per share. The business’s revenue was up 25.5% compared to the same quarter last year. DocuSign updated its FY 2023 guidance to EPS and its Q2 2023 guidance to EPS.

NASDAQ:DOCU opened at $65.93 on Friday. The firm has a market capitalization of $13.18 billion, a price-to-earnings ratio of -146.51 and a beta of 1.05. DocuSign has a 52-week low of $64.30 and a 52-week high of $314.76. The stock has a fifty day moving average of $86.00 and a 200 day moving average of $116.00. The company has a debt-to-equity ratio of 2.61, a quick ratio of 0.96 and a current ratio of 0.96.

In other DocuSign news, COO Scott V. Olrich sold 12,500 shares of DocuSign stock in a transaction dated Tuesday, March 29th. The stock was sold at an average price of $110.15, for a total transaction of $1,376,875.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Daniel D. Springer purchased 66,882 shares of the company’s stock in a transaction on Tuesday, March 15th. The shares were purchased at an average cost of $74.76 per share, with a total value of $5,000,098.32. The disclosure for this purchase can be found here. 2.55% of the stock is currently owned by company insiders.

A number of hedge funds have recently modified their holdings of the business. Capital World Investors increased its holdings in shares of DocuSign by 128.3% in the first quarter. Capital World Investors now owns 5,683,838 shares of the company’s stock worth $608,853,000 after buying an additional 3,193,727 shares during the period. Vanguard Group Inc. increased its holdings in shares of DocuSign by 20.3% in the first quarter. Vanguard Group Inc. now owns 17,308,877 shares of the company’s stock worth $1,854,127,000 after buying an additional 2,917,683 shares during the period. Morgan Stanley increased its holdings in shares of DocuSign by 41.1% in the second quarter. Morgan Stanley now owns 6,661,767 shares of the company’s stock worth $1,862,430,000 after buying an additional 1,941,923 shares during the period. Renaissance Technologies LLC increased its holdings in shares of DocuSign by 744.5% in the first quarter. Renaissance Technologies LLC now owns 1,042,900 shares of the company’s stock worth $111,715,000 after buying an additional 919,400 shares during the period. Finally, Wellington Management Group LLP increased its holdings in shares of DocuSign by 157.8% in the first quarter. Wellington Management Group LLP now owns 1,417,461 shares of the company’s stock worth $151,839,000 after buying an additional 867,717 shares during the period. 75.62% of the stock is owned by hedge funds and other institutional investors.

A number of research firms have issued reports on DOCU. Wedbush downgraded DocuSign from a “neutral” rating to an “underperform” rating and decreased their target price for the stock from $80.00 to $60.00 in a research report on Tuesday, May 3rd. William Blair downgraded DocuSign from an “outperform” rating to a “market perform” rating in a research report on Friday. Royal Bank of Canada decreased their target price on DocuSign from $85.00 to $80.00 in a research report on Friday. Citigroup decreased their target price on DocuSign from $114.00 to $90.00 and set a “buy” rating for the company in a research report on Friday. Finally, Piper Sandler decreased their target price on DocuSign from $100.00 to $75.00 and set a “neutral” rating for the company in a research report on Friday. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, DocuSign presently has a consensus rating of “Hold” and a consensus price target of $134.27.

About DocuSign (Get Rating)

DocuSign, Inc provides electronic signature software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which automates workflows across the entire agreement process; Insights that use artificial intelligence (AI) to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce; Negotiate for Salesforce that supports for approvals, document comparisons, and version control; Analyzer, which helps customers understand what they're signing before they sign it; and CLM+ that provide AI-driven contract lifecycle management.

Recommended Stories