Electronic signature company DocuSign (NASDAQ:DOCU) will be reporting results this Thursday after the bell. Here’s what investors should know.
DocuSign beat analysts’ revenue expectations last quarter, reporting revenues of $836.9 million, up 7.8% year on year. It was a mixed quarter for the company, with full-year guidance of robust revenue growth but a miss of analysts’ annual recurring revenue estimates.
Is DocuSign a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting DocuSign’s revenue to grow 8.1% year on year, in line with the 7.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. DocuSign has a history of exceeding Wall Street’s expectations.
Looking at DocuSign’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dropbox posted flat year-on-year revenue, beating analysts’ expectations by 1.4%, and Box reported revenues up 10.7%, topping estimates by 0.5%. Dropbox traded up 15% following the results while Box was down 3.7%.
Read our full analysis of Dropbox’s results here and Box’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 13.1% on average over the last month. DocuSign is up 13.5% during the same time and is heading into earnings with an average analyst price target of $59.88 (compared to the current share price of $55.18).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.