DocuSign, Inc. ($DOCU) Earnings (Q2 FY23)

DocuSign, Inc. ($DOCU) Earnings and Opinion:


DocuSign is a company in the Technology sector and operates in the Software-Application industry. The company provides electronic signature software in the United States and internationally. DocuSign was incorporated in 2003 and is currently headquartered in San Francisco, California. The company made its debut on the stock market in 2018.

DocuSign Earnings Results:

  • Revenues of $622M beating expectations of $603M
  • Gross Profit of $513M beating expectations of $484M
  • Operating Profit of $112M beating expectations of $101M
  • Adjusted EPS of $0.44 beating expectations of $0.42
  • Operating Cash Flow of $121M beating expectations of $110M
  • Guidance was mixed with missed on Gross Profit in both time periods
Opinion:

DocuSign is currently trading higher today, after they reported earnings yesterday afternoon. The stock is up about 8% in todays trading session. They reported a solid earnings report, with some pretty solid beats. The things that stood out the most were probably the margins. Gross Margin beat by 218bps and Operating Margin beat by 506bps. This is hopefully going to be a common trend and will pick up some momentum for DocuSign. I have a lot of faith in this company and an earnings report with this kind of quality is a solid sign. As far as valuation goes, the P/S ratio sits at 5.63, which is a solid place. The growth seems to be on a decline, but could change. The current ratio is 1.01, and the cash outweighs the debt by about 100M. In my opinion, this may be biased, but I absolutely love DocuSign. Sure it is down almost 80% this year, but that doesn't take away from the worth and value of the company. You're starting to see them in a lot of common places (doctor offices and apartment complexes). The business model is so solid and saves offices both money and time. I think it's a win-win situation for many businesses to use DocuSign. The future is bright for this company and if they can get financials right, there will be no end. I am long DocuSign.



*Information from Yahoo Finance, Consensus Gurus, CMLVIZ

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