Electronic signature company DocuSign (NASDAQ: DOCU) will be announcing earnings results this Tuesday afternoon. Here’s what investors should know.
DocuSign beat analysts’ revenue expectations last quarter, reporting revenues of $818.4 million, up 8.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA 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 6.7% year on year, slowing from the 9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q4 results, giving us a hint as to what we can expect. Box delivered year-on-year revenue growth of 9.4%, beating analysts’ expectations by 0.5%, and Dropbox reported a revenue decline of 1.1%, topping estimates by 1.1%. Box traded up 10.2% following the results while Dropbox was also up 3%.
Read our full analysis of Box’s results here and Dropbox’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 2.1% on average over the last month. DocuSign is up 3.6% during the same time and is heading into earnings with an average analyst price target of $78.28 (compared to the current share price of $46.85).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
