Docusign Intrinsic Value – DOCUSIGN Reports Record Earnings for Q2 of FY2024
September 13, 2023
🌥️Earnings Overview
DOCUSIGN ($NASDAQ:DOCU) reported their second quarter FY2024 earnings results on July 31 2023, with total revenue of USD 687.7 million and a 10.5% year-on-year increase. Net income was reported at USD 7.4 million, showing a 116.4% year-on-year increase for the quarter ending September 7 2023.
Market Price
On Thursday, DOCUSIGN announced record earnings for the second quarter of fiscal year 2024. The company’s stock opened the day at $52.2 and closed at $52.1, down 1.2% from the prior closing price of $52.8. This slight decrease is likely due to the fact that market watchers had expecting the company to report even better earnings than it actually did. The impressive quarterly numbers are a testament to DOCUSIGN’s continued success as a leading provider of digital document management solutions. DOCUSIGN’s strong performance was a result of the company’s aggressive investments in its platform, which has enabled it to better serve its customers and capture more of the digital transformation market.
The company also benefited from increased demand for its eSignature and document management solutions due to accelerating digital adoption among enterprises. The strong financial performance highlights DOCUSIGN’s potential for continued growth, as the company has yet to fully capitalize on opportunities in the global digital document management market. With its cutting-edge technology and relentless focus on customer satisfaction, DOCUSIGN is well positioned to continue its impressive performance into the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Docusign. DOCUSIGN_Reports_Record_Earnings_for_Q2_of_FY2024″>More…
| Total Revenues | Net Income | Net Margin |
| 2.65k | -16.67 | 0.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Docusign. DOCUSIGN_Reports_Record_Earnings_for_Q2_of_FY2024″>More…
| Operations | Investing | Financing |
| 634.25 | -102.26 | -154.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Docusign. DOCUSIGN_Reports_Record_Earnings_for_Q2_of_FY2024″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.27k | 2.42k | 4.19 |
Key Ratios Snapshot
Some of the financial key ratios for Docusign are shown below. DOCUSIGN_Reports_Record_Earnings_for_Q2_of_FY2024″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.6% | – | 0.3% |
| FCF Margin | ROE | ROA |
| 20.6% | 0.7% | 0.2% |
Analysis – Docusign Intrinsic Value
At GoodWhale, we have conducted an analysis of DOCUSIGN’s fundamentals. Our proprietary Valuation Line has generated a fair value of around $194.0 for DOCUSIGN’s stock. This indicates that DOCUSIGN is currently trading at $52.1, which is 73.1% undervalued relative to its true value. Thus, there is potential for significant returns in the short term if investors can capitalize on this market opportunity. More…
Peers
The company has a number of competitors, including Adobe Inc, Microsoft Corp, and Monday.Com Ltd.
– Adobe Inc ($NASDAQ:ADBE)
Adobe Inc. is an American multinational computer software company headquartered in San Jose, California. The company has a market cap of 153.82B as of 2022 and a ROE of 26.76%. Adobe Inc. develops, manufactures, and markets computer software products and services. The company’s products include Creative Cloud, Photoshop, Illustrator, InDesign, Premiere Pro, After Effects, and Dreamweaver. Creative Cloud is a subscription-based service that provides access to Adobe’s creative products. Photoshop is a raster graphics editor used for photo editing, graphic design, and web design. Illustrator is a vector graphics editor used for illustrations, logos, and branding. InDesign is a page layout and typesetting application used for print and digital publishing. Premiere Pro is a video editing software used for film, television, and online video. After Effects is a digital visual effects and motion graphics software used in film and television post-production. Dreamweaver is a web development application used for creating and editing websites.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of $1.8 trillion and a ROE of 31.9%. The company develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.
– Monday.Com Ltd ($NASDAQ:MNDY)
Monday.com Ltd is a publicly traded company with a market capitalization of 4.36 billion as of 2022. The company has a return on equity of -16.81%. Monday.com Ltd is a provider of enterprise software solutions. The company’s products are used by organizations to manage their businesses and processes. Monday.com Ltd’s products are used by a variety of industries, including healthcare, retail, manufacturing, and logistics. The company has a presence in a number of countries, including the United States, Canada, the United Kingdom, and Australia.
Summary
DOCUSIGN has had a strong second quarter, with total revenue increasing by 10.5%, and reported net income increasing by 116.4%. This impressive performance makes them an attractive investment opportunity for those interested in digital signature technology, and could point to future success as their technology becomes more widely adopted. The company’s strong financials indicate that it is well-positioned to weather a potential downturn in the economy and to continue growing its userbase and revenues. Investing in DOCUSIGN may be a solid option for those looking to capitalize on the potential of digital signatures.
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