DocuSign’s Q1 Earnings Almost Double, Revenue Outlook Up; Shares Jump Premarket

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DOCUSIGN ($NASDAQ:DOCU): DocuSign, a leading provider of digital signature technology, reported fiscal Q1 non-GAAP earnings that almost doubled compared to the same period a year prior. For the quarter, diluted earnings were $0.72 per share, significantly higher than the analysts’ consensus estimate of $0.49 per share, as seen in the Capital IQ survey. As a result of this strong performance, the company raised its full-year revenue outlook and its stock price has jumped premarket.

The company’s mission is to accelerate business and simplify life for its customers by eliminating the hassles, costs, and lack of security in traditional methods of signing documents. DocuSign offers cloud-based solutions that are available on any device, with an easy-to-use interface and strong security measures in place to protect customers’ data.

Earnings

DOCUSIGN recently released its earning report for Q1 FY2024 ending April 30 2021, and the results have exceeded expectations. Total revenue reached 469.08M USD, marking an almost double of the same quarter of the previous year.

However, net income for the quarter was 8.35M USD, signalling a 20.3% decrease compared to the same quarter of the previous year. In spite of the lower income, DOCUSIGN’s total revenue has grown significantly in the past three years, reaching 661.39M USD. This positive report has caused DOCUSIGN’s shares to jump in premarket trading.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Docusign. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Docusign. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Docusign. More…

Key Ratios Snapshot

Some of the financial key ratios for Docusign are shown below. More…

Share Price

DocuSign reported its financial results for the first quarter of 2021 this Wednesday, with strong earnings almost doubling and revenue outlook up. Following the release of their results, DOCUSIGN stock opened at $55.1 and closed at $54.1, down by 2.1% from previous closing price of 55.3. Live Quote…

Analysis

At GoodWhale, we recently conducted a comprehensive analysis of DOCUSIGN‘s financials. Having weighed all the data, we concluded that DOCUSIGN is a medium risk investment in terms of both financial and business aspects. However, during our research, we identified two risk warnings in balance sheet, non financial. While these warnings don’t necessarily mean that DOCUSIGN is an unsuitable investment, they should be taken into consideration when evaluating the overall risk of the investment. If you’re interested in learning more about the risk warnings, we encourage you to register on goodwhale.com for a detailed breakdown. 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

Investing in DOCUSIGN could be a wise move as the company reported strong earnings for its fiscal first quarter. Earnings almost doubled to $0.72 per diluted share, compared to $0.38 a year ago, exceeding analyst expectations. Additionally, sales surged and the company raised its outlook for full-year revenue. Shares of DOCUSIGN jumped in premarket trading as a result of these strong earnings.