DocuSign beats Q4 revenue estimates; increases share buyback
Overview
U.S. e-signature platform's Q4 revenue grew 8% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company announced $2.0 bln increase to share repurchase program
Outlook
DocuSign sees current-qtr revenue between $822 mln and $826 mln, up 8% YoY
Company expects full-yr revenue between $3,484 mln and $3,496 mln, up 8% YoY
DocuSign guides full-yr non-GAAP gross margin to 81.5% to 82.0%
Result Drivers
AI-NATIVE PLATFORM EXPANSION - Co said FY growth was driven by continued evolution of its Intelligent Agreement Management platform, including integration of AI-native features across the agreement lifecycle
SUBSCRIPTION REVENUE GROWTH - Subscription revenue rose 8% yr/yr, helping drive overall revenue growth in Q4
Company press release: ID:nPn4y9K5Qa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $836.90 mln | $827.84 mln (16 Analysts) |
Q4 Adjusted EPS | Beat | $1.01 | $0.95 (17 Analysts) |
Q4 EPS |
| $0.44 |
|
Q4 Gross Margin |
| 79.7% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for DocuSign Inc is $75.00, about 60.2% above its March 16 closing price of $46.82
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 17 three months ago
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