E-signature company DocuSign (NASDAQ:DOCU) will be announcing earnings results tomorrow afternoon. Here's what to look for.
Last quarter DocuSign reported revenues of $661.4 million, up 12.3% year on year, beating analyst revenue expectations by 3.07%. It was a strong quarter for the company, with a decent beat of analysts' revenue estimates. The billings beat of over 8% vs. Consensus was especially impressive, and free cash flow also beat by a healthy margin. We were also glad that the revenue guidance for the next quarter and upcoming year exceeded analysts' expectations.
Is DocuSign buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting DocuSign's revenue to grow 8.88% year on year to $677.4 million, slowing down from the 21.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.07%.
Looking at DocuSign's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Dropbox (NASDAQ:DBX) delivered top-line growth of 8.7% year on year, beating analyst estimates by 1.49%, and Box reported revenues up 6.27% year on year, exceeding estimates by 0.05%. Dropbox traded up 4.1% on the results, and Box was down 8.8%.
Read the full analysis of Dropbox's and Box's results on StockStory.
There has been positive sentiment among investors in the productivity software segment, with the stocks up on average 2.46% over the last month. DocuSign is up 2.21% during the same time, and is heading into the earnings with analysts' average price target of $65.2, compared to share price of $52.
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The author has no position in any of the stocks mentioned.