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DocuSign (DOCU) Q3 Revenues Beat Estimates, Earnings Fall Y/Y
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DocuSign, Inc. (DOCU - Free Report) reported impressive third-quarter fiscal 2023 (ended Oct 31) results with both earnings and revenues surpassing the Zacks Consensus Estimate.
Non-GAAP earnings per share (excluding 72 cents from non-recurring items) of 57 cents beat the consensus mark by 39% but decreased 1.7% from the year-ago fiscal quarter’s reported figure. Revenues of $645.5 million also surpassed the Zacks Consensus Estimate by 3.1% and increased 18.3% from the year-ago fiscal quarter’s reported figure.
Shares of DocuSign have plunged 69.8% over the past year compared with 60.2% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Quarter in Detail
Subscription revenues came in at $624.1 million, up 18% year over year. Professional services and other revenues surged 27% from the year-ago fiscal quarter’s reported figure to $21.4 million. International revenues increased 22.6% from the year-ago fiscal quarter’s reported figure and contributed 24.3% to total revenues. Billings of $659.4 million were up 17% from the year-ago fiscal quarter’s reported figure.
Non-GAAP gross margin was at 83% compared with 82% in the same period last year. Non-GAAP gross profit of $537.6 million increased 19.6% year over year. Non-GAAP operating margin of 20% declined from 22% reported in the year-ago quarter.
DocuSign ended the quarter with cash and cash equivalents of $632.6 million compared with $637.2 million at the end of the previous quarter. It generated $52.5 million of cash from operating activities and a capex of $16.5 million. Non-GAAP free cash flow was $36.1 million.
Guidance
For fourth-quarter fiscal 2023, DocuSign expects revenues in the range of $637-$641 million. The midpoint of the guided range ($639 million) is lower than the current Zacks Consensus Estimate of $639.6 million. Billings are expected to be between $705 million and $715 million. Non-GAAP gross margin is anticipated between 82% and 83%. Non-GAAP operating margin is expected between 20% and 22%.
For fiscal 2023, DocuSign expects revenues in the range of $2.493-$2.497 billion (prior guidance was $2.47-$2.482 billion). The midpoint of the guided range ($2.495 billion) is above the Zacks Consensus Estimate of $2.48 billion. Billings are expected to be between $2.626 billion and $2.636 billion. Non-GAAP gross margin is anticipated between 81% and 82%. Non-GAAP operating margin is expected between 18% and 20%.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the Zacks Consensus Estimate by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the Zacks Consensus Estimate by 3% and increased slightly on a year-over-year basis.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the Zacks Consensus Estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been flat over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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DocuSign (DOCU) Q3 Revenues Beat Estimates, Earnings Fall Y/Y
DocuSign, Inc. (DOCU - Free Report) reported impressive third-quarter fiscal 2023 (ended Oct 31) results with both earnings and revenues surpassing the Zacks Consensus Estimate.
Non-GAAP earnings per share (excluding 72 cents from non-recurring items) of 57 cents beat the consensus mark by 39% but decreased 1.7% from the year-ago fiscal quarter’s reported figure. Revenues of $645.5 million also surpassed the Zacks Consensus Estimate by 3.1% and increased 18.3% from the year-ago fiscal quarter’s reported figure.
Shares of DocuSign have plunged 69.8% over the past year compared with 60.2% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Quarter in Detail
Subscription revenues came in at $624.1 million, up 18% year over year. Professional services and other revenues surged 27% from the year-ago fiscal quarter’s reported figure to $21.4 million. International revenues increased 22.6% from the year-ago fiscal quarter’s reported figure and contributed 24.3% to total revenues. Billings of $659.4 million were up 17% from the year-ago fiscal quarter’s reported figure.
Non-GAAP gross margin was at 83% compared with 82% in the same period last year. Non-GAAP gross profit of $537.6 million increased 19.6% year over year. Non-GAAP operating margin of 20% declined from 22% reported in the year-ago quarter.
DocuSign ended the quarter with cash and cash equivalents of $632.6 million compared with $637.2 million at the end of the previous quarter. It generated $52.5 million of cash from operating activities and a capex of $16.5 million. Non-GAAP free cash flow was $36.1 million.
Guidance
For fourth-quarter fiscal 2023, DocuSign expects revenues in the range of $637-$641 million. The midpoint of the guided range ($639 million) is lower than the current Zacks Consensus Estimate of $639.6 million. Billings are expected to be between $705 million and $715 million. Non-GAAP gross margin is anticipated between 82% and 83%. Non-GAAP operating margin is expected between 20% and 22%.
For fiscal 2023, DocuSign expects revenues in the range of $2.493-$2.497 billion (prior guidance was $2.47-$2.482 billion). The midpoint of the guided range ($2.495 billion) is above the Zacks Consensus Estimate of $2.48 billion. Billings are expected to be between $2.626 billion and $2.636 billion. Non-GAAP gross margin is anticipated between 81% and 82%. Non-GAAP operating margin is expected between 18% and 20%.
DocuSign currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DocuSign Price, Consensus and EPS Surprise
DocuSign price-consensus-eps-surprise-chart | DocuSign Quote
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the Zacks Consensus Estimate by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the Zacks Consensus Estimate by 3% and increased slightly on a year-over-year basis.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the Zacks Consensus Estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been flat over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.