DocuSign, Inc.’s (DOCU - Free Report) fourth-quarter fiscal 2022 earnings matched the Zacks Consensus Estimate while revenues beat the same.
Non-GAAP earnings per share of 48 cents increased 29.7% year over year. Revenues of $580.8 million surpassed the Zacks Consensus Estimate by 3.6% and increased 34.8% year over year.
The company’s shares have declined 65.9% over the past year compared with 68.3% decline of the industry it belongs to.
Quarter Detail
Subscription revenues came in at $564 million, up 37% year over year. Professional services and other revenues decreased 19% year over year to $16.8 million. Billings of $670.1 million were up 25% year over year.
Non-GAAP gross profit of $470 million increased 36% year over year. Non-GAAP gross margin of 81% improved from 80% in the year-ago quarter.
Non-GAAP operating profit of $103.9 million increased 39% year over year. Non-GAAP operating margin of 18% improved from 17% in the year-ago quarter.
DocuSign ended the quarter with cash and cash equivalent balance of $509.1 million compared with $503.9 million at the end of the previous quarter. The company generated $87.8 million of cash from operating activities and Capex was $25.6million.
Guidance
For the first quarter of fiscal 2021, DocuSign expects revenues in the range of $579 million to $583 million, slightly lower than the current Zacks Consensus Estimate of $583.02 million. Billings are expected between $573 million and $583 million.
Non-GAAP gross margin is anticipated to be between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
For fiscal 2023, DocuSign expects revenues in the range of $2.47 billion to $2.482 billion. Billings are expected between $2.706 billion and $2.726 billion.
Non-GAAP gross margin is anticipated to be between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
DocuSign currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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DocuSign, Inc.’s (DOCU - Free Report) fourth-quarter fiscal 2022 earnings matched the Zacks Consensus Estimate while revenues beat the same.
Non-GAAP earnings per share of 48 cents increased 29.7% year over year. Revenues of $580.8 million surpassed the Zacks Consensus Estimate by 3.6% and increased 34.8% year over year.
The company’s shares have declined 65.9% over the past year compared with 68.3% decline of the industry it belongs to.
Quarter Detail
Subscription revenues came in at $564 million, up 37% year over year. Professional services and other revenues decreased 19% year over year to $16.8 million. Billings of $670.1 million were up 25% year over year.
Non-GAAP gross profit of $470 million increased 36% year over year. Non-GAAP gross margin of 81% improved from 80% in the year-ago quarter.
Non-GAAP operating profit of $103.9 million increased 39% year over year. Non-GAAP operating margin of 18% improved from 17% in the year-ago quarter.
DocuSign ended the quarter with cash and cash equivalent balance of $509.1 million compared with $503.9 million at the end of the previous quarter. The company generated $87.8 million of cash from operating activities and Capex was $25.6million.
Guidance
For the first quarter of fiscal 2021, DocuSign expects revenues in the range of $579 million to $583 million, slightly lower than the current Zacks Consensus Estimate of $583.02 million. Billings are expected between $573 million and $583 million.
Non-GAAP gross margin is anticipated to be between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
For fiscal 2023, DocuSign expects revenues in the range of $2.47 billion to $2.482 billion. Billings are expected between $2.706 billion and $2.726 billion.
Non-GAAP gross margin is anticipated to be between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
DocuSign currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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