DocuSign, Inc.’s (DOCU - Free Report) fourth-quarter fiscal 2023 (ended Jan 31) presented better-than-expected results with both earnings and revenues showing year-over-year growth, but failed to impress the market. The stock has not seen any movement after the result release (Mar 9, after market close).
Non-GAAP earnings per share (excluding 62 cents from non-recurring items) of 65 cents beat the consensus mark by 22.6% and grew 35.4% from the year-ago fiscal quarter’s reported figure. Revenues of $659.6 million also surpassed the Zacks Consensus Estimate by 3.2% and increased 13.6% from the year-ago fiscal quarter’s reported figure.
Shares of DOCU have dropped 32.2% in the past year compared with its industry’s 21.5% decrease.
Quarter in Details
Subscription revenues came in at $643.7 million, up 14.1% year over year. Professional services and other revenues decreased 5.4% from the year-ago fiscal quarter’s reported figure to $15.9 million. For the reported quarter, International revenues increased 19.6% from the year-ago fiscal quarter’s reported figure to $165 million. Billings of $739 million were up 10.3% from the year-ago fiscal quarter’s reported figure.
Non-GAAP gross margin was at 83% compared with 81% in the same period last year. Non-GAAP gross profit of $522.2 million increased 16.2% year over year. Non-GAAP operating margin of 24% increased 600 basis points from the year-ago figure.
Balance Sheet & Cash Flow
DocuSign ended the quarter with cash and cash equivalents of $721.9 million compared with $632.6 million at the end of the previous quarter. It generated $137.1 million in cash from operating activities and a capex of $24.1 million. Non-GAAP free cash flow was $113 million.
First Quarter Fiscal 2024 Guidance
The company expects the revenue to be in the range of $639-$643 million. The Zacks Consensus Estimate for the revenue is pegged at $642.6 million, which is above the midpoint ($641 million) of the guided range. In segmental revenues, subscription revenues are expected to be in the $625-$629 band. Non-GAAP gross margin and non-GAAP operating margin are expected to be 81-82% and 21-22% respectively.
Fiscal 2024 Guidance
The company expects the revenue to be in the range of $2.69-$2.7 billion. The Zacks Consensus mark for the revenue is pegged at $2.69 million. In segmental revenues, subscription revenues are expected to be in the $2.63-$2.65 billion band. Non-GAAP gross margin and non-GAAP operating margin are expected to be 81-82% and 21-23% respectively.
Currently, DocuSign carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. (IT - Free Report) , carrying a Zacks Rank of 2, reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC (APTV), carrying Zacks Rank #3 (Hold), reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenue surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.
Equifax(EFX - Free Report) , currently holding a Zacks Rank of 3, reported stellar fourth-quarter 2022 results. The company’s earnings and revenues surpassed the Zacks Consensus Estimate. EFX’s adjusted earnings of $1.52 per share beat the Zacks Consensus Estimate by 2.7% but decreased 17.4% on a year-over-year basis. Revenues of $1.2 billion beat the Zacks Consensus Estimate by 1.5% but decreased 4.4% year over year.
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DocuSign, Inc.’s (DOCU - Free Report) fourth-quarter fiscal 2023 (ended Jan 31) presented better-than-expected results with both earnings and revenues showing year-over-year growth, but failed to impress the market. The stock has not seen any movement after the result release (Mar 9, after market close).
Non-GAAP earnings per share (excluding 62 cents from non-recurring items) of 65 cents beat the consensus mark by 22.6% and grew 35.4% from the year-ago fiscal quarter’s reported figure. Revenues of $659.6 million also surpassed the Zacks Consensus Estimate by 3.2% and increased 13.6% from the year-ago fiscal quarter’s reported figure.
Shares of DOCU have dropped 32.2% in the past year compared with its industry’s 21.5% decrease.
Quarter in Details
Subscription revenues came in at $643.7 million, up 14.1% year over year. Professional services and other revenues decreased 5.4% from the year-ago fiscal quarter’s reported figure to $15.9 million. For the reported quarter, International revenues increased 19.6% from the year-ago fiscal quarter’s reported figure to $165 million. Billings of $739 million were up 10.3% from the year-ago fiscal quarter’s reported figure.
Non-GAAP gross margin was at 83% compared with 81% in the same period last year. Non-GAAP gross profit of $522.2 million increased 16.2% year over year. Non-GAAP operating margin of 24% increased 600 basis points from the year-ago figure.
Balance Sheet & Cash Flow
DocuSign ended the quarter with cash and cash equivalents of $721.9 million compared with $632.6 million at the end of the previous quarter. It generated $137.1 million in cash from operating activities and a capex of $24.1 million. Non-GAAP free cash flow was $113 million.
First Quarter Fiscal 2024 Guidance
The company expects the revenue to be in the range of $639-$643 million. The Zacks Consensus Estimate for the revenue is pegged at $642.6 million, which is above the midpoint ($641 million) of the guided range. In segmental revenues, subscription revenues are expected to be in the $625-$629 band. Non-GAAP gross margin and non-GAAP operating margin are expected to be 81-82% and 21-22% respectively.
Fiscal 2024 Guidance
The company expects the revenue to be in the range of $2.69-$2.7 billion. The Zacks Consensus mark for the revenue is pegged at $2.69 million. In segmental revenues, subscription revenues are expected to be in the $2.63-$2.65 billion band. Non-GAAP gross margin and non-GAAP operating margin are expected to be 81-82% and 21-23% respectively.
Currently, DocuSign carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. (IT - Free Report) , carrying a Zacks Rank of 2, reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC (APTV), carrying Zacks Rank #3 (Hold), reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenue surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.
Equifax(EFX - Free Report) , currently holding a Zacks Rank of 3, reported stellar fourth-quarter 2022 results. The company’s earnings and revenues surpassed the Zacks Consensus Estimate. EFX’s adjusted earnings of $1.52 per share beat the Zacks Consensus Estimate by 2.7% but decreased 17.4% on a year-over-year basis. Revenues of $1.2 billion beat the Zacks Consensus Estimate by 1.5% but decreased 4.4% year over year.
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Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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