DocuSign, Inc. ( DOCU Quick Quote DOCU - Free Report) reported better-than-expected second-quarter fiscal 2022 results.
Earnings per share of 47 cents beat the Zacks Consensus Estimate by 20.5% and increased more than 100% year over year. Increase in sales capacity, marketing programs and product innovation contributed to the bottom-line growth.
Revenues of $511.8 million surpassed the consensus mark by 6.1% and increased 49.6% year over year. The company’s international business increased 71% year over year. It added 13,000 new direct customers and achieved some significant CRM wins with large customers, taking the customer base above the 1-million mark. DocuSign continued to witness strength in eSignature and the broader Agreement Cloud Suite.
The company’s shares have gained 36.2% over the past year against 22.6% decline of the
industry it belongs to. Quarter Details
Subscription revenues came in at $492.8 million, up 52% year over year. Professional services revenues increased 3% year over year to $19.1 million. Billings of $595.4 million were up 54% year over year.
Non-GAAP gross profit of $417.5 million increased 56.5% year over year. Non-GAAP gross margin of 82% improved 400 basis points (bps) year over year.
Non-GAAP operating profit of $99.7 million increased more than 100% year over year. Non-GAAP operating margin of 19% improved 900 basis points (bps) year over year.
DocuSign ended the quarter with cash and cash equivalent balance of $518.6 million compared with $519 million at the end of the previous quarter. The company generated $177.7 million of cash from operating activities and Capex was $15.9 million.
For the third quarter of fiscal 2022, DocuSign expects revenues in the range of $526 million to $532 million, higher than the current Zacks Consensus Estimate of $514.85 million. Billings are expected between $585 million and $597 million.
Non-GAAP gross margin is anticipated to be between 79% and 81%. Non-GAAP operating margin is expected between 17% and 19%.
For fiscal 2022, DocuSign expects revenues in the range of $2.078 billion to $2.088 billion, higher than the current Zacks Consensus Estimate of $2.03 billion. Billings are expected between $2.409 billion and $2.429 billion.
Non-GAAP gross margin is anticipated to be between 79% and 81%. Non-GAAP operating margin is expected to be between 16% and 18%.
DocuSign currently carries a Zacks Rank #3 (Hold).
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