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DocuSign (DOCU) Gains From eSignature Strength Amid Expense Woes
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DocuSign, Inc. (DOCU - Free Report) is currently benefiting from continued customer demand for eSignature, the company’s anchor product.
DocuSign recently reported third-quarter fiscal 2022 non-GAAP earnings per share of 58 cents that beat the Zacks Consensus Estimate by 26.1% and increased more than 100% year over year. Revenues of $545.3 million surpassed the consensus mark by 3% and increased 42.5% year over year.
The company’s shares have declined 41.9% over the past year compared with 36% decline of the industry it belongs to.
How is DocuSign Doing?
DocuSign remains focused on continuously acquiring eSignature customers, expanding eSignature use cases within existing customers, improving its offerings, popularizing other Agreement Cloud products to new and existing customers, and expanding internationally. The company continues to invest in sales, marketing and technical expertise across a number of industry verticals.
DocuSign’s top line is significantly benefiting from continued customer demand for eSignature, the company’s anchor product. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world.
The acquisitions of Seal Software and Liveoak Technologies in 2020 are expected to add functionality to DocuSign Agreement Cloud and significantly expand the company’s eNotary offerings. These buyouts are anticipated to aid the company in continuously developing new features internally while also aptly utilizing investments to tap a large addressable market.
DocuSign is seeing an increase in expenses as it continues to invest in sales, marketing and technical expertise. Total operating expenses of $432.8 million increased 29.8% year over year in the third quarter of fiscal 2022. Total operating expenses of $1.3 billion increased 36.6% year over year in fiscal 2021. Hence, the company's bottom line is likely to remain under pressure going forward.
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold).
Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 580.3% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sport a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 190.6% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN sport a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 86.5% in the past year. CRA International has a long-term earnings growth of 15.5%. FDS carries a Zacks #2 (Buy) Rank.
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DocuSign (DOCU) Gains From eSignature Strength Amid Expense Woes
DocuSign, Inc. (DOCU - Free Report) is currently benefiting from continued customer demand for eSignature, the company’s anchor product.
DocuSign recently reported third-quarter fiscal 2022 non-GAAP earnings per share of 58 cents that beat the Zacks Consensus Estimate by 26.1% and increased more than 100% year over year. Revenues of $545.3 million surpassed the consensus mark by 3% and increased 42.5% year over year.
The company’s shares have declined 41.9% over the past year compared with 36% decline of the industry it belongs to.
How is DocuSign Doing?
DocuSign remains focused on continuously acquiring eSignature customers, expanding eSignature use cases within existing customers, improving its offerings, popularizing other Agreement Cloud products to new and existing customers, and expanding internationally. The company continues to invest in sales, marketing and technical expertise across a number of industry verticals.
DocuSign’s top line is significantly benefiting from continued customer demand for eSignature, the company’s anchor product. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world.
The acquisitions of Seal Software and Liveoak Technologies in 2020 are expected to add functionality to DocuSign Agreement Cloud and significantly expand the company’s eNotary offerings. These buyouts are anticipated to aid the company in continuously developing new features internally while also aptly utilizing investments to tap a large addressable market.
DocuSign is seeing an increase in expenses as it continues to invest in sales, marketing and technical expertise. Total operating expenses of $432.8 million increased 29.8% year over year in the third quarter of fiscal 2022. Total operating expenses of $1.3 billion increased 36.6% year over year in fiscal 2021. Hence, the company's bottom line is likely to remain under pressure going forward.
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 580.3% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sport a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 190.6% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN sport a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 86.5% in the past year. CRA International has a long-term earnings growth of 15.5%. FDS carries a Zacks #2 (Buy) Rank.