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DocuSign's (DOCU) Q4 Earnings Match Estimates, Revenues Beat

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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.