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DOCU has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 25.6%.
Q2 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $676.79 million, up 8.8% from the year-ago actual figure. We expect such growth to have likely been steered by the robust adoption of Web Forms across diverse industries, significant advancements in entering and innovating within tightly regulated markets, and the recent launch of DocuSign ID Verification Premier.
For the to-be-reported quarter, our estimate from billings is pegged at $650.5 million, which is slightly above the year-ago fiscal quarter’s reported figure. We expect non-GAAP gross profit to be $553.6 million, which is 8.9% above the year-ago figure. Non-GAAP gross profit margin is expected to be 81.8%, indicating a rise of 10 basis points from the year-ago figure. Improved sale execution can be correlated with such performance.
The Zacks Consensus Estimate for earnings per share is pegged at 66 cents, which is 50% above the year-ago figure. Increasing revenues are expected to have driven such an increase. Strong revenue performance and continued focus on efficiency and profitability can be likely attributed to such earnings growth.
Segmental Expectations
Our estimate for second-quarter fiscal 2024 revenues from the Subscription segment is currently pegged at $659.5 million, indicating 9% growth from the year-ago reported figure. Dynamic subscription models can be the reason for such growth.
Our estimate for second-quarter fiscal 2024 revenues from the Professional Services and Other segment is currently pegged at $17 million, slightly above the year-ago figure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DOCU this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are a few stocks from the broader Business Services sector, which have performed well in their recent earnings releases:
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago quarter’s reported figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but were in line with the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
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Docusign (DOCU) to Report Q2 Earnings: What's in the Offing?
Docusign, Inc. (DOCU - Free Report) is scheduled to release its second-quarter fiscal 2024 results on Sep 7, after the closing bell.
DOCU has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 25.6%.
Q2 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $676.79 million, up 8.8% from the year-ago actual figure. We expect such growth to have likely been steered by the robust adoption of Web Forms across diverse industries, significant advancements in entering and innovating within tightly regulated markets, and the recent launch of DocuSign ID Verification Premier.
DocuSign Price and EPS Surprise
DocuSign price-eps-surprise | DocuSign Quote
For the to-be-reported quarter, our estimate from billings is pegged at $650.5 million, which is slightly above the year-ago fiscal quarter’s reported figure. We expect non-GAAP gross profit to be $553.6 million, which is 8.9% above the year-ago figure. Non-GAAP gross profit margin is expected to be 81.8%, indicating a rise of 10 basis points from the year-ago figure. Improved sale execution can be correlated with such performance.
The Zacks Consensus Estimate for earnings per share is pegged at 66 cents, which is 50% above the year-ago figure. Increasing revenues are expected to have driven such an increase. Strong revenue performance and continued focus on efficiency and profitability can be likely attributed to such earnings growth.
Segmental Expectations
Our estimate for second-quarter fiscal 2024 revenues from the Subscription segment is currently pegged at $659.5 million, indicating 9% growth from the year-ago reported figure. Dynamic subscription models can be the reason for such growth.
Our estimate for second-quarter fiscal 2024 revenues from the Professional Services and Other segment is currently pegged at $17 million, slightly above the year-ago figure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DOCU this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
DOCU has an Earnings ESP of 0.00% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which have performed well in their recent earnings releases:
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago quarter’s reported figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but were in line with the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.