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DocuSign (DOCU) Reports Q3 Earnings: What Key Metrics Have to Say

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DocuSign (DOCU - Free Report) reported $700.42 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 8.5%. EPS of $0.79 for the same period compares to $0.57 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $689.17 million, representing a surprise of +1.63%. The company delivered an EPS surprise of +29.51%, with the consensus EPS estimate being $0.61.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how DocuSign performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Non-GAAP billings: $691.81 million versus the five-analyst average estimate of $672.48 million.
  • Revenue- Professional services and other: $18.07 million versus $18.29 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -15.6% change.
  • Revenue- Subscription: $682.35 million compared to the $670.02 million average estimate based on eight analysts. The reported number represents a change of +9.3% year over year.
  • Non-GAAP subscription gross profit: $584.20 million compared to the $564.45 million average estimate based on six analysts.
  • Non-GAAP Professional services and other gross profit: -$2.77 million compared to the -$3.10 million average estimate based on six analysts.
View all Key Company Metrics for DocuSign here>>>

Shares of DocuSign have returned +15.2% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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