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DocuSign (DOCU) Gains 4.5% Since Reporting Q4 Earnings Beat
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DocuSign, Inc. (DOCU - Free Report) reported impressive fourth-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.
The stock jumped 4.5% since the company released the better-than-expected results and gave impressive guidance on Mar 7.
For first-quarter fiscal 2025, DOCU expects revenues of $704-$708 million. The mid-point ($706 million) of the company’s guidance is above the Zacks Consensus Estimate of $703.5 million. For fiscal 2025, it expects revenues of $2.92-2.93 billion, whereas the Zacks Consensus Estimate for revenues is pegged at $2.91 billion.
DOCU’s EPS (excluding 63 cents from non-recurring items) was 76 cents per share, which surpassed the Zacks Consensus Estimate by 18.8% and increased 16.9% from the year-ago quarter. Total revenues of $712.4 million beat the consensus mark by 2.1% and improved 8% from fourth-quarter fiscal 2024.
The company’s shares have gained 20.6% in the past six months, underperforming the 44.7% rally of the industry it belongs to.
Subscription revenues totaled $712.4 million, up 8% year over year. The figure beat our estimate of $681.3 million. Professional services and other revenues of $16.7 million increased 5% from the year-ago quarter, beating our estimate of $16 million. Billings amounted to $833.1 million, up 13% from the year-ago quarter. The figure beat our anticipation of $763 million.
The non-GAAP gross margin was 82%, missing our estimate of 83.7%. The non-GAAP gross profit of $587.4 million increased 7.9% year over year and surpassed our estimate of $570.5 million. The non-GAAP operating margin was 25%, increasing by 100 basis points from the year-ago level. It surpassed our anticipation of 22.5%.
Balance Sheet & Cash Flow
DocuSign exited fourth-quarter fiscal 2024 with cash and cash equivalents of $797 million compared with $1.2 billion at the end of the prior quarter. Net cash generated by operating activities was $139.2 million for the quarter. The free cash flow generated was $8 million.
Q1 and FY25 Guidance
For first-quarter fiscal 2025, subscription revenues are expected to be $686-$690 million, up from the previously mentioned $679-$683 million. Billings are expected to be $685-$695 million, marking a decrease from the previously stated $758-$768 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 27-28%, respectively.
For fiscal 2025, subscription revenues are expected to be $2.84-2.89 billion. Billings are expected to be $2.97-$3.02 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 26.5-28%, respectively.
ENV’s EPS, excluding $4 from non-recurring items, was 65 cents, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter. Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.
FTI Consulting, Inc. (FCN - Free Report) reported an impressive fourth-quarter 2023 results.
FCN’s EPS of $2.28 beat the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million surpassed the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.
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DocuSign (DOCU) Gains 4.5% Since Reporting Q4 Earnings Beat
DocuSign, Inc. (DOCU - Free Report) reported impressive fourth-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.
The stock jumped 4.5% since the company released the better-than-expected results and gave impressive guidance on Mar 7.
For first-quarter fiscal 2025, DOCU expects revenues of $704-$708 million. The mid-point ($706 million) of the company’s guidance is above the Zacks Consensus Estimate of $703.5 million. For fiscal 2025, it expects revenues of $2.92-2.93 billion, whereas the Zacks Consensus Estimate for revenues is pegged at $2.91 billion.
DOCU’s EPS (excluding 63 cents from non-recurring items) was 76 cents per share, which surpassed the Zacks Consensus Estimate by 18.8% and increased 16.9% from the year-ago quarter. Total revenues of $712.4 million beat the consensus mark by 2.1% and improved 8% from fourth-quarter fiscal 2024.
The company’s shares have gained 20.6% in the past six months, underperforming the 44.7% rally of the industry it belongs to.
DocuSign Price, Consensus and EPS Surprise
DocuSign price-consensus-eps-surprise-chart | DocuSign Quote
Segmental Revenues
Subscription revenues totaled $712.4 million, up 8% year over year. The figure beat our estimate of $681.3 million. Professional services and other revenues of $16.7 million increased 5% from the year-ago quarter, beating our estimate of $16 million. Billings amounted to $833.1 million, up 13% from the year-ago quarter. The figure beat our anticipation of $763 million.
The non-GAAP gross margin was 82%, missing our estimate of 83.7%. The non-GAAP gross profit of $587.4 million increased 7.9% year over year and surpassed our estimate of $570.5 million. The non-GAAP operating margin was 25%, increasing by 100 basis points from the year-ago level. It surpassed our anticipation of 22.5%.
Balance Sheet & Cash Flow
DocuSign exited fourth-quarter fiscal 2024 with cash and cash equivalents of $797 million compared with $1.2 billion at the end of the prior quarter. Net cash generated by operating activities was $139.2 million for the quarter. The free cash flow generated was $8 million.
Q1 and FY25 Guidance
For first-quarter fiscal 2025, subscription revenues are expected to be $686-$690 million, up from the previously mentioned $679-$683 million. Billings are expected to be $685-$695 million, marking a decrease from the previously stated $758-$768 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 27-28%, respectively.
For fiscal 2025, subscription revenues are expected to be $2.84-2.89 billion. Billings are expected to be $2.97-$3.02 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 26.5-28%, respectively.
Currently, DocuSign carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
Envestnet, Inc. (ENV - Free Report) reported impressive fourth-quarter 2023 results.
ENV’s EPS, excluding $4 from non-recurring items, was 65 cents, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter. Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.
FTI Consulting, Inc. (FCN - Free Report) reported an impressive fourth-quarter 2023 results.
FCN’s EPS of $2.28 beat the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million surpassed the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.