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The better-than-expected results impressed investors, as the stock has rallied 14.8% since the company released results on March 13.
Image Source: Zacks Investment Research
DOCU’s EPS (excluding 47 cents from non-recurring items) was 86 cents, which surpassed the Zacks Consensus Estimate by 2.4% and increased 13.2% from the year-ago quarter. Total revenues of $776.3 million beat the consensus mark by 2.1% and rose 9% from the fourth quarter of fiscal 2024.
The company’s shares have rallied 47.6% in the past year compared with the industry’s 10.1% rise and the Zacks S&P 500’s 10.1% growth.
Image Source: Zacks Investment Research
DOCU’s Segmental Revenues
Subscription revenues totaled $757.8 million, increasing 8.9% year over year. The figure beat our estimate of $743.5 million. Professional services and other revenues of $18.5 million jumped 10.7% from the year-ago quarter, beating our expectation of $15.6 million. Billings amounted to $923.2 million, up 11% from the year-ago quarter. The figure surpassed our anticipation of $876.7 million.
The non-GAAP gross margin was 82.3%, beating our estimate of 81.3%. The non-GAAP gross profit of $638.7 million grew 8.7% year over year and outpaced our expectation of $616.9 million. The non-GAAP operating margin was 28.8%, increasing by 380 basis points from the year-ago quarter. It beat our estimate of 28.1%.
Balance Sheet & Cash Flow of DocuSign
DocuSign exited the fourth quarter of fiscal 2025 with cash and cash equivalents of $648.6 million compared with $797.1 million at the end of the fourth quarter of fiscal 2024. Net cash generated by operating activities was $307.9 million for the reported quarter. Free cash flow generated was $279.6 million.
DOCU’s Q1 & FY26 Guidance
For the first quarter of fiscal 2026, the company expects revenues between $745 and $749 million. This guided range is lower than the current consensus estimate of $751.56 million.
DOCU anticipates subscription revenues in the range of $729-$733 million and billing revenues between $741 million and $751 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.5-81.5% and 27-28%, respectively.
For fiscal 2026, the company expects revenues between $3.13 and $3.14 billion. The current consensus estimate is $3.14 billion.
DOCU anticipates subscription revenues between $3.06 and $3.07 billion and billings’ guidance between $3.3 and $3.35 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.5-81.5% and 27.8-28.8%, respectively.
Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.
BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.
ADP’s EPS of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basis
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DocuSign Shares Rise 14.8% as Q4 Earnings & Revenues Beat Estimates
DocuSign, Inc. (DOCU - Free Report) reported impressive fourth-quarter fiscal 2025 results, wherein earnings per share (EPS) and revenues outpaced the Zacks Consensus Estimate.
See Zacks Earnings Calendar to stay ahead of market-making news.
The better-than-expected results impressed investors, as the stock has rallied 14.8% since the company released results on March 13.
Image Source: Zacks Investment Research
DOCU’s EPS (excluding 47 cents from non-recurring items) was 86 cents, which surpassed the Zacks Consensus Estimate by 2.4% and increased 13.2% from the year-ago quarter. Total revenues of $776.3 million beat the consensus mark by 2.1% and rose 9% from the fourth quarter of fiscal 2024.
The company’s shares have rallied 47.6% in the past year compared with the industry’s 10.1% rise and the Zacks S&P 500’s 10.1% growth.
Image Source: Zacks Investment Research
DOCU’s Segmental Revenues
Subscription revenues totaled $757.8 million, increasing 8.9% year over year. The figure beat our estimate of $743.5 million. Professional services and other revenues of $18.5 million jumped 10.7% from the year-ago quarter, beating our expectation of $15.6 million. Billings amounted to $923.2 million, up 11% from the year-ago quarter. The figure surpassed our anticipation of $876.7 million.
The non-GAAP gross margin was 82.3%, beating our estimate of 81.3%. The non-GAAP gross profit of $638.7 million grew 8.7% year over year and outpaced our expectation of $616.9 million. The non-GAAP operating margin was 28.8%, increasing by 380 basis points from the year-ago quarter. It beat our estimate of 28.1%.
Balance Sheet & Cash Flow of DocuSign
DocuSign exited the fourth quarter of fiscal 2025 with cash and cash equivalents of $648.6 million compared with $797.1 million at the end of the fourth quarter of fiscal 2024. Net cash generated by operating activities was $307.9 million for the reported quarter. Free cash flow generated was $279.6 million.
DOCU’s Q1 & FY26 Guidance
For the first quarter of fiscal 2026, the company expects revenues between $745 and $749 million. This guided range is lower than the current consensus estimate of $751.56 million.
DOCU anticipates subscription revenues in the range of $729-$733 million and billing revenues between $741 million and $751 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.5-81.5% and 27-28%, respectively.
For fiscal 2026, the company expects revenues between $3.13 and $3.14 billion. The current consensus estimate is $3.14 billion.
DOCU anticipates subscription revenues between $3.06 and $3.07 billion and billings’ guidance between $3.3 and $3.35 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.5-81.5% and 27.8-28.8%, respectively.
Currently, DocuSign carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshot
Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.
BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.
ADP’s EPS of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basis