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Can eSignature Help Propel DocuSign's (DOCU) Q2 Earnings?

DocuSign, Inc.’s DOCU continued strength in eSignature solutions is expected to reflect on second-quarter results, slated to release on Sep 3.

The company’s eSignature solutions are already a major contributor to revenue and billings growth, and the coronavirus-induced acceleration in digital transformation is likely to have fueled this growth in the to-be-reported quarter.

Delving Deeper

The pandemic has led to a significant increase in the need for signing and managing agreements remotely. This is benefiting DocuSign through significant growth in adoption of eSignature solutions by new customers and expansion of used cases by the existing ones.

The company has recently witnessed a substantial rise in customer spending on its eSignature solutions across most of the industries and regions it serves. Increased adoption should accelerate future Agreement Cloud expansion as well.

As a result, the company witnessed 39% revenue growth and 59% billings growth in the first quarter of 2020, trends that should have continued through the second quarter. The Zacks Consensus Estimate for second-quarter revenues is pegged at $318.4 million, indicating 35.1% year-over-year growth.

DocuSign currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

DocuSign Inc. Price and EPS Surprise

DocuSign Inc. Price and EPS Surprise

DocuSign Inc. price-eps-surprise | DocuSign Inc. Quote

Performance of Business Services Companies

Equifax EFX reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.

IQVIA Holdings IQV reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.

Robert Half RHI reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.

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