DOCU

Why DocuSign Stock Popped by Almost 5% Today

Next-generation document verification specialist DocuSign (NASDAQ: DOCU) recorded convincing beats on both the top and bottom lines for its latest reported quarter. Investors rewarded this feat by pushing the company's share price up by nearly 5% in Friday trading, a rate that vastly overshadowed the S&P 500 index's 0.7% decline.

Rises and beats for the fourth quarter

For its fourth quarter of fiscal 2024, DocuSign earned just over $712 million in revenue, representing 8% growth over the same period the previous fiscal year. Pundits tracking the stock were collectively modeling only $698 million and change for the key line item.

That was on the back of total billings that rose at a 13% year-over-year pace to land at slightly over $833 million.

Non-GAAP (adjusted) net income also saw a pleasing rise, advancing by a meaty 19% to more than $159 million, or $0.76 per share. Those DocuSign prognosticators were anticipating only $0.65.

Arguably the leading and most well recognized company in the e-document verification sphere, DocuSign benefited from heavier business from very large enterprises.

CEO Allan Thygesen said in an analyst call discussing the results that the company "substantially increased the amount of business from customers signing and renewing multiyear, multimillion dollar contracts with DocuSign, including Fortune 500 global leaders in energy, industrials, consumer goods, insurance and several federal and state government agencies."

Revenue growth expected for this year

DocuSign proffered guidance for both its current (first) quarter and the entirety of fiscal 2025. For the latter period, revenue should amount to $2.915 billion to $2.927 billion, higher than the $2.8 billion of fiscal 2024. Non-GAAP operating margin is forecast to be 26.5% to 28%. The company did not provide guidance for net income.

Should you invest $1,000 in DocuSign right now?

Before you buy stock in DocuSign, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DocuSign wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of March 8, 2024

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.