Friday’s Headlines: Dark Days for DocuSign
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
CrowdStrike (CRWD) +12.5%
Stitch Fix (SFIX) +9.4%
Yext (YEXT) +9.1%
Amazon (AMZN) +5.4%
nCino (NCNO) +4.3%
Moving Down ⬇️
Baozun (BZUN) -15.9%
Huazhu Hotels Group (HTHT) -12.6%
Trip.com Group (TCOM) -12.1%
Teladoc (TDOC) -9.1%
StoneCo (STNE) -8.7%
1. DocuSign (DOCU) is down over 18% in pre-market trading following an underwhelming earnings call yesterday. The company actually outperformed for the previous quarter, posting adjusted earnings per share (EPS) of $0.48 versus an expected $0.47, on revenue of $580.8 million against an anticipated $561 million. Weak guidance, however, caused a significant sell-off, with DocuSign predicting revenue for the current quarter of $583 million at the high end, falling short of an anticipated $594 million. Annual growth of 13% also failed to hit estimates, with analysts predicting 18% growth. CEO Dan Springer remained bullish, however, stating that “digital transformation and the need to agree from anywhere remains a high priority for organizations across the globe.” Read more here.
2. Peloton (PTON) confirmed that it plans to trial a new pricing system aimed at bringing new customers to the brand. The trial will see users pay a single monthly fee that will cover both their equipment and access to on-demand fitness classes. If they cancel their subscription, Peloton will take back its flagship bike. The trial is only taking place in select parts of the U.S., and can only be availed of through one of the firm's brick-and-mortar stores. New CEO Barry McCarthy had previously spoken about driving growth through “lowering the cost of entry and playing around with the relationship between the monthly recurring revenue and the upfront revenue.” This appears to be a clear first step in his planned overhaul of the company. Find out more here.
3. Baozun (BZUN) saw its shares sink by almost 16% yesterday following its fourth-quarter earnings report. The e-commerce solutions company reported quarterly revenue of $497.9 million — falling short of analyst estimates of $503.7 million. This also represents a 5.2% year-over-year (YoY) decline. CEO Vincent Qiu explained that “a weak consumption sentiment and constrictive government policies persist for China's e-commerce” following the COVID-19 pandemic. However, Qiu was also quick to note a growth in gross merchandise value (GMV) of 14% that was primarily driven by “strong volume in electronics, FMCG and luxury categories as well as breakthrough in beauty and cosmetics.” See Baozun’s full earnings report here.
Some more earnings from last night:
Duluth Trading (DLTH) topped annual guidance with EPS of $0.90 on revenue of $698 million. Net sales were up 9.4% for the year, with CEO Sam Sato remarking that the company’s record results “showcase the tremendous progress we've made on seizing market growth opportunities.” See the full earnings report here.
Ulta Beauty (ULTA) posted a strong earnings beat in its Q4 2021 earnings call. The company posted EPS of $5.41 against an expected $4.61, on revenue of $2.73 billion versus a predicted $2.70 billion. CEO Dave Kimbell expressed his firm belief that “we have ambitious plans, and I am confident we have the right team to execute our strategies and deliver for our guests, associates, and shareholders. Find out more here.