Friday’s Headlines: DocuSign Smashes Earnings

Friday’s Headlines: DocuSign Smashes Earnings

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Lemonade (LMND) +20.2%

Smartsheet (SMAR) +7.7%

Ctrip (TCOM) +6.2%

DocuSign (DOCU) +6.1%

Tesla Motors (TSLA) +4.3%

Moving Down ⬇️

Duluth Trading (DLTH) -14.9%

IMAX (IMAX) -8.0%

Nautilus (NLS) -6.8%

PagerDuty (PD) -5.6%

Stitch Fix (SFIX) -3.4%

1. E-signature growth has exploded during the pandemic resulting in DocuSign (DOCU) beating on earnings yesterday. Shares jumped over 6% after reporting adjusted earnings per share (EPS) of $0.22 on revenue of $382.9 million, up 53% year-over-year (YoY). DocuSign added 73,000 customers in Q3, down from 88,000 in Q2, as companies continue to turn to electronic signatures to approve documents during the coronavirus emergency. DocuSign CEO Dan Springer stated the Q3 results reflect "the immediate and long-term value that customers see from eSignature.’’ The company predicted revenue of $406 million for the upcoming quarter ending in January. Read the official press release here

2. There's nothing sour about Lemonade (LMND) stock as its shares jumped 20% yesterday after it grabbed the attention of market analysts. Without any major company announcements, the company was branded an industry disrupter for the insurance sector by experts due to its use of artificial intelligence. Many investors were already bullish on the company as the stock was viewed as one of the most promising IPOs during the coronavirus pandemic. It went public in July 2020 at $29 and is now trading at over $80. We added Lemonade to our shortlist just last month, read our opinion on the company here.

3. Last night, Square Inc’s (SQ) Cash App announced on Twitter (TWTR) a line of clothing called “Cash.” The autumn-winter collection comprises brightly colored clothing ranging from $60 to $200. The line is modeled by strange looking 3D figures on the website which make some questionable dance moves if you tap on them. By using the Cash App, customers can save 25% on the apparel line. By broadening its monetization strategy and focusing on its business platform and debit card, Square’s Cash App is set to take on digital payment service leader PayPal. Read the full story here. 

Some more earnings from last night:

PagerDuty (PD)
PagerDuty came out with a quarterly loss of $0.09 per share, versus $0.10 expected in its third-quarter earnings report yesterday, with revenue rising to $53.77 million. The cloud-based business is well-positioned to benefit from the long-term tailwinds of digital acceleration, cloud migration, and DevOps, according to CEO Jennifer Tejada. Read the full press release here. 

Ulta Beauty (ULTA)
Ulta Beauty reported EPS of $1.64 for Q3 on revenue of $1.6 billion, down 7.8% year-over-year, sending shares down 3.4%. The company said the impact of COVID-19 restrictions on retail outlets was to blame for the fall in sales. Read the full press release here. 

Yext (YEXT) 
Online brand management company Yext reported a loss per share of $0.02 compared to $0.19 in the third quarter of 2019, on revenue of $89.1 million, up 17% YoY. Customer count, which excludes their small business and third-party reseller customers, increased 28% year-over-year to nearly 2,300. Read the official press release here. 

Duluth Trading (DLTH)
Lifestyle brand of casual wear, workwear, and accessories Duluth Trading reported net sales increased 13.2% to $135.5 million, up from $119.8 million YoY. The apparel company said the increase in top-line sales was largely driven by a 40% growth in direct sales YoY, helped by effective brand messaging coupled with strong product lines. Read the full press release here.

Get this week’s full earnings calendar here