DocuSign (NASDAQ: DOCU) investors have experienced a rollercoaster ride ever since the company went public in April 2018. DocuSign priced its initial public offering at $29 per share. The stock then touched a record high of $314 last September and is currently trading at $87.63 at the time of writing.
Despite the volatility, DocuSign stock has almost tripled since its IPO, easily outpacing the broader markets in the last four years. The next catalyst for its share price will be its upcoming earnings call.
When is DocuSign’s earnings date?
DocuSign is scheduled to report its earnings for fiscal Q1 of 2023 (ended in April) on Thursday, June 9th at 4.30 pm Eastern Time.
How can I listen to DocuSign’s earnings call?
To listen to the call and access the earnings transcript, as well as the shareholder’s letter and the company’s financial statements for the quarter, all you need to do is go to DocuSign’s investor relations page.
What to expect from DocuSign’s Q1 earnings?
A company that thrived amid the pandemic, DocuSign is now wrestling with a deceleration in revenue growth. DocuSign increased its sales from $700.97 million in fiscal 2019 to $2.1 billion in fiscal 2022, indicating an annual growth rate of 44% in the last three years.
In Q1 of fiscal 2023, analysts expect DocuSign to increase sales by 24% to $581.76 million. Comparatively, its earnings per share (EPS) are forecast to expand by 4.5% to $0.46 in the quarter ended in April. Further, DocuSign’s revenue is forecast to rise by 17.6% to $2.48 billion, while earnings might narrow by 1% to $1.96 per share in fiscal 2023.
DocuSign provides electronic signature solutions to enterprises and individuals in the U.S. and other international markets. The company experienced robust demand in the last two fiscal years due to lockdowns imposed all over the world. However, the relaxation of COVID-19 restrictions and a challenging macro-environment impacted the priorities of DocuSign’s clients.
But investors should also note that the shift towards remote work is set to gain pace in the upcoming decade, which suggests DocuSign is well-poised to benefit from this secular tailwind.
DocuSign estimates the Cloud Agreement market to be valued at $50 billion, providing enough room to increase sales over time. Most enterprises are now looking to prioritize digital transformation processes across verticals, and DocuSign is uniquely positioned to lead and capture this market, considering its strong brand value.
DocuSign ended fiscal 2022 with more than a million paying customers, and the top 15 Fortune 500 companies within the financial sector also number amongst its clients. Further, 852 of its customers have annual contract values of more than $300,000, compared to 599 customers at the end of fiscal 2021. DocuSign’s net dollar retention rate is healthy at 119%, indicating its existing customers increased spending by 19% compared to the year-ago period.
Valued at a market cap of $18.7 billion, DOCU stock is trading at 7.5x forward sales and 44.7x forward earnings, which is still expensive. However, Wall Street remains bullish on the company and expects DOCU stock to rise by 33% in the next 12-months.
Writer at MyWallSt
Aditya took an interest in the stock market during the financial crash of 2008-09. His favorite stocks include Roku and Apple as both companies enjoy a leadership position in their respective verticals and are poised to beat the broader markets consistently going forward.