Group 1 - Stock markets are experiencing significant volatility due to escalating tariff wars and the potential for a U.S. recession, leading to a reduction in valuation multiples, especially in the tech sector [1] - The current market conditions present a favorable opportunity for investment in technology companies, as valuations have become more attractive [1] - Gary Alexander, with extensive experience in both Wall Street and Silicon Valley, provides insights into the themes shaping the technology industry today [1]

Docusign, Inc. (NASDAQ: DOCU ) just reported its Q4 and Fiscal 2025 results, sending shares more than 10% higher in the after-hours session at the time of writing. Overall, the results were mixed, as EPS and revenue beat expectations slightly, while revenue estimates for Q1I objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time) ...

Are investors making the wrong call on DocuSign stock today?DocuSign (DOCU 17.91%) stock surged 15.4% through 10:30 a.m. ET Friday after reporting a modest earnings beat last night.Heading into the fiscal fourth quarter 2025 report, analysts forecast DocuSign would earn $0.85 per share on $761.6 million in sales. In fact, earnings were $0.86 per share, and sales were $776.3 million. DocuSign Q4 earningsSales climbed 9% year over year, and billings rose 11%, foreshadowing even faster sales growth ahead. If t ...

Shares of DocuSign Inc DOCU were climbing in early trading on Friday, after the company reported upbeat fiscal fourth-quarter results.Here are some key analyst takeaways.RBC Capital Markets analyst Rishi Jaluria maintained a Sector Perform rating and price target of $90.JMP Securities analyst Patrick Walravens reiterated a Market Outperform rating and price target of $124.Piper Sandler analyst Rob Owens reaffirmed a Neutral rating and price target of $90.Wedbush analyst Daniel Ives maintained a Neutral rati ...

Docusign rose more than 14% after reporting stronger-than-expected earnings after the bell Thursday."We've really stabilized and I think started to turn the corner on the core business," CEO Allan Thygesen said Friday on CNBC's "Squawk Box." "We've become much more efficient."Here's how the company performed in the fourth quarter FY2025 compared to LSEG estimates:Earnings per share: 86 cents vs. 85 cents expectedRevenue: $776 million vs. $761 millionThe earnings beat was boosted in part by the electronic si ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Here's our initial take on DocuSign's (DOCU -6.78%) fiscal 2026 fourth-quarter financial report.Key MetricsMetricQ4 2024Q4 2025Changevs. ExpectationsRevenue$712.4 million$776.3 million+9%BeatAdjusted earnings per share$0.76$0.86+13%BeatBillings$833.1 million$923.2 million+11%n/aFree cash flow$248.6 million$279.6 million+12%n/aA Rough Outlook for DocuSignDocuSign has been attempting to diversify beyond its core e-signature product since the heyday during the worst of the coronavirus pandemic. The latest iter ...

Financial Data and Key Metrics Changes - Q4 revenue was $776 million, up 9% year-over-year, while fiscal 2025 revenue reached $3 billion, an 8% increase year-over-year [11][37] - Q4 billings were $923 million, up 11% year-over-year, and full-year fiscal 2025 billings increased by 7% year-over-year [37] - Non-GAAP operating margins were 29% in Q4 and 30% for fiscal 2025, both significant increases from fiscal 2024 [12][49] - Free cash flow for Q4 was $280 million, a 36% margin, and for fiscal 2025, it was $920 million, a 31% margin [51][52] Business Line Data and Key Metrics Changes - The introduction of Intelligent Agreement Management (IAM) has shown strong momentum, with IAM representing a high single-digit percentage of in-quarter deal volume for the direct channel [18][19] - Dollar net retention rate improved to 101% in Q4, up from 100% in Q3 and 98% in Q4 of fiscal 2024 [40] - Customer growth was 10% year-over-year, approaching 1.7 million customers [42] Market Data and Key Metrics Changes - International revenue in Q4 represented 28% of total revenue and grew 12% year-over-year [46] - Digital self-service revenue growth accelerated for the second consecutive quarter, reflecting improvements in self-service capabilities [26] - The number of large customers spending over $300,000 annually increased to 1,131 in Q4, marking the strongest quarter for large customer growth in two years [43] Company Strategy and Development Direction - The company aims to establish itself as the leading agreement platform through three strategic pillars: accelerating product innovation, strengthening omnichannel go-to-market capabilities, and increasing operating efficiency [10][36] - The focus for fiscal 2026 includes increasing value delivered to customers and expanding IAM's adoption across various customer segments [12][29] - The company plans to invest in self-service channels to enhance customer experience and drive growth [30][44] Management's Comments on Operating Environment and Future Outlook - Management noted that there have been no material changes in trends regarding envelope volume, indicating stability in the core e-signature business [87] - The company remains optimistic about the enterprise opportunity for IAM, with early signs of strong customer demand [74][76] - Management expects dollar net retention to be flat in Q1 of 2026 but anticipates moderate improvement throughout the year [40][114] Other Important Information - Non-GAAP gross margin for Q4 was 82.3%, slightly down from the prior year, impacted by ongoing cloud infrastructure migration [48] - The company repurchased $162 million of stock in Q4 and a total of $684 million in fiscal 2025, utilizing approximately 75% of annual free cash flow [55] - GAAP diluted EPS for Q4 was $0.39, compared to $0.13 last year, while non-GAAP diluted EPS was $0.86, up from $0.76 [57] Q&A Session Summary Question: Early reception of IAM in the enterprise space - Management reported encouraging early signs in both enterprise and international markets, with a strong value proposition for larger companies [74][76] Question: Understanding revenue growth guidance in relation to billings acceleration - Management explained that revenue growth lags behind billings due to the average contract duration, and they expect to see revenue acceleration as IAM ramps up [81][82] Question: Current macro environment impact on activity and expansion deals - Management indicated no material changes in envelope volume trends and noted diversification across sectors helps mitigate risks [88] Question: Preparedness of the sales team for solution sales - Management highlighted successful sales cycles in the SMB segment and ongoing training to prepare for more complex enterprise sales [93][96] Question: Opportunity for IAM at accounts - Management emphasized significant expansion opportunities across various functional areas within enterprises, indicating a strong potential uplift in customer spend [111][112] Question: Net dollar retention expectations - Management clarified that while they expect flat retention in Q1, they foresee gradual improvement throughout the year due to ongoing efforts [114] Question: Changes in the sales team and go-to-market strategy - Management characterized the changes as significant but manageable, with a focus on preparing the sales team for enterprise opportunities [121][122]

Core Insights - DocuSign reported revenue of $776.25 million for the quarter ended January 2025, marking a year-over-year increase of 9% and exceeding the Zacks Consensus Estimate by 2.14% [1] - The company's EPS for the same period was $0.86, up from $0.76 a year ago, with an EPS surprise of 2.38% over the consensus estimate of $0.84 [1] Financial Performance Metrics - Non-GAAP billings reached $923.21 million, surpassing the average estimate of $875.20 million based on six analysts [4] - Total customers increased to 1.7 million, compared to the average estimate of 1.67 million based on two analysts [4] - Revenue from professional services and other was $18.49 million, exceeding the seven-analyst average estimate of $16.80 million, representing a year-over-year change of 10.7% [4] - Subscription revenue was $757.77 million, compared to the average estimate of $743.15 million based on seven analysts, reflecting an 8.9% year-over-year increase [4] - Non-GAAP subscription gross profit was $637.08 million, above the six-analyst average estimate of $620.78 million [4] - Non-GAAP professional services and other gross profit was $1.59 million, compared to the five-analyst average estimate of -$1.33 million [4] Stock Performance - Over the past month, DocuSign shares have returned -9.2%, while the Zacks S&P 500 composite experienced a -7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - DocuSign reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and up from $0.76 per share a year ago, representing an earnings surprise of 2.38% [1] - The company posted revenues of $776.25 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.14%, compared to year-ago revenues of $712.39 million [2] - Over the last four quarters, DocuSign has consistently surpassed consensus EPS and revenue estimates [2] Group 2: Stock Performance and Outlook - DocuSign shares have declined approximately 10.9% since the beginning of the year, while the S&P 500 has decreased by 4.8% [3] - The future performance of DocuSign's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $754.46 million, and for the current fiscal year, it is $3.66 on revenues of $3.14 billion [7] Group 3: Industry Context - The Internet - Software industry, to which DocuSign belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact DocuSign's stock performance [5]