Back to top

Image: Bigstock

Can eSignature Help Propel DocuSign's (DOCU) Q2 Earnings?

Read MoreHide Full Article

DocuSign, Inc.’s (DOCU - Free Report) continued strength in eSignature solutions is expected to reflect on second-quarter results, slated to release on Sep 3.

The company’s eSignature solutions are already a major contributor to revenue and billings growth, and the coronavirus-induced acceleration in digital transformation is likely to have fueled this growth in the to-be-reported quarter.

Delving Deeper

The pandemic has led to a significant increase in the need for signing and managing agreements remotely. This is benefiting DocuSign through significant growth in adoption of eSignature solutions by new customers and expansion of used cases by the existing ones.

The company has recently witnessed a substantial rise in customer spending on its eSignature solutions across most of the industries and regions it serves. Increased adoption should accelerate future Agreement Cloud expansion as well.

As a result, the company witnessed 39% revenue growth and 59% billings growth in the first quarter of 2020, trends that should have continued through the second quarter. The Zacks Consensus Estimate for second-quarter revenues is pegged at $318.4 million, indicating 35.1% year-over-year growth.

DocuSign currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

DocuSign Inc. Price and EPS Surprise

DocuSign Inc. Price and EPS Surprise

DocuSign Inc. price-eps-surprise | DocuSign Inc. Quote

Performance of Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.

IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.

Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.

This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Equifax, Inc. (EFX) - free report >>

Robert Half Inc. (RHI) - free report >>

IQVIA Holdings Inc. (IQV) - free report >>

Docusign Inc. (DOCU) - free report >>

Published in