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DocuSign's (DOCU) Q2 Earnings Beat Estimates, Stock Up 10.5%
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DocuSign, Inc. (DOCU - Free Report) reported impressive second-quarter fiscal 2023 (ended Jul 31, 2022) results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Better-than-expected results pleased investors as the stock has risen more than 10.5% since the date of earnings release on Sep 8.
Non-GAAP earnings per share (excluding 66 cents from non-recurring items) of 44 cents beat the consensus mark by 4.8% but decreased 6.4% from the year-ago fiscal quarter’s reported figure. Revenues of $622.2 million also surpassed the Zacks Consensus Estimate by 3.3% and increased 21.6% from the year-ago fiscal quarter’s reported figure.
Shares have gained 8.3% over the past three-month period compared with 13.3% rally of the industry it belongs to.
Image Source: Zacks Investment Research
Quarter in Detail
Subscription revenues came in at $605.2 million, up 23% year over year. Professional services and other revenues decreased 11% from the year-ago fiscal quarter’s reported figure to $17 million. International revenues increased 35% from the year-ago fiscal quarter’s reported figure and contributed 25% to total revenues. Billings of $647.7 million were up 9% from the year-ago fiscal quarter’s reported figure. DocuSign added 44,000 customers in the quarter, increasing the total global customer base to 1.28 million.
Non-GAAP gross margin of 82% was flat year over year. Non-GAAP operating profit of $112.2 million increased 12.5% year over year. Non-GAAP operating margin of 18% declined from 19% in the year-ago quarter.
DocuSign ended the quarter with a cash and cash equivalent balance of $637.2 million compared with $638.2 million at the end of the previous quarter. DOCU generated $120.9 million of cash from operating activities and a capex of $15.4 million. Non-GAAP free cash flow was $105.5 million.
For the third quarter of fiscal 2023, DocuSign expects revenues in the range of $624-$628 million. The midpoint of the guided range ($626 million) is lower than the current Zacks Consensus Estimate of $654.9 million. Billings are expected between $584 million and $594 million. Non-GAAP gross margin is anticipated between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
For fiscal 2023, DocuSign still expects revenues in the range of $2.47-$2.482 billion. The Zacks Consensus Estimate is currently pegged at $2.47 billion. Billings are expected between $2.55 billion and $2.57 billion. Non-GAAP gross margin is anticipated between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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DocuSign's (DOCU) Q2 Earnings Beat Estimates, Stock Up 10.5%
DocuSign, Inc. (DOCU - Free Report) reported impressive second-quarter fiscal 2023 (ended Jul 31, 2022) results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Better-than-expected results pleased investors as the stock has risen more than 10.5% since the date of earnings release on Sep 8.
Non-GAAP earnings per share (excluding 66 cents from non-recurring items) of 44 cents beat the consensus mark by 4.8% but decreased 6.4% from the year-ago fiscal quarter’s reported figure. Revenues of $622.2 million also surpassed the Zacks Consensus Estimate by 3.3% and increased 21.6% from the year-ago fiscal quarter’s reported figure.
Shares have gained 8.3% over the past three-month period compared with 13.3% rally of the industry it belongs to.
Image Source: Zacks Investment Research
Quarter in Detail
Subscription revenues came in at $605.2 million, up 23% year over year. Professional services and other revenues decreased 11% from the year-ago fiscal quarter’s reported figure to $17 million. International revenues increased 35% from the year-ago fiscal quarter’s reported figure and contributed 25% to total revenues. Billings of $647.7 million were up 9% from the year-ago fiscal quarter’s reported figure. DocuSign added 44,000 customers in the quarter, increasing the total global customer base to 1.28 million.
Non-GAAP gross margin of 82% was flat year over year. Non-GAAP operating profit of $112.2 million increased 12.5% year over year. Non-GAAP operating margin of 18% declined from 19% in the year-ago quarter.
DocuSign ended the quarter with a cash and cash equivalent balance of $637.2 million compared with $638.2 million at the end of the previous quarter. DOCU generated $120.9 million of cash from operating activities and a capex of $15.4 million. Non-GAAP free cash flow was $105.5 million.
DocuSign Price, Consensus and EPS Surprise
DocuSign price-consensus-eps-surprise-chart | DocuSign Quote
Guidance
For the third quarter of fiscal 2023, DocuSign expects revenues in the range of $624-$628 million. The midpoint of the guided range ($626 million) is lower than the current Zacks Consensus Estimate of $654.9 million. Billings are expected between $584 million and $594 million. Non-GAAP gross margin is anticipated between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
For fiscal 2023, DocuSign still expects revenues in the range of $2.47-$2.482 billion. The Zacks Consensus Estimate is currently pegged at $2.47 billion. Billings are expected between $2.55 billion and $2.57 billion. Non-GAAP gross margin is anticipated between 79% and 81%. Non-GAAP operating margin is expected between 16% and 18%.
DocuSign currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.