DocuSign, a leading provider of electronic signature solutions, reported strong earnings in its latest quarter, beating revenue expectations and delivering a surprise EPS increase.
For the period ended October 2024, DocuSign’s revenue reached $754.82 million, up 7.8% year-over-year, exceeding the Zacks Consensus Estimate of $744.31 million by 1.41%. The company’s EPS also surged to $0.90, a significant improvement from the prior quarter.
Key metrics that drive DocuSign’s performance include non-GAAP billings, total customers, and revenue in specific segments. In these areas, the company outperformed analyst estimates. Non-GAAP billings came in at $752.31 million, while total customers reached 1.6 million, meeting expectations.
Revenue from professional services and other segments grew by 11.4% year-over-year to $20.13 million, beating estimates of $20.25 million. Subscription revenue increased by 7.7% to $734.69 million, also outperforming analyst projections.
DocuSign’s non-GAAP subscription gross profit was $619.11 million, exceeding the average estimate of $607.63 million. The company’s non-GAAP professional services and other gross profit was $3.26 million, reversing a prior-year loss.
Over the past month, DocuSign’s shares have risen 11.2%, outperforming the Zacks S&P 500 composite’s 6.7% gain. With a current Zacks Rank #3 (Hold), the stock is expected to perform in line with the broader market in the near term.
Source: https://finance.yahoo.com/news/docusign-docu-reports-q3-earnings-233007758.html