Company Reports

We are discontinuing analyst coverage of Docusign.

Docusign reported first-quarter results with revenue growing 9% year over year to $830 million, exceeding the high end of the guidance range. Non-GAAP operating margin expanded to 32%, a healthy improvement of 250 basis points year over year.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well-positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases over time and moving to the Intelligent Agreement Management platform, which is showing strong adoption.

Docusign reported fourth-quarter results including revenue of $837 million, or 8% year over year growth as reported, and non-GAAP operating margin of 29.5%, while guidance for both the year was better than expected. The firm also expanded its buyback program by another $2 billion.

Docusign reported third-quarter revenue, growing 8% year over year as reported to $818 million, while non-GAAP operating margin expanded 180 basis points compared with the year-ago period.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well-positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases and expanding seats over time, as well as moving to the Agreement Cloud platform.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well-positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases and expanding seats over time, as well as moving to the Agreement Cloud platform.

Docusign reported second-quarter revenue, growing 9% year over year to $800 million. Billings momentum picked up, rising 13% over the previous year. Non-GAAP operating margin expanded 30 basis points sequentially, but was down 240 basis points year over year, lapping tougher comparisons.

Docusign's first-quarter revenue grew by 8.2% year over year in constant currency to $764 million and non-GAAP operating margin was 29.5%.

No-moat Docusign delivered strong fiscal 2025 fourth-quarter results, with revenue and profitability surpassing the high end of guidance and our aggressive estimates. The market reaction was positive on the back of a good quarter, new customer growth, and promising adoption of Docusign’s Intelligent Agreement Management. We are raising our fair value estimate to $86 per share from $80 based on results and guidance as we nudge our estimates higher. Still, we see the stock as fairly valued. We believe management's guidance incorporates IAM bringing in higher deal sizes and better win rates that will drive top-line growth while also considering the investments required in product development and sales that will govern margins.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases and expanding seats over time, as well as moving to the Agreement Cloud platform.

No-moat Docusign delivered solid third-quarter results, surpassing the top end of the guidance ranges. The quarter’s standout theme was robust customer acquisitions, accelerated adoption of intelligent agreement management, or IAM, bookings, and improved retention rates, all driving healthy billings growth. Additionally, the macroeconomic environment is stabilizing, and the company sees improvement in enterprise software clients. Early deal momentum in IAM is apparent, as new capabilities are gaining traction, particularly with smaller customers. IAM is still in the nascent stages, but should drive meaningful revenue growth over the next several years. Strengthening of go-to-market capabilities, increased operating efficiency, and solid guidance likely contributed to the after-hours share price increase. Results show good progress toward operational improvements helping with margins and improving demand indicators, which prompts us to raise our fair value estimate to $80 per share from $70.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases and expanding seats over time, as well as moving to the Agreement Cloud platform.

We are raising our fair value estimate for no-moat Docusign to $70, from $65, after the company reported good second-quarter results, with both revenue and non-GAAP operating margin topping our expectations as well as the high end of guidance. The company has been delivering strong quarterly results over the last year or two. Early indications on the recently launched Intelligent Agreement Management, or IAM, platform are that deal sizes are larger, win rates are better, and deals are closing faster, and August bookings were larger than June and July combined. So all signals are pointing in the right direction. The primary negative element from results is that billings guidance is the disconnect within guidance that has billings growing at half the rate revenue is for the full year. We see solid results, stabilization trends, slightly raised guidance for the year, several green shoots, and $200 million in share buybacks for the quarter as evidence that the company is on a better trajectory even if we currently prefer some of our wide-moat stocks.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases and expanding seats over time, as well as moving to the Agreement Cloud platform.

No-moat Docusign reported solid fiscal 2025 first-quarter results, with revenue and non-GAAP operating margin very slightly exceeding our expectations and coming in a bit above the top end of the guidance ranges. The company has been delivering more upside to guidance over the last year or more, so we think the after-market selloff is indicative of a miss against a more aggressive whisper number. During the quarter, Docusign also launched its new Intelligent Agreement Management platform. We think this is an important step in the company’s evolution but do not believe IAM will have a meaningful impact on results for a couple of years. We are maintaining our $65 fair value estimate. We see solid results, slightly raised guidance for the year, several green shoots, and a new $1 billion share-buyback authorization and think the shares are increasingly attractive even if we prefer some of our wide-moat stocks at this juncture.

Docusign is the leader in electronic signatures and contract lifecycle management software and is well positioned to capitalize on the evolving industry, in our view. We see existing customers adopting more use cases and expanding seats over time, as well as moving to the Agreement Cloud platform.

As the leader in electronic signatures and contract life cycle management software, we think DocuSign is well-positioned to capitalize on the evolving industry. We also see existing customers adopting more use cases and expanding seats over time, and also moving to the Agreement Cloud platform.

After reconsidering DocuSign's rollercoaster performance during the lockdowns and in the postcovid hangover period, we are lowering our moat rating to none from narrow. We see the company’s business as moaty in general as a result of the proof point from covid and a high degree of recurring revenue, with the underlying moat source being switching costs. However, we are concerned that the company derives nearly all of its revenue from e-signatures and has been unable to gain more meaningful traction with some of its newer solutions, such as contract lifecycle management, thus far. We also see Adobe, the company’s main competitor, as making inroads with pricing and packaging, as well as usage drivers for both Acrobat and Adobe Sign, which could have an impact on DocuSign’s leadership position.

As the leader in electronic signatures and contract life cycle management software, we think DocuSign is well-positioned to capitalize on the evolving industry. We also see existing customers adopting more use cases and expanding seats over time, and also moving to the Agreement Cloud platform.