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DocuSign Inc DOCU

Morningstar Rating
$52.74 +0.54 (1.03%)
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Company Report

Docusign Earnings: Results and Guidance Mostly as Expected, With Hints of Improving Trends

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.

Price vs Fair Value

DOCU is trading at a 362% premium.
Price
$52.74
Fair Value
$63.00
Uncertainty
High
1-Star Price
$867.42
5-Star Price
$31.00
Economic Moat
Hjbp
Capital Allocation
Kfdtxznft

Bulls Say, Bears Say

Bulls

Docusign is the market leader in e-signatures and is expanding to a broader contract lifecycle management solution.

Bears

Having only come public in 2018, Docusign has a limited operating history, and much of that involved a surge in demand from covid lockdowns and then a deflation as the world returned to the office. It is therefore possible that years of demand have been pulled forward.

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News

Trading Information

Previous Close Price
$52.20
Day Range
$51.7752.92
52-Week Range
$38.1164.76
Bid/Ask
$52.70 / $52.74
Market Cap
$10.80 Bil
Volume/Avg
6.6 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
17.07
Price/Sales
3.93
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.35%

Company Profile

Docusign offers Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its initial public offering in May 2018.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
6,840

Competitors

Valuation

Metric
DOCU
ADBE
CRM
Price/Earnings (Normalized)
17.0731.8327.26
Price/Book Value
9.5016.103.99
Price/Sales
3.9311.926.74
Price/Cash Flow
10.4733.3617.25
Price/Earnings
DOCU
ADBE
CRM

Financial Strength

Metric
DOCU
ADBE
CRM
Quick Ratio
0.880.930.95
Current Ratio
0.931.051.11
Interest Coverage
11.7355.6347.36
Quick Ratio
DOCU
ADBE
CRM

Profitability

Metric
DOCU
ADBE
CRM
Return on Assets (Normalized)
20.65%27.01%9.32%
Return on Equity (Normalized)
66.84%49.98%15.06%
Return on Invested Capital (Normalized)
38.21%38.81%12.53%
Return on Assets
DOCU
ADBE
CRM
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