50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Docusign stock climbs as growth reaccelerates & billings beat expectations—JMP

Published 06/12/2024, 09:58
Docusign stock climbs as growth reaccelerates & billings beat expectations—JMP
DOCU
-

On Friday, JMP Securities updated its assessment of Docusign Inc. (NASDAQ: DOCU), increasing the company's price target to $124 from the previous $108, while keeping a Market Outperform rating on the stock.

According to InvestingPro analysis, the company, currently valued at $17 billion, appears fairly valued based on its comprehensive Fair Value model. This adjustment follows Docusign's release of third-quarter financial results that surpassed market expectations.

The electronic signature company reported non-GAAP earnings per share (EPS) of $0.90, which exceeded the consensus estimate of $0.87. Revenue for the quarter reached $755 million, also beating the expected $745 million.

With impressive gross profit margins of 80.25% and strong cash flows, as highlighted by InvestingPro data, this marked an 8% year-over-year increase, improving from the 7% growth seen in the previous quarter, and signified the first acceleration after thirteen consecutive quarters of slowing momentum.

Docusign's billings were another highlight, coming in at $752 million against a consensus of $716 million, demonstrating a 9% year-over-year growth and a significant jump from the 2% growth recorded last quarter. The company's net retention rate also saw an uptick, reaching 100%, a slight improvement from 99% in the previous quarter.

The adjusted operating margin for Docusign stood firm at 29.6%, consistent with last quarter's performance and higher than the consensus forecast of 29.1%. The strong quarterly performance fueled a positive response in the stock's aftermarket trading, with shares rising 14%.

Trading near its 52-week high with a P/E ratio of 17.4x, this rally contributed to the stock's impressive year-to-date increase of 41%, outpacing the Russell 3000's 27% rise over the same period.

InvestingPro subscribers can access 14 additional key insights about DocuSign (NASDAQ:DOCU)'s financial health and growth prospects through the comprehensive Pro Research Report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.