DocuSign Shares Rise 14.8% as Q4 Earnings & Revenues Beat Estimates

DocuSign, Inc. DOCU reported impressive fourth-quarter fiscal 2025 results, wherein earnings per share (EPS) and revenues outpaced the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.The better-than-expected results impressed investors, as the stock has rallied 14.8% since the company released results on March 13.Image Source: Zacks Investment ResearchDOCU’s EPS (excluding 47 cents from non-recurring items) was 86 cents, which surpassed the Zacks Consensus Estimate by 2.4% and increased 13.2% from the year-ago quarter. Total revenues of $776.3 million beat the consensus mark by 2.1% and rose 9% from the fourth quarter of fiscal 2024.The company’s shares have rallied 47.6% in the past year compared with the industry’s 10.1% rise and the Zacks S&P 500’s 10.1% growth.Image Source: Zacks Investment ResearchDOCU’s Segmental RevenuesSubscription revenues totaled $757.8 million, increasing 8.9% year over year. The figure beat our estimate of $743.5 million. Professional services and other revenues of $18.5 million jumped 10.7% from the year-ago quarter, beating our expectation of $15.6 million. Billings amounted to $923.2 million, up 11% from the year-ago quarter. The figure surpassed our anticipation of $876.7 million.The non-GAAP gross margin was 82.3%, beating our estimate of 81.3%. The non-GAAP gross profit of $638.7 million grew 8.7% year over year and outpaced our expectation of $616.9 million. The non-GAAP operating margin was 28.8%, increasing by 380 basis points from the year-ago quarter. It beat our estimate of 28.1%.Balance Sheet & Cash Flow of DocuSignDocuSign exited the fourth quarter of fiscal 2025 with cash and cash equivalents of $648.6 million compared with $797.1 million at the end of the fourth quarter of fiscal 2024. Net cash generated by operating activities was $307.9 million for the reported quarter. Free cash flow generated was $279.6 million.DOCU’s Q1 & FY26 GuidanceFor the first quarter of fiscal 2026, the company expects revenues between $745 and $749 million. This guided range is lower than the current consensus estimate of $751.56 million.DOCU anticipates subscription revenues in the range of $729-$733 million and billing revenues between $741 million and $751 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.5-81.5% and 27-28%, respectively.For fiscal 2026, the company expects revenues between $3.13 and $3.14 billion. The current consensus estimate is $3.14 billion.DOCU anticipates subscription revenues between $3.06 and $3.07 billion and billings’ guidance between $3.3 and $3.35 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.5-81.5% and 27.8-28.8%, respectively.Currently, DocuSign carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Earnings Snapshot Broadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.Automatic Data Processing, Inc. ADP reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.ADP’s EPS of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basisZacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks