Unpacking Q4 Earnings: DocuSign (NASDAQ:DOCU) In The Context Of Other Productivity Software Stocks
Looking back on productivity software stocks' Q4 earnings, we examine this quarter's best and worst performers, including DocuSign (NASDAQ:DOCU) and its peers.
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 17 productivity software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.3% while next quarter's revenue guidance was 0.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but productivity software stocks held their ground better than others, with share prices down 3.5% on average since the previous earnings results.
DocuSign (NASDAQ:DOCU)
Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.
DocuSign reported revenues of $712.4 million, up 8% year on year, topping analyst expectations by 1.9%. It was a strong quarter for the company, with an impressive free cash flow. Guidance was also good with revenue projection for the next quarter exceeding expectations.
"DocuSign ended Fiscal 2024 with momentum in product innovation, customer growth, and financial performance, including more than doubling free cash flow year-over-year," said Allan Thygesen, CEO of DocuSign.
The stock is up 11.3% since the results and currently trades at $59.64.
Is now the time to buy DocuSign? Access our full analysis of the earnings results here, it's free.
Best Q4: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $474.2 million, up 19.6% year on year, outperforming analyst expectations by 14.2%. It was an incredible quarter for the company, with an impressive beat of analysts' billings estimates and a significant improvement in its gross margin.
Pegasystems scored the biggest analyst estimates beat among its peers. The stock is up 23.5% since the results and currently trades at $62.65.
Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 8x8 (NASDAQ:EGHT)
Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.
8x8 reported revenues of $181 million, down 1.8% year on year, falling short of analyst expectations by 1.3%. It was a weak quarter for the company, with revenue guidance for the next quarter missing analysts' expectations.
8x8 had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 23.1% since the results and currently trades at $2.59.
Read our full analysis of 8x8's results here.
Box (NYSE:BOX)
Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.
Box reported revenues of $262.9 million, up 2.5% year on year, in line with analyst expectations. It was a decent quarter for the company, with a small revenue beat and a more convincing EPS beat. Guidance was relatively in line with expectations, showing that the company is staying on track and presenting the market with no major surprises.
The stock is up 3.4% since the results and currently trades at $28.16.
Read our full, actionable report on Box here, it's free.
Everbridge (NASDAQ:EVBG)
Founded as a reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.
Everbridge reported revenues of $115.8 million, down 1.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and a narrow beat of analysts' revenue estimates.
Everbridge has agreed in to be taken private by Thoma Bravo for $28.60 a share in cash ($1.5B in total).
The stock is up 22.9% since the results and currently trades at $34.82.
Read our full, actionable report on Everbridge here, it's free.
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