DocuSign (DOCU) Reports Q1: Everything You Need To Know Ahead Of Earnings

E-signature company DocuSign (DOCU) will be reporting earnings tomorrow after market close. Here's what to expect.

DocuSign beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $712.4 million, up 8% year on year. It was a strong quarter for the company, with an impressive beat of analysts' billings estimates and a significant improvement in its gross margin.

Is DocuSign a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting DocuSign's revenue to grow 7% year on year to $707.7 million, slowing from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DocuSign has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.3% on average.

Looking at DocuSign's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dropbox delivered year-on-year revenue growth of 3.3%, meeting analysts' expectations, and Box reported revenues up 5.1%, topping estimates by 1%. Dropbox's stock price was unchanged after the results, while Box was up 8.6%.

Read our full analysis of Dropbox's results here and Box's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. DocuSign is down 8.4% during the same time and is heading into earnings with an average analyst price target of $65.3 (compared to the current share price of $53.4).

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