Should you explore DocuSign (DOCU) stock after its earnings?

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Highlights:

  • The DOCU stock was up over 16 per cent in the pre-market hours on September 9.
  • It touched its 52-week low on Wednesday, September 7.
  • DocuSign reported its fiscal 2023 second-quarter earnings results on September 8.

The DocuSign, Inc. (NASDAQ: DOCU) stock seems to be gaining attention on Friday, a day after the firm made its latest quarterly earnings announcement.

DocuSign focuses on allowing organizations to make electronic agreements. The DOCU stock was up more than 16 per cent in the pre-market hours on September 9, suggesting how the market participants might be focusing on the stock.

Although the latest quarter earnings season was not as tumultuous as anticipated, several companies have lowered their guidance, citing the impact of inflation, higher rates, and the strong US dollar.

So what's in the earnings of DocuSign? Does it provide any guidance? Let's find the answers below with Kalkine Media®.

Latest quarter earnings highlights of DocuSign:

In the fiscal 2023 second quarter, DocuSign noted a growth of 22 per cent in its revenue of US$ 622.2 million, from US$ 511.84 million in the year-ago quarter.

The subscription revenue of the firm rose 23 per cent YoY to US$ 605.2 million, and its professional services and other revenue went down by 11 per cent YoY to US$ 17 million.

The GAAP net loss of the San Francisco, California-based company was US$ 45.07 million in Q2 FY23, comparatively more than a loss of US$ 25.50 million in Q2 FY22. Its GAAP net loss per share came in at US$ 0.22 apiece in the latest quarter, against a loss of US$ 0.13 apiece in the fiscal 2022 second quarter.

Regarding its guidance, DocuSign now expects its total revenue to be between US$ 624 million and US$ 628 million in Q3 FY23. It provided a guidance range of US$ 609 million to US$ 613 million for its subscription revenue in Q3 FY23.

For fiscal 2023, the company provided a guidance range of US$ 2.47 billion to US$ 2.482 billion for its revenue. It expects its subscription revenue to be between US$ 2.405 billion and US$ 2.417 billion in fiscal 2023.

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Bottom line

The price of the DOCU stock jumped 16.6 per cent to trade at US$ 67.57 at 7:50 am ET on September 9, following a surge of 5.1 per cent to close at US$ 57.95 in the previous session. During writing, the trading volume of DocuSign stock was about 133,006.

The firm holds a market cap of about US$ 13.50 billion at its current trading price. Meanwhile, the DocuSign stock touched its 52-week low of US$ 53.25 on September 7, 2022.


 


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