Broadcom (AVGO), DocuSign (DOCU) stocks up after quarterly earnings

Highlights

  • The total revenue of DocuSign, Inc. (NASDAQ: DOCU) increased by 50% YoY to US$511.8 million in Q2 of FY 2022.
  • Broadcom Inc.’s (NASDAQ: AVGO) revenue jumped 16% YoY to US$6.77 billion in Q3 of FY 2021.
  • AVGO reported its GAAP net income of US$4.20 per diluted share in Q3, 2021.

Stocks of DocuSign, Inc. (NASDAQ: DOCU) and Broadcom Inc. (NASDAQ: AVGO) were up over 3 percent and 1 percent, respectively, on Friday, a day after announcing strong quarterly earnings.

DOCU stock was up 3.67 percent to US$305.37 at 8:35 am ET, while AVGO stock ticked up 1.26 percent to US$498.175 at 1:43 pm ET.

Here we explore the earnings of the two companies:

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DocuSign, Inc. (NASDAQ: DOCU)

DocuSign is a San Francisco, California-based company that provides eSignature services through its software DocuSign Agreement Cloud. The total revenue of the company rose around 50 percent YoY to US$511.8 million in Q2 of fiscal 2022. Its subscription revenue was US$492.75 million, compared to US$323.64 million in the year-ago quarter.

The net cash provided by operating activities came in at US$177.7 million in Q2, compared to US$118.1 million in the previous year's quarter. Its free cash flow was US$161.7 million, compared to US$99.8 million in Q2 of fiscal 2021. Its cash, cash equivalents, restricted cash, and investments were US$887.2 million at the end of the second quarter.

Its gross profit was US$398.06 million in Q2, compared to US$251.59 million in the year-ago quarter. Its net loss came in at US$25.5 million, or a loss of US$0.13 per share, compared to a loss of US$64.56 million, or a loss of US$0.35 per share in previous year’s quarter.

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The company now expects its revenue for the quarter ending on October 31, 2021, to be between US$526 million and US$532 million, and for the year ending on January 31, 2022, to be between US$2.078 billion and US$2.088 billion.

The firm has a market cap of US$57.39 billion, and a forward P/E one year of 5891.40. Its EPS is US$-0.86. The DOCU stock rose 32.44 percent YTD.

The highest and lowest prices of the stock for the last 52-week were US$314.76 and US$179.49. Its share volume was 3,797,554 on September 2.

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Broadcom Inc. (NASDAQ: AVGO)

Broadcom Inc is based in San Jose, California, and it manufactures semiconductors and infrastructure-related software.

The GAAP revenue of the company surged 16 percent YoY to US$6.77 billion in the Q3 of fiscal 2021. On a GAAP basis, its net income came in at US$1.87 billion, or US$4.20 per diluted share, compared to US$688 million, or US$1.45 per diluted share in the year-ago quarter.

The cash flow from operations was US$3.54 billion in Q3, compared to US$3.17 billion in the same quarter of the previous year. Its adjusted EBITDA came in at US$4.12 billion, compared to US$3.34 billion in Q3 of fiscal 2020. Its free cash flow was US$3.42 billion, an increase of US$353 million from the prior year's quarter.

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The company now expects its revenue in Q4 of fiscal 2021 to be around US$7.35 billion, up around 14 percent from the same quarter of the previous year. Its Q4 adjusted EBITDA guidance is around 61 percent of the estimated revenue.

The market cap of the company is US$201.80 billion, the P/E Ratio is 36.49, and the forward P/E is 20.44. Its EPS is US$13.48. The AVGO stock rose 15.68 percent YTD.

The highest and lowest stock price of the firm for the last 52 weeks were US$507.85 and US$343.48, respectively. Its share volume on September 2 was 1,712,249.

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Bottomline

DocuSign has benefitted from the rapid adoption of digital processes by industries. On the other hand, the EV market boom helped Broadcom to boost its semiconductors sales.

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