DocuSign Inc. (NASDAQ: DOCU) is slated to report fourth quarter 2020 earnings results on Thursday, March 12, after the market closes. Analysts have projected earnings of $0.05 per share which compares to earnings of $0.06 per share reported a year ago. Revenue is expected to rise 33% to $266 million.
DocuSign’s stock has gained 28% over the past one year but
has dropped over 15% in the past one month alone. The stock is currently
trading 19% below its 52-week high of $92.55.
The quarterly results are likely to benefit from growth in billings and an expansion in the customer base. The company has seen double-digit increases in subscription and professional services revenues and this trend can be expected to continue in the to-be-reported quarter as well.
DocuSign continues to roll out new offerings which will help
in expanding its portfolio and growing its customer base. This in turn will
boost the topline and drive growth. The company is also investing in new technologies
to improve its capabilities.
Last month, DocuSign announced its intention to purchase
contract analytics and AI technology provider Seal Software for $188 million in
cash. The deal will help in integrating Seal’s technology across DocuSign’s Agreement
Cloud and thus delivering greater value to clients. Updates on this transaction
will be worth watching.
In the third quarter of 2020, DocuSign beat market estimates,
with a 40% increase in revenues to $249.5 million and adjusted EPS of $0.11.
For the fourth quarter, the company has guided for total
revenue of $263-267 million, while for the full year of 2020, revenues are
expected in the range of $962-966 million.
DocuSign’s shares were down nearly 7% in afternoon hours on Wednesday.