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Earnings To Watch: DocuSign (DOCU) Reports Q2 Results Tomorrow

DOCU Cover Image

Electronic signature company DocuSign (NASDAQ: DOCU) will be announcing earnings results this Thursday after the bell. Here’s what to look for.

DocuSign beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $763.7 million, up 7.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ billings estimates.

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 6.1% year on year to $780.9 million, in line with the 7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.

DocuSign Total Revenue

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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at DocuSign’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Dropbox’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.2%, and Box reported revenues up 8.9%, topping estimates by 1.1%. Dropbox traded up 2.8% following the results while Box was also up 4.2%.

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

Investors in the productivity software segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. DocuSign is down 1.4% during the same time and is heading into earnings with an average analyst price target of $89.28 (compared to the current share price of $74.34).

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