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DocuSign Rallies Over 23% Following Strong Q3 Performance and Upbeat Outlook

DocuSign Rallies Over 23% Following Strong Q3 Performance and Upbeat Outlook Dec. 6, 2024, 11:33 a.m., readers: 14

DocuSign (NASDAQ:DOCU) saw its shares jump more than 23% intra-day today after delivering third-quarter results that exceeded expectations and issuing optimistic guidance for the current quarter and full fiscal year. For the quarter, DocuSign reported adjusted earnings per share of $0.90, surpassing analyst forecasts of $0.87. Revenue grew 8% year-over-year to $754.8 million, outpacing the Street consensus estimate of $745.26 million. The company’s billings, a critical indicator of future revenue, showed robust growth, increasing 9% year-over-year—a significant acceleration from the 2% growth in the previous quarter. DocuSign provided encouraging guidance for the fourth quarter, projecting revenue in the range of $758 million to $762 million, exceeding Wall Street's expectations of $756.2 million. For the full fiscal year 2025, the company forecast revenue between $2.959 billion and $2.963 billion, surpassing the Street consensus estimate of $2.947 billion. In addition to strong revenue and billings growth, DocuSign reported free cash flow of $210.7 million for the quarter, reinforcing its solid financial position.

About NASDAQ: DOCU

D ocuSign, Inc. provides electronic signature software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which automates workflows across the entire agreement process;

Price: 98.17
Market cap: 19.8 billion USD
Eps: 4.99
P/e ratio: 19.67
Focus Analysis On: DOCU