Latest news with #DOCU
Yahoo
30-07-2025
- Business
- Yahoo
DocuSign vs. Spotify: Which Digital Pioneer Delivers More Value?
DocuSign DOCU and Spotify SPOT are both digital leaders that operate on scalable, subscription-based business models with large, global user bases. DocuSign revolutionizes the way agreements are prepared, signed and managed electronically, enabling seamless workflows for individuals and enterprises. Spotify, on the other hand, dominates the audio streaming space, offering music and podcasts to millions of users worldwide. Both companies leverage cloud technology and data-driven personalization to enhance user experience and drive engagement. Their platforms are widely adopted across industries and geographies. This positions them as essential tools in the modern digital economy. The Case for DOCU Docusign continues to enhance its Intelligent Agreement Management (IAM) platform, strengthening its integration capabilities with enterprise powerhouses like Microsoft MSFT and Salesforce CRM. These collaborations are not just cosmetic; they are core to the company's mission of optimizing agreement workflows and delivering AI-driven insights that improve the end-user experience. By embedding itself more deeply into tools already familiar to business clients — such as Microsoft 365 and Salesforce's CRM suite — Docusign enables seamless agreement management within platforms that enterprises use daily. This integration simplifies contract processes, accelerates decision-making, and creates a unified ecosystem where legal, sales, and procurement teams can collaborate efficiently. The IAM platform's growing synergy also highlights Docusign's commitment to positioning itself as more than an e-signature solution; it's becoming a comprehensive digital agreement hub. Whether a user is drafting a contract within Microsoft Word or managing client pipelines in Salesforce, Docusign's IAM helps ensure that documents move swiftly through automated, intelligent workflows. These platform partnerships also deepen customer reliance on DOCU's services, anchoring it within critical enterprise infrastructure. As more businesses seek to modernize agreement processes, Docusign's integrations with Microsoft and Salesforce are proving instrumental in extending reach, improving retention and reinforcing its competitive edge in the SaaS landscape. DOCU solidified its leadership in the e-signature market with a strong first-quarter fiscal 2026 performance. It recorded $764 million in total revenues, an 8% year-over-year increase. Impressively, $746 million of that came from subscriptions, highlighting the stability of its SaaS model. Subscription growth, driven in part by Microsoft and Salesforce-aligned services, reflects how enterprises are deepening their usage of Docusign across contract lifecycles. Net revenue retention improved to 101%, suggesting that customers are spending more on the platform. Though billings growth slowed to 4%, it was more indicative of extended renewal cycles than weakening demand. What stands out is Docusign's profitability and capital discipline. The company generated $228 million in free cash flow in the first quarter, translating to a healthy 30% margin. As integrations continue to enhance customer value, the company has also committed to shareholder returns, expanding its buyback authorization. These strategic moves suggest that DOCU is not only focused on growth but also on delivering sustained value. With Microsoft and Salesforce reinforcing its relevance across enterprises, and strong free cash flows backing that momentum, Docusign remains well-positioned to maintain its dominance while evolving into a broader digital agreement ecosystem. The Case for SPOT Spotify continues to enhance its platform with innovative features that deepen user engagement and broaden its global footprint. Since the introduction of its AI DJ in 2023, the company has witnessed a steady increase in monthly active users (MAUs), reflecting the appeal of more personalized listening experiences. MAUs grew by 16.9% in the fourth quarter of 2023 compared to the March quarter, followed by a further 10% rise by the end of 2024. In the first quarter of 2025 alone, Spotify added another 3 million users. This consistent growth highlights the effectiveness of its technology-driven content curation in attracting and retaining listeners. Another new feature, the AI Playlist tool, has gained momentum by allowing premium users to create playlists based on simple prompts. Its rapid adoption led to a significant expansion into more than 40 new markets in April 2025, reinforcing the platform's global appeal. Spotify has also reported a 4% year-over-year increase in average revenue per user, indicating not just rising user numbers but also improved monetization through value-added features. Expanding beyond music and podcasts, Spotify recently partnered with ElevenLabs to accept AI-narrated audiobooks. Authors can now create audio versions of their work in 29 languages and distribute them through Spotify, extending their reach to a broader, multilingual audience. This move not only supports independent creators but also strengthens Spotify's position as a comprehensive audio platform. By introducing smart, user-friendly tools and expanding content formats, Spotify is building a richer ecosystem that caters to a variety of preferences. These advancements, while powered by sophisticated technology, are subtly woven into the user experience, helping the company grow its user base, increase engagement, and maintain leadership in the digital audio streaming space. How Do the Estimates Compare for DOCU & SPOT? The Zacks Consensus Estimate for DOCU's fiscal 2026 sales indicates year-over-year growth of 6%, and EPS indicates a slight year-over-year decline. EPS estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for SPOT's 2025 sales and EPS indicates year-over-year growth of 21% and 51%, respectively. EPS estimates have been trending slightly downward over the past 60 days. Image Source: Zacks Investment Research DOCU Undervalued, SPOT Priced for Growth While DOCU appears attractively valued with a forward 12-month P/E of 21.83X versus its median of 64.82X, SPOT has a higher forward P/E of 54.06X, slightly below its median of 54.07X. Winner: DocuSign While both DocuSign and Spotify are digital leaders, DocuSign stands out with stronger fundamentals and deeper enterprise integration. Its Intelligent Agreement Management (IAM) platform, bolstered by partnerships with Microsoft and Salesforce, positions it as a critical tool in modern business operations. With 98% of revenues from subscriptions and 101% net revenue retention, DocuSign offers predictable growth and customer stickiness. Financially, it delivers robust free cash flow and trades at an attractive valuation. While Spotify shows impressive user growth, DocuSign's profitability, capital discipline, and enterprise relevance make it the more compelling long-term value play. While DOCU carries a Zacks Rank #3 (Hold), SPOT has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Docusign Inc. (DOCU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
DocuSign (DOCU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
DocuSign (DOCU) closed at $73.55 in the latest trading session, marking a -3.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%. Shares of the provider of electronic signature technology have appreciated by 0.46% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.24%, and the S&P 500's gain of 4.07%. Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 13.4% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $778.96 million, indicating a 5.83% growth compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.61% rise in the Zacks Consensus EPS estimate. Right now, DocuSign possesses a Zacks Rank of #3 (Hold). Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 21.6. This signifies a discount in comparison to the average Forward P/E of 28.6 for its industry. One should further note that DOCU currently holds a PEG ratio of 9.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.21. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Docusign Inc. (DOCU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
28-06-2025
- Business
- Yahoo
Jim Cramer on DocuSign Stock: 'It's Time to Sell'
DocuSign, Inc. (NASDAQ:DOCU) is one of the 11 stocks Jim Cramer put under the microscope recently. Answering a caller's query about the company during the lightning round, Cramer stated: 'You know, I thought the last quarter was good, and nobody liked it. I swear to God, I thought all the different innovations were good. People thought the revenues were too weak. I'm going to go with the flow and tell you it's time to sell.' A software engineer in front of a computer screen, typing code to build the company's electronic signature software. DocuSign (NASDAQ:DOCU) provides an AI-driven agreement management platform that includes electronic signatures, automated contract workflows, document generation, and identity verification tools. For the fiscal year ending January 31, 2026, the company expects total revenue to be between $3.151 billion and $3.163 billion. Subscription revenue is projected to range from $3.083 billion to $3.095 billion. DocuSign (NASDAQ:DOCU) anticipates billings between $3.285 billion and $3.339 billion. Furthermore, the company's non-GAAP operating margin is expected to be between 27.8% and 28.8%. While we acknowledge the potential of DOCU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
24-06-2025
- Business
- Globe and Mail
Better Cloud Stock: Docusign vs. Confluent
Docusign (NASDAQ: DOCU) and Confluent (NASDAQ: CFLT) both help companies streamline their businesses with their cloud-based services. Docusign is the world's largest provider of e-signature services, while Confluent's platform processes real-time data as it flows between different applications across an organization. But over the past 12 months, Docusign's stock price rose 44% as Confluent's stock slumped 13%. Let's see why the e-signature services leader outperformed the "data in motion" company by such a wide margin -- and if it will remain the better investment over the next few years. The differences between Docusign and Confluent Docusign serves over 1.4 million customers in 180 countries, and it's been used in more than a billion transactions. It generates most of its revenue from subscriptions to its e-signature platform, its contract lifecycle management (CLM) tools, and other cloud-based services. Confluent served 6,140 customers in its latest quarter. Its namesake platform runs on Apache Kafka, an open-source platform for streaming data, but it adds additional analytics tools to differentiate itself from other "Kafka-as-a-service" providers. It generates its revenue from a mix of subscriptions and more flexible consumption-based fees. Which company is growing faster? Docusign's growth is driven by the growing usage of digital documents and e-signatures as they replace their pen-and-paper counterparts. Confluent's growth is fueled by a need to evaluate data as it streams across the silos of a large organization. That real-time analysis gets everyone on the same page to make faster decisions. From fiscal 2021 to fiscal 2025 (which ended this January), Docusign's revenue grew at a CAGR of 20% as its adjusted gross margin rose from 79% to 82%. It also turned profitable on a generally accepted accounting principles (GAAP) basis over the past two fiscal years as it downsized its workforce and streamlined its spending. But from fiscal 2025 to fiscal 2028, analysts expect Docusign's revenue to grow at a slower CAGR of 8% as its core market matures, it laps some earlier-than-expected contract renewals from fiscal 2024, cautiously expands its new AI-driven Intelligent Agreement Management (IAM) platform, and deals with tougher competitive and macro headwinds. Analysts expect its GAAP EPS to decline in fiscal 2026 as it expands its lower-margin IAM platform while lapping some big buybacks and one-time tax benefits. But over the following two years, they expect its EPS to grow at a CAGR of 41% as it scales up its IAM platform and streamlines its spending. From 2020 to 2024, Confluent's revenue rose at a CAGR of 42% as its adjusted gross margin expanded from 70% to 79%. That growth was driven by the accelerating adoption of real-time data streaming services (especially among larger enterprise customers), the expansion of its higher-margin cloud-based ecosystem with more analytics tools, and its new overseas customers. But it's still never been profitable on a GAAP basis. From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 19% as it gradually narrows its net losses. Its biggest potential catalysts include the growth of its cloud platform, fresh tailwinds from the booming AI market, and the expansion of its enterprise and overseas businesses. Which stock is a better value right now? Docusign's stock trades at 61 times forward earnings and 5 times this year's sales. Confluent can't be valued by its profits, but it trades at 7 times this year's sales. However, Docusign's insiders sold nearly 2.1 million shares over the past 12 months while only buying around 1,300 shares. Confluent's insiders bought 17.2 million shares and sold 17.6 million shares during the same period. That warmer insider sentiment suggests that Confluent might have a bit more upside potential than Docusign. The better buy: Confluent Docusign's stock rose over the past year as the bulls cheered the growth potential of its IAM platform in the AI market, but it's still being valued as a growth stock as its core business matures. Confluent should continue growing at a faster rate as its cloud platform expands, and its stock seems more reasonably valued relative to its growth potential. I wouldn't rush to buy either of these cloud-oriented stocks right now. But if I had to choose one over the other, I'd probably avoid Docusign and bet on a stronger recovery for Confluent -- which stands to process a lot more streaming data as the cloud and AI markets expand. Should you invest $1,000 in Docusign right now? Before you buy stock in Docusign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Docusign wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
24-06-2025
- Business
- Yahoo
Better Cloud Stock: Docusign vs. Confluent
Docusign's business is maturing, but its profits are rising. Confluent is growing at a faster rate, but it isn't profitable yet. Insiders are fleeing one stock a lot faster than the other. 10 stocks we like better than Docusign › Docusign (NASDAQ: DOCU) and Confluent (NASDAQ: CFLT) both help companies streamline their businesses with their cloud-based services. Docusign is the world's largest provider of e-signature services, while Confluent's platform processes real-time data as it flows between different applications across an organization. But over the past 12 months, Docusign's stock price rose 44% as Confluent's stock slumped 13%. Let's see why the e-signature services leader outperformed the "data in motion" company by such a wide margin -- and if it will remain the better investment over the next few years. Docusign serves over 1.4 million customers in 180 countries, and it's been used in more than a billion transactions. It generates most of its revenue from subscriptions to its e-signature platform, its contract lifecycle management (CLM) tools, and other cloud-based services. Confluent served 6,140 customers in its latest quarter. Its namesake platform runs on Apache Kafka, an open-source platform for streaming data, but it adds additional analytics tools to differentiate itself from other "Kafka-as-a-service" providers. It generates its revenue from a mix of subscriptions and more flexible consumption-based fees. Docusign's growth is driven by the growing usage of digital documents and e-signatures as they replace their pen-and-paper counterparts. Confluent's growth is fueled by a need to evaluate data as it streams across the silos of a large organization. That real-time analysis gets everyone on the same page to make faster decisions. From fiscal 2021 to fiscal 2025 (which ended this January), Docusign's revenue grew at a CAGR of 20% as its adjusted gross margin rose from 79% to 82%. It also turned profitable on a generally accepted accounting principles (GAAP) basis over the past two fiscal years as it downsized its workforce and streamlined its spending. But from fiscal 2025 to fiscal 2028, analysts expect Docusign's revenue to grow at a slower CAGR of 8% as its core market matures, it laps some earlier-than-expected contract renewals from fiscal 2024, cautiously expands its new AI-driven Intelligent Agreement Management (IAM) platform, and deals with tougher competitive and macro headwinds. Analysts expect its GAAP EPS to decline in fiscal 2026 as it expands its lower-margin IAM platform while lapping some big buybacks and one-time tax benefits. But over the following two years, they expect its EPS to grow at a CAGR of 41% as it scales up its IAM platform and streamlines its spending. From 2020 to 2024, Confluent's revenue rose at a CAGR of 42% as its adjusted gross margin expanded from 70% to 79%. That growth was driven by the accelerating adoption of real-time data streaming services (especially among larger enterprise customers), the expansion of its higher-margin cloud-based ecosystem with more analytics tools, and its new overseas customers. But it's still never been profitable on a GAAP basis. From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 19% as it gradually narrows its net losses. Its biggest potential catalysts include the growth of its cloud platform, fresh tailwinds from the booming AI market, and the expansion of its enterprise and overseas businesses. Docusign's stock trades at 61 times forward earnings and 5 times this year's sales. Confluent can't be valued by its profits, but it trades at 7 times this year's sales. However, Docusign's insiders sold nearly 2.1 million shares over the past 12 months while only buying around 1,300 shares. Confluent's insiders bought 17.2 million shares and sold 17.6 million shares during the same period. That warmer insider sentiment suggests that Confluent might have a bit more upside potential than Docusign. Docusign's stock rose over the past year as the bulls cheered the growth potential of its IAM platform in the AI market, but it's still being valued as a growth stock as its core business matures. Confluent should continue growing at a faster rate as its cloud platform expands, and its stock seems more reasonably valued relative to its growth potential. I wouldn't rush to buy either of these cloud-oriented stocks right now. But if I had to choose one over the other, I'd probably avoid Docusign and bet on a stronger recovery for Confluent -- which stands to process a lot more streaming data as the cloud and AI markets expand. Before you buy stock in Docusign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Docusign wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool recommends Confluent. The Motley Fool has a disclosure policy. Better Cloud Stock: Docusign vs. Confluent was originally published by The Motley Fool
