Latest news with #Docusign
Yahoo
4 hours ago
- Business
- Yahoo
Docusign, Manchester United, Petco: Trending Tickers
Docusign (DOCU) shares drop lower in Friday's trading session after reporting that first quarter billings fell short of expectations while topping revenue estimates. British soccer club Manchester United (MANU) is seeing its stock soar after lifting its adjusted EBITDA full-year forecast. Pet retailer Petco (WOOF) sank by over 20% after missing its quarterly sales forecasts as its comparable sales saw wider-than-expected declines tied to tariffs. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Sign in to access your portfolio
Yahoo
6 hours ago
- Business
- Yahoo
DocuSign: Questions Around Growth Remain
DocuSign posted revenue and earnings growth, beating estimates. The company's free cash flow fell slightly, and its full-year forecast underwhelmed investors. DocuSign has steadied itself, but investors are not yet seeing clear answers to the question of how growth can accelerate from here. 10 stocks we like better than Docusign › Here's our initial take on DocuSign's (NASDAQ: DOCU) financial report. Metric Q1 FY25 Q1 FY26 Change vs. Expectations Revenue $709.6 million $763.7 million 8% Beat Earnings per share (adjusted) $0.82 $0.90 10% Beat Non-GAAP billings $709.5 million $739.6 million 4% n/a Free cash flow $232.1 million $227.8 million -2% n/a There was a lot to like about DocuSign's latest quarter. Revenue and adjusted earnings per share were up 8% and 10%, respectively, topping Wall Street expectations. GAAP (generally accepted accounting principles) gross margin came in at 79.4%, up 5 basis points from a year ago, and the company posted solid free cash flow of $227.8 million. DocuSign also surpassed the 10,000 Intelligent Agreement Management customer threshold during the period. Billings rose 4% in the quarter, but DocuSign warned that it expects momentum to fade as the year goes on. For fiscal 2026, DocuSign is now forecasting total billings of $3.285 billion and $3.39 billion, down from its prior guidance for $3.3 billion to $3.4 billion. The billings revision, though slight, highlights the biggest challenge facing DocuSign right now. The business is healthy and profitable, but investors are worried about where growth will come from. The company is forecasting full-year fiscal 2026 revenue of $3.15 billion to $3.16 billion, which, at the midpoint, would represent just a 5% gain from last year's $2.98 billion in total revenue. DocuSign is putting its cash to work for investors, announcing a new $1 billion repurchase program. But with the company's share count up nearly 6% in just the last three years, much of the buyback would only serve to offset share-based compensation that has added to the float. Investors were more focused on the look ahead than the results. DocuSign shares were down 15% in aftermarket trading following the release but ahead of the company's call with investors. CEO Allan Thygesen, who has been on the job since October 2022, called the results "an important quarter for Docusign's long-term transformation," highlighting the company's "ambitious product roadmap." Expect investors to press Thygesen for specifics about how the transformation is going and when it will translate into real, sustained growth. DocuSign invented its category and continues to hold strong in its core business, even up against competition from Adobe (NASDAQ: ADBE) and Microsoft (NASDAQ: MSFT), which can incorporate e-signatures into broader offerings. But Wall Street is forward-looking. Shares of DocuSign are up nearly 75% over the past year as an initial response to Thygesen's turnaround ambitions. Until investors gain confidence that DocuSign has found a formula to expand its core offering and generate significant revenue growth, the stock could face limits on its ability to accelerate higher from here. Full earnings report Investor relations page 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — 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 2, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Docusign, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. DocuSign: Questions Around Growth Remain was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
7 hours ago
- Business
- Yahoo
Why Docusign Stock Got Devastated Today
Docusign doubled its GAAP profits and beat earnings last night -- but free cash flow delined. Growth is slowing at the e-signatures stock, and investors are nervous. 10 stocks we like better than Docusign › Docusign (NASDAQ: DOCU) stock plunged 19.3% through 11:11 a.m. ET this morning despite "beating earnings" on both top and bottom lines last night. Heading into the company's fiscal Q1 2026, analysts forecast the e-signatures company would earn $0.81 per share on just under $750 million in sales. In fact, Docusign earned $0.90 per share, "adjusted," on sales of nearly $764 million. Sales grew 8% year over year, but billings were up only 4% -- which may foreshadow a slowdown in growth ahead. Gross profit margins, on the other hand, improved 50 basis points to 79.4%. And diluted earnings as calculated according to generally accepted accounting principles (GAAP) more than doubled to $0.34 per share. Not quite as good as "$0.90," but still a big improvement. All this being said, Docusign's free cash flow belied the growth in both sales and earnings. FCF for the quarter was only $227.8 million in Q1, versus $232.1 million a year ago. It didn't double. It didn't grow even 8%. It... went down. Should this worry investors? Perhaps. Docusign's Q2 guidance sees sales growth slowing to 6%, $779 million in revenue or thereabouts. Growth for the full year is likewise forecast at about 6%, $3.15 billion or $3.16 billion in annual sales. That's not a lot of growth for a supposed growth stock, and reinforces the impression we get from slow billings growth. That said, Docusign stock sells for an unchallenging valuation of only 16.6 times trailing FCF -- cheaper than that when you factor in net cash on the balance sheet. If Docusign can just find a way to goose its growth rate again, this stock could still be a buy. 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — 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 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool has a disclosure policy. Why Docusign Stock Got Devastated Today was originally published by The Motley Fool
Yahoo
8 hours ago
- Business
- Yahoo
Docusign Stock Sinks as Firm Cuts Billings Outlook on Switch to AI Platform
Docusign's first-quarter billings missed estimates, and it lowered its full-year billings outlook. The e-signature software provider blamed the billings issue on its switch to an artificial intelligence-driven agreement platform. Docusign beat quarterly profit and sales estimates, and boosted its share repurchase (DOCU) shares sank 18% Friday, a day after the electronic signing software maker's billings missed estimates and it slashed its full-year billing outlook as the company shifted to an artificial intelligence (AI) model. The company reported fiscal 2026 first-quarter billings of $739.6 million, while the average estimate by analysts surveyed by Visible Alpha was $747.8 million. For the full year, Docusign sees billings in the range of $3.285 billion to $3.339 billion, down from its previous outlook of $3.300 billion to $3.354 billion. CEO Allan Thygesen explained on the earnings call that the company expected a decline in billings this year because of "foundational go-to-market changes" as it employed its AI-driven agreement platform, Intelligent Agreement Management (IAM), according to a transcript provided by AlphaSense. However, Thygesen said that "the impact happened sooner than anticipated," which caused a drop in first-quarter early renewals, negatively impacting billings growth. The news offset better-than-expected first-quarter results. Docusign reported adjusted earnings per share (EPS) of $0.90, with revenue rising 8% year-over-year to $763.7 million. Both exceeded Visible Alpha forecasts. In addition, the company announced an increase in the current stock buyback program by up to $1.0 billion. The plan's current authorization is $1.4 billion. With today's sharp declines, shares of Docusign fell into negative territory this year. Read the original article on Investopedia 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
USA Today
13 hours ago
- Business
- USA Today
US stock futures mixed ahead of May jobs report
US stock futures mixed ahead of May jobs report Show Caption Hide Caption Procter & Gamble to cut 7,000 jobs, exit brands Procter & Gamble will cut 7,000 jobs over the next two years, as the Tide detergent maker contends with an uncertain spending environment, fueled in part by U.S. tariffs. U.S. stock futures are mixed ahead of the key monthly jobs report. The May jobs report is due before the bell. Economists, on average, expect 130,000 new jobs created and a 4.2% unemployment rate. At 6 a.m. ET, futures linked to the blue-chip Dow added 0.07%, while broad S&P 500 futures fell -0.11% and tech-heavy Nasdaq futures rose 0.14%. Coroprate news Docusign said billings growth was slower than expected in the first quarter, according to FactSet. Lululemon's cut its full-year earnings guidance, citing a 'dynamic macroenvironment.' Broadcom's quarterly results just beat forecasts. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
