Benzinga - by Anusuya Lahiri, Benzinga Editor.
Needham analyst Scott Berg had a Hold rating on DocuSign, Inc (NASDAQ: DOCU).
DocuSign said third-quarter revenue increased 9% year-over-year to $700.42 million, which beat the consensus estimate of $690.13 million. The company reported quarterly earnings of 79 cents per share, which beat analyst estimates of 63 cents per share.
DocuSign reported better than feared 3QF24 results with a ~1.7% beat on subscription revenue, but more impressively, significant upside to margin estimates and record free cash flow of $240 million.
While billings growth beat conservative expectations, the 4QF24 outlook still entails low single-digit development as the macro limits expansion opportunities due to customers optimizing spending and budgets.
NDR compressed to 100%, and management suggested this will fall below 100% in 4Q, suggesting sustained down-sell pressure.
Enterprise additions increased sequentially as a bright spot. Sales execution appears to be modestly improving the mix, while the company sees slightly better billings and a more efficient GTM motion.
However, the capacity right-sizing back-drop led to the Hold rating.
The analyst expects Q4 revenue and EPS of $698.02 million (versus estimates of $693.73 million) and $0.65 (consensus of $0.58).
Price Action: DOCU shares traded higher by 5.63% at $50.11 on the last check Friday.
Latest Ratings for DOCU
| Mar 2022 | Piper Sandler | Maintains | Neutral | |
| Mar 2022 | Wolfe Research | Maintains | Peer Perform | |
| Mar 2022 | Wells Fargo | Maintains | Equal-Weight |
View the Latest Analyst Ratings
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