DocuSign Inc. (DOCU) Is Up This Morning After Beating Results

After the online signature vending provider reported stronger-than-expected second-quarter results and a solid near-term outlook, DocuSign Inc. (NASDAQ: DOCU) shares have risen 12.87% to $65.41. The stock traded 1.87 million shares compared to 3.46 million shares over the past 50 days.

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Overview of financial results

After the market close yesterday, DocuSign (DOCU) reported its financial results for the quarter that ended July 31.

On a non-GAAP basis, DocuSign surpassed Street expectations by around 2 cents per share for the three months ending in July posting an EPS of 44 cents per share. The company has struggled to retain investor interest as pandemic-era restrictions bring more and more professionals back to the office.

Also, the group reported a 22% increase in revenue, reaching $622.2 million, and said full-year revenues would likely range from $2.47 to $2.48 billion and billings between $2.5 and $2.57 billion, thanks to a new partnership with Microsoft (MSFT) whereby the tech giant will use DocuSign’s contract management services and products.

As a result of cost cuts and pared-back spending plans, operating margins improved on a sequential basis to 18%, a figure likely to hold over the second half of the year, the company said.

Highlights Of Operations and Financial Activities

As part of its new product capabilities, DocuSign announced:

DocuSign eSignature

  • Shared Access was introduced, allowing a user to send envelopes or manage agreements on behalf of another user.

DocuSign eSignature App for Stripe

  • Integrate eSignature agreements with Stripe payments so that accounts, finance, and support teams can view them side-by-side and create new agreements right from the Stripe dashboard. The two platforms can now be used in conjunction for transactions, customer support, and transaction reviews.

DocuSign CLM

  • Integrated CLM into Slack to enable better collaboration and more streamlined agreements. The CLM for Slack solution allows users to navigate the entire agreement process without ever leaving the Slack platform, from redlining to reviews and approvals. There is also a new integration between DocuSign CLM Connector for Coupa and CLM AI-assisted data capture.

DocuSign Notary

  • DocuSign Notary now supports notaries in two additional states, New Jersey and Oregon, bringing its total state support to 25.

How did DOCU remain buoyant?

DocuSign (DOCU) achieved strong Q2 results, finishing the first half with a strong performance. A strong foundation is in place to deliver in the second half of the year as a result of its team’s focus and dedication during this transition period. A clear set of critical deliverables for its people initiatives and product roadmap guides the company into its next stage of growth. In addition to its leading digital agreement platform and strong market position, DocuSign has a $50 billion market opportunity.

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