How DocuSign Did It Again With Q3 Earnings

By Chris Lange Updated Jan 30, 12:28PM EST · Published Dec 6, 10:20AM EST

How DocuSign Did It Again With Q3 Earnings — © happymoon77 / Getty Images

When DocuSign Inc. (NASDAQ: DOCU | DOCU Price Prediction) released its fiscal third-quarter financial results after the markets closed on Thursday, the firm said that it had $0.11 in earnings per share (EPS) and $249.5 million in revenue. That compared with consensus estimates of $0.03 in EPS and $240.4 million in revenue. The same period of last year reportedly had breakeven earnings and $178.4 million in revenue.

During the most recent quarter, total revenues increased 40% year over year. This consists of Subscription revenues increasing 41% to $238.1 million and Professional Services revenues increasing 28% to $11.4 million.

The company also announced that it is extending the DocuSign Agreement Cloud for Salesforce. Ahead of Dreamforce in November, DocuSign announced two new offerings. The first was DocuSign Negotiate, a dedicated solution for smaller companies that simplifies and accelerates the process of generating, redlining and negotiating agreements, the current version of which is optimized for the Salesforce ecosystem. The second was DocuSign CLM, the next generation of SpringCM’s enterprise-level contract lifecycle management solution.

Looking ahead to the fiscal fourth quarter, the company expects to see total revenues in the range of $263 million to $267 million, with billings of $346 million to $356 million. Consensus estimates call for $0.05 in EPS and $260.41 million in revenue for the quarter.

Dan Springer, CEO of DocuSign, commented:

We delivered another quarter of strong growth in billings and revenue, a significant expansion of our global customer base, and our eighth quarter of non-GAAP profitability. Customers and partners alike are seeing the benefits of having a single platform that connects and automates the entire agreement process. As we continue to expand our suite of Agreement Cloud products, we believe DocuSign is poised to lead the next big category of cloud platforms.

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Shares of DocuSign traded up over 4% to $72.67 Friday morning, in a 52-week range of $36.25 to $75.79. The consensus price target is $75.08.
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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.