What Happened: Shares of e-signature company DocuSign (NASDAQ:DOCU) jumped 14.4% in the morning session after the company reported fourth-quarter results that exceeded analysts' revenue, billings, and EPS estimates. Guidance was also decent, with revenue production for the next quarter coming in ahead of expectations, while full-year guidance was roughly inline.
Management highlighted the top drivers for the improved growth performance, including 1.) Solid execution around renewals, especially with large customers 2.) Stabilization in customer usage and retention 3.) Strong new customer acquisition volume.
Even though guidance suggests a slowdown in growth, this quarter's results seemed fairly positive. After the initial pop the shares cooled down to $56.02, up 4.6% from previous close.
Is now the time to buy DocuSign? Find out by reading the original article on StockStory.
What is the market telling us: DocuSign's shares are very volatile and over the last year have had 8 moves greater than 5%. But moves this big are very rare even for DocuSign and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock gained 14.3% on the news that the Wall Street Journal reported that the company is exploring a potential sale. According to the sources, discussions were in the early stages, and there's no guarantee of a deal. The company saw increased demand during the pandemic, driven by the need for technology to facilitate virtual signatures on contracts and other documents. However, demand has since normalized as workplaces shifted back to in-person operations and competition from the likes of Adobe (NASDAQ:ADBE) continues.
DocuSign is down 1.9% since the beginning of the year, and at $56.02 per share it is trading 14.7% below its 52-week high of $65.66 from March 2023. Investors who bought $1,000 worth of DocuSign's shares 5 years ago would now be looking at an investment worth $999.11.
