shares of DocuSign Inc. DOCUMENTARY Soared more than 17% premarket on Friday after the company reported better-than-expected quarterly results and raised its full-year billing guidance.
Here’s what analysts had to say:
RBC capital markets
Analyst Rishi Jaluria reiterated a Sector Perform rating and a price target of $65.
“DOCU delivered a better-than-feared F2Q with pre-consensus billing results/guide,” with a billing hit that was “bigger than usual,” Jaluria said.
“While this wasn’t explicit on the call, we felt F2Q benefited from some early extensions/pull forwards.”
The fourth-quarter fiscal implied guidance “requires a slight acceleration,” Jaluria added. “While we were happy to see the slight increase in FY settlements, F2H is still demanding mid-single-digit year-over-year growth from much simpler comps, a disappointing indicator of future growth.”
JMP Securities
DocuSign reported better-than-expected quarterly results, “with non-GAAP EPS of $0.44 and an 18% operating margin on revenue of $622 million,” according to analyst Patrick Walravens, who rated Market Outperform rating and maintains a price target of $84.
The company remains “the clear leader in e-signatures” and is poised to “deliver a broader agreement system that collectively represents a $50 billion market opportunity,” he added.
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Needham
Although DocuSign beat expectations on all metrics, it was “from a very low bar,” says Scott Berg, an analyst at Needham.
“Billings growth of +8.8% was the fifth consecutive quarter of decline, although it beat forecast for the first outperformance in several quarters by seven points,” he said, affirming a “hold” rating on the in San Francisco based company.
The guidance reflects macroeconomic pressures on DocuSign’s revenue in the second half of the year, “even with improvements in sales productivity.”
“While commentary suggests modest overall execution at the store, the combination of uneven sales execution,…
