Docusign's digital agreement-management tools kept many businesses going when lockdowns took effect at the height of the pandemic. Demand for the company's services faded when social conditions returned to normal in 2022, which sent its stock plunging.
DocuSign delivered decent Q3'26 results on Thursday, beating top- and bottom-line expectations. The company has a strong subscription business, but is broadly seeing slowing top line growth. Gross margins remained stable, but the company needs a catalyst to accelerate its top line growth.
DocuSign (NASDAQ:DOCU) shares fell nearly 7% as conservative guidance for the upcoming quarter weighed on better-than-expected earnings. For the October quarter, DocuSign reported revenue of $818.4 million, surpassing Wall Street estimates of roughly $807 million, marking an 8% year-over-year increase.
The shares of DocuSign Inc (NASDAQ:DOCU) are down 6.5% to trade at $66.46 at last glance, brushing off adjusted third-quarter earnings of $1.01 per share on $818.40 million in revenue, both of which surpassed analyst estimates.
DocuSign (DOCU) is a contrarian rebound play, trading at value territory after a 25% YTD decline despite strong Q3 results. DOCU's platform strategy, IAM, is driving positive net retention, expanded deals, and multiple monetization streams, supporting renewed sales momentum. At 3.9x EV/FY27 revenue and 16.6x FY26 P/E, DOCU offers a de-risked entry point with recurring revenue and international ...
The DocuSign stock price retreated by over 6% after the market closed on Thursday, following the release of its third-quarter financial results. It fell to $66.50, down from the regular session high of $72.35, and 35% below its highest level in December last year.
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