DocuSign, Inc.
DOCU
has an impressive
Growth Score
of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s revenues for fiscal 2023 and 2024 are expected to improve 17.5% and 18.8% respectively, year over year.
Factors That Bode Well
DocuSign remains focused on product innovation and expansion to ensure the addition of Agreement Cloud customers and the widening of its existing customer base. Notably, the company added 60,000 new customers in the fourth quarter of fiscal 2022, bringing the total worldwide customer count to 1.17 million, a rise of 31% year over year.
DocuSign’s top line is significantly benefiting from continued customer demand for eSignature. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world. The company’s revenues increased 34.8% year over year to $580.8 million in the fourth quarter of fiscal 2022.
DocuSign has deepened its relationships with partners such as
salesforce
CRM
and
Microsoft
MSFT
.
For instance, the company has expanded its global strategic partnership with salesforce. DocuSign and salesforce jointly develop solutions for automation of the contract process and expansion of collaboration among organizations that use salesforce’s Slack.
DocuSign made an eSignature integration with Microsoft Teams last year and is currently an official electronic signature provider in Microsoft Teams’ Approvals app.
Headwinds
DocuSignis seeing an increase in expenses as it continues to invest in sales, marketing and technical expertise. Total operating expenses of $474.6 million increased 34% year over year in fiscal 2021.
DocuSign has never declared and neither does it currently have any plan to pay cash dividends on its common stock. So, the only way to achieve return on investment on the company’s stock is share price appreciation, which is not guaranteed.
DocuSign currently carries a Zacks Rank #3 (Hold).
You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report