What Happened?
Shares of e-signature company DocuSign (DOCU) jumped 18.2% in the afternoon session after the company reported decent fourth-quarter 2024 results, which blew past analysts' billings and revenue estimates, and revenue growth accelerated a bit, which was also good to see. Net revenue retention was also ahead and encouraging, with all top line signs pointing to more durable growth. Looking ahead, full-year billings growth beat, adding to the good news.
On the other hand, its revenue and operating margin guidance for the full year missed, but this matters less in light of the full-year billings guide. Overall, this was a mixed yet decent quarter.
The shares closed the day at $85.75, up 14.8% from previous close.
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What The Market Is Telling Us
DocuSign’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for DocuSign and indicate this news significantly impacted 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 26% on the news that the company reported a strong "beat and raise" quarter that exceeded analysts' estimates on billings, revenue, and operating profit. Next quarter's billings guidance also came in ahead, and full-year guidance was lifted for billings, revenue, and operating profit. Overall, we think this was still a very solid quarter with some key areas of upside.
DocuSign is down 4.8% since the beginning of the year, and at $86.00 per share, it is trading 19.6% below its 52-week high of $106.99 from December 2024. Investors who bought $1,000 worth of DocuSign’s shares 5 years ago would now be looking at an investment worth $1,189.
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