E-signature software firm DocuSign's Q3 revenue beats expectations

Docusign

04/12/2025 21:19

Overview

DocuSign fiscal Q3 revenue grows 8% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance

Company repurchased $215.1 mln in common stock, indicating financial confidence

Outlook

DocuSign expects Q4 revenue between $825 mln and $829 mln, up 7% YoY

Company projects full-year revenue of $3,208 bln to $3,212 bln, an 8% increase

Result Drivers

IAM PLATFORM GROWTH - Over 25,000 customers now using DocuSign's AI-native IAM platform, contributing to revenue growth

AI ECOSYSTEM INTEGRATIONS - New integrations with AI platforms like ChatGPT and Microsoft Copilot enhance IAM capabilities

API LAUNCHES - Navigator and Maestro APIs launched to connect third-party systems, boosting IAM platform utility

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$818.40 mln
$806.91 mln (15 Analysts)
Q3 Adjusted EPS
Beat
$1.01
$0.92 (16 Analysts)
Q3 EPS
$0.40
Q3 Gross Margin
79.2%
Q3 Adjusted Gross Margin
81.8%
Q3 Billings
$829.5 mln
Q3 Free Cash Flow
$262.9 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 16 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for DocuSign Inc is $90.61, about 28.3% above its December 3 closing price of $70.62

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn8z6kVka

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)