DocuSign Analysts Cut Their Forecasts After Q1 Results

DocuSign, Inc. DOCU reported better-than-expected earnings for its first quarter and the company’s board also authorized a $1 billion increase to its existing stock repurchase program on Thursday.

DocuSign’s first-quarter revenue increased 7% year-over-year to $709.6 million, beating the consensus estimate of $707.133 million, according to Benzinga Pro. The agreement cloud company reported first-quarter adjusted earnings of 82 cents per share, beating analyst estimates of 79 cents per share.

"Docusign is off to a strong start in fiscal 2025. We launched a significant expansion to our company strategy with our announcement of the Docusign Intelligent Agreement Management platform," said Allan Thygesen, CEO of Docusign.

DocuSign said it expects second-quarter revenue to be in the range of $725 million to $729 million versus estimates of $726.3 million. The company sees second-quarter billings in the range of $715 million to $725 million. DocuSign expects fiscal year 2025 revenue between $2.92 billion and $2.932 billion versus estimates of $2.92 billion.

DocuSign shares rose 2% to close at $54.60 on Thursday.

These analysts made changes to their price targets on DocuSign after the company reported quarterly results.

• Baird cut the price target on DocuSign from $65 to $55. Baird analyst William Power maintained a Neutral rating.
• B of A Securities lowered DocuSign price target from $72 to $60. B of A Securities analyst Brad Sills maintained a Neutral rating on the stock.
• Needham analyst Scott Berg, meanwhile, reiterated DocuSign with a Hold.

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