DocuSign Stock Declines 6.6% Despite Q1 Earnings Beat - Equifax (NYSE:EFX), DocuSign (NASDAQ:DOCU)

　　DocuSign, Inc. DOCU reported impressive first-quarter fiscal 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The better-than-expected results, however, failed to impress the market as the stock declined 6.6% since the earnings release on Jun 6.

　　Quarterly EPS of 82 cents per share surpassed the Zacks Consensus Estimate by 3.8% and increased 13.9% from the year-ago fiscal quarter. Total revenues of $709.6 million beat the consensus mark by a slight margin and improved 7.3% year over year.

　　DocuSign Price, Consensus and EPS Surprise

　　DocuSign price-consensus-eps-surprise-chart | DocuSign Quote

　　Segmental Revenues

　　Subscription revenues of $691.5 million rose 8% year over year and beat our estimate of $687.9 million. Professional services and other revenues of $18.2 million decreased 18% from the year-ago fiscal quarter but beat our estimate of $17.6 million. Billings amounted to $709.5 million, up 5% from the year-ago fiscal quarter and surpassed our estimate of $688.9 million.

　　Non-GAAP gross profit of $582.2 million increased 6.5% year over year and surpassed our estimate of $574.4 million. Non-GAAP gross margin of 82% declined 60 basis points (bps) year over year but beat our estimate of 81.4%.

　　Non-GAAP income from operations of $202.1 million increased 15% year over year and surpassed our estimate of $190.6 million. Non-GAAP operating margin of 28.5% increased 190 bps year over year and beat our estimate of 27%.

　　Balance Sheet & Cash Flow

　　DocuSign exited the quarter with cash and cash equivalents of $817.4 million compared with $797.1 million at the end of the prior quarter. Net cash generated by operating activities was $254.8 million for the quarter. The free cash flow generated was $232.1 million.

　　Guidance

　　For the second quarter of fiscal 2025, the company expects revenues in the range of $725-$729 million, above the Zacks Consensus Estimate of $724.2 million. Subscription revenues are expected in the $705-$709 million band. Billings are expected in the band of $715-$725 million. Non-GAAP gross margin and non-GAAP operating margin are expected to be in the band of 80.5-81.5% and 27-28%, respectively.

　　For fiscal 2025, the company expects revenues in the range of $2.92-2.932 billion. The Zacks Consensus Estimate for revenues is pegged at $2.92 billion. Subscription revenues are expected in the $2.844-$2.856 billion band. Billings are expected in the band of $2.98-$3.03 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be in the bands of 81-82% and 26.5-28%, respectively.

　　Currently, DocuSign carries a Zacks Rank #3 (Hold).

　　Recent Earnings Snapshots

　　Omnicom OMC reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

　　OMC's earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.

　　Equifax EFX reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.

　　EFX's adjusted earnings were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

　　ManpowerGroupMAN reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

　　Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year.

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