The market is worried that the major boost from the shift to work-from-home is over, and Docu. Sign’s growth will slow down materially.
Shares of e-signature software maker Docu. Sign fell 42.2% Friday. The company reported guidance for the fourth quarter on Thursday that fell short of analyst estimates., still, docu Sign beat analyst expectations for third quarter. The Docusign Inc. website on a laptop computer arranged in Dobbs Ferry, New York, U. S, on Thursday, April 1, 2021.
Analysts expect that Docu. Sign will report earnings of $2.15 per share in the current fiscal year, so the stock is trading at 34 forward P/E. The company’s valuation has dramatically decreased in recent months as Docu. Sign stock declined from the highs near $315 that were reached back in September 2021 to the $73 level.
He called the market reaction to the earnings an “overly strong reaction. ” The company has seen rapid growth as it benefited from the rise of remote work during the pandemic., docu Sign reported its sixth straight period of revenue growth of over 40%, but said in the next quarter it anticipates growth to come in around 30%.
Why did docusign drop?
, docu Sign, Inc. (DOCU) fell down in the after hours, following the company’s Q3 earnings report which did not impress the investors.
Springer also noted that although Docu. Sign’s growth was slowing, the long-term trend toward digitalization remained intact. “As we head into fiscal 2023, digital transformation and the need to agree from anywhere remains a high priority for organizations across the globe,” Springer said.
CEO Dan Springer said in an interview on CNBC’s “Tech. Check” Friday that the primary reason for the slowed growth was on the company’s execution, rather than macro forces. “The piece that Docu. Sign missed is we got to a place over the last year, year and half where we were sort of fulfilling demand,” Springer said.
Despite the stock’s sharp pullback on Friday, the company’s fiscal fourth-quarter results were actually quite impressive., docu Sign’s revenue rose 35% year over year during the period, hitting approximately $581 million. This was ahead of analysts’ average forecast for revenue of $561 million.
Who is the CEO of DocuSign?
Dan Springer, chief executive officer at Docu, and sign. Springer acknowledged Thursday that the figure would be a disappointment after such exceptional growth earlier in the year.
Is DocuSign a buy on Baystreet?
, ca docu Sign has received a consensus rating of Hold. The company’s average rating score is 2.47, and is based on 9 buy ratings, 7 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $248.56, Docu. Sign has a forecasted upside of 95.7% from its current price of $126.99.