Trading DocuSign After Q1 Earnings Beat Expectations

DocuSign was one of the big pandemic-era winners, with revenue and share price soaring as social restrictions forced more people to adopt its technology. Nevertheless, as social restrictions eased, so too did share price and revenue growth. 

Last week, the e-Signature company announced its first quarter fiscal 2025 earnings, which beat expectations. However, the stock market was not convinced. Keep reading to find out more about DocuSign’s Q1 results and what analysts are forecasting for the stock.

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

DocuSign Q1 Performance 

Here are some of the highlights from DocuSign’s first quarter fiscal 2025 earnings report: 

• Total revenue of $709.6 million, an increase of 7% year on year and higher than the expected $707.33 million. 
• Adjusted Earnings per Share (EPS) of $0.82, an increase of 14% year on year and higher than the expected $0.79. 
• Free cash flow of $232.1 million, an increase of 8% year on year. 

Although growth has slowed, DocuSign’s top and bottom lines both grew year on year. International revenue jumped 17% and the e-signature company’s total customers rose by 11% from the previous year. 

The company has also launched its Intelligence Agreement Management (IAM), which comprises several new products - including Maestro, which can automate the creation of agreements, and Navigator, which allows organisations to store, manage and analyse their agreements. 

Moreover, its strong balance sheet and high free cash flow allowed DocuSign to announce an increase to its stock repurchase program to the tune of $1 billion.   

Nevertheless, investors were disappointed by guidance for the current quarter, with billings guidance lower than had been anticipated. DocuSign’s shares consequently fell almost 5% in the following session and are currently around 8% lower than the start of the year. 

DocuSign Stock Forecast - What do the Analysts Say? 

According to analysts polled by TipRanks for a DocuSign stock forecast in the past 3 months, there are currently 3 buy, 10 hold and 2 sell ratings on the stock. The highest price level for a DocuSign stock forecast is $86.00 with the lowest price target at $48.00. 

The average price target for a DocuSign stock forecast is currently $63.67. 

An Example Trading Idea for the DocuSign Stock Price 

An example trading idea for the DocuSign share price could be as follows:   

• Buy the stock on a break above $55.00 to allow for volatility.  
• Target just below the average analyst price target of $63.00.  
• Keep your risk small at a maximum of 5% of your total account.    
• Time Line = 6 - 12 months   
• If you buy 20 DocuSign shares:   
  • If target is reached = $160.00 potential profit [($63.00 - $55.00) * 20 shares]. 

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, if it rises at all.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs. 

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 20 shares in DocuSign stock would result in a commission of $0.40 ($0.02 * 20 shares) for executing a per-side transaction. 

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!  

How to Buy DocuSign Stock in 4 Steps   

With Admirals, you can buy shares with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.  

• Open an account with Admirals to access the dashboard.    
• Open the web trading platform.    
• Search for DocuSign and click the symbol to open a price chart.  
• Click Create New Order from the bottom of the screen to open the trading ticket.  

Click on the banner below to trade DocuSign stock today ▼▼▼  

Do You See the DocuSign Stock Price Moving Differently?    

Remember that all analytics and trading ideas are based on the personal view and experience of the author. 

If you believe there is a higher chance the DocuSign share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide. 

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs. 

This means you can trade long and short to potentially profit from rising and falling stock prices. 

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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• The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
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