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Three Things For Your Mind: DocuSign (DOCU)


DocuSign is releasing their 1st Quarter 2024 earnings tomorrow (June 8) and we will go over three things to keep an eye on before the release.


1. Revenue Acceleration


DocuSign has a long history of revenue growth. The company has tripled their revenue from 2019 to 2023 averaging over 35% revenue growth per year.


The pandemic accelerated the adoption of the technology and while growth slowed to nearly 20% over the last year it still is increasing at a healthy rate.



2. Downside Surprise May Occur


DocuSign typically is pretty consistent as far as beating earnings estimates over the last few quarters. The consistency isn't guaranteed as the company did have an earnings surprise to the downside in Q1 2023.


We will see if Q1 earnings disappointment shows up again for Q1 2024 release. There is a thought that Q1 may just be a period of time where business slows down for the company.



3. Recent Momentum To The Upside


DocuSign started the year off on a good note as the stock was up over 20% over the first six weeks of the year. The stock hit $69 in February 2023 and appeared poised to rebound from a terrible 2021 and 2022. The stock was down -31% in 2021 and -63% in 2022.


The good times didn't last as the stock hit a low of $46 in early May 2023 which represented -33% from the February 2023 high.


The stock has captured recent momentum to the upside hitting $57 (as of intraday 6/7 price) over the last month and it may be poised for a breakout if the narrative surrounding earnings holds up.



The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice.


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