Digital signature cloud company DocuSign Shares (NASDAQ: DOCU). has fallen (-60%) and lost its CEO in the bear market this year. The business of electronic signature firms grew unexpectedly during the pandemic blockades, as the trend of work from anywhere, the elastic office, and the hybrid workforce took shape. The pandemic raised DocuSign shares from darkness to $ 30 to a high of $ 314.76 before returning to earth at $ 60. Investors ask the question, “At what low can these shares fall?” A reversal was expected for all pandemic stocks as economies normalize, but stocks have fallen above (-80%) their 202 highs. This seems a bit extreme, but we are also experiencing a bearish market. which is punishing stocks with slower growth and lack of profits.
Digitization, data management and digital transformation will continue to drive this stock. Make no mistake, the company is still profitable and growing, only growing more slowly. While its core electronic signature business is slowing, the Contract Lifecycle Management (CLM) cloud platform powered by artificial intelligence (AI) is taking shape to be the next growth engine. This involves not only electronic signatures, but all before and after processes, including negotiations, agreements, amendments, renewals, and record tracking. DocuSign has 1.24 million customers and more than a billion users worldwide. The company increased its customers with an average contract value of $ 300,000 to 886 during the quarter, from 599 in the fourth quarter of 2021. Its net retention ratio is 114%. At these levels, there is a lot of speculation about being acquired by an older player. CEO Dan Springer abruptly and unexpectedly announced his departure on June 21, 2022, prompting some investors to speculate that the company might be open to bids. Prudent investors can monitor opportunistic setbacks.
Publication of results for the first fiscal quarter of 2023
On June 9, 2022, DocuSign released its fiscal results for the first quarter of 2023 for the quarter ended April 2022. The company reported earnings per share (EPS) of $ 0.38 compared to estimates of analysts consensus of $ 0.46, an error (-0.08 dollars). Revenue grew 25.5% year-over-year (YoY) to $ 588.69 million, surpassing analysts ’estimates of $ 581.85 million. Turnover rose 16% year-over-year to $ 613.6 million, surpassing the range of $ 573 million to $ 583 million. Non-GAAP operating margin decreased to 17% from 20% the previous year, but is still within the previous targeting range of 16% to 18%. The company closed the quarter with $ 1.06 billion in cash and cash equivalents and $ 750 million in long-term debt. DocuSign CEO Dan Springer commented: “We got solid results in the first quarter, increased revenue by 25% year-on-year and added about 67,000 new customers, bringing our total global customer base to We also strengthened our leadership team with key keys, new hires who, together with our existing team, ensure that we are well positioned to grow and scale our business. Users around the world, the proven value of our products and the great opportunity ahead, We are confident in our ability to successfully meet the challenges of a dynamic global environment. “
Online and discounted guidance
DocuSign provided online guidance for the second fiscal quarter of 2023 so that revenues range from $ 600 million to $ 604 million compared to consensus analysts ’estimates of $ 603.54 million. Second-quarter revenue is expected to be between $ 599 and $ 609 million with a non-GAAP operating margin of between 16% and 18%. Year-over-year tax revenue is expected to be between $ 2.47 billion and $ 2.482 billion, compared to consensus estimates of $ 2.480 billion. The company reduced its revenue targeting for the full year 2023 to between $ 2,521 million and $ 2,541 million, from $ 2,706 million to $ 2,726 million previously.
DOCU Opportunistic withdrawal levels
The use of rifle charts in weekly and daily time periods provides an accurate view of the landscape for DOCU stock. The weekly rifle chart made a potential double bottom of $ 56 Fibonacci level (fib).. The downward trend in the weekly rifle chart has a 5-period moving average (MA) down to $ 64.08, followed by the 15-period MA lagging behind at $ 77.04. The weekly stochastic is trying to cross back into the band of 20. The weekly lower Bollinger Bands (BB) bands are at $ 42.98. The weekly Low market structure (MSL) buys activators above the $ 80.95 level. The daily graph of the rifle has been trimmed as the break-in attempt failed near $ 67.84 fib and attempted a breakdown with a 5-period MA in the fall to $ 62.25 and an MA of 15 periods at $ 63.39. Daily lower BBs are at $ 54.60 and upper BBs are superimposed on the 50-period MA at $ 71.14. BBs are shrinking before an extension of the price range. Prudent investors can monitor opportunistic withdrawal levels at $ 58.79, $ 56 fib, $ 53.71 fib, $ 48.76 fib, $ 47.40 fib, $ 43.13 fib, $ 41.04, 37 $ i 35.20 $ fib. Upward trajectories range from $ 78.95 fib to the level of $ 94.97 fib. Investors can also see the competition Adobe (NASDAQ: ADBE) stock for sympathy price action.