DocuSign (NASDAQ:DOCU) will report its second-quarter results tomorrow, and investors will focus on the potential of the e-signature company’s new IAM platform.
The consensus EPS Estimate is $0.80 (+11.1% Y/Y) and the consensus Revenue Estimate is $727.84M (+5.8% Y/Y).
“DocuSign’s new IAM platform could be a game changer, unlocking revenue growth and providing management updates on IAM revenue in subsequent quarters,” SA analyst Kevin George said.
Although growth has slowed, the company is generating significant cash flow and there are hidden items that are distorting this figure further, George added.
In June, the company has appointed Paula Hansen as its president and chief revenue officer. Sagnik Nandy had been named as the chief technology officer.
Last quarter, the firm reported fiscal first-quarter results and guidance that were above expectations.
“DocuSign has struggled to maintain sales execution despite digitization trends, causing its stock to dramatically underperform the S&P 500,” SA analyst Gary Alexander said.
Still, the company enjoys tremendous secular expansion tailwinds, especially overseas, where its penetration rates are still low, Alexander added.
Shares in the company were down 4.1% since the start of the year.
Over the last 2 years, DOCU has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 10 upward revisions and 7 downward. Revenue estimates have seen 10 upward revisions and 8 downward.
