DocuSign Inc. is scheduled to report earnings after Wednesday’s close. DocuSign, a new IPO, just hit a record high of $68.35/share and is currently trading near $65/share. New IPOs are prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
DocuSign is expected to earn $0.01/share on $160.07 million in revenue. Meanwhile, the so-called Whisper number is $0.04. The Whisper number is the Street’s unofficial view on earnings.
Company Profile & Various Businesses:
Here is a brief company profile courtesy of Thomson Reuters Eikon:
DocuSign, Inc., incorporated on October 18, 2012, automates manual, paper-based processes with the open, independent, standards-based digital transaction management (DTM) platform for managing all aspects of documented business transactions. Customers can open new accounts and start loans in minutes. The Company helps banks give customers the convenience of anywhere, anytime access for completing forms, contracts or lending documents. The Company works simply on any Internet connected device including all mobile devices. The Company offers a he following product editions with varying combinations of functionality: trial, single-user, multi-user, business pro, enterprise pro, standards-based signatures, ehanko, DocuSign transaction rooms for real estate, DocuSign payments, and enotary. In Trial user can send documents for signature, basic fields, such as signature, date, name, and text, mobile app, basic workflows, real-time audit trail, integration with Dropbox, Google Drive, and more, and multiple languages.
Competition:
The Company competes with other cloud based e-signature companies such as: Adobe Inc, HelloSign.com, Eversign.com, and Citrix, just to name a few.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
