The chart below shows how DOCU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DOCU sees a -2.68% change in stock price 10 days leading up to the earnings, and a +2.04% change 10 days following the report. On the earnings day itself, the stock moves by +1.11%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q3 Revenue Increase: Q3 revenue was $755 million, up 8% year-over-year.
Net Retention Improvement: Dollar net retention increased to 100% in Q3, up from its low of 98% in Q4 fiscal 2024.
Customer Growth Momentum: Customer growth sustained momentum at 11% year-over-year to 1.6 million customers.
Profitability Improvement: We produced strong profitability with 29.6% non-GAAP operating margins, up from 26.8% in Q3 fiscal 2024.
Free Cash Flow Performance: We delivered $211 million of free cash flow, a 28% margin.
Negative
Revenue Growth Slowing: Q3 revenue was $755 million, up 8% year-over-year, but the growth rate is slowing compared to previous quarters.
Net Retention Improvement: Dollar net retention improved to 100% in Q3, up from 99% in Q2, indicating potential customer churn issues in the past.
Operating Margin Decline: Operating margin for Q3 was 29.6%, which is lower than the previous year's 30% due to increased costs associated with cloud migration.
Gross Margin Analysis: Non-GAAP gross margin for Q3 was 82.5%, slightly lower than the prior year's 83.0%, reflecting ongoing cost pressures.
Employee Count Decline: The company ended Q3 with 6,705 employees, down approximately 3% from last year, indicating potential workforce reduction strategies.
DocuSign, Inc. (DOCU) Q3 2025 Earnings Call Transcript
DOCU.O
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