Docusign Earnings: Results and Guidance Mostly as Expected, With Hints of Improving Trends

No-moat Docusign reported solid fiscal 2025 first-quarter results, with revenue and non-GAAP operating margin very slightly exceeding our expectations and coming in a bit above the top end of the guidance ranges. The company has been delivering more upside to guidance over the last year or more, so we think the after-market selloff is indicative of a miss against a more aggressive whisper number. During the quarter, Docusign also launched its new Intelligent Agreement Management platform. We think this is an important step in the company’s evolution but do not believe IAM will have a meaningful impact on results for a couple of years. We are maintaining our $65 fair value estimate. We see solid results, slightly raised guidance for the year, several green shoots, and a new $1 billion share-buyback authorization and think the shares are increasingly attractive even if we prefer some of our wide-moat stocks at this juncture.