Fourth Quarter Earnings Summary: DocuSign ( NASDAQ:DOCU ) vs. Other Productivity Software Companies

Looking back at productivity software companies’ fourth-quarter performance, we take a look at the best and worst performers of the quarter, including DocuSign ( NASDAQ:DOCU ) and its competitors.

Rising employee costs and the shift to more remote work have increased the pervasive pressure to improve enterprise productivity, which in turn is driving the growing demand for productivity software that enables remote work, streamlines project management and automates business tasks.

The 17 productivity software companies we track reported a mixed fourth quarter; revenues on average exceeded analyst consensus by 2.3%, while revenue forecasts for the next quarter were 0.9% below the consensus. Stocks are under pressure as inflation (despite the slowdown) makes their long-term gains less valuable, but productivity software stocks have held up better than others, with share prices down an average of 3.5 % compared to previous profit results.

DocuSign (NASDAQ:DOCU)

Founded by Seattle entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is a pioneer of electronic signatures and offers software as a service that enables individuals and organizations to sign legally binding documents electronically.

DocuSign reported revenue of $712.4 million, up 8% year-over-year, beating analyst expectations by 1.9%. It was a good quarter for the company, with impressive free cash flow. The outlook was also good, with revenue forecasts for the next quarter exceeding expectations.

“DocuSign ended fiscal 2024 with momentum in product innovation, customer growth and financial performance, including more than doubling of free cash flow year-over-year,” said Allan Thygesen, CEO of DocuSign.

Since the results were released, the company’s shares are up 11.3% and are currently trading at $59.64.

Is now the time to buy DocuSign? Access our full earnings performance analysis here, it’s free.

Best quarter: Pegasystems (NASDAQ:PEGA)

Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform for automating and optimizing customer service and engagement workflows.

Pegasystems reported revenue of $474.2 million, up 19.6% year-over-year, which beat analyst expectations by 14.2%. It was an incredible quarter for the company, with an impressive increase in analyst estimates and a significant improvement in gross margin.

Pegasystems had the highest analyst estimate among its peers. Since the earnings release, the company’s stock has increased by 23.5% and is currently trading at $62.65.

Is it time to buy Pegasystems? Access our full earnings performance analysis here, it’s free.

Weakest Quarter 4: 8×8 (NASDAQ:EGHT)

Founded in 1987, 8×8 (NYSE:EGHT) provides software for organizations that enable effective communication and collaboration with customers, employees and partners.

8×8 reported revenue of $181 million, down 1.8% year-over-year, or 1.3% below analyst expectations. It was a weak quarter for the company, and revenue forecasts for the next quarter did not meet analysts’ expectations.

8×8 recorded the weakest growth compared to analysts’ estimates and the slowest growth in revenues in the group. Since the earnings release, the company’s stock has dropped 23.1% and is currently trading at $2.59.

Read our full analysis of the 8×8 results here.

Box (NYSE:BOX)

Founded in 2005 by Aaron Levi and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate on work documents in the cloud.

Box reported revenue of $262.9 million, up 2.5% year-over-year, in line with analyst expectations. It was a decent quarter for the company, with modest revenue growth and more compelling EPS growth. The guidelines were relatively in line with expectations, showing that the company is sticking to its chosen path and does not present any major surprises to the market.

Since the results were released, the company’s shares are up 3.4% and are currently trading at $28.16.

Read our full hands-on report on Box here – it’s free.

Everbridge (NASDAQ:EVBG)

Founded in response to the devastating events of 9/11, Everbridge (NASDAQ:EVBG) provides software that helps governments and enterprises protect people and infrastructure in emergencies.

Everbridge reported revenue of $115.8 million, down 1.2% year-over-year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive increase in analyst estimates for billings and a slight edge to analyst revenue estimates.

Everbridge has agreed to be taken private by Thoma Bravo for $28.60 per share in cash ($1.5 billion in total).

Since the earnings release, the company’s stock has increased by 22.9% and is currently trading at $34.82.

Read our full, hands-on report on Everbridge here – it’s free.

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