DocuSign's (DOCU) fiscal Q4 results "featured beats across the board" and solid fiscal 2027 guidance as demand for its Identity and Access Management offering continued to drive platform adoption, Wedbush said Wednesday in a report.
Strong IAM momentum and traction from new AI-powered features in its eSignature business underpinned results, the report said. Enhanced platform capabilities and improved customer workflows contributed to higher adoption, Wedbush said.
DocuSign expects annual recurring revenue growth of 8.25% to 8.75% in fiscal 2027, supported by better gross retention and higher gross new bookings, driven mainly by new and expanding IAM customers, the report said. IAM is expected to account for 18% of total ARR by the end of fiscal Q4, Wedbush said.
Still, "the company needs to show more consistency in its execution and growth in the face of a rocky software landscape," even after Q4 "was a step in the right direction," the report said.
Wedbush lowered its price target on DocuSign stock to $60 from $75 and maintained its neutral rating.
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