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DocuSign (DOCU) – the #1 e-signature solutions provider – reports 2Q22 earnings after the close Thursday. It’s no wonder that the stock is trading at 52-week lows after gapping down after each of its last three quarterly earnings reports. I have rarely seen a worse-looking chart.

But DOCU now represents long term value and is due for a bounce. DOCU has lowered the bar significantly and is now guiding 2Q22 billings growth to only 1% and revenue growth to 18% year over year.

DOCU is still the leading e-signature solution in a secular growth industry as more and more business will continue to get done online. In addition it is a highly profitable company with $411 million in net income and $455 million in free cash flow in 2021. DOCU is currently guiding 2022 net income to $412 million which works out to $1.99 a share. At a current $55 that’s a 28x multiple which is more than reasonable given the long term growth prospects.

Any semblance of stabilization in the business should result in a nice bounce for DOCU. I’m holding my nose and going dumpster diving on this one.

#earnings for the week https://t.co/lObOE0dgsr $NIO $DOCU $GME $PATH $ZS $KR $COUP $ASO $GTLB $FCEL $RH $AEO $ASAN $BILI $PLAY $KC $CASY $ABM $MCFT $SWBI $GIII $HQY $BIOX $GWRE $LOVE $REVG $KFY $DSGX $ZUMZ $VRNT $ICMB $AVAV $CDMO $BASE $SOL $PHR $WLY $AVO $CXM $SKIL $IDEX pic.twitter.com/vf2tSQtS4b

— Earnings Whispers (@eWhispers) September 3, 2022

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