DocuSign (DOCU) delivered strong fiscal Q2 results that exceeded consensus across all metrics, along with continued momentum for its Intelligent Agreement Management, or IAM, platform, RBC Capital Markets said in a note Thursday.
The company raised its fiscal 2027 annual recurring revenue growth guidance to 8.5% to 9.0%, while growing deal sizes were also encouraging, though shares appear fully valued at current levels, the note said.
Underlying organic growth in fiscal Q2 was driven primarily by accelerating IAM adoption and improved retention, while deal sizes continued to increase, with customers having more than $300,000 in annual contract value growing 14% to 1,296, the second consecutive quarter of double-digit growth, RBC added.
For fiscal Q3, the company expects revenue of $886 million to $890 million. Management expects IAM to account for 18% to 19% of ARR in fiscal 2027, the brokerage said.
RBC kept a sector perform rating on DocuSign and raised its price target to $70 from $55.
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