DOCU
DocuSign, Inc. (DOCU)
Last Price$89.01.1%
Market Cap$18.1B
LTM Rule of 40 (EBIT margin)
15.5%
5Y avg
24.7%
Software - Application industry median
5.9%
Stock quality & Intrinsic value
8/10
0.8% undervalued

DocuSign, Inc. Rule of 40 (EBIT margin)

Annual
Quarterly
LTM
Industry median
Company stand-alone
DOCU
Technology
Crunching data... Almost there!
Jan'16Jan'17Jan'18Jan'19Jan'20Jan'21Jan'22Jan'23Jan'24
Rule of 40 (EBIT margin)
0.0%
21.9%
26.0%
(25.6%)
19.1%
37.2%
42.2%
17.2%
10.9%
DOCU
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DocuSign, Inc. (DOCU) Rule of 40 (EBIT margin) comparison analysis

DOCU key stats

USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Jan'16Jan'17Jan'18Jan'19Jan'20Jan'21Jan'22Jan'23Jan'24
% growth
250.5
0.0%
381.5
52.3%
518.5
35.9%
701.0
35.2%
974.0
38.9%
1,453.0
49.2%
2,107.2
45.0%
2,515.9
19.4%
2,761.9
9.8%
Cost of Goods Sold (COGS)73.9102.5118.3192.4243.2364.1466.5536.1572.6
% margin
176.6
70.5%
279.0
73.1%
400.2
77.2%
508.5
72.5%
730.7
75.0%
1,089.0
74.9%
1,640.8
77.9%
1,979.8
78.7%
2,189.3
79.3%
Operating Expenses295.9394.8451.9934.9924.21,262.81,702.62,039.52,127.2
Research & Development Expenses (R&D)62.389.792.4186.0185.6271.5393.4480.6539.5
Selling, General & Administrative Expenses (SG&A)233.7305.1359.5748.9738.7991.31,309.31,558.91,587.8
(119.3)
(47.6%)
(115.8)
(30.4%)
(51.7)
(10.0%)
(426.3)
(60.8%)
(193.5)
(19.9%)
(173.9)
(12.0%)
(60.5)
(2.9%)
(55.2)
(2.2%)
31.6
1.1%
Interest Income0.01.43.19.019.28.91.44.568.9
Interest Expense4.30.60.610.829.330.86.46.46.8
Pre-tax Income(123.6)(115.1)(49.1)(428.2)(203.6)(229.5)(66.9)(89.9)93.7
% effective tax rate
(1.0)
0.8%
0.4
(0.3%)
3.1
(6.4%)
(1.8)
0.4%
4.8
(2.4%)
13.8
(6.0%)
3.1
(4.6%)
7.6
(8.4%)
19.7
21.0%
% margin
(122.6)
(48.9%)
(115.4)
(30.3%)
(52.3)
(10.1%)
(426.5)
(60.8%)
(208.4)
(21.4%)
(243.3)
(16.7%)
(70.0)
(3.3%)
(97.5)
(3.9%)
74.0
2.7%
EPS(0.88)(4.12)(1.62)(3.16)(1.18)(1.31)(0.36)(0.49)0.36
Diluted EPS(0.88)(4.12)(1.62)(3.16)(1.18)(1.31)(0.36)(0.49)0.36
% margin
(101.7)
(40.6%)
(86.0)
(22.5%)
(16.8)
(3.2%)
(379.3)
(54.1%)
(124.1)
(12.7%)
(127.6)
(8.8%)
21.4
1.0%
2.8
0.1%
195.6
7.1%

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FAQ

1) What is DocuSign, Inc.'s Rule of 40 (EBIT margin)?

As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 15.5%, based on the financial report for Jan 31, 2025 (Q1’2025). The average annual Rule of 40 (EBIT margin) for DocuSign, Inc. have been 22.8% over the past three years, and 25.9% over the past five years.

2) Is DocuSign, Inc.'s Rule of 40 (EBIT margin) Good?

As of today, DocuSign, Inc.'s Rule of 40 (EBIT margin) is 15.5%, which is higher than industry median of 5.9%. It indicates that DocuSign, Inc.'s Rule of 40 (EBIT margin) is Good.

3) How does DocuSign, Inc.'s Rule of 40 (EBIT margin) compare to its peers?

As of today, DocuSign, Inc.'s Rule of 40 (EBIT margin) is 15.5%, which is lower than peer median of 31.3%. The list of peers includes APP, CDNS, SHOP, INTU, NOW, CRM, SAP, UBER, WDAY, MSTR.