US markets
U.S. stocks were in the green on Friday morning ahead of positive economic data in the labor market. The U.S. economy added 2.5 million jobs in May, surpassing projections. The unemployment rate is now 13.3%, below expectations of about 20%. The Dow Jones Industrial Average gained 2.70% to 26,992, the S&P 500 index jumped 2.22% to 3,181 and the Nasdaq Composite Index was up 1.53% to 9,762.
Gainers
• Occidental Petroleum Corp (OXY) +25%
• Apache Corp (APA, Financial) +19.5%
• Carnival Corp (CCL, Financial) +19%
• Kohls Corp (KSS, Financial) +13%
• Delta Air Lines Inc (DAL, Financial) +10.7%
• Schlumberger NV (SLB, Financial) +8%
Losers
• Gap Inc (GPS, Financial) -5.2%
• Newmont Corporation (NEM, Financial) -3.9%
• Clorox Co (CLX, Financial) -3.1%
• Campbell Soup Co (CPB, Financial) -1.9%
• Cooper Companies Inc (COO, Financial) -1.2%
Global markets
The main European stock markets traded in the green.The UK's FTSE 100 gained 2.11%, France's CAC 40 advanced 3.44%, Germany's Dax inched up 3.07% and Spain's Ibex 35 jumped 4.02%.
In Asia, Japan's Nikkei 225 gained 0.74%, India’s BSE Sensex rose 0.90%, Hong Kong's Hang Seng increased 1.66% and China's Shanghai Composite was up 0.40%.
DocuSign releases earnings report
Shares of DocuSign, Inc. (DOCU, Financial) gained more than 1% on Friday morning after the company announced its results for the fiscal 2021 first-quarter. The company posted earnings per share of 12 cents, beating analysts’ estimates by 2 cents. Revenue of $297.01 million grew 38.8% year-over-year and beat expectations by $15.89 million.
CEO Dan Springer had the following to say:
"Our strong first quarter results reflect our ability to help organizations accelerate their digital transformation as they adapt to the changing business environment, magnified by COVID-19. Many are taking their first steps with us, while others are expanding their initiatives… Led by eSignature, our Agreement Cloud offerings are not only helping customers carry on with business in this time of crisis, but will continue to deliver value as the world emerges from it.”
By segment, subscription revenue was $280.9 million, up 39% year-over-year. Professional services and other revenue was $16.1 million, an increase of 29% year-over-year.
GAAP gross margin was 75%, down 100 basis points from the same quarter last year. Non-GAAP gross margin was 79%, which was flat year-over-year.
Looking at cash generation, the net cash provided by operating activities was $59.1 million, higher than $45.7 million in the first quarter of last year. Free cash flow was $32.8 million compared to $30.4 million in the same period last year. The company had cash, cash equivalents and investments worth $898.3 million at the end of the quarter.
Looking ahead the second quarter of fiscal 2021, the company expects total revenue between $316.0 million and $320.0 million. It also projects a Non-GAAP gross margin in the range of 78% to 80%.
Steven Cohen (Trades, Portfolio) initiated a new position in the stock with 14,500 shares, as did Louis Moore Bacon (Trades, Portfolio) with 30,000 shares and Paul Tudor Jones (Trades, Portfolio) with 4,854 shares. Simons' firm boosted the position by 65,700 shares. Joel Greenblatt (Trades, Portfolio) reduced his holding in the company by 10%, while Philippe Laffont (Trades, Portfolio) sold out the stock.
Disclosure: The author holds no positions in any stocks mentioned.
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