Why did DOCU's EPS consistently beat forecasts?

DocuSign's (DOCU) EPS has consistently beaten forecasts due to a combination of factors:

1. **Revenue Growth**: DocuSign has seen a steady increase in revenue, which is a key driver of profitability. The company's total revenue for the fiscal year ended January 31, 2025, was $2,976,739,000, an 8% increase from the previous year. Subscription revenue, which accounted for 97% of the total revenue, increased by 16% to $532,445,000, primarily due to higher costs to support the growing customer base.
2. **Cost Management**: Despite the increase in costs, DocuSign has managed to improve operational efficiency, which has positively impacted the bottom line. The company's sales and marketing expenses decreased by 1% to $1,160,993,000, and general and administrative expenses decreased by 10% to $375,983,000, largely due to lower professional fees and stock-based compensation. Research and development expenses rose by 9% to $588,455,000, reflecting investments in workforce and product innovation.
3. **International Growth**: DocuSign's international revenue, which represented 28% of the total revenue, has been a growth driver. The company continues to focus on expanding its international revenue, which is expected to contribute to future growth.
4. **Product Innovation**: DocuSign's introduction of AI-enabled content, such as the new IAM platform, has been a strategic move that has paid off. The company's AI content platform, DocuSign IAM, has shown promising usage growth and is expected to contribute to the company's total growth by Q4 of fiscal 2026.
5. **Strategic Partnerships**: DocuSign's collaborations with Microsoft and Google are not seen as competitors in the agreement management sector, which could lead to synergies and additional revenue opportunities.

In summary, DocuSign's EPS has consistently beaten forecasts due to strong revenue growth, effective cost management, international expansion, product innovation, and strategic partnerships. These factors have collectively contributed to the company's financial performance and profitability.