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DocuSign Inc. (NASDAQ: DOCU) released its fiscal second-quarter financial results after the markets closed on Thursday. The firm said that it had $0.01 in earnings per share (EPS) and $235.6 million in revenue, compared with consensus estimates that called for $0.04 in EPS and $220.93 million in revenue. In the same period of last year it said it had EPS of $0.03 and $167.04 million in revenue.

Total revenues increased 41% from the second quarter of 2018. Subscription revenue was $220.8 million, an increase of 39% year over year, while Professional Services and other revenue was $14.8 million, an increase of 72%. Billings for the fiscal second quarter increased 47% year over year to $252.4 million.

Looking ahead to the fiscal third quarter, the company expects to see revenues in the range of $237 million to $241 million with a gross margin of 78% to 80%. Also, billings are expected to be between $260 million and $270 million. Consensus estimates call for $0.03 in EPS and $231.86 million in revenue for the quarter.

Dan Springer, CEO of DocuSign, commented:

With revenue growth exceeding 40% and billings growth at 47%, our second quarter performance reflects our clear leadership position in e-signature and increasing adoption of our broader Agreement Cloud offering. In the second quarter, we added 29,000 new customers onto the platform, bringing our total to 537,000 worldwide. We truly believe the Agreement Cloud category has the potential to be as big as CRM and ERP one day and our customers are increasingly buying in.

Shares of DocuSign traded up more than 19% early Friday to $55.19, in a 52-week range of $35.06 to $59.67. The consensus price target is $60.73.