DocuSign Is Thursday’s Big Earnings Loser Despite a Solid Report
DocuSign shares retreated despite a report of better-than-expected fiscal second-quarter financial results.
When DocuSign Inc. (NASDAQ: DOCU) reported its fiscal second-quarter financial results after the markets closed on Wednesday, the company said that it had $0.03 in earnings per share (EPS) and $167.0 million in revenue. The consensus estimates had called for $0.01 in EPS and $160.1 million in revenue.
During the quarter, subscription revenue was $158.5 million, an increase of 35% year over year, while professional services and other revenue was $8.6 million, an increase of 7%. Billings totaled $172.2 million, an increase of 32%.
Looking ahead to the fiscal third quarter, the company expects to see total revenues in the range of $172 million to $175 million and billings of $169 million to $179 million, with a gross margin between 78% and 81%.
Consensus estimates call for breakeven earnings and $165.59 million in revenue for the quarter.
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Dan Springer, CEO of DocuSign, commented:
We had a strong second quarter, driven by 35% year-over-year growth in subscription revenue. We added more than 25,000 customers, bringing our customer base to almost 430,000 worldwide. And this week, we also closed our previously-announced acquisition of SpringCM, which accelerates our vision to modernize the world’s Systems of Agreement—all the way from preparing to signing, acting-on, and managing agreements. With SpringCM, we have a broader set of products to sell, additional technologies to commercialize and a team whose experience complements ours almost perfectly.
Shares of DocuSign were last seen down about 8% at $57.91, with a consensus analyst price target of $59.00 and a 52-week trading range of $37.00 to $68.02.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
