Technology
DocuSign Is Thursday's Big Earnings Loser Despite a Solid Report
Published:
Last Updated:
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.
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.
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.