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.