DocuSign stock surges as company delivers earnings beat amid ‘transition period’

DocuSign Inc. has had a rough ride so far this year, with its shares off 62% through Thursday’s close, but the e-signature company signaled that it could be at the start of a turnaround as it topped expectations for its latest quarter.

The stock was up 16% in after-hours trading Thursday.

The company posted a fiscal second-quarter net loss of $45 million, or 22 cents a share, whereas it lost $26 million, or 13 cents a share, in the year-prior quarter.

After adjusting for stock-based compensation and other expenses, DocuSign

earned 44 cents a share for the period, compared with 47 cents a share a year prior. Analysts tracked by FactSet were expecting 42 cents a share in adjusted earnings.

Revenue rose to $622 million from $512 million, while the FactSet consensus was for $602 million. The company’s latest revenue total included $605 million from subscriptions and $17 million from professional services and other sources.

“These results reflect the focus and dedication of our team on execution during this transition period, with a stronger foundation in place to deliver in the second half of the year,” Chief Executive Maggie Wilderotter said in a release. “We enter this next phase with a clear set of vital few deliverables for our people initiatives and product roadmap, while driving sustainable and profitable growth at scale.”

For the fiscal third quarter, DocuSign executives model $624 million to $628 million in total revenue, while the FactSet consensus called for $625 million. DocuSign’s management anticipates $609 million to $613 million of the top-line total to come from subscriptions, while analysts were expecting $607 million.

Looking at the full year, DocuSign’s management team calls for $2.470 billion to $2.482 billion in revenue, consistent with the company’s prior outlook.

Leave a Reply

Your email address will not be published. Required fields are marked *