Categories AlphaGraphs, Earnings, Technology

Earnings: DocuSign Q1 results surpass estimates but stock falls

DocuSign (Nasdaq: DOCU) reported an increase in adjusted earnings and revenues for the first quarter. The results also came in above expectations. However, shares of the e-signature technology company dropped about 15% during Thursday’s extended trading session as its reported loss missed the market’s estimates.

Adjusted earnings, excluding special items, were $0.07 per share in the April quarter, compared to $0.01 per share last year. On a reported basis, the company posted a net loss of $45.7 million or $0.27 per share, compared to a loss of $270.7 million or $7.46 per share in the first quarter of 2019. While the adjusted result beat the Street view, the reported number missed.

DocuSign Q1 revenue up 37%

The improvement reflects a 37% annual growth in revenues to $214 million. Analysts were looking for a lower number. At $201.5 million, subscription revenue was up 36% from the year-ago period.

“With the announcement of the DocuSign Agreement Cloud this quarter—our suite of products and integrations for automating the entire agreement process—we can now deliver a much broader set of solutions to market, positioning us as the next ‘must-have’ cloud,” said Dan Springer, CEO of DocuSign.

At $201.5 million, subscription revenue was up 36% from the year-ago period

For the second quarter, the management forecasts total revenues in the range of $218 million to $222 million and billings between $215 million and $225 million. Adjusted gross margin is estimated to be 78%-80%.

For the whole of 2019, the company predicts revenues in the $917 million-$922 million range. Full-year billings are expected to be between $1.01 billion and $1.03 billion. The forecast for adjusted gross margin is 78%-80%.

Of late, DocuSign has been facing stiff competition from Adobe (ADBE) and Dropbox (DBX), which last year enhanced its portfolio through the acquisition of HelloSign.

DocuSign shares stabilized in recent weeks after recovering from last year’s tech selloff, and have been trading above the $50-mark consistently. But they are still trading slightly below the levels seen a year earlier. The stock closed Thursday’s regular trading higher but fell sharply in the after-hours session.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

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

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top