DocuSign says business is stabilizing, but stock falls despite earnings beat

By Emily Bary

The software company's outlook bracketed the consensus view

Despite upside in DocuSign Inc.'s latest quarterly results, the electronic-signature software company's stock was falling in Thursday's extended trading.

DocuSign (DOCU) logged fiscal first-quarter net income of $33.8 million, or 16 cents a share, whereas the company virtually broke even in the year-earlier period. On an adjusted basis, DocuSign posted earnings per share of 82 cents, while analysts tracked by FactSet were modeling 79 cents.

Revenue climbed to $709.6 million, up 7% from a year before. The consensus view called for $707 million.

During the first quarter, the company "continued to stabilize the business and improve profitability, allowing Docusign to continue investing for long-term growth," Chief Executive Allan Thygesen said in a release.

The stock was off more than 6% in the extended session.

DocuSign's outlook is for $725 million to $729 million in total revenue in its current second quarter, while analysts were modeling $727 million. The company also expects $715 million to $725 million in billings, while the FactSet consensus was for $720 million.

Looking at the full year, DocuSign projects $2.92 billion to $2.932 billion in total revenue, along with $2.98 billion to $3.03 billion in billings - a metric that the company says captures sales to new customers as well as subscription renewals and incremental sales to existing customers. Analysts were anticipating $2.924 billion in total revenue and $2.997 billion in billings for the full year.

The company is also boosting its stock-buyback program by $1 billion.

-Emily Bary

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06-06-24 1726ET

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