{"id":22143,"date":"2022-12-09T01:33:42","date_gmt":"2022-12-09T01:33:42","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/09\/docusigns-stock-soars-as-it-crushes-earnings-and-revenue-estimates\/"},"modified":"2022-12-09T01:33:42","modified_gmt":"2022-12-09T01:33:42","slug":"docusigns-stock-soars-as-it-crushes-earnings-and-revenue-estimates","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/09\/docusigns-stock-soars-as-it-crushes-earnings-and-revenue-estimates\/","title":{"rendered":"DocuSign’s stock soars as it crushes earnings and revenue estimates"},"content":{"rendered":"

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The electronic signature software firm DocuSign Inc.<\/a> finally caught a break today, posting stronger-than-expected third-quarter financial results that sent its stock much higher in extended trading.<\/p>\n

The company reported<\/a> earnings before certain costs such as stock compensation of 57 cents per share, down by just a penny from a year earlier and coming in ahead of Wall Street\u2019s forecast of 42 cents per share. Revenue for the quarter rose 18%, to $646 million, soundly beating the consensus estimate of $627 million.<\/p>\n

Breaking down the revenue by segment, DocuSign delivered $624 million in subscription sales and $21 million from professional services and other sources.\u00a0DocuSign also reported $659.4 million in billings, which it defined as sales to new customers, subscription renewals and additional sales to its existing customer base. Analysts had been looking for just $588.6 million in billings.<\/p>\n

It was an impressive quarter, but the company still came up short in its quest to generate a profit. All told, it delivered a net loss of $30 million for the quarter, up from a $6 million net loss it posted a year earlier.<\/p>\n

DocuSign sells tools that enable businesses and individuals to sign documents electronically without meeting anyone face-to-face. It also sells software that automates the filing of contracts over the internet. The report generated plenty of optimism among investors, with DocuSign\u2019s stock rising more than 11% in after-hours trading, adding to a gain of almost 4% earlier in the day.<\/p>\n

The company badly needed a break. It was one of the clear winners during the COVID-19 pandemic, with the switch to remote work creating enormous demand for its services. However, as businesses resumed work in-person, that demand rapidly tailed off and the company\u2019s growth slowed to a crawl.<\/p>\n

As a result, DocuSign remains one of the most beaten stocks in the tech industry, down more than 71% this year, compared wit just a 17% decline in the S&P 500. The company\u2019s poor performance led to the ousting<\/a> of its former Chief Executive Officer Dan Springer in June. He was replaced two months later<\/a> by former Google LLC marketing executive Allan Thygesen (pictured), and just prior to the new CEO\u2019s arrival, the company announced it would\u00a0lay off 9% of its staff<\/a> to support its growth and profitability objectives.<\/p>\n

Thygesen was all smiles today, highlighting the company\u2019s \u201csolid third-quarter results\u201d and saying that he was pleased with the progress it has been making against its critical priorities.<\/p>\n

\u201cDocuSign is the pioneer and leader in eSignature,\u201d Thygesen said. \u201cThis gives us a strong foundation to create and deliver a delightful and differentiated workflow experience, making agreements smarter and easier for companies of all sizes.\u201d<\/p>\n

For the coming quarter, DocuSign is looking at revenue of between $637 million and $641 million, the midpoint of which is just shy of Wall Street\u2019s forecast of $641 million. The company also forecast $705 million to $715 million in bookings, versus Wall Street\u2019s target of $707 million.<\/p>\n

Photo:\u00a0Shoptalk\/YouTube<\/a><\/h5>\n
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