Dan Springer, executive director at DocuSign.
David Paul Morris | Bloomberg | beautiful pictures
DocuSign Shares fell as much as 24% in extended trading on Thursday after the electronic signature software provider reported worse-than-expected earnings for its fiscal first quarter.
Here’s how the company did it:
- Income: 38 cents/share, adjusted, compared with 46 cents/share as expected by analysts, according to Refinitiv.
- Turnover: $588.7 million, compared with $581.8 million as expected by analysts, according to Refinitiv.
For the quarter, which ended April 30, DocuSign’s revenue grew 25% from a year earlier, according to a statement.
But as investors shift from focusing on growth to profitability, DocuSign’s earnings miss is overshadowing DocuSign’s revenue pulse. Shares are down 43% this year through the end of Thursday, along with the rest of the cloud software sector. On Thursday, the company reported a net loss of $27.4 million, compared with a net loss of $8.3 million in last year’s quarter.
DocuSign experienced a wave of growth when the coronavirus hit and many transactions were done online. CEO Dan Springer said the pace of business has slowed in recent quarters and the company is now working to overcome challenges when it comes to going to market.
The company is tweaking its hiring plan “to strike the right balance between growth and profitability,” Springer said, noting that the large resignation trend of people leaving jobs has brought revenue to the organization. company sales.
In addition, the macroeconomic environment became more difficult during the quarter, said Cynthia Gaylor, CFO of DocuSign.
For the second quarter, DocuSign called for revenue between $600 million and $604 million. The median, at $602 million, is above the Refinitiv consensus of $601.7 million.
And for the full year of 2023, DocuSign posted revenue between $2.47 billion and $2.48 billion, compared with the Refinitiv consensus of $2.479 billion.
Earlier this week DocuSign announced expand partnership with Microsoft.
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CLOCK: DocuSign has growth potential with Microsoft deal, says Nancy Tengler of Laffer Tengler
