DocuSign stock moves higher after big earnings beat

Shares of DocuSign edged higher in aftermarket activity on Thursday after the digital signature company topped expectations with its latest financial results.

The company posted a net loss for its fiscal third quarter of $30 million, or 15 cents a share, compared with $6 million, or 3 cents a share, for the year-earlier period. On an adjusted basis, the company earned 57 cents a share, down one cent from 58 cents a share a year earlier, but significantly above the FactSet consensus of 42 cents per share. .

Revenue rose to $646 million from $545 million a year ago, while FactSet consensus called for $627 million. DocuSign

announced $624 million in subscription revenue and $21 million in professional services and other revenue.

DocuSign reported $659.4 million in invoices, defined as “sales to new customers plus subscription renewals and additional sales to existing customers.” Analysts tracked by FactSet are looking for $588.6 million.

Shares were up 11% in after-hours trading.

CEO Allan Thygesen said on DocuSign’s earnings call that the company is looking to “create greater efficiency in our direct and field sales efforts, and strengthen our ecosystem.” our partner status,” and he noted that “the decline in sales is continuing to be moderate and we are seeing stabilization in the field,” according to a transcript provided by Sentieo/ AlphaSense.

For the fourth fiscal quarter, DocuSign executives expect total revenue of $637 million to $641 million, while FactSet consensus is $641 million. Regulators are also predicting $705 million to $715 million in deposits, compared with FactSet’s $707 million consensus.

DocuSign stock is down 71% year-to-date, as the S&P 500

fell 17%.

Thygesen, who took over as CEO in October, acknowledged DocuSign’s recent mistakes but said the company was working to get back on track.

“When we experienced tremendous growth during the pandemic, we didn’t scale the team appropriately,” he said on the company’s earnings call. “We lost some of the pace of innovation. We have not adequately addressed the changing market dynamics nor have we fully refined our operations and systems. We understand those gaps and we are committed to moving forward with more transparency. I think the good news is that the future is in our own hands.”


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