DocuSign shares surged over 28% by midday Friday following the release of third-quarter earnings that exceeded Wall Street expectations. The software company reported adjusted earnings per share of 90 cents on revenue of $754.8 million, outperforming analyst estimates of 87 cents on revenue of $745.3 million.
Key highlights:
- Subscription revenue climbed 8% year-over-year.
- Billings rose 9%, a metric analysts noted as a standout performance.
DocuSign also boosted its fiscal-year revenue forecast to $2.96 billion, up from its prior range of $2.94 billion to $2.95 billion.
CEO Allan Thygesen expressed optimism, stating, "We continued to drive improvement in our core business with strong revenue growth and operating profit."
Analyst Insights:
- Needham analysts praised the uptick in billings, noting it "stole the show," but maintained a Hold rating.
- William Blair highlighted the success of DocuSign's Intelligent Agreement Management (IAM) platform and its new DocuSign for Developers suite. They believe these innovations will enhance feature adoption, create upsell opportunities, and foster stronger customer relationships. The firm rates the stock as Market Perform.
Shares of DocuSign were trading at $107.32 by 12:41 PM ET, marking their highest intraday gain in recent history.
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