Shares in DocuSign Inc. rose in after-hours trading today after the electronic signature platform provider topped earnings expectations in the first quarter thanks to growing demand during the COVID-19 pandemic.

For the quarter ended April 30, DocuSign reported revenue rose 39% from a year ago, to $297 million. Profit before certain costs such as stock compensation came in at 12 cents per share for the quarter, up from seven cents per share a year ago. Analysts had forecast a 10-cent adjusted profit on $281 million in revenue.

DocuSign saw billings surge to $342.1 million, up 59%, while net cash provided by operating activities grew to $59.1 million from $45.7 million a year ago. Cash, cash equivalents, restricted cash and investments were reported at $898.3 million as of the end of the quarter.

“Our strong first-quarter results reflect our ability to help organizations accelerate their digital transformation as they adapt to the changing business environment, magnified by COVID-19,” Dan Springer, chief executive officer of DocuSign, said in a statement. “Many are taking their first steps with us, while others are expanding their initiatives.”

Guidance was also strong, as DocuSign said it expects revenue of $316 million to $320 million and billings of $333 million to $343 million in the second quarter. Analysts had been expecting $303 million in revenue and $328 million in billings.

For its full financial year, DocuSign is now estimating revenue of $1.313 billion to $1.317 billion on billings of $1.515 billion to $1.535 billion.

In a conference call, Springer said DocuSign added more than 10,000 net new direct customers and almost 58,000 customers in the quarter, taking total paying customers to nearly 661,000. Springer attributed much of the strong performance to increasing demand for eSignature services from organizations in the age of COVID-19 with millions now working from home.

Springer added that DocuSign saw increased demand in health care, life sciences and government, while not surprisingly demand in hospitality and travel were weaker.

DocuSign shares were up 3.7% in after-hours trading.

Photo: DocuSign/Facebook