Shares in DocuSign Inc. dropped slightly in after-hours trading despite the digital document signing tools company beating analysts’ expectations in its quarterly earnings report.

For the quarter ending July 31, DocuSign reported total revenue of $511.8 million and a profit before costs such as stock compensation of $208 million or 47 cents per share. Analysts had been predicting a profit of 40 cents a share on revenue of $487.6 million.

DocuSign’s revenue figures were positive across the board, with subscription revenue coming in at $492.8 million, up 52% year-over-year, while gross billings were $595.4 million, up 47% over the same quarter of 2020. Net cash provided by operating activities was $177.7 million, up from $118.1 million in the same period last year, while free cash flow was $161.7 million, up from $99.8 million year-over-year.

Highlights in the quarter included DocuSign enhancing ID Verification, DocuSign Click and DocuSign Monitor. The company also launched DocuSign CLM, a new connector with SAP Ariba Contract Workspace.

“I’m proud of how our team has continued to stay in front of the evolving COVID business environment, helping our over 1 million customers and over one billion users move forward,” Dan Springer, chief executive officer of DocuSign, said in a statement. “This has driven strong performance for our business, reflected in our 50% year-over-year Q2 revenue growth.”

Looking forward, DocuSign said that it expected revenue of between $526 million and $532 million in the third quarter ending Oct. 31, while for the company’s full fiscal year ending January 31, DocuSign expects revenue of between $2.078 billion to $2.088 billion. Analysts had been predicting figures of $520.62 million and $2.05 billion, respectively.

The stronger-than-expected figures in the quarter were the fourth straight quarter DocuSign has beaten analysts predictions, according to Zacks Equity Research. “The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call,” Zacks explained.

A transcript of the earnings call was not available at the time of writing, but whatever was said may not have impressed investors that much. Despite delivering solid figures, DocuSign shares fell 1% in after-hours trading.

Photo: DocuSign