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DocuSign exceeds expectations in third quarter, forecasts higher fourth-quarter revenue
Shares in DocuSign Inc. trended down slightly in late trading today despite the electronic signature company reporting beats in revenue and earnings in its third quarter and offering a better-than-outlook for its fourth quarter.
For the quarter that ended Oct. 31, DocuSign reported adjusted net income per share of 79 cents, up from 57 cents in the same quarter of last year, on revenue of $700.4 million, up 9% year-over-year. Analysts had expected adjusted earnings of 63 cents per share on revenue of $690.26 million.
DocuSign saw subscription revenue of $682.4 million in the quarter, up 9% year-over-year, while professional services and other revenue was $18.1 million, down 16%. Billings in the quarter were $691.8 million, up 5% year-over-year.
Net cash from operating activities was $262.2 million, up from $52.5 million in the same quarter of last year and fresh cash flow in the quarter was $240.3 million, up from $36.1 million. As of the end of October, DocuSign had $1.7 billion in cash, cash equivalents and investments.
Recent business highlights include DocuSign unveiling enhancements to its product suite, focusing on improving agreement generation, signing experiences and comprehensive agreement management. Among the releases was the integration of DocuSign eSignature with Microsoft Power Pages, streamlining the process of digitally signing documents directly on websites created with Microsoft’s website builder.
Another new offering was the implementation of agreement reminders for CLM Essentials customers. The feature is said to enable efficient contract management by allowing users to set custom email reminders for critical contract milestones, such as expiration, renewal, or follow-up deadlines.
“DocuSign had a solid third quarter, delivering record non-GAAP operating margin and free cash flow,” Chief Executive Allan Thygesen said in the company’s earnings release. “We are making progress on product innovation, go-to-market effectiveness and operational efficiency as we build on our considerable scale and trusted market position and expand beyond e-signature into intelligent agreement management.”
For its fourth quarter and full fiscal year, DocuSign expects revenue of $696 million to $700 million and $2.746 billion and $2.75 billion, respectively. Both were higher than analysts expectations of $690.26 million and $2.73 billion.
Photo: DocuSign/X
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