DocuSign stock soared on Friday after its April-quarter financial results blew past Wall Street targets, easing worries that the electronic signature specialist’s growth will slow as the coronavirus emergency ebbs.
San Francisco-based DocuSign (DOCU) reported first-quarter earnings late Thursday. April-quarter earnings came in at 44 cents per adjusted share, up 267% from the year-earlier period. Revenue rose 58% to $469.1 million, including acquisitions, the company said.
A year earlier, DocuSign earned 12 cents a share on sales of $297 million.
DocuSign stock analysts expected the company to report earnings of 28 cents on sales of $437.6 million. Billings jumped 54% to $527.4 million, topping estimates for 36% growth.
DocuSign stock surged 17.3% to 228.58 in midday trading on the stock market today.
The company’s software automates the filing of contracts over the internet and certifies electronic signatures. One question for DocuSign is whether customer growth will slow as the coronavirus pandemic eases and business travel normalizes.
DocuSign Stock: Revenue Outlook Above Views
For the current quarter ending in July, DocuSign forecast revenue of $482 million at the midpoint of its outlook. Analysts had projected revenue of $474.2 million.
“DocuSign raised its fiscal 2022 billings, revenue and margin guidance by far more than the first quarter beat, signaling that the Q1 strength was not one-time in nature,” said UBS analyst Karl Keirstead in a report.
The company said it had 673 customers with average annual contract value more than $300,000 as of April 30, up from 599 in the previous quarter.
From one technical view, DocuSign has formed a double-bottom base that started in February, with a 236.21 buy point. DocuSign corrected 35% amid a pullback in many software growth stocks.
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