DocuSign Inc. (NASDAQ: DOCU) on Thursday posted better-than-expected results for the fourth quarter, as the company continued to see influx of customers. Revenues increased 38% in Q4 to $274.9 million, driven by a 40% increase in billings. Net income came in at 0.12 per share.
Analysts were expecting earnings of 5 cents per share on revenues of $266 million.
During the quarter, both subscription revenue and professional services revenue jumped 38%.
DOCU stock rose 8% immediately following the announcement. The stock was down over 10% in the hours leading up to the earnings as part of the world-wide stock sell-off triggered by Covid-19. Prior to the fall, the stock had enjoyed a 41% increase in value in the past six months.
Through the continuous expansion of its portfolio and regular roll out of new offerings, DocuSign has managed to be a top digital CLM solutions provider. Last month, DocuSign announced its intention to purchase contract analytics and AI technology provider Seal Software for $188 million in cash.
The deal will help in integrating Seal’s technology across DocuSign’s Agreement Cloud and thus delivering greater value to clients.
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Outlook
The company guided first-quarter revenue above the street’s view and posted its full-year 2020 revenue forecast. For the first quarter, the company expects total revenue of $280-284 million, while adjusted gross margin is estimated between 78-80%.
For the full year, revenues are expected in the range of $1.272 billion to $1.276 billion, with gross margin projection pegged at 78-80%.
Dan Springer, CEO of DocuSign, said in a statement, “Since introducing the DocuSign Agreement Cloud a year ago, we have dramatically broadened our offerings while maintaining strong growth from eSignature. With our latest move—the proposed acquisition of contracts AI pioneer Seal Software—we are continuing our drive to make organizations’ end-to-end agreement processes faster, simpler, and smarter.”