Categories Earnings, Technology

DocuSign surprises Wall Street with a profit in Q4

Shares of DocuSign (DOCU) fell 5% during the extended trading hours on Thursday, despite the electronic signature technology firm surprising Wall Street by reporting a profit in the fourth quarter of 2019, helped by a marked increase in revenues.

Revenues of the San Francisco, California-based firm climbed 34% to $199.7 million in the fourth quarter, beating analysts’ estimate of $193.68 million. The top line was lifted by a 37% growth in subscription revenue.

The company reported adjusted earnings of $0.06 per share during the quarter, even as the market was expecting a breakeven.

Billings increased by 31% to $262.4 million.

CEO Dan Springer said, “As we look to fiscal 2020, we are focused on delivering new and innovative solutions to market across the System of Agreement, growing our already-strong partner ecosystem, and continuing our relentless commitment to customer success.”

The company also provided an outlook for the first quarter of 2020, as well as the full financial year. For the current quarter, the company projects total revenue of $205-210 million and billings of $210-220 million. Adjusted gross margin is predicted to be between 78% and 80% during this period.

READ: BLACKBERRY SETS UP NEW GOVERNMENT SOLUTIONS UNIT

For the full year, the company raised its outlook for total revenues to a range of $910-915 million, while billings are estimated to be $1.01-1.03 billion.

DocuSign has seen its stock double since its initial public offering in April last year, primarily due to the adoption of electronic signatures in various industries including banking and insurance. According to Reports Monitor, the e-signature industry is set to grow at a yearly pace of 31% over the coming six years.

READ: PINDUODUO STOCK PLUNGES ON WEAK Q4 EARNINGS

However, of late, the company has been facing stiff competition from Adobe (ADBE), besides Dropbox (DBX), which acquired HelloSign in 2018.

 

Earnings Transcript: Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Cost reduction has become a priority for FedEx (FDX) after a challenging quarter

Shares of FedEx Corporation (NYSE: FDX) were up 1% on Tuesday. The stock has dropped 44% year-to-date and 34% over the past 12 months. The company delivered mixed results for

Prime Medicine is the next big biotech to pursue IPO. Here’s all you need to know

After a soft start to the year, the IPO market has witnessed muted activity so far though a few big companies entered the stock market. On the heels of AIG

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top