DocuSign spikes on strong Q3, upbeat outlook

For the third quarter of 2019, DocuSign (NASDAQ: DOCU) reported a 40% spike in revenues to $249.5 million. Meanwhile, the company reported adjusted earnings of 11 cents per share in Q3, compared to breakeven last year. The third-quarter results were better than what the street had anticipated, sending the stock up 3.6% during aftermarket hours.

Subscription revenue jumped by 41% and professional services and other revenue soared by 28%. Billings climbed by 36% to $269.4 million. The results reflected its clear position in e-signature and the increasing adoption of its broader Agreement Cloud offering.

Outlook

Meanwhile, the company guided fourth-quarter revenue above the Street’s view and raised its full-year revenue forecast.

For the fourth quarter, the company expects total revenue of $263-267 million, while adjusted gross margin is estimated between 78% and 80%.

For the full year, revenues are expected in the range of $962-966 million, with gross margin projection pegged at 78-80%.

READ: Cloudera (CLDR) to report Q3 2020 earnings results after the bell

Last month, DocuSign shares climbed to an all-time high, continuing the rally that followed the last quarterly report. Since the beginning of the year, the stock has gained 72%.

CEO Dan Springer said, “Customers and partners alike are seeing the benefits of having a single platform that connects and automates the entire agreement process. As we continue to expand our suite of Agreement Cloud products, we believe DocuSign is poised to lead the next big category of cloud platforms.”

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