DocuSign (DOCU) posted better-than-expected results and raised its guidance, but shares of the electronic signature company fell as it also warned of continuing economic challenges.
Key Takeaways
- DocuSign exceeded second-quarter profit and sales estimates and boosted its outlook, but also warned about macroeconomic pressures ahead.
- DocuSign said its restructuring plan implemented last year was behind the positive results.
- DocuSign also increased its share repurchase program by $300 million.
DocuSign reported second-quarter fiscal 2024 earnings per share (EPS) of 72 cents, with revenue rising 11% to $687.7 million. Both beat analysts’ forecasts. Billings rose 10% to $711.2 million. Net cash from operating activities and free cash flow both were higher than a year ago.
Chief Executive Officer Allan Thygesen credited the company’s progress in its business transformation for the gains. Last September, DocuSign disclosed a major restructuring, including job cuts, aimed at boosting operating margin and supporting its growth, scale, and profitability objectives.
While DocuSign was pleased with the results, “like many others, we are seeing continued macro pressures tempering expansion rates,” Thygesen said on the company's earnings call.
Still, DocuSign increased its full-year sales outlook to between $2.73 billion and $2.74 billion, up from its earlier estimate of $2.71 billion to $2.73 billion. The company is also boosting its share repurchase program by $300 million to a total of up to $500 million. The plan has no minimum purchase requirement or set end date.
DocuSign shares lost almost 3% early Friday, and are lower for 2023.