DocuSign shares surge as earnings, sales top estimates
DocuSign (NASDAQ:DOCU) shares climbed more than 13% in after-hours trading Wednesday in reaction to the electronic signature technology company's better-than-expected quarterly results and upbeat full-year sales outlook.
After U.S. stock markets closed, DocuSign (DOCU) estimates that its full-year sales will come in between $2.493B and $2.497B. The company had previously forecast revenue for the fiscal year of $2.47B to $2.482B, while analysts expected sales to reach $2.48B.
Along with that outlook, DocuSign (DOCU) reported a third-quarter profit of 57 cents a share, excluding one-time items, on revenue of $645.5M. Analysts had forecast the company to earn 42 cents a share, excluding one-time items, on $627.2M in sales.
Subscription revenue, DocuSign's (DOCU) biggest business area, rose 18% from a year ago, to $624.1 million. Professional services and other revenue totaled $21.4 million, up 27% on a year-over-year basis.
Earlier this week, Jefferies analyst Brent Thill started his coverage of DocuSign (DOCU) with a hold rating and $50-a-share price target on the company's stock.
