DocuSign reduced its forecast for billings for the full year.
Courtesy DocuSign
DocuSign shares lost nearly one-fourth of their value after the e-signature software company posted quarterly earnings that showed signs of weakening demand, while offering guidance for the current quarter that fell shy ofWall Street’s estimates. The Covid-era boost in demand for DocuSign’s service appears to be ebbing as more workers return to offices.
“After six quarters of accelerated growth, we saw customers return to more normalized buying patterns,” CEO Dan Springer said in a statement.
For its fiscal third quarter, ended Oct. 31, DocuSign (ticker: DOCU) posted revenue of $545.5 million, up 42% from a year earlier, and ahead of both the company’s guidance range of $526 million to $532 million and the Wall Street analyst consensus of $530.7 million. Billings were $565.2 million, up 28%, but below the range of $585 million to $597 million management had told investors to expect.
For the fiscal fourth quarter, ending Jan. 31, the company sees revenue of $557 million to $563 million, below the Street consensus call for $573.8 million. DocuSign expects fourth-quarter billings of $647 million to $659 million.
For the January 2022 fiscal year, the company now sees revenue of $2.083 billion to $2.089 billion, which compares to a previous range of $2.078 billion to $2.088 billion. DocuSign trimmed its full-year billings guidance to a range of $2.335 billion to $2.347 billion, from a previous range of $2.409 billion to $2.429 billion.
Write to Eric J. Savitz at [email protected]
