DocuSign reported July-quarter earnings and revenue that topped estimates amid lowered expectations. The company's outlook came in mixed, but DOCU stock surged on the news Friday.
The San Francisco-based software maker reported earnings after the market close on Thursday. DocuSign earnings for its fiscal second quarter came in at 44 cents a share, down 6% from a year earlier, but ahead of estimates for 42 cents.
In addition, the maker of electronic signature software said revenue rose 22% to $622.2 million. Analysts had predicted revenue of $602 million. A year earlier, DocuSign earnings were 47 cents a share on sales of $512 million.
Billings, a sales growth metric, rose 9% to $647.7 million vs. estimates of $601.8 million.
DOCU stock popped 10.5% to close at 64.04 on the stock market today.
DOCU Stock: More In-Person Meetings Hit Business
For the current quarter ending in October, DocuSign forecast revenue of $626 million at the midpoint of its outlook and billings of $589 million. Analysts had predicted third-quarter revenue of $625 million and billings of $593.4 million.
Demand for DocuSign products surged during the early part of the coronavirus outbreak, but many businesses are resuming in-person meetings. In addition to accommodating electronic signatures, the company's software also automates the filing of contracts over the internet.
DocuSign has a search underway for a new chief executive. Board Chair Mary Wilderotter was named interim CEO on June 21.
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"We thought the quarter/guide were better-than-feared but we came away less confident in a timely turnaround to healthy growth and remain in wait-and-see mode until a new CEO," said RBC Capital analyst Rishi Jaluria in a report. "DocuSign noted the company is close to naming a new CEO, suggesting M&A is off the table for now."
Thus far in 2022, DOCU stock had retreated 63% heading into the earnings report. DocuSign holds a Relative Strength Rating of only 5 out of a best-possible 99, according to IBD Stock Checkup.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
