DocuSign (NASDAQ:DOCU) dropped sharply despite an earnings and revenue beat. However, DocuSign announced CFO Cynthia Gaylor would step down later this year. The stock was also downgraded by JPMorgan to underweight from neutral. The firm cited deteriorating demand trends, potential competition from Microsoft and Gaylor’s departure.
For the period ending January 31, DocuSign earned an adjusted 65 cents per share on $659.6 million in revenue. Subscription revenue for the period rose 14% year-over-year to $643.7 million, while professional services and other revenue declined 5% over the same time frame to $15.9 million.
Analysts were expecting the company to earn 52 cents per share on $639.49 million.
Looking ahead, DocuSign said it expects first-quarter sales to be between $639 million and $643 million, with the mid-point slightly above the $640.9 million analysts were expecting.
The company also announced several executive changes, with Robert Chatwani joining the company has President & General Manager of Growth, coming from Atlassian and Anwer Akram joining the company from Google to be its new Chief Operating Officer.
In conjunction, DocuSign said CFO Cynthia Gaylor would step down from the role later this year, despite only being named to the role in September 2020.
DocuSign has initiated a search led by Chief Executive Officer Allan Thygesen to identify the company's next CFO. Gaylor will remain in her role to ensure a smooth transition, including through the announcement and filing of the company's Q1 FY2024 results.
DOCU shares capsized $13.06, or 20.3%, to $51.35.
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