Shares of DocuSign (NASDAQ:DOCU) have plunged 30% in extended trading after the electronic signature company provided weak forward guidance for the current fourth quarter.
DocuSign said that its fourth-quarter revenue will come in at between $557 million U.S. and $563 million U.S. Analysts were expecting revenue of $573.8 million, according to Refinitiv data.
The guidance was delivered as part of DocuSign’s third-quarter results, which saw the company report earnings per share of $0.58 U.S. versus $0.46 U.S. expected by analysts, and revenue of $545.5 million U.S. compared to $531 million U.S. expected by analysts.
DocuSign reported its sixth consecutive quarter of revenue growth in excess of 40%, benefiting from remote work and the increased use of electronic signatures. The company beat on the top and bottom lines for the third quarter, but investors are more concerned about what lies ahead.
The company also announced that Michael Sheridan, the President of International, left the company on November 30.
Prior to the after-hours plunge, DocuSign’s stock was up about 4% for the year, trailing the S&P 500′s 20% gain. Last year, DocuSign shares tripled in value during the depths of the pandemic.
