Shares of DocuSign (DOCU) are down more than 25% today (June 10) after the electronic
signature software company reported disappointing earnings and gave weak forward guidance.
The company, which allows organizations to manage electronic agreements, reported e arnings
of $0.38 U.S. per share versus $0.46 U.S. that was expected by analysts, according to Refinitiv
data. Revenue totaled $588.7 million U.S. compared to $581.8 million U.S. anticipated.
The company reported that its net loss widened to $27.4 million U.S. from $8.3 million U.S.
during the year-earlier period.
As investors shift away from a focus on growth to profitability, DocuSign’s miss on earnings hurt
the company and its shareholders. The stock is down 43% year to date to $87.36 U.S. a share,
falling alongside the rest of the cloud software sector.
DocuSign experienced strong growth during the early months of the COVID-19 pandemic with
an increase in online transactions. The pace of that business has since slowed, and after
beginning to adjust its sales approach to focus more on drumming up demand, it’s now working
to fix go-to-market challenges, the company said.
For the second quarter, DocuSign forecast revenue of $600 million U.S. to $604 million U.S.
The middle of the range, at $602 million U.S., was just above the Refinitiv consensus estimate
of $601.7 million U.S.
For all of this year, DocuSign sees $2.47 billion U.S. to $2.48 billion U.S. in revenue, compared
to the $2.479 billion U.S. expected on Wall Street.
