DocuSign's stock rises on solid earnings beat, strong guidance and new executive hires

UPDATED 19:08 EDT / JUNE 08 2023

by Mike Wheatley

Shares of the e-signature company DocuSign Inc. are trending higher today after it delivered a solid fiscal first-quarter earnings and revenue beat and announced it has added a number of executive hires.

The company reported a net profit of $539,000 for the quarter, just above breakeven and up from a $27.3 million net loss one year earlier. Earnings before certain costs such as stock compensation came to 72 cents per share, well ahead of Wall Street's consensus estimate of 56 cents per share. Revenue rose 12% from a year earlier, to $661 million, above the $642 million analyst target.

DocuSign also reported that its subscription revenue rose 12%, to $639 million, while sales from its "professional services and other" segment increased 14%, to $22 million.

The company sells tools that enable businesses and individuals to sign documents electronically without meeting anyone face-to-face. It also sells software that automates the filing of contracts over the internet.

In a statement, DocuSign Chief Executive Allan Thygesen (pictured) said the first quarter results, coupled with traction on the company's strategic objectives, reflect a "solid start to the fiscal year."

Things are likely to continue going well for the company too. Looking to the next quarter, it offered strong guidance, saying that it forecasts revenue of $675 million to $679 million, well ahead of analysts’ consensus estimate of $667 million. For the full year, it's expecting sales of $2.71 billion to $2.73 billion, versus the $2.7 billion estimate.

DocuSign also highlighted its growing customer base, pointing out that it now has 1.4 million paying users and more than 1 billion users in total. The company's expanding international focus was also emphasized, with DocuSign revealing that its service is now used in more than 180 countries, while international revenue grew 17% from a year earlier.

The numbers were enough to convince investors that DocuSign is making good progress, with its stock rising more than 4% in extended trading, adding to a gain of just over 2% during the regular trading session.

During the quarter, DocuSign announced a number of new products and services, including Webforms, which gives users a way to create, customize and manage forms, together with tools for exporting and analyzing the data they collect.

Finally, DocuSign revealed it made a number of changes to its executive leadership team during the quarter. The biggest new hire is Blake Grayson, who has replaced Cynthia Gaylor as DocuSign's new chief financial officer. Grayson formerly served as CFO of The Trade Desk Inc., and has also held senior finance roles at Amazon.com Inc.

Other new hires include Dmitri Krakovsky, DocuSign's new chief product officer who previously served at Google LLC, SAP SE and Yahoo Inc., and Kurt Sauer, the company's new chief information security officer, who once held the same role at Workday Inc.

The latest hires are part of an ongoing executive shakeup at DocuSign that began with last year's ousting of former CEO Dan Springer, followed by the appointment of Thygesen and later the announcement that Gaylor would be stepping down.

THANK YOU

Secureworks shares drop on missed earnings, revenue and outlook

DocuSign's stock rises on solid earnings beat, strong guidance and new executive hires

Google releases Secure AI Framework to help companies protect AI models from hacking

Nvidia and Oracle back $270M funding round for generative AI startup Cohere

Managed cybersecurity provider Blackpoint Cyber reels in $190M from investors

Binance attorneys say SEC Chair Gary Gensler offered to advise crypto company in 2019

Secureworks shares drop on missed earnings, revenue and outlook

SECURITY - BY DUNCAN RILEY . 20 MINS AGO

DocuSign's stock rises on solid earnings beat, strong guidance and new executive hires

CLOUD - BY MIKE WHEATLEY . 60 MINS AGO

Google releases Secure AI Framework to help companies protect AI models from hacking

AI - BY MARIA DEUTSCHER . 3 HOURS AGO

Nvidia and Oracle back $270M funding round for generative AI startup Cohere

AI - BY MARIA DEUTSCHER . 5 HOURS AGO

Managed cybersecurity provider Blackpoint Cyber reels in $190M from investors

SECURITY - BY MARIA DEUTSCHER . 7 HOURS AGO

Binance attorneys say SEC Chair Gary Gensler offered to advise crypto company in 2019

BLOCKCHAIN - BY KYT DOTSON . 8 HOURS AGO