DocuSign (DOCU) reported July quarter earnings and revenue that beat estimates amid low expectations. The company’s outlook came in mixed, but DOCU’s stock rose after Friday’s news.
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The San Francisco-based software maker reported earnings after the market closed Thursday. DocuSign’s fiscal second-quarter earnings were 44 cents per share, down 6% from a year earlier, but ahead of estimates of 42 cents.
Additionally, the electronic signature software maker said revenue rose 22% to $622.2 million. Analysts expected revenues to reach $602 million. A year ago, DocuSign earnings were 47 cents per share from $512 million in sales.
The Billings Index, a measure of sales growth, rose 9% to $647.7 million versus estimates of $601.8 million.
DOCU stock rose 10.5% to close at 64.04 in stock market today.
DOCU stock: More in-person meetings hit business
For the current quarter ending in October, DocuSign projected revenue of $626 million midway through its forecast and billing of $589 million. Analysts expected third-quarter revenue of $625 million and bills of $593.4 million.
The demand for DocuSign products surged during the early part of the coronavirus outbreak, but many companies are resuming face-to-face meetings. In addition to accommodating electronic signatures, the company’s software also automates the filing of contracts online.
DocuSign has an ongoing search for a new CEO. Board Chair Mary Wilderwater was appointed interim CEO on June 21.
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“We thought the quarter/guideline was better than fear, but we came out with less confidence in the timely transition to healthy growth and were kept in wait-and-see mode until a new CEO,” RBC Capital analyst Rishi Galoria said in a report. . DocuSign has indicated that the company is about to name a new CEO, indicating that mergers and acquisitions are not currently on the table.
So far in 2022, DOCU’s stock is down 63% as the earnings report approaches. DocuSign holds a relative strength rating of only 5 out of the 99 best possible, according to IBD stock check.
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