DocuSign shares plunge 24% on profit miss and downgrades

Docusign Inc. on a laptop computer organized on Thursday, April 1, 2021, at Dobbs Ferry in New York, USA. Website.

Tiffany Hawkler-Great | Bloomberg | Getty Images

Shares Document ID The e-signature software maker fell 24% on Friday after releasing first-quarter earnings for the fiscal year.

DocuSign on Thursday Reported Adjusted earnings per share at 38 cents, not 46 cents per share on Wall Street. DocuSign’s best-selling revenue for the quarter was $ 588.7 million, compared to $ 581.8 million in the previous quarter.

With the increase in online transactions, DocuSign’s business made a big improvement in the early months of the coronavirus epidemic, but it has slowed in recent quarters as it faces drastic comparisons with exceptional growth in 2020 and early 2021. In addition, the company said Thursday. The deteriorating macroeconomic environment is particularly challenging due to the war in Ukraine.

Many companies, including Evercore ISI, Bank of America, and William Blair Reduced shares Following the income statement. William Blair’s Jake Roberg downgraded DocuSign to market performance, citing weaker-than-expected billing guidance for the 2023 fiscal year.

DocuSign forecasts annual billing growth of 7% to 8%, “DocuSign’s mid-term growth of 15%,” Robert said.

“While customers are not leaving the platform, many customers are seeing a decline in platform consumption as more and more customers come to renew their contracts,” Roberg said, adding that the company plans to recalculate its hiring targets for the year to focus on. On profit.

“With management’s limited visibility, it will take several quarters to complete the sales restructuring, and we hope DocuSign’s stocks will be limited in the next few quarters due to the lack of time constraints nearby,” he added.

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