DocuSign Inc (NASDAQ: DOCU) was up 17% in the stock market on Friday as the company reported financial results for the first quarter that topped Wall Street estimates.
DocuSign’s Q1 financial results
DocuSign reported $8.4 million (£5.93 million) of loss in the fiscal first quarter that translates to 4 cents per share. In the same quarter last year, its loss stood at a higher $47.8 million or 26 cents per share.
On an adjusted basis, the San Francisco-based company earned 44 cents per share versus the year-ago figure of 12 cents per share. DocuSign generated $469.1 million of revenue in Q1 – an increase from $297 million last year. In the prior quarter (Q4), its revenue had jumped 57%.
According to FactSet, experts had forecast the company to post $437.6 million of revenue and 28 cents of adjusted EPS. For the full financial year, DocuSign now expects up to $2.04 billion of revenue versus the FactSet consensus of $1.99 billion.
DocuSign opened at $210 per share in the stock market on Friday and is currently exchanging hands at $227 per share. This compares to a year-to-date high of $265 per share in February. The stock performed massively upbeat in the stock market last year with an annual gain of almost 200%. At the time of writing, the Nasdaq-listed company has a market cap of $44.14 billion.
CEO Dan Springer’s comments on CNBC’s “TechCheck”
DocuSign said that customer additions hit a record in the recent quarter despite easing COVID-19 restrictions. Commenting on that, CEO Dan Springer said on CNBC’s “TechCheck”:
“We attribute it to customer demand. More and more companies are focusing on digitally transforming their business. Whether that’s in the pandemic or post-pandemic, they want to take advantage of these digital technologies that allow them to save money, offer better customer experiences, and get that time to revenue faster.”
The chief executive further expressed confidence that customer additions will continue to boom in the future. DocuSign achieved the milestone of a million customers in Q1, but Springer highlighted that they have not even penetrated 10% of the addressable market yet. “The opportunity is there, it’s really going to be about execution,” he said.
As per the CEO, DocuSign belongs to what he called an “anywhere economy”. The easing pandemic-related restrictions and the return to offices, he added, doesn’t pose much of a threat to our business.
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Wajeeh Khan
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