The Docusign stock soars when profits double expectations on strong billings

What you need to know

• Docusign's earnings and revenue exceeded forecasts as billings and subscription revenue jumped.
• The software company also reported a strong increase in new customers.
• Docusign increased its guidance on revenue, subscriptions and billings.

Shares of Docusign (DOCU), a provider of e-documents software, surged by nearly 20 percent on Friday after it posted results better than expected and increased its guidance due to a rise in billings and subscription revenues.

Visible Alpha’s analysts projected a third-quarter profit for fiscal 2025 of $30 per share while the company posted $62.4 per share. Also, the revenue was $754.8 Million which exceeded expectations.

Billings grew 9% over the past year to $752.3 Million, and subscription revenue grew 8% to 734.7 Million.

CEO Says 'Fundamentals Across the Core Business Improved'

Chief Executive Officer (CEO) Allan Thygesen said, “Fundamentals across the core business improved, continuing the recent trends.” Thygesen also added that Docusign has “sustained momentum in new customer growth at 11% year-over-year to 1.6 million customers.”

It now expects to generate revenue for the full year of between $2.959 and $2.963 Billion, as opposed to its earlier estimates of $2.940 to $2.952 Billion. The company expects to bill $3.056 to $3.066 compared to the earlier prediction of $2.990 to $3.130 billion. Also, it increased the subscription revenue forecast from $2.864billion to $2.876billion to $2.885billion to $2.889billion.

Docusign’s shares have recently traded at their highest levels since April 2020, up 19%.

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