DocuSign could lose $10 billion in market capitalisation by tomorrow

By:
on Dec 2, 2021
Listen
  • DocuSign Inc beats Wall Street estimates for the fiscal third quarter.
  • The digital document workflow company gave weak future guidance.
  • DocuSign shares slid nearly 30% in after-hours trading on Thursday.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

DocuSign Inc (NASDAQ: DOCU) reported its financial results for the third quarter on Thursday that beat Wall Street estimates. Shares of the digital document workflow company, however, tanked nearly 30% after-hours on weak guidance for the future.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Q3 financial results

Copy link to section

DocuSign said it earned 58 cents a share in Q3 on an adjusted basis versus the year-ago figure of 22 cents a share. The California-based company generated $545.5 million in sales, representing a year-over-year increase of 42%.

According to FactSet, experts had forecast 46 cents of adjusted EPS on $532.6 million in sales. At $565.2 million, DocuSign’s billings (up 28%), however, came in shy of $594 million that analysts had anticipated.

If the stock doesn’t recover before market open on Friday, DocuSign will lose over $10 billion in market capitalisation.

CEO Springer’s remarks

Copy link to section

The U.S. company now has 1.11 million customers. In the earnings press release, CEO Dan Springer said:

Third quarter operating margin of 22% exceeded our expectations. After six quarters of accelerated growth, we saw customers return to more normalised buying patterns. With a $50 billion TAM, we’re confident in the value DocuSign delivers in an increasingly digital anywhere economy.

Guidance for the future

Copy link to section

For the fiscal fourth quarter, DocuSign forecasts up to $563 million in revenue and $647 million to $659 million of billings. In comparison, analysts were calling for $575 million in sales and $705.4 million of billings.

The Nasdaq-listed company now forecasts up to $2.089 billion in revenue this year, roughly in line with the consensus. During Q3, DocuSign expanded its global strategic partnership with Salesforce and also introduced DocuSign Ventures.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
USA North America Services Stock Market World