DocuSign stock jumped 15% in after-hours: here’s the catalyst

Shares of DocuSign Inc (NASDAQ: DOCU) jumped more than 15% in extended trading after the e-signature company reported better-than-expected results for its third financial quarter.

DocuSign stock up on in line guidance

Investors are also cheering guidance that matched expectations.

DocuSign now forecasts up to $2.50 billion in revenue this year, including $637 million to $641 million it expects to generate in the current quarter. In the earnings press release, CEO Allan Thygesen said:

For the year, DocuSign stock is still down more than 65%.

DocuSign Q3 earnings snapshot

• Lost $29.9 million versus a much less $5.7 million last year
• Per-share loss also climbed from 3 cents to 15 cents
• Adjusted EPS is 57 cents as per the earnings press release
• Revenue went up 18% year-over-year to $645.5 million
• Consensus was 42 cents adjusted EPS on $626.9 million revenue
• $659.4 million of billings were also way better than expected

According to DocuSign, it brought in $624 million from subscriptions this quarter and the remaining $21 million from professional services and other revenue. The Chief Executive added:

Those interested in buying DocuSign stock should consider that Wall Street currently has a consensus “hold” rating on this pandemic darling.