DocuSign shares jump on a swing to profit in Q2

DocuSign Inc (NASDAQ: DOCU) says it swung to a profit in the second financial quarter. Its shares jumped 5.0% in after-hours trading.

DocuSign shares rewarded for upbeat guidance

Investors are happy also because the management raised its guidance for the full year.

DocuSign now forecasts its revenue to fall between $2.73 billion and $2.74 billion in fiscal 2024. Analysts, in comparison, were at $2.72 billion. Allan Thygesen – its Chief Executive said today in a press release:

Our results for the first half were solid and reflect strong progress on our business transformation.

Note that the Nasdaq-listed firm laid off 10% of its workforce this year to cut costs (find out more). On Thursday, its updated revenue guidance for the current quarter also topped Street estimates. DocuSign shares have now gained more than 15% in about two weeks.

Notable figures in DocuSign Q2 earnings report

• Earned $7.4 million that translates to 4 cents per share
• Had $45.1 million loss or 22 cents per share a year ago
• Adjusted EPS printed at 72 cents as per the press release
• Revenue jumped 10.5% year-on-year to $687.7 million
• Consensus was 66 cents a share on $677.6 million revenue

DocuSign also received authorisation for another $300 million in stock repurchase from its board today. According to CEO Thygesen:

We increased our pace of innovation, while strengthening our self-service and partner distribution channels. We’ve received enthusiasm on our product roadmap, particularly from enterprise customers.

Wall Street currently has a consensus “hold” rating on DocuSign shares.