DocuSign (NASDAQ:DOCU) reported its quarterly earnings results late today, bringing in a profit that topped what analysts called for, yet DOCU stock was sinking late on Thursday.
The San Francisco-based online signature business unveiled first-quarter losses of $45.7 million to kick off its fiscal 2019, amounting to roughly 27 cents per share. This was narrower than the company’s loss from the year-ago quarter, which came in at $270.7 million, of $7.46 per share.
DocuSign added that it brought in adjusted earnings of 7 cents per share for the three-month period when excluding special items, topping its year-ago adjusted profit of a penny per share. The Wall Street consensus estimate saw the business bringing in an adjusted profit of 4 cents per share, according to the average estimate of seven analysts who were surveyed by Zacks Investment Research.
On the revenue front, the company brought in sales of $214 million for the period, also coming in ahead of the Wall Street guidance as six analysts surveyed by Zacks predicted revenue of $208.5 million. This marks a 37% annual growth in sales, while subscription revenue surged 36% year-over-year to $201.5 million.
“With the announcement of the DocuSign Agreement Cloud this quarter—our suite of products and integrations for automating the entire agreement process—we can now deliver a much broader set of solutions to market, positioning us as the next ‘must-have’ cloud,” said Dan Springer, CEO of DocuSign.
For its second quarter, the business predicts sales in the range of $218 million to $222 million, while billings is slated to fall between $215 million and $225 million.
DOCU stock was up about 2.7% during regular trading hours today ahead of the company’s results. Shares then fell 16% after the bell Wednesday following its quarterly figures.