DOCU Stock Tumbles As Fiscal 2023 Revenue Guidance Misses Estimates

DocuSign (DOCU) plunged late Thursday after its January-quarter earnings met estimates and revenue topped views. But fiscal 2023 guidance for DOCU stock came in well below expectations as its Covid-related gains are dissipating.

DocuSign stock tumbled 13.7% to near 81 in extended trading on the stock market today. San Francisco-based DocuSign reported fourth-quarter earnings after the market close.

DocuSign earnings came in at 48 cents a share on an adjusted basis, up 30% from a year earlier, said the maker of electronic signature software. Revenue rose 35% to $580.8 million, the company said.

A year earlier, DocuSign earnings were 37 cents a share on sales of $431 million.

More In-Person Meetings

Demand for DocuSign products surged during the early part of the coronavirus outbreak but many businesses are resuming in-person meetings.

In addition to accommodating electronic signatures, the company’s software also automates the filing of contracts over the internet.

Analysts that follow DocuSign stock expected the company to report earnings of 48 cents a share on sales of $561.6 million.

Billings in the fourth quarter rose 25% to $670.1 million, topping estimates for 22% growth.

For fiscal 2023, DocuSign forecast revenue in a range of $2.47 billion to $2.48 billion, missing estimates. Analysts had projected revenue of $2.61 billion.

DOCU Stock Repurchase Program

In addition, DocuSign announced a $200 million stock repurchase program.

Thus far in 2022, DOCU stock had retreated 35% heading into the earnings report.

DocuSign stock holds a Relative Strength Rating of only 9 out of a best-possible 99, according to IBD Stock Checkup.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

How To Use The 10-Week Moving Average For Buying And…


Read More

Recommended For You

Leave a Reply

Your email address will not be published. Required fields are marked *