Shares of DocuSign rose after big earnings

Shares of DocuSign were flying higher in after-market action Thursday after the electronic signature company beat expectations with its latest financial results.

The company reported a fiscal third-quarter net loss of $30 million, or 15 cents per share, compared with $6 million, or 3 cents per share, in the year-earlier period. On an adjusted basis, the company earned 57 cents per share, down a penny from 58 cents per share a year earlier, but well above the FactSet consensus of 42 cents per share.

Revenue rose to $646 million from $545 million a year ago, while the FactSet consensus was calling for $627 million. DocuSign

reported $624 million in subscription revenue and $21 million in professional services and other revenue.

DocuSign reported $659.4 million in billings, defined as “sales to new customers plus subscription renewals and additional sales to existing customers.” Analysts tracked by FactSet were looking for $588.6 million.

Shares rose 11% in after-market trading.

CEO Alan Tiegesen said during DocuSign’s earnings call that the company is looking to “create greater efficiencies in our direct sales and field efforts and strengthen our partner ecosystem,” and noted that “sales attrition continues to slow down and we are seeing a stabilization of the field,” according to a transcript provided by Sentieo/AlphaSense.

For the fiscal fourth quarter, DocuSign executives expected $637 million to $641 million in total revenue, while the FactSet consensus was for $641 million. Executives also forecast bookings of $705 million to $715 million, compared with the FactSet consensus of $707 million.

Shares of DocuSign have fallen 71% so far this year, as has the S&P 500

has fallen by 17%.

Thygesen, who took over as CEO in October, acknowledged DocuSign’s recent missteps but said the company is working to get back on track.

“As we experienced tremendous growth during the pandemic, we didn’t scale the team properly,” he said during the company’s earnings call. “We have lost some speed of innovation. We did not fully address changing market dynamics, nor did we sufficiently develop our operations and systems. We understand these gaps and are determined to move forward with more transparency. I think the good news is that the future is in our hands.”

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