Despite strong quarterly results, DocuSign Inc.’s stock declined in after-hours trading on Thursday.
DocuSign (DOCU) reported fiscal first-quarter net income of $33.8 million, or 16 cents per share, compared to breaking even in the same period last year. Adjusted earnings per share were 82 cents, surpassing the FactSet analyst estimate of 79 cents.
Revenue increased by 7% to $709.6 million, slightly higher than the expected $707 million.
CEO Allan Thygesen stated that the company has “continued to stabilize the business and improve profitability, allowing Docusign to continue investing for long-term growth.”
Despite this, the stock fell over 6% in extended trading.
For the second quarter, DocuSign forecasts revenue between $725 million and $729 million, with analysts expecting $727 million. The company also predicts billings between $715 million and $725 million, compared to the FactSet consensus of $720 million.
For the full year, DocuSign projects total revenue between $2.92 billion and $2.932 billion, and billings between $2.98 billion and $3.03 billion. Analysts had predicted $2.924 billion in revenue and $2.997 billion in billings.
Additionally, DocuSign is increasing its stock-buyback program by $1 billion.
