DocuSign Raises Guidance as eSignature Software Subscription Revenue Expands

DocuSign, leading provider of electronic signature technology reported better than expected Q2 earnings as digitization of documents continues to become standard practice. DocuSign reported that its subscription revenue rose by 23% in the quarter, to $605.2 million. DocuSign also reported billings of $647.7 million, up 9% from a year ago. DocuSign’s is in transition following the resignation of longtime CEO Dan Springer in June. Springer led the company through its initial public offering. 


Docusign Inc NASDAQ: DOCU Reported Earnings After Close Thursday

DocuSign Q2 2022 Earnings

  • DocuSign (DOCU) beats by $0.02, beats on revs;
  • Guides Q3 revs in-line;
  • Reaffirms FY23 revs guidance
  • $DOCU up 17.3% After hours

The company reported adjusted earnings, before certain costs such as stock compensation of 44 cents per share. Revenue for the period rose 22% from a year earlier, to $622.2 million.

On its bottom line, DocuSign reported a net loss of $45.1 million. The results exceeded expectations of a slightly smaller adjusted profit of 42 cents per share on lower sales of $602.1 million.

“We delivered solid results, with a strong finish to the first half of the year,” interim CEO Maggie Wilderotter said in a statement today. “These results reflect the focus and dedication of our team on execution during this transition period, with a stronger foundation in place to deliver in the second half of the year. We enter this next phase with a clear set of vital few deliverables for our people initiatives and product roadmap, while driving sustainable and profitable growth at scale,”

DocuSign is the eSignature pioneer and established itself as THE Brand in that space. The shift away from paper documents for both personal and business purposes is only accelerating much as it did from bank statements to bills. The movement is solidifying growth catalysts for the company. The eSignature software continues to be common practice when you sign your mortgage, rental, healthcare, insurance, or a variety of other types of documents.


Looking to the third quarter, DocuSign said it expects sales of between $624 million and $628 million, the midpoint of which is just ahead of the analyst consensus estimate of $625 million.

The company also raised its full-year subscription revenue guidance, up from an earlier range of $2.394 billion to $2.406 billion, to a new range of $2.405 billion to $2.417 billion.

DocuSign has been expanding its offerings for businesses and enterprises, facilitating a rapid corporate transition towards electronic signature, identity verification, and contract generation. Fitting in exactly with the pandemic practices and some would argue the powers that be’s (PTB) preferred practices as government and poltical control continues in many countries, specifically the US.

Rising adoption from businesses and individuals is clearly illustrated across a number of DOCU’s impressive metrics. With DOCU’s Agreement Cloud a business can use DocuSign CLM to create contractual agreements using pre-populated information that’s pulled from other sources. Once generated, stakeholders can review and approve agreements within the contract, which can be automated throughout its entirety.

Another option for businesses is DocuSign Insight which utilizes AI-powered contract analytics to quickly and efficiently review agreements, identifying potential risk points for the related parties.

Source: DocuSign, AlphaStreet

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