DocuSign tanks 25% on Q1 results: ‘they’ll be impaired in long term’

0

DocuSign tanks 25% on Q1 results: ‘they’ll be impaired in long term’

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Wajeeh Khan

on
Jun 9, 2022

DocuSign Inc reports weaker-than-expected profit for its fiscal first quarter.

Trivariate’s Adam Parker discussed the earnings report on CNBC Closing Bell.

Shares of the company tanked nearly 20% in extended trading on Thursday.

DocuSign Inc (NASDAQ: DOCU) shares tanked nearly 25% in extended trading on weaker-than-expected earnings for its fiscal first quarter.

DocuSign Q1 financial highlights

Lost $27.4 million in Q1 versus the year-ago figure of $8.35 millionPer-share loss of 14 cents was much wider than last year’s 4 centsOn an adjusted basis, EPS stood at 38 cents in the recent fiscal quarterRevenue jumped 25% to $588.7 million, as per the earnings press releaseFactSet consensus was for 46 cents of adjusted EPS on $583 million in revenue

At $613.6 million, billings went up 16% on a year-over-year basis. Including after-hours price action, the stock is down more than 55% for the year.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Future guidance and expert’s remarks

For the current financial quarter, DocuSign forecast its revenue to fall in the range of $600 million to $604 million. In comparison, experts had forecast $601 million. Discussing the earnings report on CNBC’s “Closing Bell”, Trivariate Research’s Adam Parker said:

We use Microsoft for everything. From Team, to Excel, to Azure. If they decided to put a docusign button on, I don’t see why you would ever use DocuSign. So, I don’t see the technological moat. That’s why, ultimately, they’ll be impaired in the long term.

DocuSign has more than 1.0 billion users worldwide, at present. It ended the quarter with $1.06 billion in cash, equivalents, restricted cash and investments.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
Capital.com

9.3/10

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Visit site

Industries


North America


Services


Stocks & Shares


Technology


USA


World

Generated by Feedzy