Dobbsign Inc.’s website on a laptop computer located in Dobbs Ferry, NY, USA on Thursday, April 1, 2021.
Tiffany Huggler-Geared | Bloomberg | Getty Images
Share DocuSign It plunged 24% on Friday after electronic signature software makers announced lower-than-expected first-quarter earnings.
Thursday’s DocuSign report Adjusted earnings per share are 38 cents, below Wall Street’s expected 46 cents per share. Revenue mistakes obscured DocuSign’s quarterly outperform revenue, which came in at $ 588.7 million, compared to a consensus estimate of $ 581.8 million.
DocuSign’s business showed significant growth in the early days of the coronavirus pandemic, with more online transactions, but recently as it faces a tough comparison with the extraordinary growth of 2020 and early 2021. It is slowing down in the quarter. We have experienced challenges due to the deteriorating macroeconomic environment, especially the war in Ukraine.
Several companies including Evercore ISI, Bank of America and William Blair Downgrade inventory Following the revenue report. William Blair’s Jake Roberge has downgraded DocuSign to market performance. This is because the company’s 2023 billing guidance is weaker than expected.
DocuSign predicts that annual billing will increase by 7% to 8% year-on-year, “well below the midpoint of DocuSign’s previous guidance that demanded a 15% increase,” Roberge said. I am saying.
“Customers haven’t canceled the platform, but DocuSign has confirmed that many customers are reducing platform consumption from the peak of the pandemic as contracts are renewed,” Roberge said. The company added that it plans to reduce its recruitment targets this year to focus. About profitability.
“Given the limited visibility of management, the sales restructuring that takes months to complete, and the lack of short-term catalysts, we believe DocuSign’s inventory will remain in range over the next few quarters.” He added.
— CNBC Jordan Novette Contributed to this article.
look: DocuSign is a business that will be compromised in the long run, says Adam Parker of Trivariate.