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DocuSign Q1 Beats Forecasts as Outlook Cut Sends Shares Tumbling

Trimming its full-year billings guidance sent shares tumbling after Q1 results topped forecasts.

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Overview

  • DocuSign posted Q1 FY2025 earnings of $0.90 per share on $763.7 million in revenue, surpassing Wall Street expectations of $0.81 per share and $748 million in sales.
  • The company forecast Q2 billings of $779 million, topping analysts’ projections, yet its shares plunged about 17% in after-hours trading on growth concerns.
  • DocuSign trimmed its full-year billings outlook, deepening investor unease over the digital signature market’s maturation.
  • Its operating margin of 8% remains below the S&P 500 average of 13%, although low debt and cash reserves equal to 24% of assets underpin its financial stability.
  • Management is emphasizing AI-driven innovations—particularly integrating its IAM platform into Salesforce deployments—to drive expansion amid competition from Adobe.