- DocuSign& Quarterly results and #39;s outlook beat expectations.
- CEO Allan Thygesen warned of customer demand.
- The company also introduced new products and appointed leaders.
Shares of DocuSign (DOCU) gave up early gains and fell Friday morning after the online document signing service warned of customer demand. It came after the company reported better-than-expected results and boosted its outlook for the current quarter and year. She also announced new products and several executive hires.
CEO Allan Thygesen told analysts the company is seeing a “softer pipeline and cautious customer behavior,” along with smaller deal sizes and lower volume.
Ahead of his comments, DocuSign reported first-quarter fiscal 2024 earnings of $0.72 per share, nearly 30% better than estimates. Sales rose 12% to $661 million, also more than expected. Subscription revenue increased 12% to $639 million.
Thygesen called it a “good start to the year”, adding that he was encouraged by “our progress in enabling smarter, easier and more reliable agreements”. He said the company will be well positioned going forward by executing on its strategy and leveraging its “competitive advantages”, particularly in the area of artificial intelligence (AI).
The company has indicated that it forecast current-quarter revenue in the range of $675 million and $679 million, and full-year sales of $2.71 billion to $2.73 billion. Both exceeded expectations.
DocuSign announced the introduction of new product capabilities, including Web Forms, which the company said was “an interactive solution for organizations to capture data and generate dynamic agreements.”
He also named a new Chief Financial Officer, Chief Product Officer and Chief Information Security Officer.
DocuSign shares fell by more than 3% in early trading Friday at 11:30 a.m. EST.
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