DocuSign plunges almost 30% after e-signature company issues weak fourth-quarter guidance

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  • DocuSign said it expects fourth-quarter revenue of $557 million to $563 million, beating the average analyst estimate of $573.8 million.
  • The stock fell nearly 30% in extended trading on Thursday following the report.
  • For the third quarter, DocuSign topped earnings and revenue estimates.

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Shares of DocuSign fell nearly 30% in extended trading Thursday after the developer of e-signature software provided a forecast for the end of the year that missed analysts’ estimates.

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DocuSign said in its fourth quarter revenue would come in between $557 million and $563 million. earnings report for the third quarter. Analysts were expecting an average of $573.8 million in revenue, according to Refinitiv.

Here are the prime numbers for Q3:

  • Income:58 cents per share, adjusted, versus 46 cents as expected by analysts, according to Refinitiv.
  • Revenue: $545.5 million, versus $531 million as expected by analysts, according to Refinitiv.
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DocuSign just reported its sixth straight period of over 40% revenue growth, with remote work and more industries benefiting from the increased use of electronic signatures. The company hit the top and bottom lines for the third quarter, but investors are more concerned about what lies ahead as businesses settle into purchases they made during the pandemic.

For the last three months of the year, growth is expected to come in at around 30%, which CEO Dan Springer acknowledged as a disappointment after an “extraordinarily high growth rate to scale” during the first half of 2020.

“While we expected a final step down from the peak level of growth achieved during the height of the pandemic, the environment shifted much faster than we anticipated,” Springer said on the earnings call.

company too announced That Michael Sheridan, president of the international and former CFO, left the company on November 30.

Before the after-hours dip, DocuSign’s stock was up about 4% for the year, trailing the S&P 500’s 20% gain. Last year, DocuSign’s shares tripled in value.

Watch: DocuSign CEO on Growth

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