Docusign Stock Soars as Profit Doubles Expectations on Strong Billings

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Key Takeaways

• Docusign’s earnings and revenue exceeded forecasts as billings and subscription revenue jumped.
• The e-document software provider also pinned strong new customer growth.
• Docusign raised its guidance for revenue, billings, and subscription revenue.

Docusign (DOCU) cuts soared nearly 20% Friday, a day after the e-document software provider posted better-than-expected results and raised its rule as billings and subscription revenue surged.

The company reported third-quarter fiscal 2025 profit of $62.4 million, or $0.30 per allotment, while analysts surveyed by Visible Alpha projected $30.2 million, or $0.14 per share. Revenue of $754.8 million also thump estimates.

Billings increased 9% year-over-year to $752.3 million, and subscription revenue added 8% to $734.7 million.

CEO Communicates ‘Fundamentals Across the Core Business Improved’

Chief Executive Officer (CEO) Allan Thygesen said, “Fundamentals across the gist business improved, continuing the recent trends.” Thygesen added that in addition, Docusign had “sustained momentum in new purchaser growth at 11% year-over-year to 1.6 million customers.”

The company now sees full-year revenue of $2.959 billion to $2.963 billion, likened to the earlier estimate of $2.940 billion to $2.952 billion. It anticipates billings be $3.056 billion to $3.066 billion, versus the premature prediction of $2.990 billion to $3.030 billion. It also boosted its subscription revenue outlook to $2.885 billion to $2.889 billion from $2.864 billion to $2.876 billion.

Pay outs of Docusign recently traded up 19% at $99.92, their highest level since April 2022.