DOCU Stock Tumbles As Fiscal 2023 Revenue Guidance Misses Estimates

DocuSign stock plunged after its January-quarter earnings met estimates and revenue topped views, but fiscal 2023 guidance for DOCU stock came in well below expectations.

DocuSign stock tumbled 13.7% to near 81 in extended trading on the stock market today. San Francisco-based DocuSign (DOCU) reported fourth-quarter earnings after the market close on Thursday.

DocuSign earnings came in at 48 cents a share on an adjusted basis, up 30% from a year earlier, said the maker of electronic signature software. Revenue rose 35% to $580.8 million, the company said.

A year earlier, DocuSign earnings were 37 cents a share on sales of $431 million.

DOCU Stock: Revenue Guidance Falls Short

Analysts that follow DocuSign stock expected the company to report earnings of 48 cents a share on sales of $561.6 million.

Billings in the fourth quarter rose 25% to $670.1 million, topping estimates for 22% growth.

For fiscal 2023, DocuSign forecast revenue in a range of $2.47 billion to $2.48 billion, missing estimates. Analysts had projected revenue of $2.61 billion.

In addition, DocuSign announced a $200 million stock repurchase program.

More In-Person Meetings

Demand for DocuSign products surged during the early part of the coronavirus outbreak but many businesses are resuming in-person meetings.

The company’s software also automates the filing of contracts over the internet. In 2022, DOCU stock had retreated 35% heading into the earnings report.

DocuSign stock holds a Relative Strength Rating of only 9 out of a best-possible 99, according to IBD Stock Checkup.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

How To Use The 10-Week Moving Average For Buying And Selling

MarketSmith: Research, Charts, Data And Coaching All In One Place