DocuSign shares plunge 23% on earnings miss

DocuSign Inc.’s. stock
DOCU,
-3.04%
fell 23% in extended trading Thursday after the electronic-documents company reported fiscal first-quarter revenue that exceeded analysts’ forecasts but came up short on earnings. DocuSign reported a net loss of $27.4 million, or 14 cents a share, compared with a net loss of $8.35 million, or 4 cents a share, in the year-ago quarter. Adjusted earnings were 38 cents a share. Revenue increased 25% to $588.7 million from $469.1 million a year ago. Analysts surveyed by FactSet had expected on average net earnings of 46 cents a share on revenue of $583 million. DocuSign issued second-quarter revenue guidance of between $600 million and $604 million, at the low end of analysts’ projection of $601 million. “With over a billion users worldwide, the proven value of our products, and the significant opportunity we have ahead of us, we’re confident in our ability to successfully navigate the challenges of a dynamic global environment,” DocuSign Chief Executive Dan Springer said in a statement. Shares of DocuSign have plummeted 43% this year, while the broader S&P 500 index
SPX,
-2.38%
has tumbled 16%.