DocuSign inventory tanks 18% after corporate cuts billings outlook

Shares of DocuSign tanked 18% in buying and selling on Friday, an afternoon after the e-signature supplier reported stronger-than-expected profits however slashed its full-year billings outlook.

Here’s how the corporate carried out within the fiscal first quarter, when compared with estimates from analysts polled by means of LSEG:

• Earnings in line with proportion: 90 cents, adjusted, vs. 81 cents anticipated
• Revenue: $764 million vs. $748 million anticipated

Billings, a closely-watched gross sales metric, got here in at $739.6 million within the fiscal first quarter, which ended April 30. That used to be less than the $746 million anticipated by means of analysts, in keeping with StreetAccount. It additionally fell in need of the corporate’s personal forecast, which guided for billings between $741 million and $751 million.

For the present fiscal 12 months, DocuSign mentioned it expects billings of $3.28 billion to $3.34 billion, down from a variety of $3.3 billion to $3.35 billion.

In the primary quarter of DocuSign’s 2026 fiscal 12 months, earnings jumped 8% 12 months over 12 months to $764 million. Subscription earnings greater 8% from the similar duration a 12 months in the past to $746.2 million.

DocuSign reported web source of revenue of $72.1 million, or 34 cents in line with proportion, in comparison to web source of revenue of $33.8 million, or 16 cents in line with proportion, a 12 months previous.

For the fiscal 2nd quarter, the corporate expects earnings to be between $777 million and $781 million, in comparison to consensus estimates of $775 million, in keeping with LSEG. For the total fiscal 12 months, DocuSign projected earnings of $3.15 billion to $3.16 billion. Analysts had been anticipating $3.14 billion, in keeping with LSEG.

The corporate additionally introduced an extra $1 billion inventory buyback, taking its proportion repurchase plan to $1.4 billion.

DocuSign stocks are down greater than 16% 12 months so far.

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