DocuSign stock tanks 18% after company cuts billings outlook

DocuSign cut its billings forecast for the full fiscal year, as billings for the fiscal first quarter fell short of estimates.
The downbeat forecast overshadowed the company's better-than-expected earnings and revenue results.
Revenue in the quarter jumped 8% year over year to $764 million.

Shares of DocuSign closed down more than 18% on Friday, a day after the e-signature provider reported stronger-than-expected earnings but slashed its full-year billings outlook.

Watch NBC Bay Area News free wherever you are

WATCH HERE

Here's how the company performed in its fiscal first quarter, compared with estimates from analysts polled by LSEG:

Earnings per share: 90 cents, adjusted, vs. 81 cents expected
Revenue: $764 million vs. $748 million expected

Billings, a closely watched sales metric, came in at $739.6 million in the fiscal first quarter, which ended April 30. That was lower than the $746 million expected by analysts, according to StreetAccount. It also fell short of the company's own forecast, which guided for billings between $741 million and $751 million.

For the current fiscal year, DocuSign said it expects billings of $3.28 billion to $3.34 billion, down from a range of $3.3 billion to $3.35 billion.

Money Report

news 21 mins ago

AI humans in China just proved they are better influencers. It only took a duo 7 hours to rake in more than $7 million

news 60 mins ago

SpaceX's Starship explodes during routine test in Texas

In the first quarter of DocuSign's 2026 fiscal year, revenue jumped 8% year over year to $764 million. Subscription revenue increased 8% from the same period a year ago to $746.2 million.

DocuSign reported net income of $72.1 million, or 34 cents per share, compared with net income of $33.8 million, or 16 cents per share, a year earlier.

Get a weekly recap of the latest San Francisco Bay Area housing news with the Housing Deconstructed newsletter.

For the fiscal second quarter, the company expects revenue to be between $777 million and $781 million, compared with consensus estimates of $775 million, according to LSEG. For the full fiscal year, DocuSign projected revenue of $3.15 billion to $3.16 billion. Analysts were expecting $3.14 billion, according to LSEG.

The company also announced an additional $1 billion stock buyback, taking its share repurchase plan to $1.4 billion.

DocuSign shares are down more than 16% year to date.

WATCH: AI-efficient and flush with capital: 2025 startups and a VC's advice to founders