DocuSign, Inc. (NASDAQ: DOCU) reported its second quarter financial results and topped estimates. Despite beating analysts’ estimates, shares were trading 6.03% lower shortly after the opening bell on Thursday.
For the second quarter, DocuSign reported revenue of USD 167 Million, increasing 33% year over year and beating analysts’ estimate of USD 158.7 Million. The Company reported an EPS of USD 3 cents, beating estimates of USD 2 cents. Billings within the quarter were USD 172.2 Million, increasing 32% year over year.
The stronger revenue growth was largely due to DocuSign’s Subscription revenue growth. In the quarter, subscription revenue was USD 158.5 Million, increasing 35% year over year. DocuSign said the Company added 25,000 customers in the quarter, bringing its customer base to 430,000 globally.
"We had a strong second quarter, driven by 35% year-over-year growth in subscription revenue. We added more than 25,000 customers, bringing our customer base to almost 430,000 worldwide," said Dan Springer, Chief Executive Officer of DocuSign. "And this week, we also closed our previously-announced acquisition of SpringCM, which accelerates our vision to modernize the world's Systems of Agreement—all the way from preparing to signing, acting-on, and managing agreements. With SpringCM, we have a broader set of products to sell, additional technologies to commercialize and a team whose experience complements ours almost perfectly."
As for the next quarter, DocuSign raised its guidance for the full year. The Company raised its revenue expectations in between USD 683 Million to USD 688 Million from its previous estimates of USD 652 Million to USD 658 Million.
DocuSign shares are now up 49% since launching its initial public offering back in April this year.