58.47, +2.48) has climbed 4.5% in pre-market after beating quarterly
expectations and issuing better than expected guidance.
Docusign has had a very strong showing since its stock began trading on the public market on April 27, having climbed more than 45.0% leading up yesterday's release of the first quarter report.
The company specializes in automating the traditional paper-based agreement process. The company's e-signature solution was described by a Forrester Research report from October 2016 as the strongest brand and market share leader in its industry.
In its offering documents, DocuSign revealed that seven of the top ten global technology companies, 18 of the top 20 global pharmaceutical companies, and ten of 15 top global financial services companies are among DocuSign's customers. More than 700 mln transactions have been completed on the company's platform since inception in 2003.
For the first quarter, the company reported above-consensus earnings of $0.01 per share on a 37.3% year/year jump in revenue to $155.81 mln, which was also ahead of expectations. The company's forward guidance was also better than expected. Docusign primed the market for second quarter revenue between $157 mln and $160 mln while revenue for the full year is expected between $652 mln and $658 mln. Both guidance ranges are ahead of market expectations.
Subscription revenue during the first quarter grew 38.7% year/year to $148.20 mln while Professional Services and other revenue increased 14.4% year/year to $7.61 mln.
Contract liabilities grew 43.0% year/year to $290.50 mln. Billings
increased 33.0% year/year to $168.90 mln.
Non-GAAP gross margin increased to 80% from 78% one year ago. Non-GAAP free cash flow hit $8.81 mln, up from a use of $7.47 mln one year ago.