DocuSign rises more than 21% on revenue beat and strong guidance

Earnings

DocuSign CEO Dan Springer.

Source: DocuSign

Shares of enterprise cloud company DocuSign shot up about 19% Friday morning after the company reported better-than-expected revenue and strong guidance.

The rally added about $1.5 billion to the company’s market cap, bringing it to $9.6 billion.

For its second quarter of 2020, DocuSign reported $236 million in revenue, well above the Refinitiv consensus estimate of $221 million.

The company also provided strong guidance for the third quarter and full fiscal year. Raising its outlook for the full year 2020, DocuSign now expects total revenue to fall between $947 million and $951 million. Previously, the company said it expected full-year revenue to fall between $917 million and $922 million.

DocuSign fell short of expectations for earnings, however, reporting 1 cent in adjusted earnings per share compared with analyst estimates of 4 cents per share, according to Refinitiv.

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