DocuSign Inc reported fourth-quarter earnings and revenue for the fiscal year 2023 that beat Wall Street estimates, but the announcement that CFO Cynthia Gaylor would step down later this year caught investors by surprise.
The San Francisco-based electronic signature platform plunged 13.1% to $55.96 in the pre-market session on Friday.
It didn’t help that the stock was also downgraded by JPMorgan to “Underweight” from “Neutral.” The US banking giant cited Gaylor’s departure, deteriorating demand trends, and potential competition from Microsoft.
For the period ended January 31, 2023, DocuSign beat earnings estimates handily by reporting non-GAAP net income per diluted share of $0.65, compared to the consensus earnings estimate of $0.52 per share on revenue of $632.8 million.
The company posted fiscal 4Q revenue of $659.6 million, a 14% year-over-year jump, driven by high subscription revenue of $643.7 million. Professional services and other revenue contributed $15.9 million, a decrease of 5% year-over-year.
DocuSign had cash and equivalents of $1.2 billion at the end of the quarter.
"We finished the year strong, delivering across our key financial metrics and making tangible progress on our strategic priorities. We are reshaping DocuSign to invest in our innovation roadmap and self-service capabilities," DocuSign CEO Allan Thygesen said in a statement.
For the fiscal year that ended January 31, 2023, DocuSign posted $2.5 billion in revenue, a 19% year-over-year increase.
The company said it expects 1Q revenue of $639 million to $643 million and fiscal year revenue of $2.69 billion to $2.70 billion.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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