Shares of DocuSign Inc (NASDAQ: DOCU) fell 6.2% after hours following its below-par full-year revenue and billing guidance.
On the surface, results from the e-signature software company passed muster as it reported first-quarter earnings that beat expectations, with earnings per share of 82 cents surpassing Wall Street's forecast of 79 cents.
Revenue increased 7% to $709.6 million, slightly above the expected $707 million. Subscription revenue also exceeded expectations, rising 8% to $691.5 million.
DocuSign's billings rose 5% to $709.5 million, surpassing its target range of $685 million to $695 million. Net income for the quarter was $33.8 million, compared to breaking even the previous year.
Chief executive Allan Thygesen emphasised the company's focus on stabilizing the business and improving profitability.
However, the company's full-year revenue forecast of $2.92 billion to $2.93 billion was just below Wall Street's target.
Full-year billings were projected at $2.98 billion to $3.03 billion, contributing to investor disappointment. Additionally, DocuSign authorized a $1 billion stock buyback, adding to its existing repurchase program.