DocuSign leaps after Q2 earnings beat, 2023 revenue forecast boost

DocuSign  (DOCU) - Get Free Report shares moved firmly higher Friday after the online signature vending group posted stronger-than-expected first quarter earnings and lifted it full-year revenue forecast.

DocuSign earned 72 cents per share over the three months ending in July, rising around 63% from last year topping Street forecasts on a non-GAAP basis by around 6 cents per share. The group also notched an 11% gain in revenues, which hit $669.4 million, again topping analysts' forecasts of a $677.5 billion tally.

The group said full-year sales would likely rise to between $2.73 and $2.74 billion, a nudge higher than its prior forecast, thanks in part to an expanded partnership with Microsoft  (MSFT) - Get Free Report which will see the tech giant using DocuSign's products and services in its contract management workflows.

"While we are pleased with our results, like many others, we are seeing continued macro pressures tempering expansion rates," CEO Allan Thygesen told investors on a conference call late Thursday. "However, we remain focused on what we can control, executing against our initiatives to drive innovation and operational efficiency, further setting the foundation for growth while navigating an uncertain environment."

"As we continue our product evolution by adding intelligence and unlocking the data trapped in agreements, we're increasing productivity, reducing friction, and saving our customers time," he added. "This is a fundamental shift in the agreement space. I'm confident in our competitive advantage."

DocuSign shares were marked 3% higher in pre-market trading to indicate an opening bell price of $53.70 each, trimming the stocks' year-to-date decline to around 3%.

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