E-signature company DocuSign reported a first-quarter earnings miss on Thursday and saw its shares tumble down in extended trading by more than 24%. DOCU stock traded around $90 per share on Thursday morning, only to plunge to $67.02 by the end of the day. This is the lowest it has been since the pre-pandemic.
Announcing the results of its fiscal quarter, which wrapped up on April 30th, DocuSign revealed 25 percent year-over-year growth in revenue as well as 67,000 new customers. The reported revenue stood at $588.7 million compared to the $581.8 million expected by analysts.
However, DocuSign missed wide on the earnings per share. The company reported 38 cents per share, while analysts expected 46 cents per share. This caused the investors to bail on the stock, which shouldn’t be surprising considering a recent focus shift to profitability rather than growth.
DocuSign experienced rapid growth in early 2020 as businesses turned to digital platforms due to the coronavirus pandemic. The company continued to perform well throughout 2021, hitting $310.05 per share in September. However, the business has been on the decline since then, and the company is now trying to figure out a way to position itself on the market in a more sustainable way.
