- The stock price of DocuSign Inc (NASDAQ: DOCU) fell by over 30% pre-market today. This is why it happened.
The stock price of DocuSign Inc (NASDAQ: DOCU) fell by over 30% pre-market today. Investors responded negatively to what was revealed in the company’s fiscal quarter ended October 31, 2021.
Q3 Financial Highlights
— Total revenue was $545.5 million, an increase of 42% year-over-year. Subscription revenue was $528.6 million, an increase of 44% year-over-year. Professional services and other revenue was $16.9 million, an increase of 4% year-over-year.
— Billings were $565.2 million, an increase of 28% year-over-year.
— GAAP gross margin was 79% compared to 74% in the same period last year. Non-GAAP gross margin was 82% compared to 79% in the same period last year.
— GAAP net loss per basic and diluted share was $0.03 on 198 million shares outstanding compared to $0.31 on 186 million shares outstanding in the same period last year.
— Non-GAAP net income per diluted share was $0.58 on 208 million shares outstanding compared to $0.22 on 206 million shares outstanding in the same period last year.
— Net cash provided by operating activities was $105.4 million compared to $57.4 million in the same period last year.
— Free cash flow was $90.0 million compared to $38.1 million in the same period last year.
— Cash, cash equivalents, restricted cash, and investments were $908.2 million at the end of the quarter.
The fourth-quarter forecast for the company missed the estimates. For the fourth quarter, the company said it is expecting revenue of $557 million to $563 million. Analysts were expecting slightly more than $573 million.
In terms of billings, DocuSign now expects $647 million to $659 million. And analysts were expecting fourth quarter billings of $705.4 million.
“Third quarter revenue growth of 42% year-over-year and operating margin of 22% exceeded our expectations. After six quarters of accelerated growth, we saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth. With a $50 billion TAM and 1.11 million customers worldwide, we are confident in the value DocuSign delivers in an increasingly digital anywhere economy.”
— Dan Springer, CEO of DocuSign
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.