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CEO Allan Thygesen said the company’s artificial intelligence-powered agreement management platform launched during the quarter was gaining traction.
DocuSign, Inc. (DOCU) shares climbed sharply in Thursday’s after-hours session after the cloud platform provider that allows individuals and businesses to sign and share documents electronically announced forecast-beating fourth quarter results and issued positive guidance.
The San Francisco, California-based company reported adjusted earnings per share (EPS) of $0.86 for the fourth quarter of the fiscal year 2025. This marked an improvement from the year-ago quarter’s $0.76. The EPS also beat the Finchat-compiled consensus of $0.85.
Revenue was $776.3 million, a 9% increase year-over-year compared to the 8% growth in the third quarter. The topline exceeded the $761.64 million consensus estimate and the forecast of $758 million to $762 million the company issued in early December.
Subscription revenue of $757.8 million grew 8%.Among operational metrics, billings rose 11% to $923.2 million compared to the guidance of $870 million to $880 million.
The non-GAAP gross and operating margins were 82.3% and 28.8%, respectively, also beating the guidance.
DocuSign generated free cash flow of $279.6 million during the quarter. It ended the quarter with a cash position of $1.1 billion.
Allan Thygesen, CEO of Docusign, said, “Fiscal 2025 was a transformative year for Docusign.” The executive noted that the company’s artificial intelligence-powered agreement management platform Docusign IAM launched during the quarter was gaining traction.
Looking ahead, DocuSign guided first-quarter and full-year revenue of $745 million to $749 million and $3.129 billion to $3.141 billion, compared to the consensus of $755.74 million and $3.150 billion, respectively.
The company expects billings of $741 million to $751 billion for the first quarter and $3.30 billion to $3.07 billion for the full year.
On Stocktwits, retail sentiment toward DocuSign stock stayed ‘extremely bullish’ (97/100), with optimism improving from a day ago. The message volume also remained ‘extremely high.’ The stock was among the top 10 trending tickers on the platform late Thursday.
A bullish watcher called the earnings “good,” referring to DocuSign as a “growth stock.”
Another user predicted a stock move toward $90.
DocuSign ended Thursday’s after-hours session up 11.90% at $83.59. If the gains carry over to Friday’s regular session, the stock is on track to record its biggest single-day gains in three months, according to Koyfin.
The stock, however, is down about 17% year-to-date.
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