Digital document workflow pioneer DocuSign on Thursday reported fiscal Q3 revenue and profit that topped Wall Street's expectations. But it offered an outlook that missed consensus for this quarter's revenue, raising its year revenue view but still missing the average estimate.
The report sent DocuSign shares down 23% in late trading.
CEO Dan Springer remarked, "After six quarters of accelerated growth, we saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth."
Added Springer, "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."
Also: DocuSign CEO Springer: Don't worry, we're still growing strong
Revenue in the three months ending in July rose 42% year over year to $545 million, yielding a net profit of 58 cents a share, excluding some costs.
Analysts had been modeling $533 million and 46 cents per share.
DocuSign said that its "billings" in the quarter, which combine deferred revenue that had been invoiced and reported revenue, rose by 28% to $565.2 million.
For the current quarter, the company sees revenue of $557 million to $563 million, below consensus for $575 million.
For the full year, the company sees revenue in a range of $2.083 billion to $2.089 billion, up from a prior forecast of $2.078 billion to $2.088 billion, and slightly below consensus of $2.088 billion.