DocuSign shares plunge despite Q1 earnings beat

The e-signature and digital transaction management firm reported revenue of $214.0 million, an increase of 37% year-over-year.

DocuSign delivered better-than-expected first quarter financial results after the bell on Thursday. The e-signature and digital transaction management firm reported a first quarter net loss of $45.7 million, or 27 cents per share. On a non-GAAP basis, earnings came to 7 cents per share on revenue of $214.0 million, an increase of 37% year-over-year. 

Wall Street was expecting earnings of 4 cents per share on revenue of $208.15 million. 

For the current quarter, analysts are expecting earnings of 4 cents per share on revenue of $219.9 million. DocuSign responded with revenue in the range of $218 million to $222 million. 

For the year, DocuSign expects revenue in the range of $917 million to $922 million, above Wall Street estimates for $913 million.

Nonetheless, shares of DocuSign were down more than 16% after hours.

Elsewhere on the balance sheet, DocuSign said its subscription revenue was $201.5 million, up 36% year-over-year, while professional services and other revenue was $12.5 million, an increase of 64% year-over-year. Billing for the first quarter were $215.0 million, an increase of 27% year-over-year.

"Overall, we posted a solid first quarter for Fiscal 2020—revenues grew 37% year-over-year, we were again profitable on a non-GAAP basis, and we now have over half a million paying customers around the world," said DocuSign CEO Dan Springer. "What's more, we are seeing strong results from the work we've done to optimize our go-to-market sales motion, bringing in net new customers and expanding use cases within our installed base."