Yahoo Finance Why DocuSign Stock Soared Friday
What happened
Shares of DocuSign (NASDAQ: DOCU) jumped on Friday, rising as much as 23.9%. As of 10:30 a.m. EDT, the stock was up about 20%. The stock's gain follows the e-signature and electronic-document specialist's second-quarter results of fiscal 2020.
Bullishness for the stock is likely related to the company's better-than-expected quarterly revenue and its strong guidance.
Image source: Getty Images.
So what
DocuSign reported second-quarter revenue of $235.6 million, up 41% year over year. On average, analysts had been expecting revenue of $220.9 million. Non-GAAP (adjusted) earnings per share for the period were $0.01, down from $0.03 in the year-ago period and below analysts' average forecast for adjusted earnings per share of $0.04.
"With revenue growth exceeding 40% and billings growth at 47%, our second quarter performance reflects our clear leadership position in e-signature and increasing adoption of our broader Agreement Cloud offering," said DocuSign CEO Dan Springer in the company's second-quarter earnings release.
Now what
The tech company's outlook was strong. Management said it expected its fiscal third-quarter revenue to be between $237 million and $241 million -- ahead of a consensus analyst forecast for $232 million. The company also raised its full-year outlook, with management guiding for fiscal 2020 revenue between $947 million and $951 million, up from a previous forecast for revenue between $917 million and $922 million.
More From The Motley Fool
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends DocuSign. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
