DocuSign Inc Reports Q2 Earnings

DocuSign Inc (NASDAQ:DOCU) reported better-than-expected second-quarter earnings and revenue, but its shares dropped 6% in after-hours trading due to unsatisfactory guidance.

The e-signature and agreement cloud company posted adjusted earnings per share of $0.97, surpassing analyst estimates of $0.81. Revenue for the quarter reached $736 million, a 7% increase year-over-year, exceeding the consensus forecast of $727.2 million.

Despite the strong quarterly performance, DocuSign’s forward guidance seemed to underwhelm the market. The company projected third-quarter revenue between $743 million and $747 million, slightly above the analyst consensus of $739.4 million.

For the full fiscal year 2025, DocuSign expects revenue in the range of $2.94 billion to $2.952 billion, marginally higher than the $2.93 billion consensus estimate.

CEO Allan Thygesen highlighted the company’s progress, stating, “DocuSign continued its evolution with improved business stability and increased efficiency, resulting in record operating profit.” He noted the launch of the company’s Intelligent Agreement Management platform, expressing optimism about early results and customer feedback.

The company’s subscription revenue, which forms the bulk of its income, grew 7% year-over-year to $717.4 million. Billings, a key metric for future revenue, increased by 2% year-over-year to $724.5 million.

DocuSign also reported strong cash flow, with net cash provided by operating activities reaching $220.2 million.