DocuSign jumps 14% on double-digit revenue gain, boosted cash flows
E-signature name DocuSign (NASDAQ:DOCU) jumped 14% after hours Thursday following a first-quarter earnings report where it easily beat expectations on top and bottom lines, with broad revenue gains and improved cash flow.
Revenues rose 12% in total to $661.4M (they had been expected to rise about 9%). While core subscription revenue rose 12%, professional services and other revenue also grew 14% to $22.1M.
Billings increased by 10% to $674.8M. Meanwhile, non-GAAP gross margin ticked up to 83% from 81% a year ago.
"DocuSign's first-quarter results, coupled with traction on our strategic objectives, reflect a solid start to the year," CEO Allan Thygesen said. "While we have work ahead of us, I am encouraged by our progress to enable smarter, easier, trusted agreements."
Net cash from operations rose to $233.6M from a year-ago $196.3M, and free cash flow increased to $214.6M from $174.6M. Liquidity stood at $1.4B at quarter's end.
For the second quarter, it's guiding to total revenue of $675M-$679M, with subscription revenue of $658M-$662M and billings of $646M-$656M. Non-GAAP gross margin is seen at 81-82%, while operating margin is forecast at 24-25%.
For the full year, the company is forecasting total revenue of $2.713B-$2.725B, with subscription revenue of $2.64B-$2.652B and billings of $2.737B-$2.757B (vs. consensus revenue of $2.7B).
The company also announced it's adding American Express executive Anna Marrs to its board of directors.
"Her senior executive experience leading global financial institutions will enrich our board discussions and strategic decision-making," said DocuSign Chairman Mary Agnes Wilderotter.
Conference call to come at 4:30 p.m. ET.
Source: Seeking Alpha
