- E-signing company DocuSign fell 39% in regular trading on Friday.
- The company gave less guidance in the fourth quarter, as it corresponds to more general economic activity.
- DocuSign was a major beneficiary of the “work from home” epidemic, which increased by 200% in 2020.
Electronic signature platform DocuSign fell 39.3% on Friday, after the company reported earnings yesterday that beat expectations, but issued lower guidance in the fourth quarter.
DocuSign was one of the “living at home” loved ones of 2020, which has grown by 200% over the past year, as millions of office workers worked remotely and the impact of the global lockdown could have resulted in very little personal business. ۔
This year, as vaccinations have reached billions and more normal economic activities have resumed, DocuSign’s share price has risen nearly 5% – the equivalent of Amazon.
As a result, it has outperformed other former epidemic stars, such as the video conferencing platform Zoom, which has fallen by about 44%. Identity management company Okta, which lost 13%. Or Piloton, a domestic exercise company that has lost 70% of its value.
In its third-quarter revenue, DocuSign said it expects revenue of $ 557-563 million in the fourth quarter, lower than analysts’ expectations of $ 573.8 million.
“While we expected a final step below the peak of growth achieved during the epidemic, the environment changed faster than we expected,” the chief executive told CNBC on the company’s earnings call. Quoting Dan Springer.
For the three months ended October 31, DocuSign reported a 42% year-over-year increase in total revenue of $ 545.5 million, marking six consecutive quarterly growth.
Shares of DocuSign last fell 38.12% to: 144.69 at 9:50 am ET, falling to 1 141.88 in early trade. They closed 1.3% higher at 3 233.82 on Thursday.