DocuSign Projects Sales That Top Estimates on Remote-Work Demand

(Bloomberg) -- DocuSign Inc. projected revenue that topped analysts’ estimates, in a sign of robust demand for the application that lets businesses sign documents remotely during the coronavirus pandemic.

Sales in the period that ends in October will be as much as $362 million, the San Francisco-based company said Thursday in a statement. Analysts, on average, projected $336 million, according to data compiled by Bloomberg. The company raised its annual revenue to as much as $1.39 billion from an earlier expectation of $1.32 billion. Analysts were looking for $1.32 billion.

DocuSign Chief Executive Officer Dan Springer has tried to integrate the e-signature software with a variety of other business programs so it can fit into the workflow of companies of all sizes. In an effort to differentiate itself from competitor Adobe Inc., DocuSign recently bought Liveoak Technologies Inc. to make it easier for organizations to handle transactions with videoconferencing. That feature is relevant while millions of people in the U.S. are stuck at home to reduce the spread of Covid-19 -- a phenomenon that has boosted DocuSign’s fortunes and potential in the eyes of many Wall Street analysts.

Shares were little changed in extended trading after closing at $242.01 in New York. The stock has more than tripled this year.

Fiscal second-quarter revenue climbed 45% to $342.2 million, beating analysts’ projections of $319.3 million. Profit, excluding some items, was 17 cents a share, while analysts were expecting 8 cents.

“In an accelerating digital world where business can be conducted from anywhere, the need to agree electronically and remotely has never been stronger, as shown in our 61% year-over-year billings growth,” Springer said in the statement.

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