DocuSign Shares Crater After Hours on Weak Sales Forecast
(Bloomberg) -- DocuSign Inc. tumbled 30% in extended trading Thursday after the e-signature company’s quarterly revenue forecast missed analysts’ estimates, stoking concerns about slowing growth after the Covid-19 pandemic fueled a surge in demand in 2020.
If the drop holds through Friday’s close, it would be DocuSign’s worst one-day, post-earnings decline ever, according to data compiled by Bloomberg.
“After six quarters of accelerated growth, we saw customers return to more normalized buying patterns,” Chief Executive Officer Dan Springer said in a statement.
The company also reported billings for the fiscal third quarter that fell short of analysts’ projections. Quarterly adjusted profit and revenue came in stronger than expected.
DocuSign was up just 5.2% this year through Thursday’s close, valuing the company at $46 billion, after tripling in 2020.
©2021 Bloomberg L.P.