Though DocuSign (NASDAQ: DOCU) stock has declined alongside a broader-market sell-off recently, the e-signature and cloud-based document company's underlying business certainly isn't pulling back. In fact, DocuSign's revenue growth accelerated in its third quarter of fiscal 2019.
Here's a look at DocuSign's third-quarter results, along with an overview of some just-announced changes to its board of directors and executive positions.
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DocuSign's third-quarter results: The raw numbers
- DocuSign's revenue jumped 37% year over year -- a significant acceleration from 33% growth in Q2.
- DocuSign's non-GAAP earnings per share was about breakeven. This was down sequentially from $0.03 in Q2.
- DocuSign added another 25,000 customers during the quarter, bringing total customers to 454,000.
- Year-over-year growth in billings accelerated from 32% growth in Q2 to 40% growth in Q3.
- Free cash flow was negative $4.3 million, down from positive free cash flow of $7 million in the year-ago quarter.
- Subscription revenue increased 38% year over year to $169.4 million.
- DocuSign's non-GAAP gross margin improved from 78% in the year-ago quarter to 79%.
- Professional services revenue increased 17% year over year to $9 million.
What management had to say
"Expansions within existing customers, traction around our System of Agreement vision, and our strategic partner ecosystem all contributed to our strong results," said DocuSign CEO Dan Springer in the company's third-quarter earnings release.
Alongside its third-quarter results, DocuSign also announced that current board member Maggie Wilderotter is assuming the role as the company's board chair as of Jan. 1. In addition, the company appointed Pivotal Software CFO Cynthia Gaylor as a new board director.
DocuSign also said Chief Strategy and Marketing Officer Scott Olrich is gaining an expanded role as the company's chief operating officer. Meanwhile, DocuSign's senior vice president of North American sales will take on a new role as chief revenue officer.
This is "the right executive structure to propel us forward for years to come," said Springer in a press release about these changes to its board and executive team.
In light of the company's strong momentum, management raised its guidance for full-year revenue. Now DocuSign expects fiscal 2019 revenue to be between $693 million and $695 million, up from previous guidance for revenue between $683 million and $688 million.
For the company's fourth quarter of fiscal 2019, management expects revenue to be between $192 million and $194 million.
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