Why DocuSign Stock Fell Friday
What happened
Shares of e-signature company DocuSign (NASDAQ: DOCU) took a hit on Friday, falling as much as 16.6%. As of 1:12 p.m. EDT, the stock was down 12.4%.
The stock's decline follows DocuSign's fiscal first-quarter results, which were solid overall. A deceleration in billings growth, however, may have spooked some investors.
So what
DocuSign's fiscal first-quarter revenue increased 37% year over year to $214 million, ahead of analysts' average estimate for revenue of $208 million. Non-GAAP earnings per share for the period were $0.07, beating a consensus forecast for $0.05.
Results were helped by a 26% year-over-year increase in total customers.
Billings were up 27% year over year -- a deceleration from 31% growth in the company's previously reported quarter.
Now what
Slower growth in billings is a reflection of a longer sales cycle due to the company's shift toward selling more products outside of its core e-signature tools.
Reflecting management's positive outlook for revenue growth, the company lifted its forecast for full-year revenue. The midpoint of the company's new guidance range for fiscal 2020 revenue is $919.5 million, up from a previous forecast for $912.5 million.
10 stocks we like better than DocuSignWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and DocuSign wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 1, 2019
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends DocuSign. The Motley Fool has a disclosure policy.