DocuSign Tumbles As Macro Weighs on Billings Forecast

Shares of DocuSign (DOCU:US) closed sharply lower last week after the e-signature company reported weaker-than-expected guidance for its first quarter.

As far as Q4 2022 results are concerned, the company reported an adjusted profit per share of $0.65 to easily beat the expected $0.52. Revenue increased by 14% year-over-year to $659.6 million, exceeding the consensus by $639.5 million.

Billing for the quarter was $739 million, rising 10% YoY and ahead of the $699.1 million estimate. However, despite strong Q4 results, DOCU opted to offer a conservative outlook.

For this quarter, the company sees revenue at $641 million and billings at $620 million (both at the midpoint of the guidance range), which compares to the consensus of $640.9 million and $625.1 million, respectively.

For FY24, the company sees revenue at $2.70-2.71 billion and billings at $2.72 billion, both in line with the Street consensus.

"We finished the year strong, delivering across our key financial metrics and making tangible progress on our strategic priorities.  We are reshaping DocuSign to invest in our innovation roadmap and self-service capabilities," said Allan Thygesen, CEO of DocuSign. "Looking ahead, we aim to drive profitable growth at scale by executing our mission of smarter, easier, and trusted agreements."

Moreover, the announced CFO transition - Cynthia Gaylor to step down later this year - has also weighed on shares.

Congressman Ro Khanna was both buying and selling DOCU stock in recent months. Most recently, he bought some shares on January 09, when the stock closed at $56.51.

On Monday, DOCU shares closed at $53.06.