DocuSign Inc (NASDAQ:DOCU) saw its shares soar over 18% after the electronic signature company reported better-than-expected third quarter results and provided upbeat guidance for the current quarter and full fiscal year.
For the third quarter ended October 31, 2024, DocuSign posted adjusted earnings per share of $0.90, surpassing analyst estimates of $0.87. Revenue came in at $754.8 million, up 8% YoY and above the consensus forecast of $745.26 million.
The company's strong performance was driven by momentum in its Intelligent Agreement Management (IAM) platform. CEO Allan Thygesen noted, "In Q3, early IAM momentum outpaced expectations, and we continued to drive improvement in our core business with strong revenue growth and operating profit."
Looking ahead, DocuSign provided an optimistic outlook. For the fourth quarter, the company expects revenue between $758 million and $762 million, above analyst projections of $756.2 million.
For the full fiscal year 2025, DocuSign anticipates revenue of $2.959 billion to $2.963 billion, exceeding the consensus estimate of $2.947 billion.
The company's billings, a key metric indicating future revenue, grew 9% YoY to $752.3 million. DocuSign also reported strong cash flow, with free cash flow of $210.7 million for the quarter.
This content was originally published on Investing.com
