DocuSign raises full-year guidance despite macro challenges

DocuSign (DOCU) raised its full-year guidance despite macro headwinds the company experienced. The company's second quarter earnings beat expectations on both revenue and adjusted earnings. Yahoo Finance Live discusses DocuSign's second quarter results.

Video Transcript

JULIE HYMAN: DocuSign is on the list. The shares now up less than 1%. But they were climbing quite a bit more in premarket trading and after the bell yesterday.

The company raised its full-year guidance despite battling macro headwinds. The company CFO said DocuSign remains focused on what we can control. You see there a little bit of an increase in the forecast. And it looks like a lot of the analysts are pointing to Billings as well as something positive from the company, that Billings forecast in particular.

Tyler Radke over at Citi saying, results were much better than feared with that strong beat on Billings. He also said the company is not out of the woods yet. It does still need to accelerate growth. But the things are getting a little bit better here. And I think we have now lapped one year since Dan Springer left the company as CEO--

BRAD SMITH: That's about right.

JULIE HYMAN: --if I'm not mistaken. So new leadership really trying to press things forward.

BRAD SMITH: Yeah. That new CEO Allan Thygesen, CEO of DocuSign, saying that we increased our pace of innovation by delivering new key features while strengthening our self-service and partner distribution channels. Also receiving tremendous enthusiasm, product roadmap, particularly, from enterprise customers.

You mentioned Billings. Billings, $711 million in this most recent quarter. That was an increase of 10% year-over-year. Also, speaking of the revenue here, you saw a net increase of about 11% year-over-year.

Subscription revenue-- that's what you should pay attention to as well here. That is much more of the contracted or annualized figure that a lot of investors can keep an eye on over an extended period of time. That was up 11% year-over-year.

JULIE HYMAN: Yeah. All of this at the backdrop. I just wanted to mention, the stock is still down 6% this year. And I believe it fell last year quite a bit as well, if I remember. Yeah. It was down 64% last year and 31% the year over that. Remember, you saw the pandemic bump. And then just could not keep that momentum going.