Can Docusign's AI offering accelerate growth?

Shares of Docusign (DOCU) are sliding after the company issued lower-than-expected second quarter billings guidance.

Yahoo Finance's Seana Smith and Brad Smith break down the company's first quarter earnings and its growth trajectory.

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This post was written by Melanie Riehl

Video Transcript

All right, let's take a look at docusign.

It's another trading take here on Yahoo finance share sinking after its billings guidance for the second quarter coming in below expectations.

The company though did see revenue in the first quarter climb about 7% from a year ago.

We are seeing some pressure on the stock here this morning with shares off nearly 8%.

When you take a look at the analysts commentary here, Morgan Stanley saying that docusign results and guidance obviously coming in below expectations management pointing to several encouraging the demand trends near term, expressing its medium term optimism around intelligent agreement management, one of the products there.

So even though this was a disappointing report on many fronts, there is some reason at least management trying to express that clearly to the street reason to be optimistic in the medium term here.

And again, you're looking at a three month chart here with gains of just around 4%.

But again, the early reaction to this ahead of the opening bell, you're looking at losses of just over 7%.

Yeah, just a question of, you know, what is the next iteration of growth?

Look like does it need to be acquired?

I mean, did they, did they did just announce um and of course, the Lion acquisition after Q One docusign closed that acquisition of, of Docus Smartt um Lion essentially, which is uh what they call a leader in A I based agreement technology uh and trying to automate workflows and such.

So does that actually move the needle for getting more of the remaining performance obligations of the RP OS are building out uh the customer book and pipeline here.

And I think the jury is still out if you ask a lot of the investors here today, especially if you're looking at shares right now down just shy of 8% here pre market.