On Thursday, DocuSign’s CEO Dan Springer stated that the company’s stock is much more than just a work-from-home name, as the maker of technology known for slanging digital contracts beat earnings expectations once again. Shares were up about 3% in after-hours trading following his interview.
Mr. Springer anticipates the trend driving DocuSign’s [$DOCU] momentum to be time-honored once customers fully grapple with the process of building contracts electronically and recognize the benefits in terms of cost and efficiency. Their Q3 revenue soared to $382.9 million from $250 million, while analysts expected $361 million. Billings for the period shot up to $440.4 million from $269.4 million.
E-signatures aside, DocuSign offers broad services for contract management, including products that help businesses analyze trends across volumes of past agreements. Springer said that this part of the business saw growth crescendo earlier in the year, while some companies have put these projects on hold due to pandy uncertainty. Fortunately, this part of the business is starting to rev-up as companies are better adjusted to the current reality.
DocuSign acquired Liveoak in July in an attempt to bolster its notary offerings, with more states now allowing remote notary services. DocuSign is focusing on first-party notary services, for businesses like banks that have their own in-house notaries that they use when customers are signing agreements.
Springer argued that the virus could push jurisdictions that don’t currently allow remote work to rethink their policies given the security advantages. “I think in the very near future there will be near ubiquitous coverage across the country,” he said.
DocuSign reported a Q3 net loss of $58.5 million, or 31 cents a share, compared with a loss of $46.6 million, or 26 cents a share, in the year-earlier quarter. On an adjusted basis, DocuSign earned 22 cents a share, up from 11 cents a share in 2019.
For the January quarter, DocuSign expects revenue of $404 million to $408 million, while the FactSet consensus was calling for $387 million. The company also anticipates billings of $512 million to $522 million, ahead of the FactSet consensus of $503.9 million.