Docusign Stock Rises as Earnings Double Expectations on Strong Billings

Shares of Docusign (DOCU) rose nearly 20% on Friday, a day after the e-document software provider reported better-than-expected results and raised its forecast as billing and subscription revenue rose.

The company reported third-quarter fiscal 2025 profit of $62.4 million, or $0.30 per share, while analysts polled by Visible Alpha reported $30.2 million, or $0.14 per share forecast. Revenue of $754.8 million also beat estimates.

Billings increased 9% year over year to $752.3 million and subscription revenue increased 8% to $734.7 million.

CEO says: “Fundamentals across core business improved”

Chief Executive Officer (CEO) Allan Thygesen said: “The fundamentals across the core business have improved and continue recent trends.” Thygesen added that Docusign also “sustained new customer growth of 11% year-on-year to 1.6% “Millions of customers”.

The company now expects full-year revenue of $2.959 billion to $2.963 billion, compared with the previous estimate of $2.940 billion to $2.952 billion. Settlement volume is expected to be between $3.056 billion and $3.066 billion, compared to the previous forecast of $2.990 billion to $3.030 billion. The company also raised its subscription revenue forecast to $2.889 billion to $2.876 billion from $2.864 billion to $2.885 billion.

Docusign shares recently rose 19% to $99.92, their highest level since April 2022.