Docusign shares rise on fourth quarter earnings and revenue beat – News

Shares in Docusign Inc. were up over 10% in late trading today after the electronic signature company reported earnings and revenue beats in its fiscal 2025 fourth quarter.

For the quarter that ended on Jan. 31, Docusign reported adjusted earnings per share of 86 cents, up from 76 cents per share in the same quarter of the previous fiscal year, on revenue of $776.3 million, up 9% year-over-year. Both figures were ahead of the 84 cents per share and revenue of $760.99 million expected by analysts.

Docusign saw subscription revenue in the quarter come in at $757.8 million, up 9% year-over-year and professional services and other revenue of $18.5 million, up 11%. Billings in the quarter were also up 11% year-over-year to $932.2 million.

Free cash flow in the quarter was $279.6 million, up from $248.6 million in the fourth quarter of fiscal year 2024 and Docusign ended the quarter with $1.1 billion in cash, cash equivalents, restricted cash and investments.

Business highlights in the quarter included Docusign’s introduction of updates to Web Forms in October, adding document exclusion rules and support for multi-recipient forms to streamline data collection. In November, Docusign launched DocuSign for Developers, enabling partners to build integrations and automate workflows using a comprehensive suite of application programming interfaces and software development kits.

December saw Docusign roll out Intelligent Agreement Management Core and IAM for global markets, services that enhance the scalability of its platform. The month also saw the introduction of Identity for Agreements, allowing users to reuse verified identification details across agreements.

In January, the company expanded its capabilities further with artificial intelligence-powered contract workflows through its workflow automation tool Maestro, offering automated, customizable contract processes. Additionally, Docusign delivered significant updates to its eSignature platform, improving both user experience and platform performance.

For the full fiscal year 2025, Docusign reported adjusted earnings per share of $3.55, up from $2.98 in 2024, on revenue of $2.98 billion, up 8% year-over-year.

“Fiscal 2025 was a transformative year for Docusign. We launched Docusign IAM, our AI-powered agreement management platform, which is driving rapid traction with customers,” said Allan Thygesen, chief executive officer of Docusign, in the company’s earnings release. “In Q4, our business generated strong revenue growth and profitability. We’re well positioned to pursue the significant opportunity ahead.”

For its fiscal 2026 first quarter, Docusign expects revenue of $745 million to $749 million and for the full year, revenue of $3.129 billion to $3.141 billion. Surprisingly, given the after-hours stock increase, both revenue outlooks fell short of the $755.7 million in the first quarter and $3.15 billion for the full year expected by analysts, but the misses were not large enough to worry investors.

Image: Docusign