DocuSign Inc. (DocuSign (DOCU)) reported its fiscal second-quarter results after the market closed on Thursday, and the numbers were good enough to send shares climbing in after-hours trading. Here's a look at what mattered.
Docusign Stock Climbs as AI Momentum Drives Q2 Beat
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Docusign Q2 Highlights
The agreement management company posted revenue of $875.75 million for the quarter, comfortably beating the consensus estimate of $857.43 million. Adjusted earnings came in at $1.16 per share, also topping expectations of $1.09 per share. Total revenue was up 9% year-over-year.
Cash generation looked solid too. Net cash from operations hit $334.5 million, and free cash flow reached $295.8 million. The company also used some of that cash to buy back $306.5 million of its own stock during the quarter, ending the period with $973.1 million in cash, cash equivalents, and investments.
Looking ahead, Docusign expects third-quarter revenue to land between $886 million and $890 million, compared to analyst estimates of $888.56 million. More notably, the company raised its full-year fiscal 2027 revenue outlook to a range of $3.499 billion to $3.507 billion, up from its previous guidance of $3.49 billion to $3.502 billion. Analysts had been looking for $3.497 billion.
CEO Allan Thygesen attributed the improved outlook to artificial intelligence. "Docusign is raising its outlook as AI accelerates momentum across the business," he said.
Management is scheduled to discuss the quarter in more detail on an earnings call with investors and analysts at 5 p.m. ET.
DOCU Shares Move Higher
Investors seemed to like what they saw. Docusign shares were up 5.35% in after-hours trading at $69.73 at the time of publication on Thursday.
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