DocuSign Inc (DOCU) delivered a strong performance in the second quarter, exceeding analysts’ expectations for both revenue and earnings. The company reported revenue of $736 million, surpassing the consensus estimate of $727.36 million. Adjusted earnings per share came in at 97 cents, beating analyst forecasts of 80 cents.
This positive performance reflects a 7% year-over-year increase in both total revenue and subscription revenue, demonstrating DocuSign’s continued growth in the agreement cloud space. Professional services and other revenue also saw a modest 2% year-over-year increase.
Billings for the quarter reached $724.5 million, representing a 2% year-over-year growth. The company also reported robust cash flow, with net cash from operating activities totaling $220.2 million and free cash flow reaching $197.9 million, up from $183.6 million in the previous year’s quarter. DocuSign ended the quarter with a strong cash position of $1 billion.
DocuSign CEO Allan Thygesen emphasized the company’s evolution towards improved business stability and increased efficiency, resulting in record operating profit. He highlighted the launch of the Intelligent Agreement Management platform in the second quarter, expressing satisfaction with early results and customer feedback.
Looking ahead, DocuSign anticipates revenue in the range of $743 million to $747 million for the third quarter and expects billings between $710 million and $720 million. The company also raised its fiscal year 2025 revenue guidance to a new range of $2.94 billion to $2.952 billion.
Following the release of these results, DocuSign shares initially declined by 1.98% in after-hours trading, settling at $55.80.
