What Happened?
Shares of e-signature company DocuSign (DOCU) fell 18.7% in the afternoon session after the company reported underwhelming first-quarter 2025 (fiscal 2026) results: while revenue beat Wall Street expectations, both its billings and guidance for full year billings came in below estimates.
The upside in sales was led by subscription revenue and steady renewal rates, with the company also rolling out new AI-driven features on its Intelligent Agreement Management platform. Gross margin inched higher, while operating margin expanded slightly to just under 30%. This margin improvement helped lift non-GAAP EPS by nearly 10% compared to last year, outpacing analysts' forecasts. Still, the overall result was underwhelming.