DocuSign plunges 24% on profit miss and downgrades
Weaker-than-expected earnings report has resulted in slump in stock price
• Weaker-than-expected earnings report has resulted in slump in stock price
• COVID-19 pandemic growth is seen warding off
DocuSign Inc (NASDAQ: DOCU) plunged more than 24.5% on Friday after the digital signature software maker reported first-quarter earnings that missed analysts’ estimates.
The company, whose business got a significant lift in the early months of the COVID-19 pandemic with the increase in online transactions, posted an earnings report indicating that the growth is slowing down exponentially.
The software maker on Thursday said it had earned 38 cents per share, compared to 44 cents a year earlier. Wall Street expected the company to post a profit of 46 cents per share.
The earnings miss overshadowed outperforming revenue which came in at $588.7 million, compared to consensus estimates of $581.8 million.
DocuSign said it had experienced challenges due to the deteriorating macroeconomic environment, particularly the war in Ukraine.
Several brokerage firms, including Evercore ISI, Bank of America and William Blair, downgraded the stock following the earnings report.
The software maker dropped 26.39% to $64.30, the day’s lowest.
Picture Credit: WSJ
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