DocuSign Shares Fell 23% in First Quarter

DocuSign Inc shares fell 23% on Thursday after overtime trading announced that software developer signatures slowed growth in the first quarter and reduced hiring plans.

"Growth levels in certain areas are slower than previously expected," said CEO Daniel Springer, adding that DocuSign is experiencing the same macroeconomic headwinds that its competitors are experiencing. 

DocuSign expanded its losses from $8.4 million in the quarter ended April 30 to $ 27.4 million. Adjusted revenue was 38 cents per share. Analysts surveyed by FactSet expected 46 cents per share.

The company repeated March's guidance on revenue and subscription revenue for 2023, but the San Francisco-based company reduced its billing guidance for billing to between $2.52 billion and 2.54 billion, lower than its earlier range set between $2.71 billion to $2.73 billion.

DocuSign had previously warned that as consumers and employers made adjustments from the early days of the Covid-19 pandemic, normalized working conditions and purchasing patterns could hinder growth.

Springer noted on Thursday that the dynamic macroeconomic environment only highlights the need for digital investment and that organizations continue to adopt cloud-based services.