By Dhirendra Tripathi
Investing.com – DocuSign (NASDAQ:DOCU) stock plummeted nearly 32% in Friday’s premarket after the digital solutions provider handed out a forecast that disappointed traders.
The company sees itself billing clients less in the current quarter than it previously estimated, an indication the pandemic-fueled boom in the company’s business may be peaking.
The company said its annual billings for the year ending January 31 are now seen at $2.34 billion, $78 million less than the midpoint of its previous guidance range.
The revised guidance came after the company’s third-quarter revenue grew 42% to around $546 million, reflecting the tempering in demand for its solutions that enable online onboarding of employees and e-signature of documents. It had grown at over 50% during the height of the pandemic.
CEO Dan Springer said the third quarter saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth. On an adjusted basis, net profit per share more than doubled to 58 cents and beat estimates.