(Bloomberg) — DocuSign Inc. plunged the most since December after the e-signature company cut its full-year billings outlook, extending a string of disappointments for a pandemic-era darling.
The pullback “shows a weak demand environment, which may not reverse in the near term,” Bloomberg Intelligence analyst Anurag Rana said in a note.
Thursday’s earnings report triggered downgrades from analysts at Bank of America and William Blair, and several others reduced their share-price targets. This is set to be the third straight quarter in which DocuSign results were met with a selloff of at least 20%. The stock has lost most of its pandemic-driven gains, sinking nearly 80% since its 2021 peak.
DocuSign tumbled as much as 26%, the most in intraday trading since Dec. 3. The stock was down 25% to $65.70 at 11:33 a.m. in New York.
Billings for 2023 will be $2.52 billion to $2.54 billion, less than a previous forecast for a range of $2.71 billion to $2.73 billion, according to the company, whose fiscal year runs through January. San Francisco-based DocuSign reported adjusted first-quarter earnings per share of 38 cents, less than the estimate for 46 cents in a Bloomberg survey of analysts.
(Updates stock price in first paragraph)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
