Investing.com -- DocuSign reported fiscal first-quarter results Thursday that beat Wall Street estimates and the software maker said it had boosted its existing stock buyback program by $1 billion.
Despite a modest beat, DocuSign Inc (NASDAQ:DOCU) shares fell 8.5% in premarket trading Friday following the report.
The software company reported Q1 adjusted EPS of $0.82 on revenue of $709.6 million, topping consensus estimates for EPS of $0.79 on revenue of $707.3M (NYSE:MMM).
Billings were $709.6 in Q1, an increase of 7% year-over-year.
"Q1 results were a mixed bag, though with the launch of a new platform, we are keeping an eye on potential for better results long term," Bank of America (NYSE:BAC) analysts said in a post-earnings note.
"A 0.5% beat to revenue is below their recent 2% - 3% level and suggests that reliance on a single eSignature category provides limited avenues for growth and momentum," they added.
Looking ahead to Q2, the company forecasts revenue in the range of $725M to $729M, in line with analyst estimates of $727.2M, with billings expected to come in between $715M and $725M.
For the full year, revenue was guided in a range of $2.92B to $2.93B, while billings were expected between $2.98B and $3.03B.
Guidance for the 6% subscription growth in the fiscal 2025 year remained unchanged "despite a modestly better Q1," BofA noted. "The net result is a modestly lower revenue outlook for the remainder of the year, also underscoring a business in need of added growth opportunities."