DocuSign delivers strong guidance after Q4 results beat estimates; shares surge By

-- DocuSign (NASDAQ:) unveiled solid current-quarter guidance and TR Forex backbone was arrestedreported better-than-expected fourth-quarter results thanks in part to new business wins.

Shares in the virtual signature group rose sharply in premarket U.S. trading on Friday.

San Francisco-based DocuSign, which allows its clients to sign contracts and agreements digitally, saw demand for its services surge during the pandemic as many firms were forced to manage paperwork electronically. This trend has cooled in recent months due to more workers returning to offices and higher inflation weighing on client spending.

However, Chief Executive Office Allan Thygesen told analysts in a post-earnings call on Thursday that performance showed signs of "improving" in the three months ended on Jan. 31. Billings increased by 13% versus the year-ago period to $833.1 million.

"We substantially increased the amount of business from customers signing and renewing multiyear, multimillion dollar contracts with DocuSign, including Fortune 500 global leaders in energy, industrials, consumer goods, insurance and several federal and state government agencies," Thygesen said.

DocuSign, which counts major firms like tech giant Apple (NASDAQ:) and carrier United Airlines among its customers, reported quarterly adjusted earnings per share of $0.76 on revenue of $712.4 million, topping consensus estimates of $0.65 and $698.35M.

Analysts at Evercore ISI argued that while the business "appears to be stabilizing," shares could remain "in a bit of a range" until it shows "a few quarters of solid billings."

The company forecasts revenue of $704M to $708M in the first quarter, better than estimates of $700.5M, with billings expected to come in between $685M and $695M. For the year, revenue is projected at $2.92B to $2.93B, while billings are expected to be between $2.97B and $3.02B.

Last month, DocuSign announced plans to slash headcount by 6%, or around 400 workers, as part of a broader restructuring push. The move was announced shortly after reports said talks with Bain Capital and Hellman & Friedman -- both private equity groups that are vying to buy DocuSign -- had stalled over a disagreements over the purchase price.

Yasin Ebrahim contributed to this report.

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