DocuSign, Inc. (DOCU) Tops Q2 EPS by 2c, Revenues Beat; Offers FY19 Revenue Outlook Above Consensus

DocuSign, Inc. (NASDAQ: DOCU) reported Q2 EPS of $0.03, $0.02 better than the analyst estimate of $0.01. Revenue for the quarter came in at $167 million versus the consensus estimate of $159.6 million.

"We had a strong second quarter, driven by 35% year-over-year growth in subscription revenue. We added more than 25,000 customers, bringing our customer base to almost 430,000 worldwide," said Dan Springer, CEO of DocuSign. "And this week, we also closed our previously-announced acquisition of SpringCM, which accelerates our vision to modernize the world\'s Systems of Agreement—all the way from preparing to signing, acting-on, and managing agreements. With SpringCM, we have a broader set of products to sell, additional technologies to commercialize and a team whose experience complements ours almost perfectly."

Second Quarter Financial Highlights

• Total revenue was $167.0 million, an increase of 33% year-over-year. Subscription revenue was $158.5 million, an increase of 35% year-over-year. Professional services and other revenue was $8.6 million, an increase of 7% year-over-year.
• Billings were $172.2 million, an increase of 32% year-over-year.
• GAAP gross margin was 78%, compared to 77% in the same period last year. Non-GAAP gross margin was 81% compared to 79% in the same period last year.
• GAAP net loss per basic and diluted share was $0.22 in the second quarter of fiscal 2019 on 166 million shares outstanding compared to GAAP net loss per share of $0.39 in the second quarter of fiscal 2018 on 32 million shares outstanding.
• Non-GAAP net income per diluted share was $0.03 in the second quarter of fiscal 2019 based on 191 million shares outstanding compared to a non-GAAP net loss per share of $0.05 in the second quarter of fiscal 2018 based on 32 million shares outstanding.
• Net cash provided by operating activities was $22.7 million, compared to $12.1 million in the same period last year.
• Free cash flow was $18.4 million in the second quarter of fiscal 2019 compared to free cash flow of $7.8 million in the same period last year.
• Cash, cash equivalents and restricted cash was $819.2 million at the end of the quarter.

GUIDANCE:

DocuSign, Inc. sees FY2019 revenue of $683-688 million, versus the consensus of $657.99 million.

For earnings history and earnings-related data on DocuSign, Inc. (DOCU) click here.

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