Investing.com -- DocuSign Inc (NASDAQ: DOCU) reported first-quarter results that exceeded analyst expectations, but shares edged down 1.8% in after-hours trading Thursday as the company's guidance failed to impress investors. The intelligent agreement management platform provider posted adjusted earnings per share of $1.09, beating the consensus estimate of $1.00 by $0.09, while revenue of $830.2 million topped the $823.23 million analyst estimate and rose 9% YoY.

For the second quarter, Docusign projected revenue of $865 million to $869 million, with a midpoint of $867 million that nearly matches the analyst consensus of $866 million. The company also issued fiscal 2027 revenue guidance of $3.49 billion to $3.502 billion, with a midpoint of $3.496 billion slightly above the $3.49 billion consensus. The modest stock decline suggests investors were looking for more upside in the company's forward outlook despite the current quarter beat.

"In Q1, we saw continued growing demand for Docusign's AI-native IAM platform with 40,000 customers investing in our rapidly expanding roadmap," said Allan Thygesen, CEO of Docusign. "We delivered significant innovation this quarter while driving strong financial results through durable revenue growth, substantial free cash flow, and record share buybacks."

The company's Intelligent Agreement Management platform represented 12.6% of total Annual Recurring Revenue as of April 30, 2026, up from 10.8% as of January 31, 2026. Free cash flow surged to $289.4 million from $227.8 million in the same period last year, while the company repurchased $317.5 million of common stock, up from $183.4 million a year earlier.

Docusign reported GAAP net income per diluted share of $0.40, compared to $0.34 in the prior-year period. Non-GAAP gross margin was 81.5%, down from 82.3% a year ago. For the second quarter, the company expects non-GAAP gross margin of 81.5% to 81.7% and non-GAAP operating margin of 29.7% to 30.2%.