DocuSign (NASDAQ:DOCU) reported impressive results for the first quarter of fiscal 2021, which ended on April 30. The company benefited from new customers using its Agreement Cloud offerings, mainly eSignature, amid the COVID-19 pandemic. Also, existing customers expanded their usage of the company’s services. Working from home became common during the pandemic.
DocuSign also issued strong guidance for the second quarter and raised its fiscal guidance. The leading eSignature solutions provider announced its results after the financial markets closed on June 4. Despite the strong results, DocuSign stock has risen 2.6% as of 10:32 AM ET today. As of June 4, the stock has risen 88.9% year-to-date.
DocuSign’s Q1 results
DocuSign’s first-quarter revenue grew 38.8% YoY (year-over-year) to $297 million. The revenue exceeded analysts’ estimate of $281.1 million. Notably, the company’s subscription revenue surged 39.4% to $280.9 million. Professional services and other revenue grew 28.7% YoY to $16.1 million. Strong sales, primarily of the eSignature solutions, helped drive a 59% rise in the first-quarter billings to $342 million.
The company added almost 68,000 new customers, including 10,000 net new direct customers and almost 58,000 self-service customers. Overall, DocuSign ended the quarter with nearly 661,000 paying customers worldwide. Amid the COVID-19 crisis, the company helped numerous companies sign and manage agreements. Several organizations accelerated their digital transformation to adjust to the new normal.
On a reported basis, the company reported a net loss per share of $0.26 in the first quarter of fiscal 2021 compared to a net loss per share of $0.27 in the first quarter of fiscal 2020. Excluding the impact of one-time items, the company’s adjusted EPS grew 71% YoY to $0.12, which beat Wall Street’s expectation of $0.10.
Q2 and fiscal 2021 outlook
DocuSign is optimistic that even when the COVID-19 pandemic fades away, customers won’t return to paper or manual-based processes. The company expects new customers’ adoption of its eSignature offering and expansion within the installed base to continue. Also, DocuSign thinks that its eSignature offering will help in the adoption of its other Agreement Cloud products.
Meanwhile, DocuSign expects its second-quarter revenue to be $316 million–$320 million. The company expects its fiscal 2021 revenue to be $1.313 billion–$1.317 billion. The company’s previous forecast was $1.272 billion–$1.276 billion.