DocuSign beat Wall Street expectations for its third quarter and raised its guidance to finish the year, sending its stock up slightly in after-hours trading.
DocuSign turned a small net profit that pencils out to breaking even on earnings per share on revenue of $178.4 million. That represents 37 percent growth over a year ago, and came in ahead of analyst expectations of losses of $0.02 per share on $173 million in revenue.
Subscription revenue grew faster than overall revenue, with a rise of 38 percent to $169.4 million. DocuSign added 25,000 customers in the quarter to 454,000 total.
While DocuSign is known primarily for electronic signatures, but the company has steadily been expanding its offerings to cover all aspects of preparing and managing documents, which it calls System of Agreement.
“Expansions within existing customers, traction around our System of Agreement vision, and our strategic partner ecosystem all contributed to our strong results,” Dan Springer, CEO of DocuSign said in a statement.
In the fourth quarter, DocuSign expects to report revenue of $192 million to $194 million. For the year, DocuSign expects to bring in $692 million to $695 million, up over its full-year guidance last quarter.
In addition to its quarterly financials, DocuSign also announced several executive and board changes. Former Frontier Communications CEO Maggie Wilderotter will take over as board chair Jan. 1, replacing chair and former CEO Keith Krach, who is leaving as part of a planned transition. DocuSign also appointed Cynthia Gaylor, CFO of Pivotal Software, to the board.
DocuSign’s Current Chief Strategy and Marketing Officer Scott Olrich has been promoted to COO. Loren Alhadeff, the current senior vice president of North American sales will take on the new position of chief revenue officer in February.
In the third quarter, DocuSign completed the acquisition of SpringCM, a Chicago-based cloud document generation and contract management company, for $218.9 million. In the first half of next year, Springer said DocuSign plans to release a new product that takes advantage of SpringCM’s expertise in document generation.
DocuSign was a darling of Wall Street when it went public earlier in April. Its stock finished the first day of trading up 37 percent from its original offering price and spiked another 71 percent over the next four months. But consecutive quarters of decelerated revenue growth as well as a general swoon in the stock market, caused DocuSign shares to slide 39 percent from an August high of $68.