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DocuSign (NASDAQ:DOCU) shares rose nearly 2% in pre-market trading on Friday after investment firm Wedbush Securities said its second-quarter results were “another step in the right direction” for the embattled electronic signature company.
“DocuSign continues to put its foot on the gas with continued product innovation to deepen its product lineup and differentiate its offerings of agreement workflow products while leveraging its omnichannel approach to improve the customer experience while expanding its sticky install base,” analyst Dan Ives wrote in a note to clients.
In addition, Ives noted that the company is improving its product portfolio using generative artificial intelligence, which he said are driving customer interest and billings growth.
Ives has a neutral rating and $67 price target on DocuSign (DOCU).
For the period ending July 31, DocuSign (DOCU) earned an adjusted 72 cents per share on $687.7M in revenue. Included in that was $669.4M in subscription revenue. Analysts had expected the company to earn an adjusted 66 cents per share on $677.1M in sales.
Looking ahead, DocuSign (DOCU) expects third-quarter revenue to be between $687M and $691M, with the mid-point above the $685.5M that analysts were anticipating.
The company also boosted its full-year sales guidance, as it now expects revenue to clock in at $2.73B to $2.74B. It previously expected full-year sales to be between $2.71B and $2.73B.
In addition, DocuSign (DOCU) boosted its share buyback program by $300M, for a total aggregate of $500M.
