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DocuSign plummets as forecast cut dents pandemic-era halo again

UPDATED: Fri., June 10, 2022

The Docusign logo is shown on April 1, 2021.   (Bloomberg )
The Docusign logo is shown on April 1, 2021.  (Bloomberg )
By Jennifer Ryan Bloomberg

DocuSign plunged the most since December after the e-signature company cut its full-year billings outlook, extending a string of disappointments for a pandemic-era darling.

The pullback “shows a weak demand environment, which may not reverse in the near term,” Bloomberg Intelligence analyst Anurag Rana said in a note.

Thursday’s earnings report triggered downgrades from analysts at Bank of America and William Blair, and several others reduced their share-price targets.

This is set to be the third straight quarter in which DocuSign results were met with a selloff of at least 20%.

The stock has lost most of its pandemic-driven gains, sinking nearly 80% since its 2021 peak.

DocuSign tumbled as much as 26%, the most in intraday trading since Dec. 3. The stock was down 25% to $65.70 at 11:33 a.m. in New York.

Billings for 2023 will be $2.52 billion to $2.54 billion, less than a previous forecast for a range of $2.71 billion to $2.73 billion, according to the company, whose fiscal year runs through January.

San Francisco-based DocuSign reported adjusted first-quarter earnings per share of 38 cents, less than the estimate for 46 cents in a Bloomberg survey of analysts.

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