DocuSign Q4 Earnings: Revenue Beat, EPS Beat, Billings Up 11%, Shares Move Higher Despite Soft Guidance

DocuSign Inc DOCU reported fourth-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q4 Earnings: DocuSign reported fourth-quarter revenue of $776.3 million, beating the consensus estimate of $761.31 million. The agreement cloud company reported fourth-quarter adjusted earnings of 86 cents per share, beating analyst estimates of 85 cents per share, according to Benzinga Pro.

Total revenue increased 9% year-over-year. Subscription revenue was up 9% year-over-year to $757.8 million and Professional services and other revenue climbed 11% to $18.5 million.

Billings came in at $923.2 million, up 11% year-over-year. Net cash from operating activities totaled $307.9 million. The company generated free cash flow of $279.6 million in the quarter.

DocuSign said it repurchased $161.6 million worth of its common stock during the fourth quarter. The company ended the quarter with $1.1 billion in cash, cash equivalents, restricted cash and investments.

“Fiscal 2025 was a transformative year for Docusign. We launched Docusign IAM, our AI-powered agreement management platform, which is driving rapid traction with customers,” said Allan Thygesen, CEO of Docusign. “In Q4, our business generated strong revenue growth and profitability. We’re well positioned to pursue the significant opportunity ahead.”

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Outlook: DocuSign expects first-quarter revenue to be in the range of $745 million to $749 million versus estimates of $755.58 million. The company sees first-quarter billings in the range of $741 million to $751 million.

DocuSign expects full-year revenue to be in the range of $3.13 billion to $3.14 billion versus estimates of $3.15 billion, per Benzinga Pro.

DocuSign executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.

DOCU Price Action: DocuSign shares were up 4.55% after hours, trading at $78.33 at the time of publication Thursday, according to Benzinga Pro.

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Photo: Courtesy of DocuSign.