Why DocuSign Stock Is Surging After Hours

DocuSign Inc DOCU shares are trading higher in Thursday's after-hours session after the company reported better-than-expected quarterly results.

What Happened: DocuSign said first-quarter revenue increased 12% year-over-year to $661.39 million, which beat the consensus estimate of $641.8 million, according to Benzinga Pro.

The company reported adjusted earnings of 72 cents per share, which beat estimates of 56 cents per share.

Billings were up 10% year-over-year. Gross margin came in at 79%, up from 78% in the same quarter last year. Free cash flow climbed to 214.6 million from $174.6 million year-over-year. 

DocuSign ended the quarter with $1.4 billion in cash, equivalents and investments. 

"While we have work ahead of us, I am encouraged by our progress to enable smarter, easier, trusted agreements. As we continue to execute on our strategy and leverage our competitive advantages, notably in AI, DocuSign is well positioned for the future," said Allan Thygesen, CEO of DocuSign.

DocuSign sees second-quarter revenue of $675 million to $679 million versus estimates of $670.37 million. The company expects full-year revenue to be between $2.713 billion and $2.725 billion versus estimates of $2.7 billion.

DocuSign also announced that it appointed American Express executive Anna Marrs to its board, effective immediately. 

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

DOCU Price Action: DocuSign shares were up 13.4% after hours at $66.21 at the time of publication, according to Benzinga Pro.

Photo: courtesy of DocuSign.