DocuSign (DOCU) - Get Report shares rose in a down market Monday after Nasdaq said that starting on June 22 the e-signature company would take the place of United Airlines (UAL) - Get Report in the Nasdaq 100 Index.
That index includes many of the largest non-financial companies listed on Nasdaq.
Earlier this month, DocuSign reported stronger-than-expected earnings for the quarter ended April 30, despite the coronavirus pandemic.
It posted revenue of $297 million, up 39% from $214 million in the year-earlier period. That latest figure was above FactSet’s analyst forecast of $281 million for the latest quarter.
DocuSign, San Francisco, registered a net loss of $47.8 million, or 26 cents a share, in the latest quarter, wider than the loss of $45.7 million, or 27 cents, a year earlier. Analysts had predicted a loss of 23 cents in the most recent quarter.
But DocuSign posted adjusted net income per share of 12 cents in the latest quarter, up from 7 cents a year earlier. The 12-cent figure beat analysts’ estimate of 10 cents a share.
Morningstar analyst Dan Romanoff was impressed with the news.
“Narrow-moat DocuSign again reported strong quarterly results, including upside to our revenue and EPS expectations, and also provided a similarly strong outlook in the face of the coronavirus pandemic,” he wrote in a commentary.
“All metrics showed signs of strength. Like other work-from-home enablers, DocuSign is benefiting from an immediate surge in new customers and expansion of use cases within existing customers.”
DocuSign recently traded at $160.32, up 6.5%. The stock has more than doubled over the past three months.
Shares of United Airlines, Chicago, recently traded at $38.82, down 2.1%.