Shares of digital signature software provider DocuSign (DOCU) - Get DocuSign, Inc. Report plunged nearly 17% on Friday after the company reported adjusted fiscal first-quarter earnings that beat analysts' forecasts, but still disappointed investors who were looking for stronger billings growth and higher forward revenue and earnings guidance. 

DocuSign reported non-GAAP net income of $13.5 million, or 7 cents a share, vs. non-GAAP net income of $1.5 million, or 1 cent a share, in the comparable year-earlier quarter. Analysts polled by FactSet had been expecting earnings of 5 cents a share.

Revenue came in at $214 million, led by subscription revenue of $201.5 million. Billings were $215 million. 

While the numbers exceeded analysts' forecasts, investors sold the stock amid disappointment that the numbers weren't stronger, particularly forward guidance. In DocuSign's case, billings grew at a lower pace than in previous quarters, which the company said reflects its shift from e-signature tools to a broader suite of services that helps businesses manage legal documents and other types of contracts.

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DocuSign last fall completed its acquisition of SpringCM, and has been honing its legal-document and contract-signing offerings.

For the current fiscal quarter ending in July, DocuSign is projecting revenue of $218 million to $222 million, in line with FactSet consensus estimates of $220 million.

47.60 USD−7.15 (13.05%)

Shares of DocuSign opened down more than 13%, or $7.15, at $47.60 on the Nasdaq Stock Market.