DocuSign (DOCU) - Get Report was soaring Friday after the electronic-signature technology company issued strong revenue guidance for the third quarter.

Second-quarter adjusted earnings at DocuSign were 1 cent a share, below analysts' estimates, on revenue of $235.6 million, up 41% from a year earlier. Subscription revenue gained 39% to  $220.8 million. Billings in the quarter were $252.4 million, an increase of 47% from a year earlier.

For the third quarter, the company said it expects revenue of between $237 million to $241 million, ahead of analysts' forecasts of $231.9 million, and billings of $260 million to $270 million.

Analysts surveyed by FactSet had been calling for third-quarter revenue of $220.8 million.

For the fiscal year ending Jan. 31, 2020, DocuSign said it expects revenue of between $947 million and $951 million, with billings of $1.063 billion to $1.083 billion.

Wedbush analyst Daniel Ives upgraded DocuSign to outperform from neutral, writing in a note that "DocuSign is starting to fortify itself as the go-to vendor among enterprises of all shapes and sizes for its proprietary solution, from small businesses to large Fortune 500 organizations, as customers are signing onto the DocuSign platform and the upselling momentum continues to drive revenue." 

The stock gained 21.31% to $56.11 in trading Friday.