DocuSign Shares Advance as E-Signature Provider Beats Estimates

The San Francisco provider of e-signature solutions narrowed its third-quarter net loss and beat on adjusted earnings and revenue.
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DocuSign DOCU shares were higher in the premarket on Friday after the San Francisco provider of e-signature solutions reported a narrowed fiscal-third-quarter loss on 40% higher revenue.

A number of members of the Wall Street analyst community affirmed their optimistic views of DocuSign.

For the quarter ended Oct. 31 DocuSign late Thursday reported a net loss of 26 cents a share compared with a loss of 31 cents in the year-earlier quarter.

Adjusted earnings for the quarter were 11 cents a share compared with break-even a year earlier.

Shares outstanding rose 6.3% to 178.3 million.

Revenue reached $249.5 million from $178.4 million.

A survey of analysts by FactSet was expecting a GAAP net loss of 31 cents a share, or adjusted earnings of 3 cents, on revenue of $240.4 million.

For the year, DocuSign expects to report revenue ranging $962 million to $966 million. The FactSet-derived survey was looking for $963 million.

DocuSign describes its broad offering as "a single platform that connects and automates the entire agreement process."

Wedbush analysts Daniel Ives and Strecker Backe reiterated an outperform rating and lifted their target to $90 from $80.

Deutsche Bank analysts Karl Keirstead and Taylor McGinnis affirmed DocuSign buy and raised their price target to $80 from $70. 

And at J.P. Morgan, analysts Sterling Auty and Jackson Ader affirmed their overweight rating and $90 target.

At last check in the premarket, DocuSign shares were 7.8% higher. They'd closed the regular session Thursday off 0.7% at $69.50.