📉 DocuSign under pressure: strong quarter, but weak outlook knocks shares down!
DocuSign $DOCU, the leader in electronic signatures, posted results that showed solid revenue and profitability growth, but markets reacted to a reduced full-year billing outlook (billings). As a result, the stock fell by more than 18 % and are more than a year off their 2021highs . 75 %!

📊 Q1 FY26 results:
Revenues. USD 776 million (expectations 748 million).

Earnings per share (non-GAAP): well above estimates

Net Income (GAAP): $72.1 million. USD 72.6 million, 34 cents per share (16 cents last year)

Subscription revenue: +8% to $746.2 million USD 746 MILLION

Billings: $739.6 million. USD 746mn (expectations USD 746mn, below internal guidance)

Market Valuation for SaaS (Software as a Service) companies not only current revenues, but especially billings, which signal future revenues. This is where DocuSign failed, and the markets punished the report harshly. The announced outlook for the full fiscal year is now in the range of $3.28-3.34 billion, up from the previous range of $3.3-3.35 billion.

💰 Share buybacks as a signal of confidence:
The company also announced the expansion of its share buyback program to USD 1.4 billion, of which USD 1 billion was newly authorized. This is a clear signal of management's confidence in the long-term value of the company.

📈 Outlook:
Q2 revenue: $777-781m. USD 775 million (expectations: USD 775 million).

FY26 sales: USD 3.15-3.16 billion (USD 3.14 billion)

DocuSign is not in trouble, the company is generating profit and stable cash flow. But as this case shows, growth expectations at SaaS for SaaS companies remain high. Any slowdown in indicators such as future billings is immediately reflected in the stock price.

📯 Company results are not just about what happened, but more importantly, what outlook they present.

DocuSign has a strong brand and is a global leader, but faces increasingly fierce competition from both established firms (Adobe, Dropbox)as well as tech giants (Google, Microsoft).

What do you think of the company's performance?