DocuSign Shares Drop 18% on Lower Billings Outlook

DocuSign shares fell by about 18% after the company reported first-quarter revenue of $763.7 million and non-GAAP EPS of $0.90, both above expectations, but missed billings guidance and cut its full-year billings outlook. Billings grew 4% year-over-year, below forecasts, due to fewer early renewals and a faster-than-expected shift to its new AI-driven Intelligent Agreement Management platform. The company cited ongoing challenges including macroeconomic headwinds and sales force productivity issues. Despite these setbacks, DocuSign announced a $1 billion increase to its share buyback authorization and continued to expand its AI-powered product offerings. Analysts noted healthy profit margins and free cash flow, but expressed caution due to the decelerating billings growth and heightened competition. The company remains optimistic about its long-term transformation, though near-term uncertainty persists.