DocuSign Stock Jumps on Strong Earnings, Upbeat Sales Outlook—Key Levels to Watch

DocuSign (DOCU) shares jumped more than 11% in extended-hours trading on Thursday after the e-signature and document management company topped analysts’ quarterly estimates and issued better-than-expected current-quarter and full-year sales outlooks as customers increased their IT spend.

The San Francisco-based company posted fiscal 2024 fourth-quarter adjusted earnings of 76 per share on revenue of $712.4 million, whereas Wall Street had expected earnings of 65 cents a share on sales of $698.3 million. Billings for the quarter, which ended Jan. 31, rose 13% from a year earlier to $833.1 million, eclipsing the company’s earlier guidance range of $756 million to $768 million. DocuSign said closing several deals earlier than expected boosted billings during the period.

Looking ahead, the company projects revenue for the current quarter to range between $704 million and $708 million, with billings of $685 million to $695 million. The lower end of both metrics come in ahead of estimates pegged at $701 million and of $683 million, respectively.

For the 2025 fiscal year, DocuSign expects revenue of between $2.92 billion and $2.93 billion, with the low-point of that band surpassing the Street expectation of $2.91 billion.

CEO Allan Thygesen said the better-than-expected quarterly results were driven by growth from both enterprise and small business customers, adding that the company had observed improving IT spend versus previous quarters. Thygesen also noted that the company’s addition to Microsoft’s (MSFT) Azure marketplace had helped it connect with large customers.

The DocuSign share price has oscillated roughly within a 20-point range over the past 17 months to form clearly identifiable areas of support and resistance. Although the 50-day moving average crossed back above the 200-day moving average in early January to generate a golden cross signal, the price has remained rangebound. 

Amid follow-through buying after the company’s strong earnings report, keep an eye on the trading range’s top trendline around $64.50 as a potential resistance area. If a breakout occurs, monitor a prior countertrend high near $77 as the next possible level of chart resistance.

DocuSign shares gained 11.1% to $59.50 in after-hours trading Thursday.

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As of the date this article was written, the author does not own any of the above securities.