DocuSign Inc.’s stock initially jumped 8% before tumbling in extended trading Thursday after the software company posted better-than-expected quarterly results and sales guidance.
DocuSign DOCU, +0.17% reported fiscal third-quarter net income of $38.8 million, or 19 cents a share, compared with a net loss of $29.9 million, or 15 cents a share, in the same quarter a year earlier. Adjusted earnings were 79 cents a share.
Revenue climbed to $700.4 million from $645.5 million in the year-ago quarter. Analysts surveyed by FactSet had expected on average net earnings of 63 cents a share on revenue of $690 million.
DocuSign provided fourth-quarter sales guidance of $696 million to $700 million; FactSet analysts are forecasting $694 million.
“We are making progress on product innovation, go-to-market effectiveness, and operational efficiency as we build on our considerable scale and trusted market position and expand beyond e-signature into intelligent agreement management,” DocuSign Chief Executive Allan Thygesen said in a statement announcing the results.
Shares of DocuSign have dropped 14% this year. The broader S&P 500 index SPX, +0.80% has increased 19%.