Docusign shares plunge on concerns over slower e-signatures

Docusign shares plunge on concerns over slower e-signatures

Docusign DOCU opened 35% lower on Friday, its biggest drop since businesses return to the office, due to concerns of slower demand for e-signatures. After Docusign reported third quarter earnings and profit that beat Wall Street estimates, billings and revenue guidance missed expectations, the stock went into a tailspin on Thursday.

Springer said that the market dynamics that we saw in the third quarter were markedly different from what we experienced in the first half of the year.

We saw demand slow and the urgency of customers buying patterns temper as we move through Q 3 and into the second half of the year. Springer said that the environment shifted faster than anticipated, as we had expected an eventual step down from the peak levels of growth achieved during the height of the epidemic.

The fourth quarter revenue projection of $557 million to $563 million was less than Wall Street expectations.

The metric came in short of the company's previous guidance.

The company had experienced unprecedented growth during the worst of the pandemic, as businesses moved to work from home and electronic signatures skyrocketed.

Springer assured Springer that even as the pandemic subsides, and people begin to return to the office, they are not returning to paper, even though they are not returning to paper.

According to Springer, one of the major factors was UPS UPS, which is modernizing its contracting process using Docusign.

Wall Street analysts have cut their rating on the stock. Wedbush Securities Dan Ives categorized the period as a debacle quarter and cut his recommendation to Neutral from Outperform.

JPMorgan and Needham downgraded the stock to Underweight and Hold.