DocuSign Inc. (DOCU) announced its financial results for the first quarter that beat consensus forecast, sending its shares up more than 10 percent in the after-hours trading session on Thursday. The results were mainly helped by strong growth in the overseas markets.
The San Francisco, California-based company reported adjusted earnings of 1 cent per share for the three-month period ended April 30. Analysts surveyed by FactSet were looking for an adjusted loss of 7 cents per share.
Revenue for the quarter came in at $155.8 million, up 37 percent from the same period last year, and above consensus forecast of $145.9 million.
Speaking to investors on the conference call, CEO Dan Springer said that international growth jumped 52 percent versus last year, accounting for nearly 17 percent of the total sales in the first quarter. One of the important pillars of DocuSign’s growth strategy is its targeted expansion in the overseas markets, he added.
The company said that its net loss increased significantly to $270.7 million, or $7.46 per share in the latest quarter, as compared to loss of $19.4 million, or 66 cents per share, in the same period last year. Companies usually report big losses in their first quarterly report following an IPO amid stock-based compensation costs, and DocuSign experienced similar situation.
Chief Financial Officer Michael Sheridan said the company took a charge of $263 million in the first quarter due to stock-based compensation.
Looking forward, DocuSign expects revenue in the range of $157 million to $160 million for the first quarter, better than analysts’ average estimates of $151.5 million.
The company also announced that it has recently built a data center in Canada that will help it in pulling government and financial services customers.