DocuSign Inc (NASDAQ:DOCU) shares fell nearly 5% on Friday after the electronic signature company reported first-quarter results that topped analyst estimates but offered full-year guidance that failed to impress investors.
The San Francisco-based company posted Q1 fiscal 2027 revenue of $830.2 million, above the $823.23 million consensus estimate and up 9% from a year earlier. Adjusted earnings per share came in at $1.09, beating the $1 estimate.
Despite the earnings beat, shares declined 4.9% in Friday morning trading.
For the full fiscal year, DocuSign guided revenue of $3.49 billion to $3.502 billion, roughly in line with the $3.49 billion analyst consensus, representing 9% annual growth. The company projected non-GAAP operating margin of 30.5% to 31% and non-GAAP gross margin of 81.5% to 82%.
Second-quarter revenue guidance of $865 million to $869 million, against a consensus estimate of $866 million, implied 8% year-over-year growth.
DocuSign reported free cash flow of $289.4 million for the quarter, with operating cash flow of $321.7 million. The company returned $317.5 million to shareholders through buybacks and held $1.0 billion in cash, equivalents and investments at quarter-end.
The company's Intelligent Agreement Management platform continued to gain traction, with IAM now representing 12.6% of annual recurring revenue, up from 10.8% the prior quarter. Some 40,000 customers are now investing in the IAM roadmap.
DocuSign also named Graham Sheldon as incoming chief product officer.