By Denny Jacob
DocuSign posted better-than-expected revenue in its latest quarter, further proof that prior turnaround efforts are resulting in a company on stronger footing.
The e-signature company logged net income of $27.2 million, or 13 cents a share, for the fourth quarter ended Jan. 31, up from $4.9 million, or 2 cents a share, a year earlier. Adjusted earnings were 76 cents a share, above analysts’ estimates of 65 cents a share.
Revenue climbed 8% to $712.4 million from $659.6 million a year earlier. Analysts polled by FactSet expected $698.3 million.
Free cash flow in the quarter was $248.6 million compared to $113 million in the same period a year earlier.
For the current quarter, DocuSign forecast revenue between $704 million and $708 million. Analysts polled by FactSet expected $700.5 million.
For fiscal 2025, the San Francisco-based company guided for revenue in the range of $2.92 billion and $2.93 billion. Analysts polled by FactSet forecast $2.91 billion.
DocuSign’s results come about a month after it disclosed plans to reduce its workforce by about 6%, part of a broader effort to achieve multi-year growth targets as an independent, public company. The Wall Street Journal reported in December that DocuSign had hired advisers to explore a potential sale.
“We looked at what we need to execute our operating plan and we just felt that we could get a little bit more fit and not endanger our ability to execute on our medium to long-term growth aspirations. And if you feel like that, I think you kind of have to do it in the current environment,” said Chief Executive Allan Thygesen in an interview when asked about the workforce reduction. He stressed the decisions to do so were not made lightly.
Write to Denny Jacob at denny.jacob@wsj.com