By Dhirendra Tripathi
Investing.com – DocuSign Inc. (NASDAQ:DOCU) stock plunged 17% in premarket Friday after the company’s 2023 revenue growth projection came in at less than half of the previous year’s pace.
A share buyback plan of up to $200 million failed to make any impact in shoring up the share.
The company was one of the biggest winners of the pandemic as companies, forced to adopt remote work, turned to its digital solutions to onboard and engage with employees. E-signatures of documents became commonplace. As economies reopen, more people are returning to work, lessening the demand for its solutions.
DocuSign sees 2023 revenue to be not more than $2.48 billion, just over 18% year-on-year. In comparison, 2022 revenue grew 45% to $2.1 billion.
Annual billings are seen around $2.71 at the center of its guidance range, just about a 13% growth compared to the 37% jump in 2022.
Adjusted operating is also seen shrinking by 1 to 3 percentage points.
Last month, the company tied up with Zoom to enable virtual, face-to-face signing up of employees.
Fourth quarter revenue rose 35% to $581 million. Adjusted profit per share was 48 cents.