Why DocuSign Soared After Earnings
E-signature leader DocuSign (NASDAQ: DOCU) soared more than 21% last week, after it reported second-quarter earnings. As you may have guessed, the numbers were impressive. The software-as-a-service company posted strong 41% revenue growth and even more impressive 47% billings growth in the quarter. Those numbers exceeded last year's growth rates, as well as those of the previous quarter.
Not only is accelerating growth a great sign, but it's also a big positive when billings exceed revenue growth. Billings takes into account contracts that have been agreed to and billed already, but which haven't yet been recognized as revenue, so when billings growth is higher than revenue growth, it portends more strong growth ahead.
Other impressive metrics include a net expansion rate of 113%, meaning existing customers increased their spend with DocuSign by 13% relative to last year. The company also expanded its customer base by 25%, with higher-value enterprise and commercial customers growing an even higher 31%. The number of contracts with annual value over $300,000 grew even faster than that, at a 50% clip.
Source Fool.com
