(DocuSign) Shares of DocuSign Inc. plunged more than 29% on Friday as revenue guidance of $557 million to $563 million the fourth quarter of 2022 missed the expected $575.3 million.
In the third quarter of 2022, DocuSign still managed a 43% year over year increase in revenue to $545.5 million. The company reported subscription revenue of $528.6 million, up 44% from the prior year.
Billings in the third quarter were reported at $565.2 million, up 28% from the prior year.
The third quarter GAAP gross margin was 79%, an improvement from 74% posted the previous year.
The company cut its GAAP net loss per basic and diluted share to $0.03, from $0.31 in the prior year.
DocuSign expects subscription revenue to rise to $544 million to $550 million in the fourth quarter and billings of between $647 million to $659 million. The gross margin is expected between 81% to 82%.
For FY22, the company projects revenue of $2.083 billion to $2.089 billion. Subscription revenue is expected to range between $2.017 billion to $2.023 billion.
Billings are expected to range between $2.335 billion to $2.347 billion in FY22, with a gross margin of 81% to 82%.
DOCU: NASDAQ is down -29.70% on premarket.
