DocuSign Up Premarket After Strong Quarter

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Investing – DocuSign (NASDAQ:DOCU) stock was up more than 5% premarket, benefiting from strong demand for the company’s digital platform as the concept of working from home gets more widely adopted.

Total revenue at the company rose 58% year-on-year to $469.1 million for the quarter ended April 1. Non-GAAP net income per diluted share was 44 cents compared to 12 cents in the same period last year.

Subscription revenue rose 61% and billings 54%.

The company also expanded its non-GAAP gross margin by 200 basis points to 81%. 

With more companies adopting digital solutions to manage costs and help workflow, DocuSign revised upwards its outlook for the full year.

It now sees total revenue between $2.02 billion and $2.03 billion in fiscal 2022, up from the $1.96 billion-$1.97 billion range it gave in March.

Non-GAAP operating margin is expected to come between 16% and 18%, up from 13%-15% estimated earlier.

DocuSign isn’t alone in benefiting from the evolving work environment, with cyber security firms like Palo Alto Networks (NYSE:PANW) and Zscaler (NASDAQ:ZS) having also gained from increasing demand for their solutions.