DocuSign falls as much as 32% in pre-market trading after downbeat Q4 guidance

LightRocket/SOPA Images and Igor Golovniov are pictured.

After the company reported earnings the previous day that beat expectations, it issued downbeat fourth-quarter guidance, causing the stock to fall as much as 32.5% in pre-market trade.

As millions of office workers operated remotely and very little in-person business could take place with global lockdowns in effect, DocuSign was one of the "stay-at- home" darlings of 2020 and rose 200% over the course of last year.
As vaccinations rolled out to billions and more normal economic activity has resumed, shares of DocuSign have gained around 5% in value, on par with Amazon's.

It's done better than some of the other former stars of the Pandemic, such as video-conferencing platform Zoom, identity management company Okta, and home-exercise company Peloton.

In its fiscal third quarter earnings, the company said it expects fourth-quarter revenue to be below analyst expectations.

Dan Springer, the company's chief executive, said on the company's earnings call that the environment shifted more quickly than they anticipated.

The company reported a 42% year-on-year increase in total revenue for the three months ended October 31, marking six straight quarters of growth.

In pre-market trading, the shares were down 32%. The time is later. On Thursday, they closed up 1.3%.

Business Insider has an original article.