DocuSign rallies 15% after earnings beat and optimistic forecast

DocuSign (DOCU.US), a company providing electronic signature and agreement cloud, is surging more than 15% after strong earnings beat and bullish forecast. The firm reported fiscal first-quarter earnings of $0.44 per share (+266.7% YoY), beating analysts’ expectations of $0.28 per share. Total revenue stood at $469.1 million (+58% YoY), above the consensus estimate of $436.13 million. For fiscal second-quarter DocuSign expects revenue in the range of $479-485 million against analysts’ consensus of $473.68 million.

The firm is said to have benefited from the Covid-19 pandemic that led to work-from-home schemes and the shutdown of many offices. DocuSign’s CEO says that customers are expanding their use of e-signatures for existing use cases—- and adding new ones. He believes that it is highly unlikely that customers will want to revert to the way they handled business processes before the coronavirus pandemic.

DocuSign (DOCU.US) shares jumped and returned above both 100- and 200-day moving average. Recently the price found support at $180 and bounced off. The $234 mark should be the first resistance to watch. It is worth to notice a double top pattern on the daily chart - the mentioned $234 halted an upward move in April. If the price breaks above it in the near future, bulls might feel encouraged to attack previous highs. Source: xStation5