06:31 AM EST, 12/06/2024 (MT Newswires) -- DocuSign ( DOCU ) shares jumped early Friday as the electronic signature company lifted its full-year revenue outlook and reported better-than-expected fiscal third-quarter results.

Revenue is now set to come in at roughly $2.96 billion for fiscal 2025, the company said late Thursday, up from its previous projections of between $2.94 billion and $2.95 billion. The current consensus on FactSet is for revenue of $2.96 billion. Subscription revenue is pegged at about $2.89 billion versus the prior guidance range of $2.86 billion to $2.88 billion.

Billings, which reflect sales to new customers plus subscription renewals and additional sales to existing customers, are expected to be in a range of $3.06 billion to $3.07 billion for the ongoing fiscal year. The company previously forecast the metric between $2.99 billion and $3.03 billion.

The stock advanced 15% in the most recent premarket activity.

DocuSign ( DOCU ) expects to generate revenue of $758 million to $762 million for the current three-month period ending January, while the Street is looking for $759.4 million. Subscription sales are expected to be at $741 million to $745 million, while billings are seen at $870 million to $880 million.

For the quarter ended Oct. 31, DocuSign's ( DOCU ) adjusted earnings advanced to $0.90 per share from $0.79 the year before, beating the Street's view for $0.87. Revenue increased 8% year over year to $754.8 million, topping analysts' $745.2 million estimate.

"Docusign ( DOCU ) delivered powerful new innovation for customers highlighted by new capabilities to its intelligent agreement management platform," Chief Executive Allan Thygesen said in a statement. "In (the third quarter), early IAM momentum outpaced expectations, and we continued to drive improvement in our core business with strong revenue growth and operating profit."

The company's subscription revenue climbed to $734.7 million from $682.4 million in the prior-year quarter, while professional services and other revenue gained 11% to $20.1 million. Total billings rose 9% to $752.3 million.

"Early renewals drove approximately one-third of the billings outperformance, with the remainder coming from better retention performance, digital growth, and early (intelligent agreement management) contributions," Chief Financial Officer Blake Grayson said during an earnings call, according to a FactSet transcript.