06:32 AM EDT, 03/14/2025 (MT Newswires) -- DocuSign ( DOCU ) shares spiked early Friday as the electronic signature company issued an upbeat full-year billings outlook at the midpoint and reported better-than-expected fiscal fourth-quarter results.

Billings, which reflect sales to new customers plus subscription renewals and additional sales to existing customers, are anticipated to be in a range of $3.3 billion to $3.35 billion for fiscal 2026, the company said late Thursday. The current consensus on FactSet is for $3.31 billion. In the just-ended fiscal year, the metric increased 7% annually to $3.11 billion.

Revenue is pegged at $3.13 billion to $3.14 billion for the ongoing fiscal year, with subscription sales projected to come in between $3.06 billion and $3.07 billion. The Street is currently looking for overall revenue of $3.14 billion. Revenue advanced 8% year over year to $2.98 billion in fiscal 2025.

"Our fiscal 2026 guidance represents the first year we anticipate accelerated annual billings growth since fiscal year 2021 as we build off demonstrated momentum in (the intelligent agreement management platform) and continued improvements in retention," Chief Financial Officer Blake Grayson said during an earnings call, according to a FactSet transcript. Shares of the company jumped more than 10% in the most recent premarket activity.

For the three-month period ended Jan. 31, DocuSign's ( DOCU ) adjusted earnings rose to $0.86 per share from $0.76 the year before, topping the average analyst estimate of $0.85. Revenue grew 9% to $776.3 million, ahead of the Street's view for $761.2 million. Subscription and professional services and other revenue logged gains of 9% and 11%, respectively.

Total billings climbed 11% to $923.2 million "driven by higher early renewals, including those influenced by increasing consumption trends," Grayson said on the call. The result was also buoyed by higher IAM billings and more deals shifting to annual billing terms, according to the CFO.

The company projects billings to come in at $741 million to $751 million for the current quarter ending April 30, while the market's forecast is for $744.1 million. "While we invoice the vast majority of contracts upfront and annually, we saw the rate increase slightly in (the fourth quarter), which impacts current quarter billings," Grayson told analysts.

Revenue is expected to be in a range of $745 million to $749 million for the ongoing quarter, while the Street is looking for $751 million. Subscription sales are estimated to be in between $729 million and $733 million.