06:18 AM EDT, 06/07/2024 (MT Newswires) -- DocuSign ( DOCU ) slightly lifted its full-year billings outlook late Thursday after the electronic signature company recorded higher-than-expected fiscal first-quarter results.

Billings, which reflect sales to new customers plus subscription renewals and additional sales to existing customers, are now set to be in a range of $2.98 billion to $3.03 billion for fiscal 2025. The company previously anticipated the metric to come in between $2.97 billion and $3.02 billion.

"As continually shown in recent quarters and years, billings are heavily impacted by the timing of customer renewals, which can create meaningful variability from period to period," Chief Financial Officer Blake Grayson said during an earnings call, according to a Capital IQ transcript. "This impacts the year-over-year and sequential quarter-over-quarter comparisons and is further amplified by the scale of our book of business."

DocuSign ( DOCU ) continues to project revenue of $2.92 billion to $2.93 billion for the ongoing fiscal year, with subscription revenue still pegged at $2.84 billion to $2.86 billion. The consensus on Capital IQ is for revenue of $2.93 billion. Shares of the company fell 7.7% in Friday's premarket activity.

For the quarter ended April 30, adjusted earnings came in at $0.82 per share, up from $0.72 the year before, beating the Street's view for $0.79. Revenue advanced 7% to $709.6 million, topping analysts' $707.4 million estimate.

The company's subscription revenue climbed to $691.5 million from $639.3 million in the prior-year quarter, while professional services and other revenue slumped 18% to $18.2 million. Total billings gained 5% to $709.5 million, mainly driven by "higher early renewals as well as stronger retention rates," Grayson said on the call.

DocuSign ( DOCU ) expects to generate revenue of $725 million to $729 million for the current three-month period ending July, while the Street is looking for $726.7 million. Subscription sales are expected to come in between $705 million to $709 million, while billings are seen at $715 million to $725 million.

"We expect (the second-quarter) to have the lowest year-over-year billings growth rate in fiscal 2025 primarily given comparison versus last year's strong on-time renewal performance and the timing impact of various customer contracts," Grayson told analysts. The company's board of directors also increased its share repurchase program by up to $1 billion.

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