Why did DocuSign stock go up today? Strong Q2, guidance assuages fears
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DocuSign (NASDAQ:DOCU) shares jumped more than 10% on Friday after it reported second-quarter figures and guidance that topped expectations, resulting in analysts praising the electronic agreement company.
J.P. Morgan analyst Sterling Auty, who has a neutral rating on DocuSign (DOCU), noted that its next phase of growth will come from selling more to its larger installed base and while it's in the "early innings" of this, there could be bumps in the road, even if its financial profile is strong. 
"While DocuSign continues to carry an attractive free cash flow profile at scale, near-term profitability may remain weaker relative to the elevated levels seen in fiscal 2022, as the company leans into investments in key growth areas, including international expansion and multi-product adoption, in an effort to reaccelerate growth," Auty wrote in a note to clients.
For the third-quarter, DocuSign (DOCU) said it expects revenue to be between $624M and $628M, or up to 15% more than the $545.5M it pulled in last year. It also expects full-year revenue to be between $2.47B and $2.48B, compared to $2.1B last year. 
Wedbush Securities analyst Dan Ives called DocuSign's (DOCU) results a "nice step in the right direction," but added that challenges remain. 
"We continue to be skeptical based on our checks that the momentum continues at DocuSign," Ives wrote in a note to clients.

Last month, investment firm UBS said that another guide-down from DocuSign (DOCU) seemed likely, noting a "right-sizingâ in renewals, as well as increased competition from Adobe (ADBE).