What happened

Shares of e-signature company DocuSign (DOCU -1.76%) took a hit on Friday, falling as much as 16.6%. As of 1:12 p.m. EDT, the stock was down 12.4%.

The stock's decline follows DocuSign's fiscal first-quarter results, which were solid overall. A deceleration in billings growth, however, may have spooked some investors.

DocuSign's e-signature product on a laptop and smartphone

Image source: DocuSign.

So what

DocuSign's fiscal first-quarter revenue increased 37% year over year to $214 million, ahead of analysts' average estimate for revenue of $208 million. Non-GAAP earnings per share for the period were $0.07, beating a consensus forecast for $0.05. 

Results were helped by a 26% year-over-year increase in total customers. 

Billings were up 27% year over year -- a deceleration from 31% growth in the company's previously reported quarter. 

Now what

Slower growth in billings is a reflection of a longer sales cycle due to the company's shift toward selling more products outside of its core e-signature tools.

Reflecting management's positive outlook for revenue growth, the company lifted its forecast for full-year revenue. The midpoint of the company's new guidance range for fiscal 2020 revenue is $919.5 million, up from a previous forecast for $912.5 million.