What happened

Shares of DocuSign (NASDAQ:DOCU) soared 84.9% in 2019, according to data from S&P Global Market Intelligence, largely on the heels of the e-signature specialist's latest two strong quarterly reports.

So what

The software-as-a-service stock skyrocketed nearly 33% in the month of September alone after the company posted exceptional fiscal second-quarter results. Revenue soared 41% year over year to $235.6 million -- well above estimates for closer to $221 million -- on a 39% jump in subscription revenue (to $220.8 million) and a 72% increase in professional services/other sales.

Rising stock chart superimposed over digital map of the world

Image source: Getty Images.

More recently, DocuSign effectively sustained that momentum with its third-quarter update in early December. The stock jumped nearly 9% in a single day after the company confirmed its Q3 revenue rose 40% year over year to $249.5 million (above estimates for $239.9 million), translating into adjusted earnings of $0.11 per share (compared with estimates for $0.03 per share).

CEO Dan Springer noted DocuSign is enjoying a "significant expansion of our global customer base," adding, "Customers and partners alike are seeing the benefits of having a single platform that connects and automates the entire agreement process."

Now what

As it stands, DocuSign should be slated to release fiscal fourth-quarter results some time in March. For perspective, the company's own guidance calls for revenue ranging from $263 million to $267 million -- up roughly 33.4% at the midpoint -- with billings of $346 million to $356 million.

Given DocuSign's propensity for underpromising and overdelivering, however, I suspect it might take results near the high ends of those ranges to appease Wall Street's insatiable appetite for growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.