Shares of DocuSign (DOCU 6.71%) jumped as much as 10.8% higher on Friday morning thanks to an impressive third-quarter earnings report.
DocuSign's sales rose 54% year over year to $383 million in the third quarter of fiscal year 2021. Adjusted earnings doubled to $0.22 per diluted share. Your average analyst would have settled for earnings near $0.13 per share on sales in the neighborhood of $361 million.
The COVID-19 pandemic provided a strong tailwind for the electronic signatures and contract management specialist. The company's products and services help clients and their customers complete and manage their agreements and business deals electronically, with zero risk of transmitting virus infections.
"As COVID-19 has accelerated the digital transformation of key business and agreement processes, DocuSign has become an increasingly essential cloud software platform," DocuSign CEO Dan Springer said in the earnings call. "The last few quarters of heightened demand have offered a glimpse into the long-term growth opportunity we have."
Investors have already embraced DocuSign's fantastic growth story in recent months and this muscular earnings report supported the resulting market gains. The stock has now gained 212% year to date and 230% over the last 52 weeks.