DocuSign (DOCU 0.37%) reported results for its fiscal 2022 first quarter (ended April 30, 2021), and investors liked what they saw, sending the stock up as much as 6% in after-hours trading. Revenue of $469 million climbed 58% year over year, eclipsing analysts' consensus estimates of roughly $438 million. Revenue accelerated both year over year and on a sequential basis, illustrating the strength of its growing business.

The top-line growth was powered by subscription revenue that grew 61% to $452 million, or 96% of total sales. Professional-services revenue of $17 million edged 7% higher. Billings, a sales growth metric that factors in changes in deferred subscription revenue, grew 54% to $527 million.

A person on a laptop electronically signing a document using DocuSign.

Image source: DocuSign.

The bottom-line results were equally robust. Adjusted earnings per share (EPS) of $0.44 far exceeded the $0.28 expected by analysts, growing more than threefold from $0.12 in the prior-year quarter. Free cash flow also soared, surging to $123 million, up from just $33 million.

Investors were also intrigued by DocuSign's bullish forecast. The company is guiding for revenue in a range of $479 million to $485 million, which would represent 40% growth at the midpoint of its guidance.

DocuSign also raised its full-year forecast. For the fiscal year ending Jan. 21, 2022, the company is guiding for revenue in a range of $1.963 billion to $1.973 billion, which would represent growth of roughly 40%, up from its previous forecast, which called for 35% growth.

The company released several operational upgrades that bode well for the future growth of its cloud-based technology. The DocuSign Agreement Cloud added new product capabilities including data verification, electronic witness enhancements, and now offers e-signature for Microsoft Teams.

The e-signature specialist also introduced DocuSign Notary, a remote online notarization tool, which employs identity-proofing to help reduce the risk of fraud.