Docusign Inc (NASDAQ:DOCU) stock plunges 39.81% (As on Dec 3, 11:46:14 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the third quarter of FY 22. Subscription revenue was $528.6 million, an increase of 44% year-over-year. Professional services and other revenue was $16.9 million, an increase of 4% year-over-year. Billings were $565.2 million, an increase of 28% year-over-year. Net cash provided by operating activities was $105.4 million compared to $57.4 million in the same period last year. Free cash flow was $90.0 million compared to $38.1 million in the same period last year. Cash, cash equivalents, restricted cash and investments were $908.2 million at the end of the quarter.

DOCU in the third quarter of FY 22 has reported the adjusted earnings per share of 58 cents, beating the analysts’ estimates for the adjusted earnings per share of 46 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 42 percent to $545.5 million in the third quarter of FY 22, beating the analysts’ estimates for revenue of $529.3 million. Non-GAAP gross margin was 82% compared to 79% in the same period last year.

For the fourth quarter ending in January, DocuSign expects revenue to be in the range of $557 million to $563 million. The company expects full-year revenue to be in the range of $2.08 billion to $2.09 billion.

Meanwhile, on October 27, 2021, DocuSign and Salesforce announced an expansion of their global strategic partnership to build new joint solutions that make it easier for customers to accelerate how agreements are facilitated around the world. New innovations will automate the contract process with AI-based, smart solutions that improve the customer experience of preparing, signing, and managing agreements, drive faster ROI, and increase collaboration amongst organizations with Slack functionality. DocuSign introduced DocuSign Ventures, a new initiative dedicated to nurturing the growing ecosystem of entrepreneurs and startups that are changing the future of how we all will agree. Ventures will focus on co-investing in and partnering with companies raising early-stage funding to innovate around the agreement process. This includes technologies that facilitate pre-agreement work and negotiation, as well as the logistics and workflows after an agreement is signed. Ventures reinforces the company’s existing strategic investments and partnership efforts across the startup ecosystem.