Shares of DocuSign Inc. (DOCU, Financial) gained more than 20% on Friday after the company posted second-quarter results on Thursday. Revenue grew 41% from the prior-year quarter to $235.6 million, beating expectations by $14.79 million. The company posted earnings of 1 cent per share, falling 3 cents short of estimates.
"With revenue growth exceeding 40% and billings growth at 47%, our second-quarter performance reflects our clear leadership position in e-signature and increasing adoption of our broader Agreement Cloud offering," CEO Dan Springer said.
The GAAP gross margin was 74%, down from 78% in the prior-year quarter. The Non-GAAP gross margin was 78%, down from 81%.
Moreover, the free cash flow was $11.9 million, which declined from $18.4 million in the year-ago quarter.Â
Looking ahead, the company expects revenue between $237 million and $241 million. It also projects a non-GAAP gross margin ranging from 78% to 80%.
During the quarter ended June 30, David Swensen (Trades, Portfolio) reduced his holding by 67% to 73,438 shares. Stanley Druckenmiller (Trades, Portfolio) also curbed his position by 66%, while Paul Tudor Jones (Trades, Portfolio) sold out of the stock.
Shares of PagerDuty Inc. (PD, Financial) declined 7% on Friday after reporting second-quarter revenue of $40.36 million and a loss of 7 cents per share on Thursday. Both figures surpassed analysts' projections.
The GAAP gross margin was 84.9% and the non-GAAP gross margin was 85.7%.Â
Furthermore, the GAAP operating loss was $14.4 million, or 35.6% of revenue, down from a $13 million loss, or 46.7% of revenue, in the second quarter of fiscal 2019. The non-GAAP operating loss was $7.1 million, or 17.7% of revenue, compared to a $4.2 million loss, or 15.2% of revenue, in the prior-year quarter.
Looking ahead to the third quarter of fiscal 2020, the company expects total revenue between $41.5 million and $42.5 million and a non-GAAP net loss per share of 9 cents to 10 cents.
During the second quarter, Chase Coleman (Trades, Portfolio), Jones and Ron Baron (Trades, Portfolio) established new positions.
Shares of Zoom Video Communications Inc. (ZM, Financial) fell more than 6% on Friday after announcing second-quarter results on Thursday. The company posted earnings of 8 cents per share on $145.83 million in revenue. It beat earnings estimates by 7 cents and revenue expectations by $15.28million.
For the quarter, cash from operating activities was $31.2 million, up from $14.4 million in the year-ago quarter. Free cash flow was $17.1 million, an increase from $8.2 million.
Looking ahead to the third quarter, the company expects revenue in the range of $155 million to $156 million. It also forecasts non-GAAP earnings of 3 cents per share.
Several hedge fund managers opened new position in the stock during the quarter, including Baron, Steven Cohen (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Philippe Laffont, Frank Sands (Trades, Portfolio), Coleman, Jones and Joel Greenblatt (Trades, Portfolio).
Disclosure: The author holds no positions in any stocks mentioned.
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