Docusign (DOCU) shares soared nearly 20% Friday, a day after the e-document software provider posted better-than-expected results and raised its guidance as billings and subscription revenue surged.

The company reported third-quarter fiscal 2025 profit of $62.4 million, or $0.30 per share, while analysts surveyed by Visible Alpha projected $30.2 million, or $0.14 per share. Revenue of $754.8 million also beat estimates.

Billings increased 9% year-over-year to $752.3 million, and subscription revenue added 8% to $734.7 million.

CEO Says 'Fundamentals Across the Core Business Improved'

Chief Executive Officer (CEO) Allan Thygesen said, "Fundamentals across the core business improved, continuing the recent trends." Thygesen added that in addition, Docusign had "sustained momentum in new customer growth at 11% year-over-year to 1.6 million customers."

The company now sees full-year revenue of $2.959 billion to $2.963 billion, compared to the earlier estimate of $2.940 billion to $2.952 billion. It anticipates billings be $3.056 billion to $3.066 billion, versus the previous prediction of $2.990 billion to $3.030 billion. It also boosted its subscription revenue outlook to $2.885 billion to $2.889 billion from $2.864 billion to $2.876 billion.

Shares of Docusign recently traded up 19% at $99.92, their highest level since April 2022.