From Yahoo Finance: 2025-06-07 15:07:00

DocuSign, Inc. (DOCU) saw its share prices drop by 18.97 percent on Friday to $75.28 after revising its full-year billing outlook due to a shift to an AI model, expecting billings to range between $3.285 billion to $3.339 billion.

CEO Allan Thygesen of DocuSign, Inc. (DOCU) attributed the decline in billings to “foundational go-to-market changes” related to the adoption of Intelligent Agreement Management, negatively impacting early renewals in the first quarter.

Despite the drop in billings, DOCU achieved a 118% increase in net income to $72 million and a 7.6% rise in revenues to $763 million in the first quarter, securing the 2nd spot on the list of Friday’s worst-performing stocks.

The impact of the shift to AI at DocuSign, Inc. (DOCU) resulted in a quicker-than-anticipated decline in billings growth, affecting early renewals and contributing to the stock’s nosedive, highlighting the challenges of transitioning to an AI-driven platform.

Read more: Why DocuSign, Inc. (DOCU) Crashed On Friday