DocuSign (DOCU) shares moved higher Tuesday after the company said that CEO Dan Springer will step down from the online signature vending group just days after it posted disappointing first quarter earnings and a muted near-term outlook.
Springer, who has run the group since 2017, will make may for board member Maggie Wilderotter, who will serve as interim CEO as it conducts a nation-wide search for a permanent replacement.
DocuSign, which has been struggling to hold investor interest as pandemic-era restrictions bring more and more professionals back to the office, earned 38 cents per share over the three months ending in April, missing Street forecasts by around 8 cents on a non-GAAP basis.
The group also lowered its billings forecast to between $2.52 billion and $2.54 billion from its previous estimate of $2.71 billion to $2.73 billion, despite an earlier unveiling of an expanded partnership with Microsoft (MSFT) which will see the tech giant using DocuSign's products and services in its contract management workflows.
"DocuSign has the people, the products and the brand to transform the way the world agrees, making us a leader in our Anywhere Economy," said chairman Pete Solvik.
"As we turn the page and begin DocuSign's next great chapter, I'd like to express our gratitude on behalf of the full Board to Dan Springer for his leadership through a period of unprecedented growth over the past five years, which has positioned DocuSign to capitalize on the strong trends that are driving accelerated digital transformation at companies large and small,." he added.
DocuSign shares were marked 4.1% higher in early Tuesday trading immediately following news of Springer's departure to indicate an opening bell price of $63.04 each, a move that would still leave the stock down more than 60% for the year.
