After a long wait, Billion Dollar Unicorn DocuSign (Nasdaq: DOCU), went public early this year. It recently announced its second-quarter results that beat market expectations. But despite the upbeat outlook, its stock has taken a beating.

DocuSign’s Offerings

DocuSign was founded in 2003 by Tom Gosner, “father of electronic signatures”, as a platform to help companies automate processes that needed physical signatures. The company enables organizations to eliminate the traditional paper-based agreement process to reduce turnaround time and costs and eliminate errors. Its cloud-based platform has been adopted by over 400,000 paying customers and has enabled more than 650 million successful transactions. Its customers range from large global enterprises to sole proprietorships across industries around the world.

DocuSign operates on a subscription-based model charging $10 per month for individuals to $40 per user per month for businesses. Its products have seen significant market adoption, driving rapid growth in revenues. For the year ended January 2018, its revenue grew 39% to $518.5 million. During the same period, losses narrowed from $115.4 million in 2017 to $52.3 million for fiscal 2018.

For the recently reported second quarter, DocuSign saw revenues grow 33% to $167 million compared to a 37% growth in the first quarter. Subscription revenue grew 35% to $158.5 million and Professional services and other revenues grew 7% to $8.6 million. It ended the quarter with a net loss of $0.22 per share on a GAAP basis and an income of $0.03 per share on an adjusted basis. This was the first quarter that DocuSign reported profitability on an adjusted basis. The Street was looking for revenues of $160.1 million for the quarter with an adjusted income of $0.01 per share.

DocuSign expects to end the current quarter with revenues of $172-$175 million. It expects to end the year with revenues of $683-$688 million. The market was looking for revenues of $165 million for the quarter.