DocuSign Inc (NASDAQ:DOCU) shares tanked in early trading on Friday, even after the company reported upbeat revenues for its first quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Piper Sandler On DocuSign

Analyst Rob Owens maintained a Neutral rating while reducing the price target from $65 to $60.

DocuSign’s revenues grew by 7.3% year-on-year to $710 million, surpassing expectations, Owens said in a note. He added, however, that this was the “lowest beat in the past 5+ years.”

The company reported operating margins of 28.5%, which took earnings to 82 per share, exceeding Street expectations by 3 cents, the analyst stated.

“Positive feedback to the rollout of IAM was encouraging, but success with this strategy will be measured over multiple years, and is unlikely to drive a near-term inflection in the business in our view,” he further wrote.

RBC Capital Markets On DocuSign

Analyst Rishi Jaluria reiterated a Sector Perform rating while cutting the price target from $59 to $52.

DocuSign reported a “skinny beat,” with the upside in revenue, billings, and operating margin coming in lower than usual, Jaluria said. The company raised its subscription revenue and billings guidance for the full year, but the revision was less than the first-quarter beat, he added.

“PLG investments are starting to bear fruit and consumption trends improved slightly,” the analyst wrote. “All in, the quarter was fine but below high expectations and likely tempers the case for near-term reacceleration (and IAM),” …

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