DocuSign falls on weak full-year guidance, WeWork forecasts higher 2022 revenue

DocuSign sheds its pandemic gains after weak guidance while WeWork forecasts higher revenue for 2022 as occupancy rises.

Video Transcript

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RACHELLE AKUFFO: Welcome back to "Yahoo Finance Live." It's time for our Triple Play, where we take a look at some of the tickers that have really caught our eye today. Now, I'm going to start with a pandemic darling, DOCU, which is DocuSign. Now, they've been having a tough time. It's unfortunate because earnings and revenue were a beat, but the stock sank after the digital software-- signature software company gave disappointing guidance. As you can see now, it's down more than 21% in today's trading.

Now, it gave that disappointing guidance for the April quarter. DocuSign, though, is predicting that April quarter of revenue, $579 million 583 million. And that fell short of the Wall Street consensus of 594 million. And that's also about flat with the January quarter.

And it'll be interesting to see how some of these pandemic darlings are going to have to pivot or really become more creative or perhaps have more partnerships to really try and sustain what they saw. It could be that those glory days might not come back. Well, Dave, I'm going to bring you in here because I know the ticker that you're watching is WeWork?

- Much like yours, one of those pandemic darlings you talk about, because I work from home. You work from home. WE is the stock symbol. And WeWork, the flexible workspace provider, expects revenues to jump more than 30% next year as they see increased demand for office spaces. Companies project really a hybrid work model indefinitely.

SoftBank says revenues between 3.3 and $3.5 billion next year. They went public in October. The stock shot right up to 13 bucks a share, but it's really been a lot like DocuSign and a lot of these other pandemic work-from-home stocks, all downhill from there. Closing down on this news about $5.12. They lost 4.4 billion last year.

But Rachelle, I'm curious about this. Just anecdotally, I live in a commuter town, almost entirely people that commute to New York City. I don't know one single person who has any plan to return to the office in full. All of them, 100%, have some type of hybrid model, their bosses say, indefinitely as they decrease their real estate footprint in New York City.

And all of them also tell me, Rachelle, they've had enough of working from home. Not only are they less productive, but they miss the social element of working in New York City. And quite frankly, I think they missed that after-dinner, after-work happy hour in some cases. So I think WeWork is really here to stay and here to grow, as some of us are tired of working from home.

I'm in my basement. I would love a WeWork-type space. You see growth down the road.

RACHELLE AKUFFO: Well, it's interesting because you mentioned this difference between what you see with perhaps someone who's in a suburban area versus someone who has to commute. You're finding that with the return to work, a lot of these people, they approach this very differently. Some people who've worked from home the entire time, some are ready to come back. Some would prefer a hybrid model. So employers are really trying to gauge that.

But, I mean, you see some of these major investment banks saying, look, if you work in New York, and you're getting that New York salary, you need to come into the office. So I think it really comes down to how employers gauge this and how happy employees are when they come back. I mean, we can't forget, we are still in the middle of the Great Resignation.

So it could be that when people do return to work, they might decide, look, this isn't for me. Perhaps I could start something on my own or work in a WeWork, but perhaps they're not quite ready. So it'll be interesting to see how these different demographics end up seeing whether they use something like a WeWork or whether they'll just have to perhaps suck it up and come into the office and go from there. But we'll have to--

- Yeah, it's a really good-- OK, we'll leave it there. I was just going to say, it's interesting those companies that say, you're going to have to come to work to get a New York salary, but they can save millions a year on reducing their real estate footprint. And that's what you're seeing at a lot of major companies in the city.