Docusign (NASDAQ: DOCU) saw its stock plummet 5.47% in pre-market trading, continuing its downward trend from post-market sessions. The intelligent agreement management company recently reported better-than-expected third-quarter earnings and revenue, but investors remain unimpressed.

The company reported adjusted earnings of $1.01 per share, beating estimates of $0.91, and revenue of $818.4 million, surpassing expectations of $807.1 million. Despite raising its full-year revenue guidance, the market reaction suggests lingering doubts about Docusign's ability to sustain growth momentum.

Adding to the negative sentiment, JP Morgan cut its target price for Docusign to $78 from $80, reflecting analyst concerns about the company's future performance. The pre-market plunge highlights a disconnect between the earnings beat and investor confidence in the stock's outlook.