DocuSign Inc. (DOCU) dropped its third-quarter results Thursday after the bell, and the numbers looked pretty good on paper. Revenue hit $813.35 million, clearing the $806.92 million consensus estimate. Adjusted earnings came in at $1.01 per share, easily beating the 92-cent forecast.

But here's where things get interesting: despite the beat, DocuSign shares slid 4.12% in after-hours trading to $68.17. Welcome to the wonderful world of "good news isn't good enough."

Breaking Down The Quarter

The intelligent agreement management company's subscription business—the real moneymaker—grew 9% year-over-year to $801 million. Professional services and other revenue jumped 14% to $17.4 million, pushing total revenue growth to 8%.

Billings climbed 10% year-over-year to $829.5 million. On the cash front, DocuSign generated $290.3 million from operating activities and $262.9 million in free cash flow. The company also bought back $215.1 million of its own stock during the quarter and finished with roughly $1 billion in cash, cash equivalents, and investments.

CEO Allan Thygesen seemed pleased enough: "Q3 was a strong quarter with growing customer investment into the IAM platform, where we now have more than 25,000 customers. Continued strong execution and improved efficiency led to one of the most robust top line growth and profitability quarters over the past two years."

Looking Forward

For the fourth quarter, DocuSign expects revenue between $825 million and $829 million—right in line with the $826.84 million consensus. Billings should land somewhere between $992 million and $1.002 billion.

The company also bumped up its full-year revenue guidance from a range of $3.189 billion to $3.201 billion to a new range of $3.208 billion to $3.212 billion. For context, analysts were expecting $3.197 billion.

DocuSign executives are scheduled to discuss the results further on an earnings call at 5 p.m. ET.