DocuSign's stock dropped nearly 32% in premarket trading on Friday after the digital solutions company issued a disappointing forecast.

The company expects to bill clients less in the current quarter than it had anticipated, indicating that the pandemic-fueled surge in the company's revenue may be coming to an end.

Brand Asset Guidelines | DocuSign

Annual billings for the year ending January 31 are now expected to be $2.34 billion, down $78 million from the midpoint of the company's previous estimate range.

The revised prediction came after the company's third-quarter sales increased by 42 % to $546 million, reflecting a cooling in demand for its solutions that enable online employee onboarding and document e-signature. During the peak of the epidemic, it had increased by more than 50%.

Customers returned to more typical buying patterns in the third quarter, according to CEO Dan Springer, resulting in a 28 % year-over-year increase in billings. Net earnings per share more than doubled to 58 cents on an adjusted basis, beating expectations.