Tag: DOCU

DocuSign announced Q3 FY2021 earnings on December 3rd. The results were strong, with large beats on both revenue and EPS. Additionally, they raised Q4 and full year estimates by a wide margin. Annualized revenue growth continued to accelerate past the 50% mark in Q3 and appears likely to repeat the same for Q4. DOCU stock popped over 5% following earnings, after increasing 6% in anticipation the day before.

On the earnings call, the leadership team spoke to the significant opportunity for DocuSign beyond eSignature, highlighting continued growth in international, renewed customer interest in the full suite of CLM services, new AI-driven offerings and the introduction of Notary. These factors should maintain momentum in 2021, as tailwinds mitigate from social distancing mandates. In this post, I review DocuSign’s Q3 earnings results, customer activity and other business updates. I also dig into product enhancements, fueled by internal development efforts and the integration of thoughtful acquisitions. Finally, I revisit the competitive landscape and DocuSign’s unique position as the dominant player in a large addressable market. For additional information on the DocuSign investment thesis, interested investors can read my past quarterly updates and original deep-dive.

DocuSign announced Q2 FY2021 earnings on September 3rd. The results were strong, with large beats on both revenue and EPS. Additionally, they raised Q3 and full year revenue estimates by a wide margin. In spite of this, DOCU stock dropped about 11% the next day, as the market was likely hoping for an even larger beat following a spectacular earnings report from ZM. On the earnings call, the leadership team spoke to the significant opportunity for DocuSign beyond eSignature, highlighting international business growth, future customer expansion into the full suite of contract lifecycle management products and the upcoming roll-out of notary services. In this blog post, I review DocuSign’s Q2 earnings, customer wins and other business updates that occurred during the quarter. I also analyze product enhancements, acquisition updates and the competitive landscape. For additional information on the DocuSign investment thesis, interested investors can read my past quarterly updates and original deep-dive.

DocuSign released their Q1 (April end) FY2021 earnings report on June 4. They delivered a strong beat and raise across all metrics. Following several software companies that moderated their full year revenue growth, it was encouraging to see DocuSign increase revenue targets for both the next quarter and full year. While much of this can be attributed to spend pull forward due to COVID-19 and associated remote work trends, in DocuSign’s case, it is hard to imagine these trends reversing. Companies will not go back to paper agreements once digitized. More compelling for the bull case is the emergence of the full lifecycle of agreement processing and programmatic integrations with systems of record and end-user applications. These use cases should continue to drive high demand for the DocuSign’s services into the future, particularly considering the TAM and largely greenfield opportunity. In this post, I review DocuSign’s earning results and other recent business updates. I also take a look at continued progress with agreement automation, the competitive market and future opportunities. For a detailed refresher on the DocuSign investment thesis, please see my full analysis  published in April.

Docusign is a leading provider of agreement services. While most investors are familiar with their eSignature solution, they have recently expanded their product suite to address the full lifecycle of contract management. As digital agreements become a common step in enterprise workflows and online marketplaces, DocuSign is well positioned to meet the demand. For developers, they offer an open platform and broad set of APIs. Large customer additions have been strong, driving 39% revenue growth over the last year. In this post, I will dig into the company’s history, financials, product portfolio, addressable market and competitive landscape. While the stock has enjoyed a 35% gain year to date, for investors with a long term perspective, DOCU represents a solid choice.