DocuSign’s CEO, Dan Springer said that “E-signature has what put DocuSign on the map and it has been significantly accelerating through 2020 and at the beginning of 2021,” in a recent CNBC interview. According to Springer, the significant rise of the company is partially due to some of the Covid issues where people took their digital transformation and accelerated them. “It’s a change where people are realizing that they need to have a more digitally transformed business so our expectation is we’re going to continue to see the significant growth we see in 2020 continuing strongly in 2021.” said Springer.
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DocuSign(NASDAQ: DOCU) is a company that manages electronic deals or agreements of different organizations and businesses. It should be noted that the company has already more than 750 thousand customers across 180+ countries, including famous brands such as Uber(NYSE: UBER), AstraZeneca(LON: AZN), Apple(NASDAQ: AAPL), T-Mobile(NASDAQ: TMUS), Facebook(NASDAQ: FB), Visa(NYSE: V), Aetna(NYSE: AET), and a lot more.
In their last earnings call, the company’s enterprising commercial customer count grew 64% YOY. “We’re absolutely investing for growth. We went public a couple of years ago, of course, we want to be responsible for our growth and that’s why you see our profitability increasing each quarter because we want to focus on growth first.”. He added that they are going to continue making good investments like customer ads and that people are going to see DocuSign invest to hit the apex of the growth opportunity they currently have.
Part of the reason why they are so excited about investing aggressively for their growth is that “We see this phenomenon of the signature company and we’re thrilled about the signature business. Now we have a broader agreement cloud opportunity which takes it from $25 million to almost double”. Springer stated that they have a tremendous amount of runway ahead to continue to invest aggressively. “You can see us to continue to put a lot of resources into building fantastic new software as well as considering M&A opportunities when we see them expand the product”.
“We’re pretty focused on customer success. You’ll see us continue to provide what our customers are asking us for. Our traditional business which has been in signature– a lot of our customers said, ‘this is fantastic’ but we also need help before the signature, preparing agreements so they can be routed around and ready to sign, and we need to manage that set of agreement”. Springer said that we’ll see DocuSign more in investing and preparing agreements and then managing those agreements afterward.
“I think the valuations are at levels we haven’t seen before in the software space and that’s both true for DocuSign and probably well as true for companies we might consider acquiring.”. Dan said they are not the type of company that focuses on trying to make a blockbuster deal or growth through Mergers and Acquisitions(M&A) rather, they think of M&As as a strategic way to add functionality into their overall operations for the betterment of their service to their customers.
DOCU has a $45 billion market cap and more than tripled in 2020.
