DocuSign

Stock: DOCU

Rating: Buy

Author: Waleed M. Tariq

Overview

  • DocuSign is a cloud-based e-signature system for companies.
  • DocuSign Agreement Cloud automates and connects the agreement process. This platform integrates with source systems.
  • DocuSign had over 1.1 million clients,  up 34% and 44% YoY.

Bullish

  • DocuSign began as an e-signature firm but has extended its platform.
  • DocuSign might harness an untapped market to reduce volatility and boost long-term development.
  • I’m bullish on provided DocuSign is a long-term market leader.

Bearish

  • Slowing growth caused a sharp drop in the company’s share value.

Digitizing business

  • Electronic signatures have been legal in the US for over 20 years according to the ESIGN and the UETA Acts. It’s spread recently.
  • The epidemic has also revealed and pushed the drive towards digitized corporate ecosystems.
  • DocuSign’s future depends on digitalization and paperless documentation.

International Market

  • DocuSign makes 75% of its revenue in the US and 23% internationally. DocuSign can enter these markets by showcasing its solutions.
  • Dubai’s government says all transactions are digital. DocuSign supports 44 languages, which is a plus considering the platform’s 180-country reach.

DocuSign CLM

  • The technology automates manual activities, aligns intricate workflows, and lowers errors and hazards through smart contract management to fast-track contracts and boost efficiencies.
  • DocuSign’s CLM customers doubled in 2 years. We’ve seen DocuSign’s e-signature market stats, but its other products, especially CLM, have yet to exhibit impacts.

Finally

  • Investors look to company insiders for stock sentiment. Insiders buy for one reason: they believe the stock is undervalued.
  • Management seems enthusiastic, betting heavily on the company.

Conclusion

  • The stock may be turbulent over the next few months, but given their offerings, it may produce beneficial outcomes by year’s end.