DocuSign Inc provides electronic signature solutions. The company offers its services to customers worldwide across banks, non-profit, real estate, insurance, technology and healthcare industries.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
| 64.88 – 290.23 | 5,676,885 | 39,369.8 | – | 96.4% | 247.31 | 4.17 | 03/12/2020 |
The cloud-based platform allows users to digitalise agreements, approvals and transactions across multiple devices.
The company offers monthly and annual subscription plans catering from individuals to large corporates, with fees paid by the entities initiating the contract or documents. A free to use mobile application is also available. Additionally, the company offers a payment service, DocuSign Payments that allows the collection of payments and signatures simultaneously integrated with applications including Stripe and PayPal. The company has benefited from the first-mover advantage in e-signatures, expanding across the life cycle of contracts. DOCU has roughly 60% market share in e-signatures, with future growth coming from workflow services in a market where approximately 20%of document workflow is digitalized.
The United States is by far the main market for DocuSign with 82% of sales generated there in 2020, with the remaining 18% from international markets. The company has benefited from the shift to work and study from home, with strong growth in new customers, up 120% in Q1 2021 and another 203% in Q2. The company has pursued a growth strategy, utilising integrations with market leaders such as Salesforce, Zoom Communications, Google and Microsoft. Sales jumped 39% in 2020 to $1,163.6m and is forecast to rise another 42% in 2021 and 31% in 2022 having averaged 40% growth per annum over the past four years. Adjusted earnings per share is forecast to turn positive in 2021, increasing 152% from -$1.18 to $0.58 and then a further 61% rise in 2022 to $0.93. That would see the stock trade on forward P/E multiples of 368.5 and 228.6, significant premiums when compared to peers average of 37.9 and 32.8 respectively.
The average target price of analysts covering the stock is $247.31 with 67% of analysts rating the stock as a buy, compared to 6% as a sell and 28% as a hold.
