Competition For DocuSign Heating Up

According to a Reports Monitor report published last year, the global digital signature market is estimated to grow by more than 31% annually over the next six years. Billion Dollar Unicorn DocuSign (Nasdaq: DOCU) is a leading player in the segment that is counting on growth driven by the increasing penetration of internet and the growing acceptance of e-signatures in the Banking, Financial Services, and Insurance sector.

DocuSign’s Financials

For its third quarter, DocuSign revenues grew 37% to $178.4 million with Subscription revenues growing 38% to $169.4 million and Professional services revenues growing 17% to $9 million. Billings for the quarter grew 40% to $198 million. DocuSign ended the quarter with a loss of $52.8 million. On an adjusted basis, the company reported a break-even quarter. The market was looking for revenues of $174 million and a loss of $0.02 per share.

DocuSign expects to end the current quarter with revenues of $192-$194 million and the year with revenues of $693-$695 million. The market is looking for revenues of $193.1 million for the quarter and $694.4 million for the year.

DocuSign’s Growth

DocuSign is making sure it delivers strong growth through acquisitions. Last year, it had announced the $220 million acquisition of Chicago-based cloud document generation and contract management player SpringCM. Now that the acquisition is complete, DocuSign is leveraging SpringCM’s capabilities to deliver newer products to its customers. The first product being released as part of this collaboration is DocuSign Gen. DocuSign Gen will allow Salesforce users to automate, simplify, and streamline the generation of agreements including sales contracts, quotes, and Non-Disclosure Agreements. The product is expected to be available in spring this year and will be targeted at the SMB segment. For larger enterprises, DocuSign already offers SpringCM’s Contract Management solution, which includes the agreement generation capabilities.

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