Billion Dollar Unicorns: DocuSign Impressive Post IPO

Electronic signature company and Billion Dollar Unicorn DocuSign went public in April on the Nasdaq exchange under the ticker DOCU. It recently announced strong results in its first earnings report as a public company.

DocuSign’s Business

DocuSign was founded in 2003 by Tom Gosner to build a platform for automating the agreement processes that need physical signatures. Today, its platform is available in multiple languages and it has over 400,000 paying customers and hundreds of millions of users. Its client list includes names like Salesforce, T-Mobile, Caldwell Banker Elite, Randstad, and Comcast.

DocuSign was initially set up to focus on the SMB segment, especially the real estate one. Over the years though, it has expanded its offerings to the enterprise segment as well. Last year, it launched a payments platform that embeds the payment processing capabilities for its enterprise users. It offers more than 300 off-the-shelf, prebuilt integrations with the applications offered by Google, NetSuite, Oracle, Salesforce, SAP, SAP SuccessFactors, and Workday so that they can create, sign, sends, and manage agreements from directly within these applications.

DocuSign charges a subscription fee ranging from $10 per month for individuals to $40 per user per month or $480 per year for businesses. Since its inception, over 650 million Successful Transactions have been completed on its platform.

DocuSign’s Financials

DocuSign reported first-quarter 37% growth in revenue to $155.8 million. GAAP net loss was $270.68 million or $7.46 a share compared with losses of $19.4 million, or $0.66 a share a year ago. Net loss including a $262.8 million stock-based compensation charge. Non-GAAP EPS was $0.01 compared to a non-GAAP net loss per share of $0.30 a year ago. Analysts expected a loss of $0.07 per share on revenue of $146.2 million.

GAAP gross margin was 63%, compared to 76% in the same period last year. Cash, cash equivalents and restricted cash was $269.8 million at the end of the quarter.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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