Cloud Stocks: DocuSign Explores ID Verification Features To Counter Deep Fakes
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According to a recent report, the global digital signature market is estimated to grow at 35% CAGR to reach $43.1 billion by 2030 from $5.25 billion in 2023. DocuSign (Nasdaq: DOCU) is a leading player in the market that is looking to cash in on this rapid growth.
DocuSign’s Financials
Revenues for the second quarter grew 11% to $687.7 million. Non GAAP net income was $0.72 per share, compared with $0.44 a year ago, in line with the market’s estimates. The market was looking for revenues of $676.79 million and an EPS of $0.65.
Subscription revenues grew 11% to $669.4 million, while professional services registered a growth of 8% to $18.3 million. Billings for the quarter grew 10% to $711.2 million.
For the third quarter, DocuSign forecast revenues of $687-$691 million and billings of $668-$678 million, compared with the Street’s forecast of revenues of $683.81 million and an EPS of $0.57. DocuSign expects to end the year with revenues of $2.725-$2.737 billion compared with the market’s forecast of $2.72 billion.
DocuSign’s ID Verification Offering
Recently, DocuSign announced the launch of Liveness Detection for ID Verification. The service allows businesses to easily, securely, and remotely prevent the use of fake documents and the use of deep fakes or pre-recordings, in addition to preventing identity spoofing. The solution provides a critical capability for companies that are adopting identity proofing as a part of their workflows to improve trust, compliance, and simplify the user experience. Liveness Detection of ID Verification was developed in partnership with Onfido, eliminating the need for users to use multiple platforms to complete secure agreements. Not only does the service confirm that there has been no spoofing, but it also confirms that the user was not using a fake webcam or an emulator and that the signer is physically present during the time of the video selfie.
Its stock is trading at $42.19 with a market capitalization of $8.57 billion. It has fallen from the 52-week high of $69.45 that it was trading at in February last year. In October last year, the stock had fallen to a 52-week low of $39.57.
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Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research ...
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