According to a recent report, DocuSign (NASDAQ: DOCU) is the leader in the e-signature market with more than 70% of the global digital signature and document services market. The continued pandemic and lockdown conditions have helped it remain in lead. The company recently announced its quarterly results that continued to outpace market expectations.

DocuSign’s Financials

DocuSign’s revenues for the third quarter grew 53% to $382.9 million, ahead of the market’s estimates by 6%. Billings grew 63% to $440.4 million. On an adjusted basis, net income was $0.22 per share, compared with the market’s expectations of $0.12 per share.

By segment, Subscription revenues grew 54% to $366.6 million. Professional services and other revenue grew 42.7% to $16.3 million.

For the fourth quarter, DocuSign forecast revenues of $404-$408 million, compared with the Street’s forecast of $386.94 million and an EPS of $0.13. DocuSign expects to end the year with revenues of $1.426-$1.43 billion, ahead of the market’s forecast of $1.39 billion and an EPS of $0.55.

DocuSign’s Growth

During the quarter, DocuSign announced the expansion of the agreement cloud with its new AI solution called DocuSign Analyzer. The Analyzer is an extension of DocuSign Insight that simplifies the process of reviewing and negotiating agreements when they are first received. It uses AI to give legal, sales, procurement, and other stakeholders clear insight into the possible risks and opportunities in the documents being signed, helping them in negotiating better terms. Analyzer breaks down the agreement into separate clauses, which it recognizes using a combination of AI technologies. It proceeds to conduct a risk assessment based on the company’s legal and business standards and then gives those results in scorecards that are available in Microsoft Word, Microsoft Outlook, and its own CLM solution. The extension also simplifies the editing solution, by giving a one-click access to suggested replacement language from its collection of preapproved clauses.

DocuSign has been focused on an API-based strategy. During the quarter, it continued to see significant improvement within its partner ecosystem that includes developers that work on integrating DocuSign into their own solutions, systems integrators that build practices around the Agreement Cloud, and resellers that drive sales to reach for DocuSign globally. It reported that it now has over 350 ISV integrations on its platform, including the recently announced integrations with Slack and with Workplace from Facebook. Read my recent article Cloud Stocks: Which SaaS Players Will Win in PaaS where I reaffirm the need for a PaaS strategy for SaaS players.

Its stock is trading at $244.40 with a market capitalization of $45 billion. It hit a 52-week year low of $64.88 in March last year and a 52-week high of $290.23 earlier this month.