The global pandemic has accelerated the shift to digital for most organizations. DocuSign (Nasdaq: DOCU) is one player that has seen significant traction due to this transition. The company’s stock has climbed to record high levels, and it has already gained 95% since the beginning of the year.

DocuSign’s Financials

DocuSign recently reported its quarterly results. Revenues for the first quarter grew 39% over the year to $297 million, ahead of the market’s estimates of $281 million. Billing grew 59% to $342.1 million. Net loss was $47.8 million, or $0.26 per share, compared with a net loss of $25.7 million a year ago. On an adjusted basis, net income was $0.12 per share, compared with the market’s expectations of $0.10 per share.

By segment, Subscription revenues grew 39% over the year to $280.9 million. Professional services and other revenue grew 29% to $16.1 million.

For the second quarter, DocuSign forecast revenues of $316-$320 million, compared with the Street’s forecast of $314.7 million. DocuSign expects to end the year with revenues of $1.313-$1.317 billion, ahead of the market’s forecast of $1.31 billion.

DocuSign’s Growth

The current crisis has translated to new use cases for DocuSign’s products. For instance, the company helped a State revamp its process of handling emergency unemployment benefits. Its eSignature product helped disburse more than $500 million to 500,000 recipients in less than a week. Similarly, it helped a bank with Small Business Administration (SBA) loans and helped facilitate 0.5 million loan applications, with 75% of those signed within 24 hours.

At the same time, some other sectors such as real-estate financing are facing significantly lower volumes doe to the surge in unemployment. In the second quarter, DocuSign expects its usage to increase in the notary space as customers are looking for a simplified notary experience.

During the quarter, its customers grew 30% over the year to 661,000. It added over 10,000 new direct customers, and 58,000 new customers on-boarded themselves across all of its products. While some of these customers may have joined because of the crisis, the company believes that most of these customers will stay on because of the significant time and cost savings offered by the solution. Most of DocuSign’s direct customers signed up for its e-signature product. But DocuSign is confident of being able to cross-sell to them to expand their engagement to the overall Agreement Cloud solution.

Within the new customers added, it is important to note that DocuSign saw a significant acceleration in the growth of its enterprise and commercial customers. The enterprise and commercial customer-base grew 49% over the year compared with the 33% growth reported in the previous quarter. Additionally, organizations with annual contract values of greater than $300,000 grew by 46% over the year. DocuSign’s dollar-based net retention rate that measures the level of spending by existing customers was119%.

Its stock is trading at year high levels of $168.30 with a market capitalization of $30.9 billion. Even in March, when most stocks had taken a beating, Docusign’s stock barely slumped. It hit a 52-week low of $43.13 in August last year.