DocuSign Prepares To Beat Rival Adobe

According to a ResearchandMarkets report, the global digital signature market is estimated to grow at 37% CAGR to $5.5 billion by 2023 from $1.2 billion in 2018. Recently, DocuSign (Nasdaq: DOCU), a leading player in the segment announced its first-quarter results. But while the company surpassed market expectations for the quarter, slowdown in billings and growing competition have the analysts worried. Post its result announcement, its stock slid 20% in the after-hours trading.

DocuSign’s Financials

DocuSign’s revenues grew 37% over the year to $214 million, ahead of the market’s estimates of $201.5 million. Net loss was $46 million, or $0.27 per share compared with a loss of $271 million, or $7.46 a share a year ago. Non GAAP net income was $13.5 million, or $0.07 per share, compared with non-GAAP net income of $1.5 million, or $0.01 per share a year ago. The market had forecast adjusted earnings of $0.05 per share for the quarter.

By segment, Subscription revenues grew 36% to $201.5 million and Professional services and other revenues grew 64% to $12.5 million.

For the current quarter, DocuSign forecast revenues of $218-$222 million, compared with the Street’s forecast of $220 million. DocuSign expects to end the year with revenues of $917-$922 million, ahead of the market’s forecast of $914 million.

DocuSign’s Product Growth

The market was concerned by the slowdown of billings for the company. During the quarter, DocuSign’s billings grew 27% to $215 million, significantly lower than the more than 40% growth rates that it was recording nearly a year ago. Analysts had forecast billings of $217.2 million. They weren’t too pleased with the slowdown in billing, but the company believes that the slowdown reflects the shift from e-signature tools to a broader suite of document and contract management services.

As part of this expanding service offering, DocuSign recently announced the release of the DocuSign Agreement Cloud. The DocuSign Agreement Cloud is an entire suite of more than a dozen of its products and over 350 integrations that help organizations prepare, sign, act on, and manage their agreements. It includes its flagship e-signature product, other DocuSign product offerings, and its recently acquired SpringCM offering for contract life cycle management. It also includes the recently launched new products – DocuSign Gen, DocuSign Click, and DocuSign Identify.

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Dean Gilmore 1 month ago Member's comment

How much has DocuSign lost in total? $DOCU