Investomail - Your weekly stock report

Here is one of the most promising stock forecasts we think you should know about.

$201.62
CURRENT PRICE

DocuSign is a digital signature software company. The company argues that legacy, paper-based agreement processes are manual, slow, expensive, and error-prone. They aim to eliminate the paper, automate the process, and connect it to all the other systems that businesses are already using.  DocuSign's platform has more than 350 prebuilt integrations with popular business apps from companies like Salesforce, Apple, Google, etc. Additionally, their API enables embedding and connecting DocuSign with customers' websites, mobile apps, and custom workflows. Their current market cap is $39.23 billion.

DocuSign offers more than just e-signatures. It also offers a collaborative contract solution called DocuSign CLM, which allows multiple parties to edit legal documents live and at the same time. It's designed to speed up negotiations as sending documents back and forth between parties is a historically lengthy process. They also offer an AI software called DocuSign Insight which can automatically flag areas of concern in the user's documents. DocuSign charges customers for their suite of products on a subscription basis, which adds up to 90% of their total revenue.

There are a few concerns about DocuSign. The main e-signature service is easy to replicate, which is one of the company's greatest threats from large players like Adobe. There is also a concern that demand for their solutions may fall as the economy reopens. However, many argue that electronic documents are here to stay and dominate the future due to their convenience.

DocuSign reported a beat of estimated earnings per share and revenue in their Q4 2020 earnings report. They reported EPS of $0.37, which is more than 60% above the consensus estimate of $0.22. Moreover, their Q4 2020 revenue came in at $430.89 million, which is $22.94 million more than the analysts were expecting. DocuSign's total revenue in 2020 was $1.5 billion, an increase of 49% year-over-year. Subscription revenue was $1.4 billion, an increase of 50% year-over-year. Professional services and other revenue was $71.7 million, an increase of 29% year-over-year. Their next earnings report is scheduled for Jun 3, 2021.

Analysts from Piper Sandler estimate that DocuSign's stock will reach $300 in the next 12 months. Meanwhile, the analysts over at JMP Securities target a price of $276 per share in the next 12 months. Out of 12 analysts, 11 have given it a BUY rating and 1 a HOLD rating.

Disclaimer

Investomail does not provide financial advice and does not issue recommendations or offers to buy stocks or sell any securities. Information is provided 'as-is' and solely for informational purposes and is not financial advice. Investomail does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.