📝 DocuWhat? DocuWow!

DocuSign has benefitted from pandemic-enforced “digital transformation” and looks to be well set to continue the momentum in the upcoming year

Hey Global Investor, here’s what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Wednesday Close) 3,732.04 +5.00 (0.13%)

NASDAQ (Wednesday Close) 12,870.00 +19.78 (0.15%)

FTSE 100 (5 PM IST) 6482.45 -73.37 (1.11%)

NIFTY 50 (Today’s Close) 13,981.75 −0.20 (0.0014%)

USDINR (5 PM IST) 73.06 (1 Year +2.58%)

DocuWhat? DocuWow!

Companies were forced to go digital during the pandemic, and DocuSign was right there, enabling electronic agreements across industries, and automating the entire process flow. With clients lapping up the service, DocuSign looks well set to ride the momentum in the new year.

Background: Covid disrupted the global economy, but it also put a digital transformation front and center for companies that were still on the fence. The business had to get done, contracts had to be negotiated and signed. And thus, DocuSign, founded in 2003 in San Francisco, CA was suddenly thrust into the limelight.

This pioneer in e-signatures and digital agreements witnessed a huge surge in demand for its SaaS subscription during the lockdown. The company now boasts 820K paying clients and millions of users spread across 180 countries.

DocuSign has enhanced its portfolio of products and now offers “contract lifecycle management tools” and automated workflows that enable the digital transformation of the enterprise.

Earlier this month, DocuSign comfortably beat Wall Street consensus for Q3 reporting 53% Y-o-Y total revenue growth and 54% Y-o-Y subscription revenue growth.

What Happened? DocuSign is now looking to retroactively digitize contracts and paper-based agreements for clients that are on a quest to become paperless in their operations.

Case in point, Walmart. Individual stores would generally keep a paper copy of hiring agreements, legal documents and fax them over to the headquarters in Bentonville, AR. With DocuSign’s assistance, the retail giant is now planning to digitize all its stores so they won’t have to keep holding paper copies.

The company chose Microsoft Azure as its preferred cloud platform to help serve the data residency requirements of organizations. DocuSign is planning to expand its services in traditionally paper-intensive sectors such as the government, real estate, banking, insurance, and healthcare. The potential for productivity gains in these sectors is tremendous, and DocuSign is well-positioned to ride that wave.

All of this optimism comes in the backdrop of the pandemic that has decimated air travel. But that demand is expected to increase with the vaccine coming online.

Market Reaction: DocuSign is up more than 200% YTD. On Wednesday, the DOCU closed $225.90, down 0.99%

Company Snapshot 📈

DOCU $225.90 -2.26 (-0.99%)

Analyst Rating (17 Ratings) BUY 53% HOLD 41% SELL 6%

Newsworthy 📰

Is There an Opportunity?: Nvidia and AMD could fall victim to their own success, but that would create a buying opportunity (NVDA +1.56%, AMD +1.84%)
Celebrity Push: Ford Motor and Bryan Cranston urge Americans to ‘finish strong’ and follow Covid precautions (F +0.45%)
No Relief?: $2,000 stimulus checks likely doomed after McConnell refuses to separate them from unrelated Trump demands

Later Today 🕒

7.00 PM IST: Initial jobless claims (state program, SA)
7.00 PM IST: Initial jobless claims (total, NSA)
7.00 PM IST: Continuing jobless claims (total, NSA)

Fun Fact of The Day 🌞

Q is the only alphabet that doesn’t appear in any U.S. state name

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