DocuSign has lost an eye-popping 82% of its market cap in the last year. Their latest valuation sits at $9.8bn and they are expecting $2.48bn revenue in 2023 and a non-GAAP operating margin of 17%. DocuSign also holds $1.1bn in cash.
They have invested heavily in their CLM (Contract Life Cycle Management), sharing an example in their Q2 report.
” CLM, therefore, enabled our client to automate various stages of the agreement process, including contract drafting and automatic task delegation, which has since saved hours of valuable time and manual work, while mitigating human error. We initially began our relationship with fewer than 50 CLM users. Today, this customer has levelled up to 500 users on our platform. “
As we approach earnings, DocuSign does present some relative risk free upside as long as they don't bust earnings and hit their guidance. They haven't focused much on AI but hopefully talk more about it in Q3. New CEO Allan Thygesen won't have had enough time to make any real changes but coming from Google, we will surely see more AI sooner rather than later.
Any DocuSign experts out there with an opinion?
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