DocuSign Inc reported its first-quarter 2021 earnings on 4th June 2020. Total revenue was up 39% Y-o-Y to $297 million. Out of the total revenue, subscription revenue comprised of $280.9 million (also up 39% Y-o-Y) while professional and other revenues made up the remaining $16.1 million (up 29% Y-o-Y).
Margins also held steady as reported gross margins were 75% as compared to 76% in the same quarter a year ago. Cash from operating activities increased from $45.7 million in Q12020 to $59.1 million in the current quarter. The earnings numbers comfortably beat analyst estimates.
Many observers believe that the pandemic has boosted prospects of companies like DocuSign because of rising trends like work-from-home. One new pandemic-specific use case for the company has been the creation of electronic forms for people who seek COVID-19 testing in a parking lot and want a contactless process.
However, the company’s management is seeing growth drivers beyond the pandemic. DocuSign’s CEO, Dan Springer, said “Even when the COVID-19 situation is behind us, we don’t anticipate customers returning to paper or manual-based processes.” He further added that DocuSign’s business was set up to rise but the pandemic simply accelerated the adoption of digital signatures.
DocuSign offers an entire suite of features that allow users to prepare, sign, and manage agreements. The DocuSign free signature service is its most well-known. DocuSign login account allows the user to manage all agreements and documents via cloud-based technology. The DocuSign app is one of the most widely used eSignature and Digital Transaction Management platform in the world.
DocuSign stock closed at $140.06 on 4th June 2020. The stock has been up almost 90% in 2020.