A report at CNBC notes that the analyst see DocuSign taking a disproportionate share of workflow digitization.
That’s code for digital transformation, the idea that corporations will use digital tools to increase productivity and create new business models. I would say removing the need to meet with clients, exchange small talk, and get a signature is a productivity boon. Yep, I’m all in with that concept.
Large enterprises are expected to invest $249 billion ramping up digital infrastructure through 2020, according to report from Gartner. For comparison, the global IT research firm notes that firms spent only $182 billion in 2018.
Most of that spend, $110 billion, will be devoted to cloud application services, or software-as-a-service (SaaS). These applications run natively in the cloud and let users access key programs with a simple internet connection.
Cue DocuSign. The San Francisco company claims in excess of 500,000 paying customers across 180 countries. Its Agreement Cloud platform has been used hundreds of millions of times to help users sign legally binding documents. AC code is embedded into workflows at 70% of the top global technology companies, 90% of the world’s leading pharmaceutical firms, and 66% of global financial services businesses.
In addition, 800 federal, state and local government agencies in the United States use DocuSign. Contractors, employees and taxpayers can digitally sign documents from almost any electronic device, at any time, from anywhere in the world.
I know, bears say shares are way overpriced. They point to the $32 billion valuation and the non-existent earnings. That’s fair. The stock is not for the faint of heart. A big decline is likely if there is any slowdown in business momentum.
The problem, for bears, is they’re really betting that firms are going back to paying people to schlep documents out for customer signatures.
In the business world, DocuSign is essentially a verb at this stage. Businesses are not going back.