Docusign
San Francisco, California, United States
Industry: Technology/Software
Region: US 🇺🇸
Year Founded: 2003
IPO Date: 16-04-2018
Market Cap: $50 billion
Number of Employees: Approx. 5,200
Revenue: $1.5 billion (2021)
Net Income: $0.3 billion (2021)
DocuSign Inc.
DocuSign IPO
DocuSign, a pioneer and leader in the field of electronic signature technology, went public on April 27, 2018.
The company debuted on the NASDAQ stock exchange under the ticker symbol “DOCU.”
The initial public offering (IPO) was well-received, with DocuSign raising approximately $629 million.
This successful IPO marked a significant milestone for the company, highlighting its strong growth prospects and market position.
DocuSign IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find DocuSign’s Prospectus here.
Company Overview & History
DocuSign is a global leader in the field of electronic signature and digital transaction management (DTM) solutions.
The company was founded in 2003 by Tom Gonser, Court Lorenzini, and Eric Ranft.
Its innovative platform enables organizations to streamline their document-intensive processes by offering secure and legally binding electronic signatures.
With over 500,000 customers worldwide, including businesses of all sizes and industries, DocuSign has become synonymous with digitizing the agreement process.
The company’s journey began with the goal of transforming the way agreements were created, signed, and managed.
DocuSign’s cloud-based platform allows users to prepare, sign, act on, and manage agreements anytime, anywhere, on any device.
By eliminating the need for manual paper-based processes, DocuSign helps organizations enhance efficiency, reduce costs, and improve customer experience.
Over the years, the company has expanded its product portfolio to include a range of features and integrations that cater to the evolving needs of its diverse customer base.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2022 | 2.07 | -0.21 | 0.33 | 0.68 |
| 2021 | 1.45 | -0.20 | 0.25 | 0.48 |
| 2020 | 0.97 | -0.23 | 0.17 | 0.32 |
| 2019 | 0.70 | -0.21 | 0.12 | 0.23 |
| 2018 | 0.52 | -0.21 | 0.09 | 0.17 |
| 2017 | 0.38 | -0.12 | 0.06 | 0.12 |
| 2016 | 0.25 | -0.11 | 0.04 | 0.08 |
| 2015 | 0.15 | -0.08 | 0.02 | 0.05 |
Business Model
DocuSign operates on a subscription-based business model, offering various pricing plans tailored to meet the requirements of different organizations.
Customers can choose from a range of options based on factors such as the number of users, document volume, and additional features.
The company generates revenue primarily from subscriptions to its DocuSign Agreement Cloud platform, which encompasses electronic signature, contract lifecycle management, and other related services.
Additionally, DocuSign provides professional services, including implementation, training, and support, to assist customers in adopting and optimizing its solutions.
This comprehensive approach enables the company to deliver value to its customers while building long-term relationships and driving recurring revenue growth.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2023 | 10.48 |
| 2022 | 2.27 |
| 2021 | 3.25 |
| 2020 | 5.46 |
Risk Factors
DocuSign, like any other company, faces specific risk factors that can impact its business and financial performance.
These risks encompass:
The electronic signature and digital transaction management market are highly competitive, with established players and new entrants.
To retain customers and stay ahead of competitors, DocuSign must continuously innovate, differentiate its offerings, and maintain its market leadership position.
The legal and regulatory landscape surrounding electronic signatures and digital transactions can vary across jurisdictions and undergo changes.
DocuSign faces the risk of regulatory and legal challenges that could impact the acceptance and adoption of its solutions, potentially affecting its business operations.
Given that DocuSign handles sensitive customer data, cybersecurity is a critical concern.
The company must maintain robust security measures, protect against data breaches, and comply with evolving data privacy regulations to preserve customer trust and mitigate potential risks.
As a technology-focused company, DocuSign’s platform’s reliability, scalability, and performance are crucial for delivering a seamless user experience.
Ongoing investments in research and development, infrastructure, and operational capabilities are necessary to ensure the stability and scalability of its solutions.
Market Opportunity
The market opportunity for electronic signature and digital transaction management solutions is substantial and continues to grow.
As organizations worldwide seek to digitize their processes and reduce reliance on paper-based agreements, the demand for efficient and secure solutions like DocuSign is increasing.
The global digital signature market is projected to experience significant growth in the coming years, driven by factors such as increasing adoption of cloud-based technologies, rising cybersecurity concerns, and the need for remote collaboration.
DocuSign, with its established market presence, robust platform, and extensive customer base, is well-positioned to capitalize on this market opportunity and drive further growth.
Competitors
- Adobe Sign
- HelloSign
- OneSpan Sign
- SignNow
- PandaDoc
- SignEasy
- SignRequest
- Sertifi
Key/Fun Company Facts
- DocuSign’s name is derived from the Latin word “docere,” meaning “to teach,” and “signum,” meaning “to sign.”
- The name reflects the company’s mission of simplifying and transforming the way agreements are signed and managed.
- The DocuSign Agreement Cloud platform supports over 43 languages, enabling organizations worldwide to conduct business seamlessly across different geographies and cultures.
- DocuSign’s electronic signature technology has been widely recognized and awarded, including being named a leader in the Gartner Magic Quadrant for Digital Transaction Management.
- The company has a strong commitment to sustainability. DocuSign aims to be carbon-neutral by reducing its environmental impact and investing in renewable energy projects.
- DocuSign Impact, the company’s corporate social responsibility initiative, focuses on leveraging its technology, resources, and people to make a positive impact in communities around the world, including programs such as DocuSign for Forests, which supports global reforestation efforts.