DocuSign will join the NASDAQ 100

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DocuSign will join the NASDAQ 100

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On Monday, Docusign Inc. (NASDAQ; DOCO) shares were trading up 6.34% to $160.50 after NASDAQ announced Docusign will join the NASDAQ-100 Index on June 22. The stock has a 52-week high of $160.60 and a 52-week low of $43.13.

NASDAQ announced on Friday that the electronic signature software company would replace United Airlines on the Nasdaq 100 index. The stock reached a new all-time high and posted its biggest increase since May 29. Shares of United Airlines, Chicago, recently traded at $38.82, down 2.1%.

As of 22 June 2020, the San Francisco-based DocuSign will stand in parallel with Tesla, Adobe, Workday, and Zoom in the NASDAQ 100 (NDX) index. NDX which tracks the top non-financial companies listed on US stock exchanges and “one of the world’s preeminent large-cap growth indexes.”

In this year, DocuSign’s stock has more than doubled and the company is now trading at $160 per share, with a market value proceeds towards $30 billion. Also, the company reported higher than expected earnings for the quarter ended April 30, despite the coronavirus pandemic. First-quarter reports help organizations to get faster their digital transformation as the company adapt to the changing business environment, magnified by COVID-19.

On June 4, the company announced results for its fiscal quarter ended April 30, 2020.

Key Highlights of First Quarter 2020:

  • Total revenue was $297.0 million, an increase of 39% year-over-year.
  • Subscription revenue was $280.9 million, an increase of 39% year-over-year.
  • Professional services and other revenue was $16.1 million, an increase of 29% year-over-year.
  • Billings were $342.1 million, an increase of 59% year-over-year.
  • Last year in the same period, GAAP gross margin was 75%, compared to 76%.
  • Non-GAAP gross margin was 79% in both comparative periods.
  • GAAP net loss per basic and diluted share was $0.26 on 183 million shares outstanding compared to $0.27 on 172 million shares outstanding in the same period last year.
  • Non-GAAP net income per diluted share was $0.12 on 197 million shares outstanding compared to $0.07 on 189 million shares outstanding in the same period last year.
  • Net cash provided by operating activities was $59.1 million compared to $45.7 million in the same period last year.
  • Free cash flow was $32.8 million compared to $30.4 million in the same period last year.
  • Cash, cash equivalents, restricted cash, and investments were $898.3 million at the end of the quarter.

Operational and other Financial Highlights of the company.

Current Valuation of the company:

DocuSign expects the momentum to continue throughout the year, raising its targets for the quarter ending July 31 and for the full year.  The company is now forecasting revenue to $222 million, up from $218 million. Whereas, non-GAAP gross margins to be 80% instead of 78% in the current quarter.

Dan Springer, DocuSign’s CEO said, “Our strong first-quarter results reflect our ability to help organizations accelerate their digital transformation as they adapt to the changing business environment, magnified by COVID-19. Many are taking their first steps with us, while others are expanding their initiatives.”

In the First quarter, the company has some benefits thanks to pandemic COVID-19 as people needed to sign the documents while they couldn’t meet one to one.

DocuSign’s impressive market:

The Company has posted well and blooming results this year. In the month of March, the company revealed it had generated nearly $1 billion in revenue last fiscal year, up 40% year-on-year. The company’s market flexibility is quite impressive and considering it generates little promotions.

In the last Quarter, The Company announced $366.9 million clients an increase of 40% based on the same quarter in 2019.

“Even when the COVID-19 situation is behind us, we don’t anticipate customers returning to paper or manual-based processes,” CEO Dan Springer told analysts on a conference call.

About the Company:

DocuSign, Inc. is an American company headquartered in San Francisco, California that allows organizations to manage electronic agreements. As part of the DocuSign Agreement Cloud, DocuSign offers eSignature, a way to sign electronically on different devices. DocuSign claims it has over 475,000 customers and hundreds of millions of users in more than 180 countries. Signatures processed by DocuSign are compliant with the US ESIGN Act and the European Union’s eIDAS regulation, including EU Advanced and EU, Qualified Signatures. (Source: Wikipedia)

 

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