The software firm DocuSign Inc. (DOCU), like few others, surfaced as one of the survivors of the COVID-19 pandemic. The company specializes in the provision of electronic verification services and many organizations have been forced to switch to digital document management, which requires electronic authentication of records, because of the criteria for social isolation. However most likely, DocuSign’s growth will not stop with the pandemic as despite the elimination of restrictions, many consumers, recognizing the advantages of electronic document management, will not return to their previous mode of service.
DocuSign posted third-quarter results this month. Growth in the number of invoices provided is the most critical metric that investors track. Since DocuSign is working under the SaaS (software as a service) framework, the amount of issued invoices is an indication of potential revenues. The number of invoices issued rose by 63 percent in the third quarter, to $440.4 million. New customers were partly motivated by the development. DocuSign added about 73,000 customers during the quarter, taking the total to 822,000.
In the third quarter, DocuSign’s overall revenue rose 53% year-on-year to $382.9 million, exceeding Wall Street estimates. After Adjustments, earnings per share were $0.22, which was also better than the estimates of analysts.
In the fourth quarter, the number of invoices issued will increase to a range of $512-$522 million, according to DocuSign management. It is believed that the implementation of the COVID-19 vaccine and the ending of social distancing measures would not slow down the business of DocuSign. The growth of the company is driven by the overall digital transition in the corporate sector. Only some trends have been accelerated by the pandemic. Thus, after the end of the pandemic, several DocuSign clients who have entered the organization in recent quarters will not stop using the software for electronic verification.
DocuSign Inc. (DOCU) was up 1.45% to $237.08 on Wednesday.