Read on Twitter
$DOCU
A long thread about DocuSign
We will come by:
Facts
Competitors
TAM and future
Statements
And a lot more!
ARE YOU READY?
A long thread about DocuSign
We will come by:
Facts Competitors TAM and future Statements And a lot more! ARE YOU READY?
1/x Facts
Founded: 2003
HQ: San Francisco, USA
800K customers
Employees: +3900
+400(!) open positions
Used in +180 countries
IPO: 2018
Founded: 2003 HQ: San Francisco, USA 800K customersEmployees: +3900+400(!) open positionsUsed in +180 countries IPO: 2018
2/x Description
"...DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements... DocuSign offers eSignature: the world's #1 way to sign electronically on practically any device, from almost anywhere, at any time.”
"...DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements... DocuSign offers eSignature: the world's #1 way to sign electronically on practically any device, from almost anywhere, at any time.”
3/x Product categories
eSignature
CLM
Insight/analytics
Notary
Payments
eSignature CLM Insight/analytics Notary Payments
4/x Early investors
Ignition Partners
Frazier Technology Ventures
Sigma Partners
Kleiner Perkins Caufield & Byers
Total funding before IPO was around $530M
Ignition Partners Frazier Technology Ventures Sigma Partners Kleiner Perkins Caufield & ByersTotal funding before IPO was around $530M
5/x News
DocuSign Announces Closing of $690.0 Million of 0% Convertible Senior Notes Due 2024, including Full Exercise of Initial Purchasers' $90.0 Million Option to Purchase Additional Notes
Read more: https://www.docusign.com/press-releases/docusign-announces-closing-of-6900-million-of-0-convertible-senior-notes-due-2024-including-full
DocuSign Announces Closing of $690.0 Million of 0% Convertible Senior Notes Due 2024, including Full Exercise of Initial Purchasers' $90.0 Million Option to Purchase Additional Notes
Read more: https://www.docusign.com/press-releases/docusign-announces-closing-of-6900-million-of-0-convertible-senior-notes-due-2024-including-full
6/x Financials
Total revenue was $382.9 million, an increase of 53% year-over-year.
Subscription revenue was $366.6 million, an increase of 54% year-over-year.
Billings were $440.4 million, an increase of 63% year-over-year.
Total revenue was $382.9 million, an increase of 53% year-over-year.
Subscription revenue was $366.6 million, an increase of 54% year-over-year.
Billings were $440.4 million, an increase of 63% year-over-year.
7/x Financials
In Q2, revenue from sources outside the U.S. ticked up to 19% of revenue, from 18% in Q1. For Q3, international reached 20% of total revenue.
Q3, international revenue hit $76M, for 77% YoY growth. This growth rate is up from 59% in Q2 and 46% in Q1.
In Q2, revenue from sources outside the U.S. ticked up to 19% of revenue, from 18% in Q1. For Q3, international reached 20% of total revenue.
Q3, international revenue hit $76M, for 77% YoY growth. This growth rate is up from 59% in Q2 and 46% in Q1.
8/x From earning call
CEO talked about international expansion moving beyond DocuSign’s “core 8”. Currently, the “core 8” consist of the US, UK/Ireland, Canada, Australia/New Z., Germany, France, Brazil, and Japan. DocuSign has invested people, and sales support directly here.
CEO talked about international expansion moving beyond DocuSign’s “core 8”. Currently, the “core 8” consist of the US, UK/Ireland, Canada, Australia/New Z., Germany, France, Brazil, and Japan. DocuSign has invested people, and sales support directly here.
9/x Acquisitions
Spring CM, 2018
Seal Software, 2020
Liveoak, 2020
And then 4 Acquisitions before 2016, totally: 7 Acquisitions.
Spring CM, 2018 Seal Software, 2020 Liveoak, 2020And then 4 Acquisitions before 2016, totally: 7 Acquisitions.
10/x TAM
The market is huge. The company itself sizing eSignature at $25B and all the tooling around contract lifecycle management (CLM) at another $25B. Total $50B TAM. With Notary the market for third-party notary is large and has been estimated at $30B annually
The market is huge. The company itself sizing eSignature at $25B and all the tooling around contract lifecycle management (CLM) at another $25B. Total $50B TAM. With Notary the market for third-party notary is large and has been estimated at $30B annually
11/x Costumerbase (based on Q3)
Total customer count increased to 822K at the end of Q3, representing 46% growth. 749K customers at the end of Q2, which had 39% growth.
DocuSign has added significantly more total customers in the three quarters of this year over last year.
Total customer count increased to 822K at the end of Q3, representing 46% growth. 749K customers at the end of Q2, which had 39% growth.
DocuSign has added significantly more total customers in the three quarters of this year over last year.
12/x Costumerbase (based on Q3)
They added 73k new customers in Q3, 88k in Q2, and 68k in Q1.
Enterprise and Commercial customers (which represent those with over 10 employees and landed outside of the self-serve channel) grew by 14k to 113k total in Q3 for 64% growth.
They added 73k new customers in Q3, 88k in Q2, and 68k in Q1.
Enterprise and Commercial customers (which represent those with over 10 employees and landed outside of the self-serve channel) grew by 14k to 113k total in Q3 for 64% growth.
13/x Trusted by the biggest
DocuSign is of course of the big players, which already attract the other big players
• 7 of the top 10 global technology companies.
• 18 of the top 20 global pharmaceutical companies.
• 10 of the top 15 global financial services companies.
DocuSign is of course of the big players, which already attract the other big players
• 7 of the top 10 global technology companies.
• 18 of the top 20 global pharmaceutical companies.
• 10 of the top 15 global financial services companies.
14/x I am a customer
In our companies, we sign a lot (!) of contracts We are born digital, so we have hands-on experience on this topic. We have been on Contractbook, PandaDoc, and now Docusign.
We have been at Docusign for quite some time, and we love it
In our companies, we sign a lot (!) of contracts
We are born digital, so we have hands-on experience on this topic. We have been on Contractbook, PandaDoc, and now Docusign. We have been at Docusign for quite some time, and we love it
15/ Competitors
First of all, we should not undervalue the competition in this market – It seems like $DOCU catch all the attention. It not that black/white, but there are real (!) competition out there.
Hellosign > Bought by Dropbox
Contractbook > Backed by Google VC-fund
First of all, we should not undervalue the competition in this market – It seems like $DOCU catch all the attention. It not that black/white, but there are real (!) competition out there.
Hellosign > Bought by Dropbox
Contractbook > Backed by Google VC-fund
16/x Competitors
PandaDoc ($51M in funding)
AdobeSign (says it all: Own by Adobe)
Solutions developed inhouse at law firms (no one big, but a lot have their own solutions)
Danish people will also say Penneo, but it is too small.
PandaDoc ($51M in funding)
AdobeSign (says it all: Own by Adobe)
Solutions developed inhouse at law firms (no one big, but a lot have their own solutions)
Danish people will also say Penneo, but it is too small.
17/x Ownership
1,76% held by insiders.
75,3% held by Institutions
4.28% short.
Very low shares hold by insiders, but that’s probably a mix of the 18 years in business, several rounds, IPO, etc. But I still think it is too low.
Ark ETF is buying up.
1,76% held by insiders. 75,3% held by Institutions 4.28% short. Very low shares hold by insiders, but that’s probably a mix of the 18 years in business, several rounds, IPO, etc. But I still think it is too low.
Ark ETF is buying up.
18/x Earnings call
“is the #1 player in the eSignature market. And we're #1 by a lot. We spend more in R&D than the next eSignature player has in revenue.”
“ In Q3, we had 122% dollar net retention rate with customers. And so we saw kind of expansion within existing customers.”
“is the #1 player in the eSignature market. And we're #1 by a lot. We spend more in R&D than the next eSignature player has in revenue.”
“ In Q3, we had 122% dollar net retention rate with customers. And so we saw kind of expansion within existing customers.”
19/x Random
Placed at #15 best workplace in 2021 by GlassDoor. Rank #3 in 2020. Been on the top 100 list 5 years straight.
18 analystsfollow §DOCU: 5 strong buys, 7 strong buys, 6 hold.
Placed at #15 best workplace in 2021 by GlassDoor. Rank #3 in 2020. Been on the top 100 list 5 years straight.
18 analystsfollow §DOCU: 5 strong buys, 7 strong buys, 6 hold.
20/x Comments
$DOCU is not a Covid-stock (but got the acceleration by it), it is a digitalization-stock, so it will ride with the megatrend the next decade.
Longterm-investment.
$DOCU is not a Covid-stock (but got the acceleration by it), it is a digitalization-stock, so it will ride with the megatrend the next decade.
Longterm-investment.
21/x comments
They are really clear about their mission to become number 1. They really have the eyes on the ball. With only 3 Acquisitions in the last 5 years, they are quite “anti-hyperscale” in the mentality. They are scaling within the company instead of buying growth.
They are really clear about their mission to become number 1. They really have the eyes on the ball. With only 3 Acquisitions in the last 5 years, they are quite “anti-hyperscale” in the mentality. They are scaling within the company instead of buying growth.
22/x comments
When I discuss and talk to people about $DOCU, we always talk about it in a “smaller”-way. It is first now, I actually saw how crazy big this company is (both in size, customers, revenue, etc.).
The company is going places with the size of it!
When I discuss and talk to people about $DOCU, we always talk about it in a “smaller”-way. It is first now, I actually saw how crazy big this company is (both in size, customers, revenue, etc.).
The company is going places with the size of it!
23/x comments
They have already made industry solutions for real estate, mortgage, etc. But they need to continue to this because otherwise, we will see competitors go niche and win the individual sectors (And $DOCU will “just” be a general thing).
They have already made industry solutions for real estate, mortgage, etc. But they need to continue to this because otherwise, we will see competitors go niche and win the individual sectors (And $DOCU will “just” be a general thing).
24/x comments
With all the solutions in the sector, everyone needs to be aware of the sales price. It must not be a price-to-bottom battle. Otherwise, the margins will disappear for the whole sector
Note: I never take a stand on the valuation or the stock price.
With all the solutions in the sector, everyone needs to be aware of the sales price. It must not be a price-to-bottom battle. Otherwise, the margins will disappear for the whole sector
Note: I never take a stand on the valuation or the stock price.
25/25
I will buy. No doubt. This is long-term. The company is great. It is riding on a megatrend. They innovate and develop.
I REALLY HOPE YOU ENJOY THIS ONE! Spend my Sunday on it
Comments are welcomed!
I will buy. No doubt. This is long-term. The company is great. It is riding on a megatrend. They innovate and develop.
I REALLY HOPE YOU ENJOY THIS ONE! Spend my Sunday on it
Comments are welcomed!
