DOCU - Embedded Expectations Analysis - 2020 06 15
DocuSign, Inc. (DOCU:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 252.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about their guidance, new product launches, and analytics capabilitiesSpecifically, management may lack confidence in their ability to achieve their billings, non-GAAP gross margin, and SG&A expense guidance. Furthermore, they may be overstating the potential of their new product launches, contract analytics capabilities, and GSI opportunities, and they may have concerns about operating expenses increases, the impact of coronavirus on their deal visibility, and their go-to-market selling strategy. Additionally, management may be concerned about their virtual live-streamed events, and they may be exaggerating the importance of their federal data center vertical over time and their value proposition for firms seeking cost efficiencies
DocuSign provides e-signature solution as the main part of its cloud software suite for automating the agreement process. The company calls its suite the DocuSign Agreement Cloud. The DocuSign Agreement Cloud is designed to allow companies of various sizes and across various industries to make agreement, approval process, or transaction digital, from practically any device, from almost anywhere in the world.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.