DOCU - Embedded Expectations Analysis - 2021 05 17
DocuSign, Inc. (DOCU:USA) currently trades at a significant premium to UAFRS-based (Uniform) assets, with a 32.9x Uniform P/B. At these levels, the market is pricing in expectations for profitability to inflect positively, but management may have concerns about customer base growth, dollar net retention rates, and international market opportunitiesSpecifically, management may lack confidence in their ability to sustain customer base growth, maintain their dollar net retention rate, and capture market share in international markets. In addition, they may have concerns about disruptions to their FY2022 free cash flow guidance, slowing capacity growth, and intensifying competition. Moreover, management may be exaggerating the potential of eSignature's new features as well as the ease of use of their products. Finally, management may be concerned about weakening demand for their Contract Lifecycle Management (CLM) product and their partnerships with Global System Integrators (GSIs)
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.
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