Hey everyone Couch Investor here with my first substack! So a lot of you have asked my opinion on DocuSign, so we’re going to discuss why DocuSign will continue to see success even after the pandemic is over because let’s face it, e-signature, digital contracts are the future and there’s nobody that is going back to pen and paper.
1. Alright so when most people think DocuSign, they just think about e signature and that’s it. How big can that be right? Also, DocuSign is one of those companies that individuals might not see the value in it because they don’t interact with the product daily. So the CEO says the sign business is as big as $25B and Docu has a big lead in market share. They have close to 900k customers. Which if you think of it, is not a lot in the grand scheme of things. So there’s a lot of growth ahead on that front but they do so much more than just signature.
2. DocuSign Agreement cloud, CLM where you can manage agreements, prepare them in advance, etc… Companies will need to store, manage and keep track of all these agreements/contracts and that’s where DOCU helps even further. They also acquired a company called Seal last year, that brings AI and analytical software to the mix. Their goal is to make any agreement between two parties or more digital.(notary for example). Instead of wasting time rewriting agreements, or having duplicates, forgetting a renewal, etc… the Docusign suite of products helps you with all of it.
3. They estimate high single digits penetration in the US market, and low to mid-single digits outside of the US depending on location. https://s22.q4cdn.com/408980645/files/doc_financials/2021/q4/DS-Q4-F2021-Earnings-Slides-(Final).pdf
4. The main competitor in my eyes is Adobe. But that’s hasn’t and isn’t stopping Docusign from being the leader in the e-sign market and growing their customer base 42% CAGR since 2013. With that said, if you have a long-term vision, do you think that in 10yrs, people would still be using pen and paper to sign a contract? Or do you think it will all be done through a system like DocuSign or Adobe?
I’ve said this before, the digitalization has not peaked yet and it’s not even close to peaking. The world in 2030 will look a lot different from what it is today. Don’t let post-pandemic “this won’t survive” scare you out of an investment.
I don’t have Docusign in my personal portfolio, I would love to add it but I’ve got no free slot at the moment.
Let me know down in the comments below what you think of Docu or Adobe for that matter.