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DocuSign Inc DOCU

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Sign Us Up for Another Great Quarter From DocuSign; Raise FVE to $207

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Narrow-moat DocuSign again reported strong quarterly results, including upside to our revenue and EPS expectations, and also provided a positive outlook for the second quarter while raising its full-year guidance. All metrics once again were strong. Like other remote enablers, DocuSign continues to benefit from elevated business activity and expansion of use cases within existing customers. We think the Agreement Cloud will see bookings momentum exiting fiscal 2022 and think DocuSign’s quarter reinforces the notion that the company is benefiting from a market that is largely greenfield. We also think the addition of video collaboration and remote notary service expand the TAM and make the Agreement Cloud a more attractive platform. Based on strong results and guidance, we are raising our fair value estimate to $207 per share, from $191 previously, and see shares as fairly valued.

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Company Profile

Business Description

DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.

Contact
221 Main Street, Suite 1550
San Francisco, CA, 94105
T +1 415 489-4940
Sector Technology
Industry Software - Application
Most Recent Earnings Apr 30, 2021
Fiscal Year End Jan 31, 2022
Stock Type Speculative Growth
Employees 5,630

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