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.