DocuSign shares unsettled ahead of earning report
18:37, 31 August 2021
DocuSign shares were unsettled on Tuesday ahead of its quarterly earnings for the period ending 31 July, due to be released at the close of trading on Thursday.
Shares were down $7.40 (2.44%) to $296.24 by end of markets on Tuesday after closing at $303.64 in Nasdaq trading the day before.
Despite this, it has been a summer of growth, rising from early June when shares trading below $200.
E-signature growth
The San Francisco-based e-signature company has had its share price increase by 336% over the past three years and 48% over the past three quarters. It has also seen 58% revenue growth year-over-year from the quarter ending 30 April. Revenues are expected to be $482.48m, up 41% from a year ago. Earnings are forecast to be 39 cents per share.
The company automates business transactions, including digital signatures and forms.
Providing the technology for businesses and individuals to digitise agreements has helped DocuSign rise during the pandemic as customers shifted to remote work, according to a report published by Nasdaq.
Many businesses are moving away from paper documents to digitising solutions to sign and manage documents, the report said.
DocuSign estimates that the total market for e-signatures is about $25B. It has said that it is six to seven times as large and its nearest rival Adobe Sign.