The Rise and Fall of Docusign

In this video we go over the rise and fall of DocuSign. DocuSign was one of the biggest beneficiaries of the pandemic as their online document signing solution became a necessity as people were forced to work from home. They saw their revenue and share price explode to the upside throughout 2020 and the first half of 2021. However, the just released a quarterly earnings report that massively missed Wall Street's expectations. The cut their full year guidance substantially as they expect their revenue growth to slow. DocuSign is the just the latest shoe to drop among the of the stay-at-home stocks. As the economy is re-opening and people are returning back to life as normal, demand for these pandemic-beneficiary products is dropping like a rock.

#Wallstreetmillennial #Docusign #AtlasVPN

[jeffsetter]

"Cathy Wood lost $100M on Docusign"

False. Those who invested their money in Cathy Wood's funds lost $100M on DOCU.

[atenas]

$60 billion market cap
$2 billion in revenue

That is not "investing" - it is "speculating"
The market is not made of investors but people looking for a lottery ticket

[Kcv]

It wasn’t an over reaction that dropped the price, it was an over reaction that got it that high to begin with… the market finally adjusted it to where it should have been all along, I mean really, they are an electronic signature company… not that they are worthless but they aren’t going to be the next Amazon, at least not in the near future.

[mrheisenburg]

Thanks for removing the music/intro bro! To the POINT!

[yuriajones]

The company and its prospects were overvalued to begin with. This 'crash' is just a realignment of the market. I hope the company has a good future. Over-speculation by investors is what triggered this 'rise and fall'.

[justanoman]

So... Docusign didn't fall, the stock thereof did. I think Docusign have a pretty stable business model that will allow it to be a successful company for a very long time. It's just not an explosive growth company that some idiots hyped it up to be. I think that's not an issue with the company, but the investors.

[Do-Ditsu]

Docusign was charging us so much that we just created our own docusign web application

[steffennilsen]

What I don't get is how they have 6000 employees offering a single service that isn't that technically complicated. Is it mostly sales? I think there's a reason why their revenue never went positive.

[JK-ksxq]

I use docusign almost every day in my real estate brokerage. Convenient as all hell. It hasn't changed much over the years. I think complacency set in. Tough to scale, I guess, along with heavy competition.

[davidallen]

This is literally the best channel on Youtube! I stand by everyday to watch this! love it!

[aca]

545 million dollars of sales for a company valuation of 68B. Who comes up with these absurd numbers.

[PaintballVideosNet]

I really don't understand the hype around Cathie Wood, or any "personality investor" really.

[marioytambor]

Docusign: Does something that has been done for decades.
Everyone: New and revolutionary!
Wtf??

[aristideau]

How can a SaaS company have so many expenses?. I cannot imagine them needing more than 20 skilled developers and renting cloud based servers cant be that expensive seeing that the servers only get hit for a few seconds for every document that is signed.

[Hooya]

Here's DocuSign's problem: Until 2014-2015ish they focused on growth over margin to the extent that their pricing was only 1.5 to 2 times their nearest competitor (which didn't have nearly the same feature set). Now DocuSign is 5 times more expensive than their competitors, and their competitors can deliver functionality close enough that the cost difference can't be justified.

[kitaroworld]

DOCU has so many competitors. theyare just getting price correctly

[glennalexon]

You often confuse an increase in stock price with "success"; a company's goal is to earn a profit, which generally leads to long-term stock strength. Docusign is not successful, because Docusign doesn't make any money.

[-Tme]

The amount of excellent content you produce is insane. Thank you!

[sharadkumar]

Now imagine Lucid at 75Bn valuation on 243M on car sale...is that ok?

[SimoCalandra]

I think a company such as DOCU has a future, considering that COVID has pushed more and more employers to allow SMART working. Going back, for many companies, does not make sense. The stock might have been overvalued but the loss of confidence, for a company that it is still delivering on their promises, it is an overreaction for sure. They might not be able to replicate their growth rate but in the long run I believe this could still be a solid investment opportunity.