Docusign Inc (NASDAQ:DOCU)

CAPS Rating: 5 out of 5 84.77


How do you think DOCU will perform against the market?

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All Players

186 Outperform
3 Underperform

All-Star Players

90 Outperform
1 Underperform

Wall Street

1 Outperform
0 Underperform

Top DOCU Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

TMFPencils (99.88)
Submitted November 20, 2018

Rock-solid balance sheet, 30%+ revenue growth, and an offering that should only become more relevant in the years ahead. Perhaps this latest round of market carnage represents an opportunity. Outperform.

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DOCU Summary

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Recent Community Commentary

Read the most recent pitches from players about DOCU.


Member Avatar Jimb05 (85.88) Submitted: 2/16/2019 8:11:30 PM : Outperform Start Price: $42.75 DOCU Score: +20.10

1) The Numbers

Revenue growth of 36% YTD (thru 3 Q's), last year was 36%

Gross margin of 80% YTD, 78% last year, 76% the year before

operating margin of 2% YTD, -2% last year, -18% the year before

cash flow positive and improving

cash of $1.1 Billion

So we have a company steadily growing around 36%, with improving profitability and over $1 billion in the bank.

2) TAM

- The company says $25 B, with sales of about $600 M there appears to be a lot of run left for growth

- I think companies usually overestimate TAM, but in this case, if every legal document world wide is your market, the market is huge

- The market is expanding and moving toward e signatures, it is just more efficient

- 17% of rev. is international, so room left internationally for expansion

- they are approved by the federal government, and a law was recently passed (21st century IDEA act), where federal agencies are asked to accelerate the use of e-signatures, which should expand their market

- recently purchased SpringCM, to move into what they call the "system of agreement", basically managing the entire approval process vs just the e signature. To me this can be a huge market, all businesses have projects, designs, documents, etc that have to move within the company for approval from different silo's within the company.

3) competitive advantage

- They are clearly the leader in this market with the best name recognition

- at one point they had the #1 most downloaded app, so they know how to design user friendly tech and have a digital presence

- they work with SAP, Oracle, Microsoft, Salesforce, Workday, and many others, so there product is embedded and sold by large enterprise software companies

- Net retention rate of 114% (customers are purchasing more)

- NPS of 66 (companies like their product and customer service)

- federal government approval (not sure if competitors have this)

- impressive CEO, Daniel Springer, 98% glassdoor approval rating, and one of the Top CEO's on glassdoor for 2018

My concerns

- company has only been public for 3 q's so not a lot of public history

- next quarter guidance was for 30% growth, (not sure if being conservative or not since new public company, beat guidance by 6% and 3% the last 2 quarters)

- will e signatures be a commodity and they will have no pricing power (gross margins are improving so this isn't happening yet)

- will they be able to transition into the "system of agreement" business vs just e signature

- share based comp. is high, but since a new IPO, it might be a one time thing

- big competitors, mainly worried about Adobe

Overall, I really like this company. I see a company growing around 36%, with improving profitability, a large TAM and some competitive advantages.


Member Avatar PapaBaier (< 20) Submitted: 1/30/2019 6:25:56 PM : Outperform Start Price: $49.31 DOCU Score: +6.42

Synonymous with electronic signature and yet it has a tiny market cap with a ton of users. Electronic signatures will slowly but surely take over a large portion of signatures and docusign will be one of the main players.


Member Avatar txlonghorn (85.49) Submitted: 1/28/2019 9:35:02 AM : Outperform Start Price: $47.85 DOCU Score: +7.25

Market leading solution in digital document management.


Find the members with the highest scoring picks in DOCU.

Score Leader


JoshuaFong (75.80) Score: +42.70

The Score Leader is the player with the highest score across all their picks in DOCU.

Member Name Member
Call Time
Score Commentary
JoshuaFong 75.80 11/19/2018 Outperform 5Y $37.07 +45.97% +3.27% +42.70 0 Comment
CoolAsMilesDavis 75.59 11/20/2018 Outperform 5Y $38.10 +42.04% +4.48% +37.56 0 Comment
umpreund 94.98 11/19/2018 Outperform 3Y $38.85 +39.28% +1.96% +37.32 0 Comment
TMFPencils 99.88 11/20/2018 Outperform 5Y $38.40 +40.91% +4.59% +36.32 2 Comments
EdibleFundies 43.13 4/30/2018 Outperform NS $38.49 +40.60% +5.11% +35.49 0 Comment
XMFBreakerForce 79.23 10/11/2018 Outperform 5Y $39.82 +35.89% +0.48% +35.41 0 Comment
dwink 50.78 12/10/2018 Outperform 5Y $38.76 +39.60% +5.71% +33.89 0 Comment
PhilSylvester 92.72 10/9/2018 Outperform 5Y $41.63 +29.98% -3.28% +33.26 0 Comment
senminorphil 95.61 10/9/2018 Outperform 5Y $41.63 +29.98% -3.18% +33.16 0 Comment
c118383 81.39 11/21/2018 Outperform 5Y $39.60 +36.64% +4.72% +31.92 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Call Time
Score End Date Commentary
TrackDeutscheSec 85.78 2/13/2019 Outperform NS $53.59 +0.97% +1.23% -0.26 0 Comment