Docusign Inc (NASDAQ:DOCU)

CAPS Rating: 5 out of 5 84.77

Caps

How do you think DOCU will perform against the market?

Add Stock to CAPS Watchlist

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.

Top Bear Pitch

There are no pitches that meet the Top Bear criteria. Explain

If this upsets you, start recommending pitches below!

DOCU VS S&P 500 (SPY)

DOCU Summary

Fools bullish on DOCU are also bullish on:

Fools bearish on DOCU are also bearish on:

Recent Community Commentary

Read the most recent pitches from players about DOCU.

Recs

0
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.

Recs

0
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.

Recs

0
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.

Leaderboard

Find the members with the highest scoring picks in DOCU.

Score Leader

JoshuaFong

JoshuaFong (75.80) Score: +42.70

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

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
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
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackDeutscheSec 85.78 2/13/2019 Outperform NS $53.59 +0.97% +1.23% -0.26 0 Comment

Advertisement