Speaker 1: This is Bloomberg Business Week with Carol Masser and Bloomberg
Speaker 1: Quick Takes Tim Stinovic from Bloomberg Radio. You are listening
Speaker 1: to Bloomberg Business Week Carol Masser in our interactive broker's studio.
Speaker 1: Now shares of Docum Sign on our radar today. Just
Speaker 1: about twenty four hours ago, we were breaking down the
Speaker 1: company's earnings after yesterday's closing bell stop closing down six
Speaker 1: point six percent at two dollars thirty four cents to share.
Speaker 1: This following the company's earnings and quarterly update. The company
Speaker 1: did give some guidance though that beat the average analyst estimate.
Speaker 1: Stock was definitely one of those names that we highlighted
Speaker 1: as one that really shot up during the pandemic as
Speaker 1: necessary document signings needed to be done digitally. I have
Speaker 1: to say I used the service during the pandemic. My
Speaker 1: co host Tim Stanovic did as well. Let's get more
Speaker 1: though about this past year, the quarter, and really look
Speaker 1: ahead at our post pandemic world. Cynthia Gaylor is with us.
Speaker 1: She is chief financial officer at docu Signed, joining us
Speaker 1: on the phone in San Francisco. Cynthia, nice to have
Speaker 1: you here on Bloomberg welcome. How are you good? Good,
Speaker 1: Thanks Carol, thanks for having us. Well. Before we get
Speaker 1: into your business in the quarter, tell me though about
Speaker 1: this past year, how you guys are doing your team,
Speaker 1: what it's been like, and how does it compete compare
Speaker 1: kind of here we are twelve months later, Yeah for sure. So,
Speaker 1: I mean COVID has you know, just created huge challenges
Speaker 1: for everyone and disruptions UM everywhere. But amid those challenges,
Speaker 1: we found ways to really help our customers and and
Speaker 1: really have felt honored to play a critical role in
Speaker 1: helping people move forward UM all over the world. And
Speaker 1: that's kind of showed up somewhat in our business performance.
Speaker 1: But just how folks are using our product well, and
Speaker 1: this you know, I think I've seen it in some
Speaker 1: of the documents you guys shared with us, And I mean,
Speaker 1: this was a milestone year for you, a game changer,
Speaker 1: safe to say, Yeah, for sure. We crossed the billion
Speaker 1: dollar in revenue mark earlier in the year, right before
Speaker 1: the pandemic hit, and um we're well on our way
Speaker 1: to a billion and a half and kind of growing
Speaker 1: to two billion over the course of this year. So
Speaker 1: talk to us about some of the things that we
Speaker 1: saw in this most recent quarter. Um, you know, we're
Speaker 1: looking at quarterly revenue up fifty seven percent year over year.
Speaker 1: We're looking at billings and increase of forty six percent
Speaker 1: year over year. I mean, listen, these are off the
Speaker 1: chart numbers. What does a post COVID document sign world
Speaker 1: look like? It's it's really interesting and it's a great question.
Speaker 1: I mean, we think we're well positioned across all the
Speaker 1: secular trends that you're seeing. If you think about and
Speaker 1: Dan talked about this a little bit on the call,
Speaker 1: you know, we're well positioned for the anywhere economy if
Speaker 1: you think about just accelerating digital workflows and kind of
Speaker 1: digital first being a priority for so many people and
Speaker 1: and so many companies. Um, you know, docum signs fits
Speaker 1: right in in kind of a major pillar across anywhere
Speaker 1: economy where people are looking to do anything from anywhere. Well,
Speaker 1: and that's kind of interesting. I meant to that. You know,
Speaker 1: we used it for something at home, and my co
Speaker 1: host did as well. Uh, it is interesting that there
Speaker 1: are trends out there, whether it was in detail retail
Speaker 1: e commerce specifically, there are things that many would say
Speaker 1: we're not going back on telemedicine. And I do wonder
Speaker 1: if the world is ready based on what you're seeing,
Speaker 1: the people that you're talking to, your customers that you're
Speaker 1: you know, talking to that this is just one of
Speaker 1: those things that it just makes sense. We're not going
Speaker 1: to go back. Yeah, for sure. I think the you know,
Speaker 1: the acceleration in our demand and the surgeon adoption over
Speaker 1: the course of the year was really accelerated by covid
Speaker 1: and kind of an urgent need. But once people are
Speaker 1: working with our products on the platform and you can
Speaker 1: see that you can do things um faster, cheaper, smarter,
Speaker 1: more secure, you're not going to go back to pen
Speaker 1: and paper and the way you were doing things before.
Speaker 1: And it's interesting because with our notary product coming out,
Speaker 1: you know, nobody would like to go to the notary
Speaker 1: and get things notarized pre pandemic um and to be
Speaker 1: able to do that online, we don't think people will
Speaker 1: will go back to pen and paper in that way. Well,
Speaker 1: And I do wonder too specifically, you know, what do
Speaker 1: you say to folks that say, listen, you're just a
Speaker 1: pandemic play Uh, it's a stay at home stock. You know,
Speaker 1: we talk about them all the time. On air and
Speaker 1: say that once we reopen, that's not going to be
Speaker 1: the case. I know you're talking about, you know, kind
Speaker 1: of making the case here, But what do you say
Speaker 1: to people who say that to you, it's just not
Speaker 1: what we're seeing in the business UM. You know, the
Speaker 1: strength that we've seen in the business UM is continuing
Speaker 1: and we're seeing quite a bit of tail winds coming
Speaker 1: into this year coming off of last year. But also again,
Speaker 1: once you use the products, they're easy to use. You
Speaker 1: look at our customer NPS scores, a lot of our
Speaker 1: customers say their customers love them because they use DocuSign, right,
Speaker 1: because it is just it's so much easier to do
Speaker 1: digitally and and kind of when you think about the
Speaker 1: digital digital transformation that so many UM companies are going
Speaker 1: through across industries, DocuSign is really a foundational building block
Speaker 1: of how to do agreements and do digital workflow UM online.
Speaker 1: All right, So let's talk numbers. So UM, from what
Speaker 1: I understand is you've got you know, about ND customers,
Speaker 1: more than a billion users right now, we're looking at
Speaker 1: revenue projected of maybe just under two billion for fiscal year,
Speaker 1: and I just wonder, give me an idea of the numbers.
Speaker 1: How many more customers can you do you anticipate in
Speaker 1: the next year or two years, how many more users? Yeah? So,
Speaker 1: I mean we've seen tremendous growth in our customer base
Speaker 1: and and data point for you as we added almost
Speaker 1: as many customers this past year as we had at
Speaker 1: the time we went public, And when we went public,
Speaker 1: the company was fifteen years old already, So we added
Speaker 1: a tremendous number of customers. And I think that's really
Speaker 1: a testament to just how people U use the product,
Speaker 1: but also uh, covid accelerating things people would have done anyway, Um,
Speaker 1: they just did it faster, and so we we expect
Speaker 1: that to continue. We don't necessary really forecast out the
Speaker 1: number of customers per se, but if you think about it, uh,
Speaker 1: you know, we're ending the year with just over eight
Speaker 1: and ninety thousand customers, so almost a million customers. When
Speaker 1: you think about how many companies are in the US alone,
Speaker 1: it's over twenty seven million. So the opportunity we're just
Speaker 1: really scratching the surface of. Um, we have a fifty
Speaker 1: billion dollar market opportunity where the largest player by far
Speaker 1: in our in our space across the signature and the
Speaker 1: agreement cloud, and we just start kind of capsulating a
Speaker 1: year that's almost what a billion a billion and a
Speaker 1: half of revenue. So we just have a lot of
Speaker 1: a lot of runway, and particularly because a lot of
Speaker 1: that market is kind of offline to online, we believe
Speaker 1: we can continue to add customers at a good clip
Speaker 1: here going forward. What do you say, though, Cynthia too.
Speaker 1: You know, I'm thinking listeners in our audience are those
Speaker 1: who are watching us on YouTube and and the Bloomberg
Speaker 1: investor that's out there, the Bloomberg audience. You know, your
Speaker 1: stock was up last year, it was up the year before.
Speaker 1: Are we're looking at uh, your stock trading at more
Speaker 1: than a hundred and fifty five times estimated earnings per
Speaker 1: share for the coming year. Um, do you feel like
Speaker 1: you need to manage expectations a little bit because of
Speaker 1: the dramatic growth you've seen in the last year. Yeah. So,
Speaker 1: I mean, we have seen tremendous growth, and as I said,
Speaker 1: we're we're kind of just scratching the surface of the
Speaker 1: opportunity ahead abo us and we're also you know, guiding
Speaker 1: to significant growth at scale. And I think when you
Speaker 1: think about fifty percent growth in the overall business over
Speaker 1: the course of the year. You know, our strong guide
Speaker 1: going into fiscal UM twenty two implies um thirty five
Speaker 1: percent revenue growth kind of mity percent revenue growth at scale,
Speaker 1: that's pretty tremendous growth. There's not that many staff software
Speaker 1: companies that are growing at those rates um at this
Speaker 1: type of scale. And and because the market opportunity is
Speaker 1: so big, and we're competing against pen and paper manual
Speaker 1: process to a more automated process, it feels like we
Speaker 1: have lots of runway, and we really think long term
Speaker 1: about the business and how do we execute against the
Speaker 1: long term opportunity relative to kind of the you know,
Speaker 1: the day to day trading environment, how do you view
Speaker 1: competition Dropbox um, you know, acquiring the documents sharing platform
Speaker 1: doc send, So how do you look at you know,
Speaker 1: what's going on more broadly in the space. How does
Speaker 1: something like that that link up affect you? Sure, yeah, there,
Speaker 1: I mean there's been some consolidation of some of the
Speaker 1: smaller players in this space. But give you a sense,
Speaker 1: we spend more in R and D on the signature
Speaker 1: than our next nearest competitor has in revenue. So we
Speaker 1: have um you know market share that that's multiples of
Speaker 1: UM what others have. And so a lot of the
Speaker 1: companies that you mentioned they are they're actually partners of
Speaker 1: ours and and UM different companies made by a scribble
Speaker 1: signer UM to kind of add to their product portfolio.
Speaker 1: But when you think about docum sign and the comprehensive
Speaker 1: nature of our application of our API and integrations, how
Speaker 1: we're integrated into workflows across the ecosystem, if you think
Speaker 1: about where we fit with customers that we serve, serve
Speaker 1: the smallest mom and top UM customers to the largest enterprises,
Speaker 1: and so the scalability, the security, UM, the workflow pieces
Speaker 1: of the agreement cloud that we serve. And we're a
Speaker 1: trusted brand, right we UM you know, have very high
Speaker 1: MPs scores. We have kind of the security and all
Speaker 1: the privacy features that a lot of these other companies
Speaker 1: don't have. So we partner across the ecosystem UM and
Speaker 1: we're not as concerned about, you know, different companies buying
Speaker 1: a very small player and integrating that into their products
Speaker 1: because it's not necessarily competitive with what we're doing and
Speaker 1: the broad the broad market that we're serving. I'll take
Speaker 1: that as you're not worried then, because okay, hey listen,
Speaker 1: you meant you took me somewhere where I want to go.
Speaker 1: Security issues and privacy issues. Um. You know, Bloomberg had
Speaker 1: an exclusive story about, um, the hackavist hack activists who
Speaker 1: basically tapped into, you know, tons of surveillance cameras around
Speaker 1: the globe just to show how easy it is. What
Speaker 1: about that when we're throwing up really important documents in
Speaker 1: the cloud and elsewhere, Um, how do you ensure you
Speaker 1: know the security of all of that, because that's going
Speaker 1: to be a big thing that you know, people are
Speaker 1: gonna think twice if there's any kind of problems of course,
Speaker 1: and that's an area that we're investing a lot in
Speaker 1: across our platform and in our infrastructure, and so it's
Speaker 1: a really top of mind area, particularly for enterprises, but
Speaker 1: also kind of in the long tail of all the
Speaker 1: customers that we serve. So we invest a lot in
Speaker 1: R and D, insecurity, in kind of all the compliance
Speaker 1: pieces required to operate out our scale. All right, and
Speaker 1: we are talking, of course, with the CFO of Docum,
Speaker 1: sign Cynthia Galor. Hey, Cynthia, one thing I want to
Speaker 1: ask you. You mentioned growth, and we just have about
Speaker 1: a minute or so left here. UM in terms of
Speaker 1: growth US versus overseas, where are the real opportunities going forward? Absolutely? So,
Speaker 1: I mean international is growing tremendously for US, it's about
Speaker 1: of our revenue. And in Q four three UM which
Speaker 1: is it was just quite substantial. It's um it's approaching
Speaker 1: a three hundred million dollar run rate um UH in
Speaker 1: terms of revenue for US UM. And we have a
Speaker 1: really unique go to market with our digital which really
Speaker 1: feeds and creates legion into our direct business. But we're
Speaker 1: in a hundred and eighty countries globally and then we
Speaker 1: go direct in our core eight countries, and so we're
Speaker 1: in the beginning days of our international strategy and in
Speaker 1: many ways we're even less penetrated internationally than we are
Speaker 1: in North America. Hey, listen, I'd like to ask people,
Speaker 1: just real quickly, twenty seconds sconds, what keeps you up
Speaker 1: at night? You know? We have just a tremendous opportunity
Speaker 1: ahead of us, and so we really need to keep
Speaker 1: our eye on the ball and focus on executing a
Speaker 1: cross our priorities and continuing to scale our business. And
Speaker 1: so for US, it's really about execution because the market
Speaker 1: opportunity is there, alright. Gonna leave it on that note, Listen,
Speaker 1: thank you so much, really appreciate all the time you
Speaker 1: gave us. Synthony Cynthia Galor. She is chief financial officer
Speaker 1: at DOC you sign joining us on the phone from
Speaker 1: San Francisco. Stalks down about five so far in twenty one.
Speaker 1: As I mentioned a little bit of pressure we saw
Speaker 1: certainly following their earnings. This stock today closing down six
Speaker 1: point six percent, but again it's been on quite a
Speaker 1: tear in the last couple of years. You're listening to
Speaker 1: Bloomberg Business Week. I'm Carol Masser in our Interactor Broker studio.