DocuSign's (NASDAQ: DOCU) e-signature product has seen unprecedented adoption as businesses scrambled to operate in a remote-only work environment due to the pandemic. Over the past 12 months, the company has added hundreds of thousands of customers and grown its top line over 50%.
But the stock has done even better, seizing a 170% gain for shareholders over the past year. Has the stock gotten ahead of itself, or is this an opportunity to buy a winner on its way up?
DocuSign's flagship product enables users to record a signature on digital documents easily and securely. It offers individual e-signature plans starting at $10 per month up to enterprise-level packages for large companies. The company has over 800,000 customers, but a smaller number -- 113,000 -- are enterprise and commercial customers which make up 87% of the revenue. A solid 96% of the company's top line comes from subscription fees, so it has a reliable and predictable revenue stream.
Source Fool.com