The DocuSign Stock Crash May Just Be Getting Started
E-signature leader DocuSign (NASDAQ: DOCU) is trying to diversify, and for good reason. It's not clear whether the company has any meaningful competitive advantage in the e-signature market, other than name recognition.
Contract lifecycle management, or CLM, is the company's big growth opportunity. DocuSign wants to handle all aspects of contracts and agreements, including document creation, collaboration, and negotiation, while layering on advanced functionality like automated workflows and analytics.
While CLM may indeed drive revenue growth in the future, right now it's not helping much. DocuSign reported 14% year-over-year revenue growth in the fourth quarter and 10% billings growth, but its guidance signaled that a harsher slowdown is coming. For fiscal 2024, which ends on Jan. 31, 2024, DocuSign expects revenue and billings growth to decelerate significantly.
Source Fool.com
