San Francisco-based electronic signature technology company DocuSign has come quite a ways since its founding in 2003. The company has undergone a series of leadership changes but steadily progressed to a monumental milestone when, Friday, DocuSign (DOCU) stock officially began trading on the Nasdaq Stock Market after a $629 million IPO, increasing its price substantially upon entering the marketplace.
DocuSign has been able to grow into a multi-billion-dollar company on the back of its intellectual property pertaining to the ability to collect legally-binding signatures on digital platforms. In 2010, the DocuSign platform was made available for iPhone and iPad, a major step toward making the service as widely adopted as it is today, boasting hundreds of millions of users worldwide. They have established agreements with Google Drive, PayPal, and Salesforce.com, among others, to incorporate DocuSign into signature-payment connected transactions, and have generally been shrewd about spreading the brand and taking advantage of their highly-utilitarian service.
Still, over that time DocuSign faced competition – EchoSign, which was acquired by Adobe in 2011 and became Adobe Sign, for one – but has proven perseverant despite having several different executives at the helm over its term of operation. In March of 2016, it appeared that former Motorola Mobility top man Rick Osterloh would be taking over for chairman Keith Krach, who had guided DocuSign through a period of immense growth beginning in 2011. But when Osterloh seemingly removed his name from consideration, after it reportedly had been decided that he was tapped as Osterloh’s successor, it would have been easy to tab DocuSign as a rudderless ship.
Today, the ship is undeniably back on course, and DocuSign’s first day on the publicly traded market was a rousing success. Even the initial IPO exceeded expectations.
The IPO set the initial pricing benchmark at $29 per share, a target that was above initially proposed price ranges between $24-$28. Altogether, the collective $29 per share total would net DocuSign an IPO of $629 million. TechCrunch reported that this would render DocuSign’s value as a company at $4.4 billion, but Forbes estimates that it is valued closer to $6 billion. Considering the impressive day that DocuSign stock had, it might be wise to lean toward the Forbes estimation as more accurate, or at least more accurately predictive.
Just before 1 P.M on Friday, DocuSign shares were up 37%, from the initial price of $29 per share to $39.70 per share. While the IPO was encouraging, today’s developments show that DocuSign price setters were perhaps not even as optimistic as they should have been in steadily increasing their price target. Now, the company continues to target growth as it maintains its ‘upper line’, as CEO Dan Springer is fond of saying.
We are super-excited, as this has been a long time coming, Springer said. We are focusing on building going forward and continuing to drive great success. You will see us really put our focus in not improving the bottom line, but the top line, he added. We joke around here that our top three priorities here are growth, growth and growth.