Shares of DocuSign soared more than seven percent on Monday after the Nasdaq announced that the pioneering maker of electronic signature technology will join the Nasdaq 100, bumping United Airlines from the spot.
It’s certainly a sign of the times to see a cloud-based software company such as DocuSign replacing an airline given the changing dynamics of the economy in the era of COVID-19.
Microsoft, Amazon, Facebook, Expedia, Starbucks, Adobe, Workday and Zoom Video Communications also are on the Nasdaq 100, described as “one of the world’s preeminent large-cap growth indexes.”
DocuSign was founded in Seattle in 2003 by entrepreneur Tom Gonser, and to this day maintains a large presence in the city even though its headquarters is technically listed as San Francisco. DocuSign is now led by Dan Springer, the former Responsys CEO who joined DocuSign in 2017. (See GeekWire profile: From stay-at-home dad to DocuSign CEO: How Dan Springer guided digital signature giant to IPO).
DocuSign’s stock has more than doubled this year. It is now trading at just over $160 per share, with a market value approaching $30 billion. The stock really started to take off in April as COVID-19 spread across the country, and more businesses were forced to work from home, meaning an acceleration of electronic document signings. Shares of United Airlines, on other hand, have lost nearly half of their value, and the company now shows a market value of $11.3 billion.
“Our strong first quarter results reflect our ability to help organizations accelerate their digital transformation as they adapt to the changing business environment, magnified by COVID-19,” Springer said in reporting the company’s first quarter earnings earlier this month.
For the quarter, DocuSign reported revenue of $297 million, which was up 39% year-over-year. While still unprofitable, it finished the quarter with $893 million in cash.
DocuSign is set to join the Nasdaq 100 on June 22, according to a statement from Nasdaq.
