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Subject:  Re: Docusign Again - Summation Date:  1/21/2019  6:46 PM
Author:  dumaflotchie Number:  108151 of 115850

Thus, SoA is not a new business line for Docusign, and it is in fact a big reason why Docusign is so dominant.


Nice post but the above conclusion is not least from the perspective of how DOCU now defines the "modern" SOA.....a concept they have been working on for the past 6-8 months before launching it in earnest. From last earnings call:

We've just been in the last sort of six months as we really started the initial message development around system of agreement. And then from an additional product standpoint around Spring, I mean we're really -- really as we get to our new year, February 1 is where we're going to be focused on the DocuSign side is really selling that aggressively. We're integrating the company but we haven't really started an aggressive sort of cross-sell opportunity.

Their forte has been the esignaturing and enhancing the agreement process......but they have not had a "modern" SOA product in place.

The "modern" SOA process addresses what happens BEFORE and AFTER the signing......they have previously been used as an add-on to other products (SAP, CRM, etc.) or home grown products that took on the SOA duties. But they want the whole enchilada.

If you go back to their first earnings call, they told us that their TAM was $25 further evidence that this "modern" concept is new, they have now added another $25 Billion to that TAM..….2 earnings calls later. These are new products and capabilities.

Here from the CEO's own words:

Daniel Springer
Absolutely, Pat. So I think the first piece I’d start off is signature which is the core of the business that we build today and we talked about that kind of $25 billion TAM that we are focused on, with only just starting to scratch the surface in a few percent penetrated there is still going to be a core focus area, we believe we can continue to grow that substantially.

When you look at the other component in the System of Agreement that you referred to. I see the opportunities in sort of this order. I think in the pre-agreement or the we say prepare phase. That’s the place where we’re most focused right now as we think about our product development and the innovation that we’re driving and as well as we’re seeing with the conversations we’re having with customers, saying this is where they really pulling us.

And the other piece I’d point you to, when I look at the long-term and the real macro building that’s out, I think some of the post agreement phases particularly around manage and that’s where you remember Appuri the company we bought with machine learning capability.

We start thinking about the artificial intelligence opportunity to go to our customers and say all your agreements are now in DocuSign and you can now make your business better by the way we help you manage your core company through these agreement process. Helping them understand risks, helping them understand trends in their business that’s the place that I think I maybe even most excited for the biggest opportunity going forward. But in timeframe I think prepare first and manage coming second.

This encapsulates the "modern" SOA (pre-agreement, post agreement, AI, etc.)....not what they had previously offered.
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