Since going public last week, DocuSign has already seen a 58% increase in its share price, trading at a high of $46 per share. Today, Ignitia takes a closer look at the IPO, and how DocuSign managed to garner a $4.4 billion valuation.
DocuSign’s $4.4 Billion Valuation
Last Thursday before it’s IPO, DocuSign shocked observers when it set its IPO price at $29 per share. This was higher than the adjusted projection of between $26 and $28 per share, which had already been adjusted up from the initially proposed price range of between $24 to $26. With 152.1 million outstanding shares, the $29 per share pricing gave the company a valuation of $4.4 billion. This too was up from a 2015 private-market valuation of $3 billion as reported by The Wall Street Journal.
A Company on the Rise
According to the SEC filing, DocuSign saw revenues of $518.5 million last year, up from $381.5 million the year prior, and $250.5 million the year before that. Also according to the SEC filing, losses for the company last year dropped for the third year in a row to $52.3 million, down from $115.4 million, and $122.6 million the two previous years.
A History of Investor Confidence
Since its founding in 2003, DocuSign has raised over $500 million in funding after an anomalous twenty-seven rounds. The largest publicly disclosed round was a $233 million Series-F led by Bain Capital Ventures and Brookside Capital. And the customer base is quite robust. According to the filing more than 370,000 customers use the e-signature company’s paid services.
Many Top-Tier Clients
Since it’s inception, DocuSign has become the preferred platform for e-signature functionality. The cloud-based system allows approvals and transactions to be conducted in a matter of moments, opposed to traditional models of faxing or pen-and-paper which can take much longer.
According to their website, DocuSign is already used by 7 of the 10 largest tech companies on earth, 18 of the top 20 pharmaceutical companies, and 10 of the top 15 global finance service companies. And with investor confidence on the rise, these numbers look to only be increasing.
DocuSign is traded on the NASDAQ under ticker symbol, DOCU. Morgan Stanley and J.P. Morgan were lead underwriters on the offering.