What happened
Shares of DocuSign (DOCU 1.29%) climbed 33% last month, according to data from S&P Global Market Intelligence, as it became increasingly clear that the digital agreement technology company stands to benefit from a host of powerful trends.
So what
DocuSign's software helps organizations create, sign, and manage contracts digitally. Demand for its e-signature and other digital agreement products and services is rising, in part because of the COVID-19 crisis. The pandemic is accelerating the migration of business processes to the cloud. This massive global trend is known as digital transformation -- and DocuSign is one of its key enablers.
DocuSign's stock rose sharply in May as more companies adopted its digital agreement technology. Image source: Getty Images.
Now what
DocuSign delivered impressive first-quarter results on June 4. Its revenue leapt 39% year over year to $297 million, while its operating cash flow rose nearly 30%, to $59 million.
"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," CEO Dan Springer said in a press release.
Massive industries -- such as the mortgage market -- are moving to digitize their operations, aided by the use of DocuSign's e-signature offerings. In addition, many businesses are indicating that they will allow more of their employees to work remotely both during and after the pandemic. With these trends boosting demand for its services, DocuSign's growth is likely to continue to impress investors in the year ahead.
