Please ensure Javascript is enabled for purposes of website accessibility

DocuSign to Join NASDAQ-100 Index

By Donna Fuscaldo – Jun 15, 2020 at 2:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Business for the esignature company has been booming since the pandemic.

DocuSign (DOCU -3.13%), the high-flying e-signature company, will be added to the Nasdaq-100 Index later this month. 

In a press release late Friday, Nasdaq announced that DocuSign will replace United Airlines (UAL -1.16%) in the index effective June 22, 2020. After that date, DocuSign will join Zoom Video Communications and rival Adobe, among many other tech businesses, in the index.

Stock market board listing indexes including Nasdaq-100.

IMAGE SOURCE: GETTY IMAGES.

DocuSign is being added to the Nasdaq-100 Index at a time when business is booming for the tech stock thanks to the COVID-19 pandemic. With companies shuttered due to shelter-in-place orders, many businesses and individuals have turned to digital signatures to get contracts signed and completed. 

For the first quarter, DocuSign's revenue was up 37% year-over-year, and the company ended the quarter with more than half a million paying customers worldwide. Of the $214 million in revenue DocuSign reported in the quarter, subscriptions accounted for $201.5 million, up 36% year-over-year. Customers with annual contracts valued at more than $300,000 jumped 46% during its first quarter

DocuSign expects the momentum to continue throughout the year, raising its targets for the quarter ending July 31 and for the full year.  The company is now forecasting revenue to of $222 million, up from $218 million, and for non-GAAP gross margins to be 80% instead of 78% in the current quarter. 

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Adobe Systems, DocuSign, and Zoom Video Communications and recommends the following options: short August 2020 $130 calls on Zoom Video Communications. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

DocuSign Stock Quote
DocuSign
DOCU
$53.47 (-3.13%) $-1.73
Adobe Inc. Stock Quote
Adobe Inc.
ADBE
$275.20 (-1.10%) $-3.05
United Airlines Holdings, Inc. Stock Quote
United Airlines Holdings, Inc.
UAL
$32.53 (-1.16%) $0.38
Zoom Video Communications Stock Quote
Zoom Video Communications
ZM
$73.59 (-1.18%) $0.88

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.