DocuSign (NASDAQ:DOCU), 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 (NASDAQ:UAL) 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.
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.