As the global pandemic continues to cause economic uncertainty and disruption, it may be taking a toll on some businesses that experienced a surge during the pandemic. One such business is the digital signature and e-signature company DocuSign.
DocuSign is a cloud-based platform for digital signatures, which makes it a key technology for companies that need to conduct document-heavy transactions online. Before the pandemic, the company already had a large customer base, with more than 700 million customers around the world. But when the pandemic began and companies shifted to online operations, DocuSign saw even greater growth as new businesses adopted their technology to continue operations.
But now, as the pandemic is ending, DocuSign may be showing signs of a pandemic growth hangover. For example, DocuSign’s stock price has been struggling to return to pre-pandemic levels. In March, the company’s shares were trading around $64, but as of June they had fallen to around $45. Moreover, while the company reported strong growth in Q2 2021 with total revenue of more than $400 million, this was a decrease from the previous quarter.
The company’s struggles can be attributed to increased competition in the digital signature marketplace as new businesses have emerged in response to the pandemic. DocuSign also faces a challenge in retaining new customers who may have adopted the technology as a short-term solution during the pandemic and now plan to switch back to more traditional document-signing practices.
To combat this slowdown, DocuSign has taken steps to diversify its offerings and move into different markets, such as the legal field. In addition, the company continues to develop its product platforms to provide customers with greater value, including features such as intelligent workflows and identity verification services.
Overall, the pandemic has helped spur the adoption of digital signature technology, but as the pandemic winds down, DocuSign may be feeling the effects of a pandemic growth hangover. To ensure its continued success, the company must focus on further developing its technology and meeting customers’ evolving demands.
