This Company's Land-and-Expand Business Model Should Be on Your Radar
Operating within an ever-increasingly digital world, DocuSign's (NASDAQ: DOCU) suite of cloud-based software has it positioned beautifully to capture long-term growth over the coming decades. Bolstered by the success of its well-known eSignature solution, the company looks to employ a land-and-expand business model to continue fueling its growth.
Founded in 2003, DocuSign is best known for its eSignature solution, which allows customers to digitally receive and sign documents using a subscription as a service (SaaS) model, offering various pricing options for specific functionalities. Speaking to this product's importance, CEO Dan Springer noted during the company first-quarter earnings call June 3 that "eSignature is the on-ramp to DocuSign for most companies." This highlights the company's go-to-market strategy of adding new clients through its eSignature solution and hopefully leading them into its all-encompassing Agreement Cloud, which is composed of four parts: "prepare," "sign," "act," and "manage." Thanks to management's focus on these adjacent services, investors could see similar growth rates to the 54% increase in revenues year over year for Q1.
Source Fool.com
