Docusign (DOCU) is trying to keep up with OpenAI (OPAI.PVT).
“It is the fastest pace of technology development that I’ve experienced in my many decades in tech,” Docusign CEO Allan Thygesen said on Yahoo Finance’s Opening Bid. “And so you do have to be on your toes.”
OpenAI’s breakneck rollout of new models and tools has forced enterprise tech players — including Docusign — to accelerate their roadmaps.
“If you’re just building on what’s available today, you’re going to miss the next turn,” Thygesen said, noting that Docusign’s team has to think six to 12 months ahead to stay competitive.
Shares of Docusign are down more than 23% year to date, trailing the S&P 500’s (^GSPC) 13% rally in the same period.
Despite the shaky stock performance, the company’s latest quarter showed signs of momentum, largely driven by subscriptions and billings. Investors may also be closely watching how well Docusign can weave new AI capabilities into its products.
During the second quarter, the company posted $801 million in revenue, a 9% year-over-year increase, beating consensus estimates of $780.9 million, according to Bloomberg data. Adjusted earnings per share came in at $0.92, up 8.6% year over year, and ahead of forecasts of $0.85.
The California-based company raised its full-year guidance, projecting total revenue growth of 7% to $3.189 billion to $3.201 billion.
JPMorgan (JPM) analyst Mark Murphy called the results a “return to normalcy” after a billings stumble earlier this year and lifted his price target to $80 from $77.
Thygesen said Docusign wants to strike while the iron’s hot.
“We’re trying to take full advantage of the incredible investments that OpenAI, Google (GOOG), Microsoft (MSFT), Anthropic (ANTH.PVT) and others are doing … because the capabilities are changing so rapidly,” he said.
That rapid pace has put OpenAI in a category of its own, despite its opaque business model. The privately-held company has inked multi-billion-dollar deals with Microsoft, Broadcom (AVGO), Nvidia (NVDA), and AMD (AMD), further cementing its position as the AI heavyweight to watch.
For Docusign, OpenAI is both an accelerant and a crucial ally. “OpenAI is a hugely important partner for us,” Thygesen said. “A lot of our AI is built on theirs, and other frontier LLM models.”
The electronic signature and agreements company is betting big on AI “agents” — specialized tools that automate steps in contract workflows. To build a successful agent, a company needs both the data to “power” answers and decisions, and a deep understanding of workflow itself.
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