DocuSign (DOCU 1.35%), the high-flying esignature company, is being added to the Nasdaq-100 Index later this month.
In a press release late Friday, Nasdaq said DocuSign will replace United Airlines (UAL -0.13%) as of June 22, 2020. Once DocuSign is added to the Nasdaq-100 Index it will join Zoom Video Communications and rival Adobe in the index.
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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 its first quarter of fiscal 2020 revenue was up 37% year-over-year. The company ended the quarter with more than half a million paying customers located across the globe. Of the $214 million in revenue DocuSign lodged in the quarter, subscriptions accounted for $201.5 million and were up 36% year-over-year. While DocuSign is still largely a consumer play, it is growing its business customer base, which is expected to get bigger in the coming quarters as it offers services beyond esignatures. Customers with annual contracts valued at more than $300,000 jumped 46% during its first quarter.
DocuSign also expects the momentum to continue throughout the year raising its targets for the quarter ending July 31 and the full year. The company is now forecasting revenue to be $222 million, up from $218 million, and for non-GAAP gross margins to be 80% instead of 78% in the current quarter. For the full fiscal year ending January 31, DocuSign expects sales to come in at $922 million, up from its past target of $917 million. Billings are projected to be $1.03 billion, up from $1 billion.
