Wall Street sees the ’Sign: DocuSign stock jumps 38% in first day of trading post-IPO
Cloud-based esignature company DocuSign raised $629m in their IPO last Thursday at $29 a share — higher than their previous range of $26-$28, which they already had to raise from $24-$26 after their IPO roadshow got investors hot n’ bothered.
The $29 share price alone put their valuation at $4.4B — nearly $1.5 more than their 2015 value — but D-Money’s winning streak didn’t stop there.
Signy D is the 8th cloud company to go public this year alone, as the cloud craze continues to make it rain.
The 15-year-old company’s IPO has been in the works since 2013, but according to Bloomberg,conflicting opinions on their board and a 15-month CEO search set them back a few years.
The fine print: profitability
Since taking the helm, CEO Dan Springer has taken DocuSign global and made the company cash-flow positive — but profitability continues to elude the document darling.
So, what’re their profitability prospects like looking forward? In response to CNBC’s questions about DocuSign’s history of operating losses (they lost $52m last year), Springer said he felt “pretty good” that they’ll be able to turn it around.