BOX - DocuSign: Adding Some Volatility To Your Portfolio

• I initiate coverage of DocuSign with a neutral outlook reflecting a high valuation and looming macroeconomic threats.
• The business model is near bulletproof; DocuSign is a market leader in the eSignature segment and has rapidly acquired a compelling CLM offering.
• A return to pre-pandemic growth rates will temporarily impact valuation, but secular adoption tailwinds remain strong.
• Small and very small businesses will likely be lured away by newer eSignature rivals competing on price, but enterprises will become increasingly locked into the Agreement Cloud ecosystem.
• There will be material upside to come, but investors will have to ride out the price volatility in the interim.

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