DocuSign stock (NASDAQ:DOCU) rose on Wednesday after the online signature vending company announced a reorganization strategy led by new CEO Allan Thygesen.
According to a filing that the company made with the US Securities and Exchange Commission, it intends to lay off 9% of its workforce, which translates to up to 670 people, at the cost of approximately $35 million in order to “improve operating margin and support the Company’s growth, scale, and profitability objectives” (SEC). According to the company’s projections, the strategy ought to be “largely accomplished” by the time the current fiscal year closes.
Market Analysis of DocuSign Stock
DocuSign stock (NASDAQ:DOCU) rose 3.5% in early Wednesday trade to $54.80 per share, leaving the DocuSign stock (NASDAQ:DOCU) down roughly 65% year to date.
DocuSign has chosen Thygesen, a senior executive at Google in charge of advertising, to take over as the firm’s CEO permanently from Dan Springer, who has served in that role since 2017. Springer has led the company since 2017. On October 10th, he will assume his role as CEO of the company
DocuSign, which has struggled to maintain investor interest as pandemic-era limitations send more and more professionals back to work, earned 44 cents per share in the three months that ended in July, outperforming Street projections on a non-GAAP basis by around 2 cents per share. This is despite the fact that DocuSign has struggled to keep investors interested in the company as pandemic-era limitations send more and more professionals back to work.
The company also reported a 22% increase in revenue, which amounted to $622.2 million, and predicted that full-year sales would be between $2.47 and $2.48 billion, with billings between $2.5 and $2.57 billion. This was partly thanks to an expanded partnership with Microsoft (NASDAQ:MSFT), which will see the tech giant use DocuSign’s products and services in its contract management workflows. The company also reported that its full-year sales would be between $2.47 and $2.48 billion.
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