The process of notarizing a document felt archaic and unnecessarily time-consuming. Meeting the notary at my local bank office made me feel like I was being watched and scrutinized, which only added to the feeling of unease that was already stirring within me. It would have been much easier to create and electronically sign the document, but I trusted that the notary knew what she was doing.
What went wrong with DocuSign? There are a few potential explanations. One is that the company may not have capitalized well enough on its dominant position in digital signing. Another reason could be that customers became disillusioned with DocuSign’s services as the 2019 pandemic unfolded and they were unable to securely meet in person. Finally, it’s possible that investors simply became overconfident about the company’s prospects and allowed its stock price to go too high. Whatever the reason, it looks like DocuSign will need to make some adjustments if it wants continue operating successfully in today’s market landscape.
Whether it’s DocuSign or another SaaS company, many have seen their value plummet since the market peaked at the end of 2021. It seems that once people realized how easy it is to move to digital signatures, companies that relied on them saw their value fall. And while DocuSign is solving a real problem in a world that is still stuck in paper workflows, it may be suffering from the same fate as companies like Google and Amazon – due largely to its popularity among tech enthusiasts and startup entrepreneurs rather than businesses with actual money to spare.
The new CEO’s move to take the company in a new direction could be indicative of larger problems at the company. The digital transformation is an important focus for the company and it has been able to retain value, despite a general slowdown in enterprise SaaS companies, but it may not have been able to sustain growth. With Allan Thygesen at the helm, it will be interesting to see if this changes and if they can continue to grow their customer base.
Rumors have spread online that the departure of CFO Cynthia Gaylor may be connected to on-going scrutiny over the company’s financial practices. Many analysts are calling for a probe into whether or not FastSpring is improperly selling its products, and rumors abound that Gaylor may have been at fault for not catching any wrongdoing.