DocuSign Inc (DOCU, Financial), a leading provider of electronic signature solutions, is making significant strides in improving its agreement management layer and building an intelligence layer to unlock agreement data. In a recent discussion, CEO Allan Thygesen highlighted the company's commitment to innovation and product development.
Innovation in search and agreement workflows
Over the past nine months, DocuSign Inc (DOCU, Financial) has been focused on accelerating the pace of innovation and product releases. It has already added enhancements to its core products, but the real transformation into a broader agreement platform and intelligence layer is still ahead.
One of the key areas of improvement is the agreement workflow. DocuSign Inc (DOCU, Financial) is working on introducing features like orchestration, which will enable customers to dynamically assemble workflows related to agreements. This means users will have more flexibility and control in managing their agreements, streamlining the process and increasing efficiency.
Enterprise Search and AI Implementation
Another exciting development is the implementation of Enterprise Search. This feature, set to be rolled out in the fourth quarter, will allow users to search for specific terms or clauses across their entire agreement base. For example, if a user is looking for the term "force majeure" in their contracts, DocuSign Inc (DOCU, Financial)'s artificial intelligence technology will be able to interpret the query and provide all the relevant agreements. This capability eliminates the need for a large team of lawyers to manually review contracts, saving time and resources.
The introduction of AI technology is expected to have a significant impact on DocuSign Inc (DOCU, Financial)'s products. Thygesen mentioned that AI will revolutionize the agreement analytics category, particularly with the use of generative AI. This technology will enable DocuSign Inc (DOCU) to deliver more intelligent agreements, transforming the contract lifecycle management category.
AI in ID Verification
Further, AI plays a crucial role in DocuSign Inc (DOCU, Financial)'s ID Verification feature. The upload and ingestion of identification documents, recognition of IDs and liveness detection are all made possible through AI technology. This not only enhances security, but also improves the convenience for users, striking a balance between risk and ease of use.
Liveness detection and Wallet Feature
Liveness Detection technology utilizes AI-powered biometric checks to prevent identity spoofing, ensuring more accurate verification without the need for the signee to be physically present. This advanced feature has already proven to be beneficial for DocuSign Inc (DOCU, Financial)'s customers, reducing the time to sign by approximately 60%.
Furthermore, DocuSign Inc (DOCU, Financial) has plans to introduce a wallet feature later this year. This feature will allow frequent users to save their profile, enhancing efficiency and convenience for both new and existing customers. The wallet feature will be available across all of the company's plans, including the standard plan, providing a significant differentiator for its product offering.
Smart Agreements and AI Labs
Expanding the identity verification portfolio is part of DocuSign Inc (DOCU, Financial)'s broader vision of smart agreements. The company aims to automate and integrate agreement workflows seamlessly, unlocking the potential for intelligent agreement management across millions of businesses. By monetizing AI through its CLM plus products and AI labs, DocuSign Inc (DOCU) is co-innovating with customers to develop new features and receive early feedback.
DocuSign Inc (DOCU, Financial) is investing in AI labs, where it co-innovates with customers to develop new features and technologies. By working closely with customers during the development phase, the company ensures that its products meet the specific needs and requirements of businesses across industries.
Go-to-market Strategy and Traffic Conversion Rates
The company's go-to-market strategy includes a focus on self-serve product growth channels, making it easier for customers to try and buy their products. DocuSign Inc (DOCU, Financial) has seen higher traffic conversion rates of new customers on its website and has expanded relationships with its partner ecosystem to drive reach and scale.
Economic headwind risk
In a recent earnings call, a question was posed by Mark Murphy from JPMorgan, who asked, "… given the macro environment, probably hard to pass or to expect to get all the value you've been putting in the products back from your customers. But I'm curious, how are you making sure that once the macro headwinds subside that you don't put $10 of value into the product and only get $5 back, right, just to make up numbers?"
Chief Financial Officer Blake Grayson responded to the question by acknowledging the challenges presented by the macro environment. He mentioned that certain verticals and areas show relative strength, while others are still under stress. Grayson also highlighted the pressure faced by CFOs and how they scrutinize investments across the board.
Ensuring Value in Products
In terms of ensuring the value put into the products is not lost, Grayson emphasized DocuSign Inc (DOCU, Financial)'s commitment to working with customers and providing the best value possible. He mentioned that while some factors are beyond their control, such as the macro environment, they have the opportunity to expand and provide products that customers want. Grayson concluded by stating that executing on the product roadmap is crucial for the company's success.
Conclusion
DocuSign Inc (DOCU, Financial)'s focus on expanding its identity verification portfolio aligns with the growing demand for secure and efficient digital transactions. As businesses increasingly rely on remote and online processes, the need for robust identity verification solutions becomes paramount. With its market-leading position and commitment to innovation, DocuSign Inc (DOCU) is well-positioned to meet this demand and continue driving growth in the agreement management space.
It is evident that DocuSign Inc (DOCU, Financial) is committed to leveraging AI technology to improve its agreement management layer and build an intelligence layer. These advancements will provide users with a more comprehensive and efficient platform for managing agreements. With the promise of further developments in the coming months and throughout the next year, DocuSign Inc (DOCU) has a bright future ahead in the realm of agreement workflow and intelligence.
Still, some real numbers behind Grayson’s response to customer value creation would have been nice. Hopefully, management will respond to that question in more depth next quarter. A product roadmap that is not directly tied to customer value is not a useful roadmap.
