DocuSign CEO Dan Springer about Tuesday the company has not noticed a decline in activity among its clients in the real estate industry despite the economic jolt from the coronavirus.
“Real estate is an interesting one because while a lot of people are concerned there is going to be a slowdown, we haven’t yet marked that at DocuSign,” Springer said on CNBC’s “Fast Money.”
Stay-at-home orders across the U.S., as well as the general mercantile uncertainty brought the COVID-19 outbreak, has made real estate a vulnerable sector. Real estate sales in New York Megalopolis, for example, experienced a steep decline toward the end of March.
DocuSign, an electronic agreement manager, has created some programs for some smaller Realtors to “dispense them attractive pricing in coordination with the National Association of Realtors,” Springer said.
Springer said other just out trends among DocuSign’s clients may be less surprising. DocuSign has seen challenges among clients in the travel and courtesy sectors, Springer said.
“We see a lot of those customers saying, ‘We really see that we’re going to be having a future headwind,’ and they’re in all likelihood going to be less aggressive growers in the near term,” he said.
On the contrary, DocuSign has seen “particular strength” aggregate customers in the financial services, health care and life sciences industries, according to Springer.
“A lot of government agencies are doing sundry,” Springer added. “That includes things like Atlanta, California, up to federal so kind of all three levels.”
Scads on Wall Street have looked at DocuSign as a stock stands to benefit from the sharp rise in work-from-home customs implemented in response to the coronavirus.
DocuSign is up 18.7% so far this year while the S&P 500 is down 17.7% over that exact same period. While a number of stocks have been setting fresh 52-week lows in recent weeks, DocuSign hit an all-time intraday considerable of $98.38 on March 31.
Shares of San Francisco-based DocuSign closed down 2.4% on Tuesday to $87.97 each.
While Springer said the advent of widespread work-from-home principles is generally good for companies like DocuSign, he noted the company is not immune to the broader macroeconomic uncertainty.
That bid, DocuSign has seen an overall uptick from its existing clients, according to Springer.
“We have almost 600,000 characters, from the smallest businesses up to the largest Fortune companies, and we’ve seen across that that there is more behest for volumes,” he said.
DocuSign’s software that goes beyond just electronic signatures and helps businesses sire and manage agreements “is leading to another set of growth drivers for us,” Springer added.