Are we snoozing on Docu

Share price appreciation has been strong
And y/y growth has been close to 50%
Anyone here still like docu?

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I’m still in it. My 2% or so position has grown into about a 3.5% position just from gains the past few months. My thesis is as simple as what I put in my post yesterday afternoon above about their earnings:

I’m happy to keep holding my relatively small DOCU stake and let it continue to play out. If their e-signature business can continue to grow just in-line with the expectations for the total e-signature market over the next couple of years and get any contribution from the agreement cloud services, this should be a pretty safe holding with possibility of outsized returns.



I am still in and have been all year. I added a couple of times back in the spring and my position is up 45% YTD and DOCU makes up 8 percent of my portfolio. Appreciate your update mekong.


I like it, but must not love it. I picked up DOCU Dec. 20, 2018. I am up 90% inception to date, but as strange as it might sound, I have never developed a high conviction for DOCU regardless of its performance. I took a small position (1% of portfolio) back in Dec. and have never added to it. Have you ever done that? Taken a starter position in a stock; it takes off, but you never jump on the bandwagon because you don’t quite understand or buy into the thesis?


I have been in DOCU since January, and bought three more times since then, most recently in the Summer. It’s in the top half of my portfolio, but wasn’t that high on my conviction list at first.

Why did I add shares throughout the year? Well, the executives in the corporation I work for pride themselves in being tough negotiators with vendors (for both new contracts and renewals). They are consistently successful and have saved the organization significant money across so many vendor contracts. When it came time to renew our DOCU contract, the execs did not prevail in the negotiation. DOCU was staying put on price. It has become so important to our operations and customer experience (many use cases in play), that there was no way we were going to disrupt that part of our business by switching vendors. That perspective plus consistent quarterly growth was appealing to me.

Now that their most recent earnings report shows slightly higher revenue growth plus non-GAAP profitability, I’m comfortable holding what I have and keeping it as a top-half allocation.

As a nice segway to hmcproperties’s question about taking a starter position and never adding, the stock in my portfolio that fits that description is PAYC. I’m up tremendously since my first and only purchase. While I see similarities between PAYC and DOCU (lower revenue growth than other stocks in many of our portfolios, plus some profitability in the mix), I don’t have a great answer as to why I added to one but not the other. Probably just because I have first hand experience with DOCU and not PAYC.



No snoozing here. I’ve quietly been accumulating this one since January and have a 45% overall gain to show for it. It’s still a smaller position, though. I think it doesn’t get the attention it deserves, perhaps because it doesn’t have mega-star 50% growth or because people (incorrectly) think that the big dog, Adobe Acrobat, wins in the portable document space. Those people likely don’t understand statement of authority needs (proving a document wasn’t changed along the way or after someone signs, for example), or the ease of use of being able to refinance a loan pretty much without anyone ever leaving their home or office.

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