Why DocuSign Stock Climbed Today
What happened
Shares of DocuSign (NASDAQ: DOCU) rose on Wednesday after the e-signature leader strengthened its partnership with Microsoft (NASDAQ: MSFT). By the close of trading, DocuSign's stock was up 2.7% after rising as much as 4.9% earlier in the day.
So what
The two companies will work together to bring digital-agreement technology solutions to more businesses. To do so, DocuSign will further integrate its e-signature solutions into Microsoft's popular productivity software. This includes real-time agreement notifications and live signings in Microsoft Teams. Microsoft 365 customers will also be able to prepare and sign documents directly within Word.
Additionally, DocuSign will remain the preferred provider of digital agreement services on Microsoft's online app marketplace. The two companies will also deploy more of their tools within their own operations. Microsoft, for example, will use DocuSign's eSignature solutions. DocuSign, meanwhile, will increase its usage of Microsoft's Azure cloud computing platform.
In a press release, Microsoft chief commercial officer Judson Althoff said: "Our collaboration with DocuSign enhances our ability to help our customers bring the agreement processes directly into the flow of work. Together we will reduce the complexity of collaborating on agreements, drive efficiency and productivity, and make anywhere work more possible."
Now what
Fortifying its relationship with Microsoft is a wise and likely lucrative move for DocuSign. Companies around the world use Microsoft's cloud-based productivity software. DocuSign's partnership with the tech titan could help it expand its customer base and boost sales of its digital agreement tools.
Investors can expect to receive an update on DocuSign's growth prospects when the company releases its fiscal 2023 first-quarter results on Thursday. Management is scheduled to conduct a conference call with analysts and shareholders at 4:30 p.m. ET.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign and Microsoft. The Motley Fool recommends the following options: long January 2024 $60 calls on DocuSign. The Motley Fool has a disclosure policy.
