The technology-centric Nasdaq 100 index was down almost 3% last week, as the omicron coronavirus variant continues to spark fear of economic turmoil.
economy has managed to reopen and operate despite the virus, life should eventually return to normal.
One possibility is digital signature leader DocuSign , which stands to snatch a greater share of total U.S.
DocuSign is one of the technology companies that drew significant benefits from the stay-at-home economy triggered by the pandemic.
DocuSign is the leader in digital signature technology with over 1.1 million paying customers, but it has leveraged its recent tailwinds to invest in its business to expand its product offering.
For organizations that receive and issue large volumes of legal paperwork, this technology could save significant amounts of money by replacing some costly lawyer hours.
But perhaps more significant is the fact that DocuSign is now consistently profitable; in fiscal 2021 it earned $0.90 per share on a non-GAAP basis, which excludes one-off costs, and in fiscal 2022 it’s expected to grow that metric by 120% to $1.98 per share.
DocuSign is trending in the right direction financially, and also with the technology it’s developing.
This growth is driven by a combination of low interest rates and a shortage of family homes, but whatever the reasons, higher home prices means more commissions for realtors.
The company has built scale through its army of employed real estate agents, and it’s able to charge just 1% instead, saving its customers over $1 billion to date.
Naturally, the reduced commission is a major draw for willing sellers, yet despite Redfin’s rapid growth, it represents just 1.16% of all U.S.
iBuying made up 44% of Redfin’s revenue in the recent third quarter, but the largest player in the iBuying space — Zillow Group — has dropped out of this business after making large losses, so the door is open for Redfin to selectively capture more opportunities.
So far, iBuying is a breakeven business for Redfin, with most of its gross profit coming from broking instead.