Dan Springer, CEO of DocuSign.
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The company did not give a reason for his departure, but said Springer “agreed to retire”, which takes effect immediately. Board Chairman Maggie Wildrotter will serve as interim CEO while the company begins looking for the next CEO. Shares rose about 1% as markets opened.
Springer took over as CEO in 2017 and made the company public in 2018.
DocuSign was able to take advantage of the Covid-19 pandemic as more users switched to online transactions. But his business has slowed in recent quarters, especially after facing difficult comparisons with its dramatic growth in 2020 and early 2021. The deteriorating macro environment has also affected the company. Shares fell 80% from their 52-week high at Friday’s close.
Leaving Springer comes less than two weeks after the publication of DocuSign fiscal gains for the first quarter this did not meet analysts’ expectations, further accelerating the company’s stock decline.
Several Wall Street companies, including Evercore ISI and Bank of America, downgrade the shares of the report. The company forecasts 7% to 8% growth in invoices in the previous year for 2022, which is “much less than the average point of previous DocuSign guidelines, which required 15% growth,” said Jake Robert of William Blair in a note to investors.
“Given the limited visibility of management, the restructuring of sales, which will take several quarters, and the lack of short-term catalysts, we believe that shares of DocuSign will remain limited over the next few quarters,” he said.