Docusign achieves FedRAMP moderate authorization for IAM platform

SAN FRANCISCO - Docusign (NASDAQ:DOCU), a digital agreement solutions provider with impressive gross profit margins of nearly 80% and annual revenue exceeding $3 billion, announced Monday that its Intelligent Agreement Management (IAM) platform has received FedRAMP Moderate authorization, enabling federal agencies to implement the company’s agreement solutions while meeting government security requirements. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet.

The authorization allows federal agencies to replace paper-based workflows with digital processes that comply with federal security standards. According to the company, the platform can help agencies digitize and automate agreement workflows from drafting through management.

"Agreements are foundational to how federal agencies deliver on their missions, from managing procurement and hiring staff to processing benefits and awarding grants," said Lee Fisher, Vice President of Public Sector at Docusign, in a press release statement.

The company stated that the authorization builds upon its existing public sector initiatives, including a recently announced discounted pricing program for Docusign solutions through the General Services Administration’s OneGov initiative.

Docusign claims the IAM platform can help government agencies increase efficiency by automating agreement workflows, reduce administrative burdens, and utilize AI to identify risks and improve transparency.

The company reports that it currently serves more than 1.7 million customers globally across 180 countries. FedRAMP Moderate authorized IAM plans are now available for Docusign customers, according to the announcement.

FedRAMP (Federal Risk and Authorization Management Program) provides standardized security assessment and authorization for cloud products and services used by U.S. federal agencies.

In other recent news, DocuSign Inc. reported second-quarter results that exceeded consensus expectations, with strong performance across revenue, subscription revenue, billings, and non-GAAP operating margin metrics. The company’s net revenue retention rate improved to 102%, up from the previous quarter’s 101%. Piper Sandler highlighted DocuSign’s robust performance driven by platform innovations and strategic changes, leading to an increased price target of $90 while maintaining a Neutral rating. Similarly, RBC Capital raised its price target to $95, acknowledging the company’s positive second-quarter results. BofA Securities also increased its price target to $102, citing improved execution in DocuSign’s core eSignature business and emerging Identity and Access Management (IAM) sector. JPMorgan recognized DocuSign’s category leadership in contract-lifecycle management, raising its price target to $80. Needham maintained a Hold rating on the stock, noting improved execution under CEO Allan Thygesen’s leadership and better-than-expected performance of the new IAM solution. These developments reflect a period of growth and strategic advancements for DocuSign.

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