Street Calls of the Week
SAN FRANCISCO/NEW YORK - Docusign (NASDAQ:DOCU), the $17.1 billion market cap digital agreement leader with impressive 79.5% gross margins, and CLEAR (NYSE:YOU) unveiled a new identity verification solution in the U.S. on Thursday, integrating CLEAR’s biometric technology directly into Docusign’s agreement platform.
The solution allows users to verify their identity with biometric data while completing digital agreements, addressing growing concerns about identity fraud accelerated by generative AI technologies. According to InvestingPro data, DocuSign’s strong financial health and 8.3% revenue growth reflect its market leadership in digital document security.
"Together with CLEAR, Docusign is leading the way in ensuring that businesses don’t have to choose between security and a seamless customer experience," said Allan Thygesen, CEO of Docusign, in a press release statement.
CLEAR members can verify their identity with a selfie within the Docusign platform, while non-members can create a free account in under 90 seconds. The system aims to balance security with user experience, a challenge highlighted in Docusign’s recent report which found 66% of businesses believe fraud prevention and customer experience are competing priorities.
Docusign also announced plans to introduce Risk-Based Verification in coming weeks, which will customize security checks based on automatically generated risk profiles.
The partnership represents the first integration of CLEAR’s verification technology into an agreement management platform. CLEAR currently has over 33 million members across its platform.
According to Docusign’s "The Future of Global Identity Verification" report, companies that have invested in advanced identity verification solutions have saved an average of $8 million by reducing fraud. With DocuSign’s stock showing a remarkable 49% return over the past year, InvestingPro analysis suggests the company remains undervalued, with 12 analysts recently revising earnings estimates upward. Discover 14 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
The collaboration comes as digital document forgeries increase, with Gartner predicting that one in four candidate profiles worldwide will be fake by 2028. For detailed insights into DocuSign’s competitive position and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other top US stocks.
In other recent news, DocuSign has reported strong second-quarter results, with significant improvements in both earnings and revenue. These positive results have prompted several financial firms to adjust their stock price targets for the company. Piper Sandler increased its price target from $85 to $90, citing robust performance driven by platform innovations and strategic go-to-market changes. Meanwhile, BofA Securities raised its price target to $102 from $85, highlighting DocuSign’s improved execution in its core eSignature business and growing momentum in its Identity and Access Management (IAM) segment.
JPMorgan also revised its price target upwards to $80 from $77, acknowledging DocuSign’s leadership in the contract-lifecycle management market. Needham maintained its Hold rating, noting continued improvement under CEO Allan Thygesen’s leadership, with better execution and customer downsells decreasing. Additionally, DocuSign’s IAM platform has achieved FedRAMP Moderate authorization, allowing federal agencies to adopt digital agreement solutions that meet government security standards. These developments indicate a period of positive growth and recognition for DocuSign in the market.
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