Dan Springer stepped down as CEO of DocuSign on Tuesday amid slowing growth, widening losses and a flagging share price.
Maggie Wilderotter, who chairs the company’s board, will serve as interim CEO as Springer “has agreed to step aside,” effective immediately, the company said in a release Tuesday.
While DocuSign didn’t provide reasons for Springer’s departure, the announcement comes as the company struggles to perform as it did during the pandemic when consumers shifted to online transactions and deals.
The company’s electronic signature software became a go-to product for millions of real estate agents, mortgage professionals and title agents who couldn’t attend closings during the pandemic.
Since taking on the role of chief executive in 2017, Springer took the company public in 2018. The firm priced its initial public offering at $29 per share and was valued at $4.41 billion at the time of the IPO. DocuSign’s share price closed at $59.55 on Tuesday, dropping 62% from $97.46 on January 1.
The firm’s announcement comes less than two weeks after DocuSign reported mixed first-quarter earnings. DocuSign reported revenue of $588.7 million and earned 38 cents a share. Revenue topped analysts’ expectations of $581.9 million but fell well below analysts’ expectations of earnings of 46 cents a share.
The company’s net loss widened to $27.4 million from $8.3 million in the same period last year, sending shares to drop more than 20% to around $67.75 after market close on the day it announced first-quarter earnings.
DocuSign expects the second-quarter revenue to range between $600 million and $604 million, whereas analysts had previously projected $603.4 million.
Last month, the firm expanded a partnership agreement with Microsoft, which will integrate DocuSign technology with Microsoft’s products and services.
DocuSign was a HousingWire Tech 100 winner in 2020.
