Motley Fool Money - Retail Rebounds, Dynamic Duos, and the CEO of DocuSign

Episode Date: June 19, 2020

Retail sales rebound in May. Walmart teams up with Shopify. Spotify teams up with DC Comics. Wirecard plummets on accounting concerns at the German payment firm. And Groupon investors react to quarterly results and a 1-for-20 reverse stock split. Motley Fool analysts Andy Cross and Jason Moser discuss those stories, debate the finer points of Disney wine, and share two stocks on their radar: Skyworks Solutions and AeroVironment. Plus, DocuSign CEO Dan Springer talks about the big business of electronic signatures.       Learn more about your ad choices. Visit megaphone.fm/adchoices

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which makes it so much easier to stay on track. And you can get unlimited expert help at no extra cost, even on nights and weekends during tax season. Visit turbotax.com to get matched with an expert today, only available with TurboTax full service experts. Everybody needs money. That's why they call it money. From Fool Global Headquarters, this is Motley Fool Money Radio Show. I'm Chris Hill, joining me this week, Andy Cross and Jason Mozer. Good to see you guys. Hey, hey. Hey, Chris. We've got the latest headlines from Wall Street. DocuSign CEO, Dan Springer, is our guest.

And as always, we've got a couple of stocks on our radar. But we begin with the continued rise of e-commerce. Last month, Walmart reported quarterly e-commerce sales growth of 74%. This week, Walmart announced a new partnership with Shopify to expand Walmart's third-party marketplace site. Andy, smart move by Walmart, but it is Shopify's stock that is moving on this one, up 20% this week. Yeah, it's been a really nice run for Shopify overall over the past few months. I'm one of the leaders in e-commerce platform providers. As more and more of the world, as we've talked about many times, continues to push more of their e-commerce solutions from the provider side,

from the seller side, but then also obviously from the consumer side as more and more of us are avoiding going out to stores. I really like this deal, you guys. I think this is a win-win for both players, and I think Walmart has been just really aggressive in moving to their e-commerce platform. Chris, you mentioned the growth there. And this is just another evolution of, of what Shopify is trying to do by expanding its solutions into other marketplace providers.

And in both cases, I think it's obviously reaction to trying to continue to take more and more e-commerce share away from Amazon. So this deal is really impressive because it partners those two providers. Walmart now, the second leading, the second largest e-commerce platform or site in the country. And this creates the marketplace walmart.com, which will bring in up to 12, 100 Shopify sellers into Walmart's platform ties Walmart's millions of consumers who are shopping online. It's a really nice strategic move for both players. I think eventually it'll help Walmart become more profitable in its e-commerce space, but more importantly, it just continues to grow that reach for both of these e-commerce giants. And Walmart, just, you know, Doug McMillan and the

innovations they've been making and the investments they've been making on e-commerce continues to be really impressive. Jason, we got some encouraging signs on the retail front. You think about here in the U.S., we got the monthly retail numbers for May, up nearly 18 percent over the previous month. Obviously, April was a rough month, but that's still a record rise. And over in China, Alibaba and J.D.com did a combined $136 billion in sales on June 18th. We've talked before about Singles Day in November, sort of the made-up shopping holiday that Alibaba created. June 18th is JD.com's anniversary. So that's sort of the shopping day they've created. You can laugh at the idea of a business making up a shopping day in its own honor, but $136 billion

in sales has nothing to sneeze at. Well, I mean, didn't Amazon essentially do the same thing with Prime Day? I mean, that didn't exist, They sure did make it up. And yeah, I mean, it's a nice lever to be able to pull, to be able to kind of look forward to a certain period of time in the year where you know you're going to be able to generate some really attractive numbers. And so whether you're seeing that domestically here or abroad in countries like China, I mean, certainly China is a little bit ahead of us in their COVID-19 recovery. And I think that what we're seeing here as well, we saw these big swings in these numbers. I mean, you talk about those May retail sales surging. I mean, 17.7 percent.

That's the biggest monthly jump ever. It's not that surprising, given where we were. I mean, it followed two months of record declines, and overall sales are still down 8 percent from February. So, you know, let's keep it into context. There's some pent-up demand, right? I mean, I think that's safe to assume there's some pent-up demand. And that's okay.

I guess the bigger question is, is that going to be sustainable or is it kind of a one-off? And we're still trying to work our way through this recovery from COVID-19. There's still a lot of uncertainty out there as well regarding that. But regardless, I mean, we always talk about coming out of periods like this in the strong get even stronger. And I think we're starting to see that play out here, whether it's jd.com and Alibaba over in China or here. You know, the deal with Walmart and Shopify I think is terrific. And frankly, it just, you remember Jeff Bezos talked many, many times about it.

He wakes up every morning, scared, scared to death of the customer defecting and his business being disrupted. This is the kind of stuff he's talking about right here. And I think that because of the pandemic, because of everything shutting down, we have seen some concepts step up to the plate and really up their game on the service and logistics side to show that it's not just an Amazon world anymore. I think the extent of the rebound was obviously when you look at the estimates around 8% growth and we saw almost 18% growth.

What really caught my mind or caught my eye from the data was the non-store retailers, which is mostly e-commerce. That was up only 9% from April 2020, but it's up 31% from last May, you guys. So it's just this continued push towards e-commerce, whether you're Home Depot, Walmart, Shopify, Etsy, the like goes down and down. As Jason said, the strongest are continuing to get stronger and stronger,

And we're seeing that show up in these numbers and these deals. They are. Although, Jason, one thing we have talked about is more and more consumers trying out more than just the usual suspects. You know, there are so many people who are already Amazon Prime members. But over the last three months, we've seen a lot of people start to test out specialty retailers, whether it's chewy.com with pets or more specialty retail sites like Etsy. Well, Chris, I'm glad that you brought up.

up Chewy because that's the example I was going to refer to. And I mean, a couple of weeks ago, I actually talked about this on one of our shows. I, for the longest time, have really gotten all of our pet stuff from Amazon, mostly dog food. I mean, I get medications and stuff for the vet. But I, you know, Amazon, Amazon is, they've lost a little bit of their swagger throughout this time. And so I thought, hey, maybe, you know, let's give Chewy a try, see what they're all about. Because we saw those numbers they recorded with this most recent earnings report. And they were very impressive, particularly when you look at the people who are signing up for auto ship. I think they crossed $1 billion in sales with auto ship members for the first time ever. I gave Chewy to try.

I ordered the dog food and the flea and tick medicine, free shipping. It got here the next day. I was impressed. I think I am now. I'm going to be solely a chewy user when it comes to our pets, Chris. We go fresh pet. We got some fresh pet stuff coming here to our site. So we like that. I will just note that Walmart has about 450,000 third-party sellers on his plastic. Obviously, the pairing with Shopify will bring a little bit more, but that's a fraction of what Amazon has. So those players are continuing to go against further into the third-party seller platform, which is really important for their growth. Spotify is not done spending money on podcasts. This week, Spotify announced a partnership with Warner Brothers and DC Comics to produce exclusive podcasts featuring characters from the DC universe. And Jason shares of Spotify up more than 30 percent and hitting a new high.

this week. Yeah, it's really nice to see Spotify getting its due. This is a recommendation we made in the future of entertainment service a while back, and it kind of just was treading water for a little bit, but they're doing such a great job of bringing diverse and exclusive content to a broad cross-section of listeners. And when you look at the market opportunity itself in Goldman Sachs, he's a market opportunity of 1.15 billion music streaming accounts by 2030. Now, with 286 million today on Spotify, And remember, that's paid subs and the ad-supported subs. There's still plenty of share to grab in the coming years. And when we saw their recent quarterly reports, there was a lot of encouraging news in there.

Total monthly active users grew 31%. They saw over one million podcasts on the platform now. They're seeing podcasts itself. I mean, more and more people are listening to those podcasts. I think they saw the content or the engagement with that content up triple digits over that same quarter. So, you know, I think that when you look at Spotify and what they're trying to build out as beyond just music, it's podcast, it's music, its other audio entertainment, there's just so much optionality for this business going forward. And obviously, a very forward-looking CEO there in Daniel Eck.

And I just, I really like what they're doing as a consumer and as an investor. It's nice to see the market catching on. I don't know if our friend and colleague Ron Gross is already a subscriber to Spotify. but given his passionate and lifelong fandom of Superman, isn't it safe to assume he's going to be first in line for whatever Superman podcast gets created here? I mean, you've got to give it a shot, right? I mean, that's that little taste.

They just want to get you that one taste and you get reeled in. That's what happened to us. I mean, you know, they have that family membership, which just, it's an insane value. If you have multiple people in your household, that family membership that Spotify offers is just a tremendous value, very easy to use, tremendous mobile experience. It's just, they're doing a lot of things right.

Coming up, did you ever misplace your wallet? This next story is like that. Only the wallet contains $2 billion. Stay right here. You're listening to Motley Full Money. Welcome back to Motley Full Money. Chris Hill here with Andy Cross and Jason Moser. Wirecard is a payments company based in Germany.

Chairs of Wirecard fell 75% this week after the company delayed its annual report because the company's auditor is uneneged. able to locate $2 billion that was supposed to be on Wirecard's balance sheet. After trying to reassure investors earlier in the week, CEO Marcus Braun resigned on Friday. I'm stunned by this story, Andy. This is just an incredible fall for what previously had been a really good looking business that you could make a case. It could be in Jason Moser's War on Cash Basket.

Yeah, obviously tied to the payments, and it's a real sad story. It's been going on, actually, for the last 18, 24 months, Chris, the FT has done a wonderful job on highlighting a lot of the problems and concerns that are going on at Wirecard's business over the last few months. The stock, at one point, had grown 25 times in value from 2007 to 2018. It got as big as 20 billion euros and kicked out, I think, like Commerce Bank, or it grown bigger than, Dutch Bank. So it had become a very large company and a very big success story in Europe. But the story is, and the news has been coming out of the last year and a half, two years, on what is going on with the lack of controls, concerns about fraudulent activity in their Asian operation.

What did the CEOs and the CEO know both who have been booted out now? The auditors, what could they find, what they could not find, as you mentioned, the news this week, is the loss of $2 billion, $2 billion, U.S. dollars, almost $2 billion euros, that was supposed to be in a couple of Asian banks. And those Asian banks are like, we don't have any relationship with Wirecard. So clearly a lack of controls. And by the way, the Wirecard has large clients. I mean, they have 250,000 clients around the globe, more than that around the globe, where they did at least, and some very large clients. They're tied into Visa and MasterCard as a payment. But clearly, this has been a case where the stock has just collapsed over the last few years,

concerns about who knew what, and what is actually fraudulent and what is not. And it's just a shame. And our German investors, I was talking to them this morning, I've been talking about this and kind of warning German investors to stay away from this over the last year and a half. And that's been wise advice. So a real sad story of what's been going on with, as you mentioned, was at one time, a pretty bright player in the payment spot in the Euro European tech space. Jason, it's another reminder that, look, at the Motley Fool, we focus on the underlying

business, we focus on management. But ultimately, if you're going to buy a stock, there's some measure of a leap of fate that you have to take with management. Yeah, I think you said that perfectly. I mean, I think that every investment we make, there is a leap of faith involved. It's just a matter of how great you're willing. well, you're willing to make that leap. And, you know, we try to keep it within reason. You know, judging management is tough. It's squishy. It's very subjective, right? And so, I mean, you do have to come up with an opinion. And I mean, it's not necessarily all completely fact-based. There is, there is sort of an intuition that comes with it. But, I mean, one of the things that I like

to do is to actually go back and look through time over, over the course of quarters and calls and presentations to see that management is actually doing what they say they're going to do. And I really concern myself with Wall Street expectations. I'm concerned more with their expectations and their goals, the goals of leadership. And if they're doing what they say they're going to do, that's a pretty good sign that you're probably locked in with a good leadership team. I will say insider ownership tends to be a really nice metric we like to use. But in this case, Marcus Braun owned almost more than 7% of wire card and was a billionaire at one point. And he'd been buying stock. So he had a lot of stake running into the wire card business that he basically

has contributed to, looks to be contributed to fraudulent activity. So insider ownership is a nice metric. We like to see, and especially with smaller companies, Chris, I think insider ownership and who has founded the business and running the business is even more important. But it's not a panacea. It doesn't tell you everything. You still have to be very careful about who you are trying to put your money with. Shares of Groupon up 10% this week. First quarter results were less bad than Wall Street was expecting. But Jason, Groupon's losing money. They furloughed nearly half of their employees. And there are just a ton of question marks with this one. Yeah, a lot of question marks. On the bright side, I mean, they're able to use COVID-19 as a valid excuse for some serious

headwinds in the business. The problem, though, is this is a business that was in turmoil long before COVID-19 was ever a concern. And let's not forget, too, that Groupon turned down a $6 billion offer from Google several years back. And now at $600 million market cap. You can see that might have been a deal they should have taken. But that market cap, along with their 43 million customers, I mean, that values their customers around $14 per active customer. That didn't seem like a whole lot. To your point about furlowing the workforce, I thought this was really interesting. Understanding that they are furlowing their workforce, but before this, they had about 6,500 employees, 6,500. Snap was around 3,000. Twitter was around 4,900. So clearly, Groupon

was very bloated. Now, they do see a massive market opportunity in local experiences. They quote it at $1 trillion in opportunity in their presentations. This is a good lesson for investors to remember. Don't always take management at what they're telling you the opportunity is, right? You probably want to discount that because actually when you dig into that opportunity, it's a little bit scary because it's concerts, it's sporting events, it's massages, yoga, restaurants. Those things aren't happening very much right now, Chris. And when they do start happening more, there's still going to be a cap on them. And so all in all, the financials are deteriorating.

It's going to get worse before it gets better, I'm sure. And let's also remember that they just pulled off a reverse stock split. That's usually a pretty good red flag of a business in trouble too. One for 20 reverse split. That doesn't get you interested? Yeah, I'm out of one. I'll get back to you. The Walt Disney Company is known for its parks and resorts, movies, consumer products, but hidden in their various business segments is one most people don't know about wine. Yes, guys, the Disney family of wines can be found altogether at one of the lounges at Disney's California Adventure Park.

And each wine on the list comes from an estate owned by Seventure. someone from Disney's cinematic history, including Kurt Russell and George Lucas and Jason as a shareholder. Why am I just learning about this? Why are they not blowing this out? What Star Wars fan over the age of 21 isn't going to buy a bottle of Skywalker Vineyard's best? Well, I mean, you've got to keep things exclusive to a degree, right? Chris, I mean, maybe this is another one of those levers that they feel like they can use to bring people back to the parks, right, to gin up a little bit of traffic. In all honesty, I mean, I really do feel like this is probably something. There's some novelty to it. I do feel like there is something to the exclusive nature of it, though.

I mean, there's a lot involved when you start distributing alcohol around different states all around the country. So I don't know how deep they want to get into that game. But I think it's a fascinating notion nonetheless. I mean, I didn't realize that they had this until we started talking about it this week. I agree with the novelty. I mean, the wine, the wine business is a tough business. It's very capital-intensive. Now, Disney knows a lot about capital-intensive businesses, but I agree with Jason. I think this is just more a nice thing, nice added. You go to the lounge, you see what they have. Of course, you're in the entire environment. You're going to order some Disney wine when you see the different brands they have. It's just, I think it's a nice

thing to have, but I agree. I had no idea they had that, not that I've been to a Disney or Disney World in a long time, but no idea. All right, guys, we'll see you later in the show. One of the hottest stocks of 2020 is DocuSign up next to conversation with the CEO, Dan Springer. Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money.

I'm Chris Hill. Earlier this week, Motley Fool co-founder David Gardner and analyst Carl Teal got the chance to catch up with Dan Springer, the CEO of DocuSign. Not only has the stock more than doubled in 2020, but the business business. of DocuSign has expanded beyond the realm of e-signatures. Dan Springer kicked things off by sharing DocuSign's origin story. So, DocuSign was founded in Seattle about 16, over 16 years ago, by a guy named Tom Gonser. And Tom is a fun origin story where he and his wife were lamenting the process

of buying a home and how difficult it was in terms of signing ceremonies. She knew he'd been working on a concept around electronic signature and whether that would become, you know, big opportunity. Of course, it had been legal since Clinton was president, so it was sort of seemed like there was an opportunity for a business there. And she pushed him to say, what if realtors, you know, would use this? All the realtors would have a much better experience. And that actually became the first killer opportunity for the company. And real estate is really what built DocuSign as a firm. And most people in the United States, particularly, if you meet and you ask them you know, about DocuSine. You tell them you work at DocuSign. People start off with, I love DocuSign.

I rented an apartment. I, you know, at least a place. I bought a house, whatever it is, around real estate. It's how they first came to know DocuSign. Wonderful. And then you yourself, Dan, joining the company, I think in 2017? Yes, January of 17. And were plans on the table at that point to IPO? I know with rounds from like Kleiner Perkins, there was probably a sense of inevitability to all of this. Are you kind of the higher? gun who comes on as the experienced software executive who knows how to run a bigger company? Or what is your own backstory? Yeah.

Well, I guess in this case, I may have been that person. Previous to DocuSign, I had about a 10-year run running a company that we took public called Responses, which later got bought by Oracle in the email and cross-channel marketing space. So what I didn't join that company, there was any expectation it was going to be going public. It was more of a turnaround and question of whether it would survive. but we had a really good run and ended up getting there. I was a McKinsey consultant out of business school, and I sort of was a person that got into the internet space in the dot-com,

good era, 97. So I kind of grew up post-McKinsey at a company called Next Card, which we took public in 99. I remember you guys actually wrote about us at the time, so I've been side-by-side with you for over 20 years in terms of businesses taken to public. But I think of myself now as probably more like that as a person that's less going to be entrepreneurial and starting and building a company.

My scale level is probably at bigger firms. My value would probably be higher to bigger firms and it would be earlier startups. Now, Carl, when we were first looking at this, Doc, I think I had used DocuSign, but I was wondering at the time, one of my initial questions for you as our analyst was, is there a big enough company here? I mean, aren't we just, we're just signing document? How can that be a big and growing business? But now, once you think of it as document management,

and you start thinking about the profundity of documentation worldwide going digital, yeah, it turns out it does float a pretty big company. Carl? Well, yeah, so I keep thinking about, like, how's DocuSign going to take over the world? And, you know, it's obviously there's the huge agreement cloud potential. But, I mean, there is something still about just the core e-signature business, that I guess has always troubled me a little bit and that I wanted to ask you about,

which is that, you know, I understand at least some level, some of the steps used to authenticate and verify and secure the signature. But at least for a lot of signatures, there's not really necessarily a verification of the person entering that information into the device. And so I know that DocuSign has introduced DocuSign ID verification. I just, I wonder, is that even a, you know, how much of a concern is that? How are you kind of looking at that? I mean, if you want to call that sort of wet verification,

you know, it's tough. And I just wonder how you guys think about that part of the business. Yeah, absolutely. And we call that overall area describing the identity aspect of our business. And it's actually, you know, it's a critical part of our business. Because if you think about it, how meaningful would an agreement be if you couldn't verify the individuals that had entered that agreement were, in fact, those individuals. And I think it's funny to your point. There's a lot of different types of signatures. And there's a lot of agreements that people make where they're very comfortable with a light authentication. And there's some, when you talk about our identity service, which get really broad. For the vast majority of our customers, when they're sending to a consumer or another business partner,

something for an agreement, they're basically saying, if we send you an email and it comes to your email address and you acknowledge that and click on it coming from an email link, they're comfortable with that. And they're comfortable saying it was sent to you and it confirms you got it because it was in your email box. Other people say, you know, we'd like a two-factor authentication, so we'd like to send it to your email, and then we'd like to have an SMS message. We sent to that individual to a separate place, in this case a phone number, and have them authenticate, yes, this is me. Yes, I got that email and hit that link, but I'm also verifying that's my phone number, too. We do certain things like when you sign an agreement for us, we do a timestamp, a date stamp, and we do a location verification, and we do an IP address check, so that if later you came back and had signed something, the biggest concern our customers would have, you might come back and say, I never signed it.

And we'd be able to say, that's interesting because someone's sitting in your house using your computer and then authenticated, signed it. So while we can't, I guess, confirm that was you, it's hard for you to sort of disavow the signature because it happened in all those ways. And very rarely a few signature has been challenged, of course, but they have a few times, and they've always been upheld from that standpoint. And then, but the last step along that chain is where people want a different level of authentication, all of your driver's license being held up, and we have the ability you mentioned

to start to capture that where someone can take a screenshot of your driver's license just with your phone and show somebody that you, in fact, are carrying that other physical ID. It's actually in some ways even more powerful than doing it in person because there's a code on the back of like a driver's license or on a passport that has other metadata information about you. That's additional proof point of you having it. So it can that you are in fact that person and that person is in fact the one with that ID signing it. So, but across the board, it really depends what you're trying to do, larger and larger transactions.

You know, we do have some situations with some large banks, Carl, where they'll say, if you're doing a very large, like a transfer, they might use do docu-sign to prove it, and then they'll still do a phone verification. They'll still call the individual and get what's called a voice verification. That only works if you have a relationship with someone so you recognize their voice, but you do see that. For the vast, vast majority, people are comfortable with things like email verification, a two-factor authentication with SMS, and then for the important ones, that capturing other information, like a passport or a state issued ID.

And I mean, I always think that there's, you know, most of us have in our pocket a system of verification that is probably better than photos in the most, you know, for the most part in terms of, you know, face ID or whatever else you're using on your phone. And certainly that can be a tool for it. To my mind, in a way, it leads me to the idea of like, what is a signature really? Like, how important is it that it be a signature? I mean, you guys have kind of branded the company with your yellow stickies and, you know, the whole process still mimics a signature.

But when I think of the way I most, the things I most often sign these days are pin pads at point of service things. And it's become this utterly meaningless process of me drawing a straight line across something after I've used a chip pad. I wonder, how do you see the signatures sort of evolving as we move forward? Well, it's a great question. In some ways, I think it's one of the ironies of our business is, if people say, DocuSign and think about that concept that you said around, you know, the signature.

And the reality is it's not actually about the signature anymore. It is about the identification that you just described. It's that identity verification that is what makes someone able to enter into an agreement. And the signature itself is not that meaningful. Most people, when they sign a docusign, don't trace out their own signature. We have the ability where you can just adopt a signature. We have different types. You could pick one that looks more like your signature.

But the verification of the signature is not a real thing anymore. And the same thing. If you think about your in-person experiences, if you're in a store as you're POS, as you're describing, when was the last time you saw a merchant hold up your identity card or your credit card if it's for a payment vehicle, and then looked at what you signed to see if they look alike, which is, I think people have realized it's sort of absurd. Why would the merchant be able to decipher that you, in fact, had signed like the other person? So that really is a bygone time.

And I think that the reality today is there's still some nostalgia around signatures, and I think we still have in our history, in particular people as old as I am, sort of have this feeling of your signature is your word, you know, and that's your bond. I have a feeling that my kids, they're 20, 22, I think, you know, when they're my age, I don't think there'll be this cute thought about a signature as representing, you know, it's a famous like John Hancock on the Declaration of Independence. I think that concept will become a historical artifact. You know, I have to just wonder about the last few months in two regards.

First of all, COVID, did you foresee this? A year ago, could you even imagine this? How has this changed your operations and culture? and then obviously related with your stock doubling. I mean, your market cap is now, I think it's over $20 billion, and that all happened in the last two months. Does it feel different? Have things changed or not?

Yeah. So in terms of the forecasting, I was an econometrition by academic training, economic forecasting, which would not have helped in this case, but I do think of myself as a good procrastinator. I love it. Obviously, we had no insights, obviously, about the sort of pandemic. And in the early days, I'd actually point out that I personally was quite slow to see the significance of it. And just give you one data point when we were trying to decide in early March about our upcoming customer event,

literally it was that first week of March, whether we should still have an in-person customer event. A lot of people on the team were pushing me saying, no, people aren't going to come. It's too dangerous. And I was like, guys, it's a distant kind of flu. I really didn't see it. And thank goodness, we've got a strong team that people at Doc design. and we have an open culture where people can challenge everyone, obviously, including me,

and people basically just pushed me to the right, what was clear of the right answer, which is we can't be having thousands of people come to San Francisco and sitting next to each other in a conference room as a pandemic is unfolding. And a week earlier, it might have worked. A week later would have been crazy. We were right at that interesting.

So we didn't see it at all. In terms of our business, we talked about this in the last earnings call. There has been some acceleration. And what's fundamentally happened for our business is that there's individuals and companies that have said, we have a digital transformation and we have a path. And we're working with DocuScience, it's going to be great.

And then they had to send all of their employees home because they had certain situations where they couldn't have many offices for all the obvious reasons. And now they urgently needed to get some of those things that were planned to happen over the next quarter months, years, whatever, and they accelerated those forward in their digital transformation. So we did see some growth. Our bookings, which is a good precursor,

if you think about as an early indicator, which is sort of a moving, rolling four quarters, you know, they've been, or maybe in the round, say, high 30s sort of zone, mid-30s, it was 59%. So we never had, you know, 159% growth. That's a big, you know, growth from Q1 to Q1. So that was indicative that we had a lot of customers come in. We had new customers. We normally bring in for direct customers, not the ones to come through the web,

we bring in about 3,000 quarters, a 3,000. customers in that quarter, we had 10,000 new customers in court. So that was dramatic, but also existing customers accelerated their use cases. So those are the things that sort of happened from COVID. In terms of our company, we have 4,500-ish people. Only about 10% of them worked remotely. Now, 0% of them were in the office and 100% were remotely, virtually. And that was a pretty rapid change. Our IT teams, across the board, we pulled together a cross-functional group to do it. Did an amazing. job where a lot of companies were really working from home and their business was slowing down.

Our business, as you said, was accelerated like crazy, three times the onboarding of, you know, new direct customers. And we were pushing everyone home at the same time. And that's three times. Remember, it was really only half a quarter, right? So we were, so February, March, April. This was in the middle of March, and we still got to three times new customers. So it was amazing.

Bromatic, yeah. And I'll tell you, the one thing that got us through, your first question about culture, I just make one last comment on the state was what got us through it is that people at DocuSign are proud to customer success is one of our most important values. And they know how important it is to all, me and everyone in the company, that we make our customers successful on our platform. And so people work literally round the clock, just seven days a week to do everything we could to support our customers who are calling us with these urgent sort of, you know, needs. And giving an example, we had a lot of states coming to us saying, we need to get unemployment benefits. benefits to people. And until we get them their unemployment benefits, they're not going to be able to buy food for their families. So it puts even a higher level of focus and we have to

help people. You know, Carl mentioned people were doing COVID testing where they were in parking lots needed to get people's identification and information to send them their test results. They didn't want to touch them because people coming in to be tested are highly symptomatic. So these are things we're doing something digital is obviously, you know, what you needed to do. And so our people just work around the clock over that period of time to get there. And I just feel really thankful that Team Docs had that customer success orientation. Up next, it's Jason Moser and Andy Cross with a couple of stock ideas you might be interested in.

So stick around. You're listening to Motley Full Money. As always, people on the program may have interesting stocks they talk about and the Motley Fool may have formal recommendations for or against. So don't buy yourself stocks based solely on what you hear. Welcome back to Motley Full Money. Chris Hill here once again with Jason Moser and Andy Cross. Our email address is Radio at Fool.com. Question from Darius Ching, who writes, I wanted to get your

opinions on how much you value modeling when making investment decisions. If a stock is trading high above a calculated intrinsic value, do you still go in? What about intrinsic value versus comps? Andy, what do you think? Well, first intrinsic value is basically what you think the company is worth when you add in the earnings, the cash flow, and all the growth. So I think we all think about the value of the company. Obviously, you want to buy companies below what you think the company is going to ultimately worth. But from the detail, the trick with modeling, especially when you chart to get really precise, is there's just so much error and so much variability in modeling if you're going to model out cash flows and assets. So I think so much of the lessons

I've learned over the last 10 years or so, granted, it's been a great bull market, but really just to buy the highest quality companies with the most unique advantage. that you can find and those advantages are going to widen over time and buy those companies in a diversified portfolio. Let's get to the stocks on our radar. Our man, Dan Boyd, is going to hit you with a question. Jason Moser, you're up first. What are you looking at this week?

Yes, sir. Been digging into Skyworks Solutions, ticker SWKS. Skyworks is a leading supplier of radio frequency chips for connected devices. That's mostly phones, but that really is starting to change now as we get closer to this 5G rollout and all of the technologies that it'll enable like AI and the Internet of Things and immersive technology and whatnot. And, I mean, as these devices become more complex, you know, they become more complex to put together. And that really does, I think, play out in favor for SkyWorks as they really focus on how to get these devices to all communicate with each other. It is one point to note that this business currently is very highly levered to Apple's success.

In 2019, Apple was responsible for basically about half of their revenue. So that relationship we want to see continue. And it could be something where it plays out of the margin line in time. But as we see right now, they've got a very good job of maintaining that margin picture over the past several years, which tells me that they're doing something very well. Their customers value them in that value chain and that gives them the ability to maintain some pricing. Dan, question about Skyworks? Certainly, Chris.

Jason, wouldn't you say that a radio chipman? manufacturer being called Skyworks is somewhat misleading? Well, you know, it does make me think of Skywalker. And this kind of goes back to that wine conversation from earlier. I do understand what you're saying there, Dan, but sometimes you just have to make a leap of faith, right? Andy Cross, what are you looking at? Quickly, air environment symbol AVAV's recommendation across a couple of services makes unmanned aircraft systems. That's basically drones, Dan, and high altitude satellites, which is the exciting part to this as they start to explore partnering with SoftBank on hoping to provide Internet and 5G coverage.

Dan, question about aerovironment. Andy, do you own or have you ever flown a drone before? I never have and I really want to. Got to get one of those. It seems like to me that's something that you might be good at. I hope so someday, Dan. I hope so someday. Dan, a couple of different businesses there.

You got a stock you want to add to your watch list? certainly Chris just just because of the name and just because of how you know sometimes you have to reach for the stars I'm going to go with Skyworks and their radio chip manufacturing business the force is with this one the force is strong with this one considering how much of their business is levered to apple you better hope the force is with that one all right jason mozer andy cross guys thanks for being here thanks Chris that's going to do it for this week's edition of motley fool money again our our email address is Radio at Fool.com. Drop us a note anytime with your questions about stocks and investing. Our engineer is Dan Boyd. Our producer is Mac Career. I'm Chris Hill. Thanks

for listening. We'll see you next week.