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DocuSign CEO Dan Springer agrees to step down

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Yahoo Finance Live anchors discuss how DocuSign stock is reacting to news that CEO Dan Springer will be stepping down.

Video Transcript

JULIE HYMAN: Let's talk about some movers here ahead of the opening bell. An executive shakeup in motion at DocuSign. Dan Springer has agreed to step aside as chief executive officer. And the chairman of the board, Maggie Wilderotter, will be the interim CEO while continuing as chairman there of the board of directors. The shares are popping, but they're not popping by much, which I think is really interesting, Brad, because this tech company whose shares have plunged as-- after it got over its big pandemic era boost.

And we've talked with Dan Springer multiple times about his efforts to try to get the company back on track after the pandemic, reworking the sales staff a little bit. We talked to him recently about billings, which was a big source of disappointment last quarter for investors. You know, and so, but it is, again, interesting to me that it doesn't seem like investors, judging from the stock reaction, necessarily thought he was the main problem.

BRAD SMITH: Yeah, and he, in that conversation with him-- and it was just a week ago that we had him on, actually. And he said from a DocuSign standpoint, they have an additional challenge that came out with guidance last week to have lower growth than they had previously forecast. And the impact to their stock, he acknowledged that in the conversation, and saying it was understandable.

But I think for how much that they had to pull forward in terms of their own growth and what they could expect for that growth to actually be retained over an extended period of time, those growth rates were astronomical for a lot of the ERP companies, cloud-based solutions, a lot of the corporate collaborations, even, and some of those suites. And for DocuSign, it really, now, that growth strategy relies more on partnerships, like we saw with Microsoft, and expanding that partnership in order to bring on more of the portfolio clients that a Microsoft may have, but that a DocuSign might not overlap with just yet.

JULIE HYMAN: Right, I mean, he talked a lot about the pull forward effect of the pandemic. But at a certain point, investors don't want that to be the excuse anymore, right?

BRAD SMITH: Exactly.

JULIE HYMAN: I think people are realistic that the rates of growth are not going to be the same. But they want to see a consistent rate of growth. They also want to see customers expanding the services that they are taking on from a particular company. And that didn't seem to be happening, really, at DocuSign. So it's unclear what Dan Springer is going to do now if he's-- it doesn't-- there's nothing in the statement to state that he is going to stick around through a transition period or be on the board in some capacity. So it seems like reading between the lines.

BRAD SMITH: Signing off right now.

JULIE HYMAN: Yeah, yeah, it seems that way.