DocuSign shares were up as much as 8.7% and closed up 8% on Monday after Nasdaq announced Friday that the electronic signature software company would replace United Airlines on the Nasdaq 100 index. The stock reached a new all-time high and posted its biggest increase since May 29.
The company will join cloud companies Adobe, Workday and Zoom Video Communications on the index, reflecting the rise of cloud services as companies opt for systems they don't need to operate on their own data center infrastructure.
DocuSign, which competes with Adobe's Sign and Dropbox's HelloSign, debuted on the Nasdaq in 2018. The company's results beat analysts' estimates for the quarter that ended on April 30 as it projected $1.32 billion in revenue for its full fiscal year, which ends in January 2021, implying 35% growth. DocuSign remains unprofitable.
In the quarter DocuSign saw some benefits from the coronavirus pandemic as people needed to sign documents while they couldn't meet in person.
"Even when the Covid-19 situation is behind us, we don't anticipate customers returning to paper or manual-based processes," CEO Dan Springer told analysts on a conference call.
DocuSign will become a component of the index on June 22, according to a statement.
WATCH: DocuSign CEO on the lasting trends from coronavirus crisis, digital notarization
