If anyone is wondering why NTO dropped 10% this morning on no news, it was because of the read across from Docusign (DOCU) which released quarterly results and dropped 30% in after hours trade. It seems the market thought the Covid rates of growth would go on for ever, but the CEO corrected that assumption with the below statement:

"After six quarters of accelerated growth, we saw customers return to more normalized buying patterns,” Chief Executive Officer Dan Springer said in a statement.

Q4 Revenue growth guidance was US$557-563m from the US$545.5m Q3 reported, so quite a slow down from the 42% YoY growth rate in Q3.

It is fair to say that NTO will experience similar patterns of revenue growth, but it's at a different stage of growth and product range offering, so it will be interesting to see if NTO can continue its high growth through vertical expansions which it is still yet to catching up to DOCU on.

Disc: I own NTO and DOCU