Prospective investors can sign on the dotted line as DocuSign finalizes an AI-focused acquisition. DocuSign (DOCU 1.98%) was a darling of the market during and in the year following the onset of COVID. But with the pandemic catalyst fading in the rearview mirror now, DocuSign could certainly use some bullish news. Investors know full well that the company has to compete with the e-signature offerings of tech giants, particularly Microsoft's SharePoint eSignature and Adobe's Acrobat Sign. Perhaps if DocuSign ...

| --- | --- | |----------------------------|-------| | | | | | | | | | | | | | Smarter, Easier, | | | Trusted Agreements Q1 FY25 | | | | | | | | Safe Harbor This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial ...

Financial Data and Key Metrics Changes - In Q1, the company reported revenue of $710 million, representing a 7% year-over-year increase [12] - Non-GAAP diluted EPS for Q1 was $0.82, a $0.10 improvement from $0.72 last year, while GAAP diluted EPS was $0.16 compared to $0.00 last year [4] - Non-GAAP operating margin increased approximately 2 percentage points to 28.5% versus 26.6% last year [12] - Free cash flow improved 8% year-over-year to $232 million, resulting in a 33% free cash flow margin [12] - Stock compensation expense as a percentage of revenue declined by 170 basis points year-over-year, from 21% in Q1 fiscal 2024 to 19% in Q1 fiscal 2025 [5] Business Line Data and Key Metrics Changes - The company launched the DocuSign Intelligent Agreement Management (IAM) platform, which integrates existing products and new services [11][21] - The IAM platform aims to address customer pain points across the agreement journey, enhancing productivity and contract management [14][15] - The partner channel showed improvement with strong growth from key partners like SAP and Microsoft [19] Market Data and Key Metrics Changes - The company reported ongoing signs of stabilization in its core business, with customer growth remaining consistent at 11% year-over-year [134] - International and CLM revenue growth continued to outpace total revenue growth [134] Company Strategy and Development Direction - The company is focused on three strategic pillars: accelerating product innovation, improving omnichannel go-to-market capabilities, and increasing operational efficiency [11][25] - The acquisition of Lexion is intended to enhance the AI capabilities of the IAM platform, although it is not expected to have a material impact on revenue or operating margins in fiscal 2025 [3][22] - The company aims to create a more consultative sales approach as it transitions from transactional eSignature to a suite approach with IAM [116] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the IAM platform, which is expected to significantly expand the agreement management market [132][44] - The company anticipates total revenue for Q2 2025 to be between $725 million and $729 million, representing a 6% year-over-year increase at the midpoint [23] - Management noted that Q2 is expected to have the lowest year-over-year billings growth rate in fiscal 2025 due to strong comparisons from the previous year [24] Other Important Information - The company authorized an increase to its open-ended buyback program of $1 billion, in addition to approximately $140 million remaining from existing authorization [1] - The IAM platform launched on May 30, 2024, with availability for small and mid-market customers in the US, Canada, and Australia [131] Q&A Session Summary Question: How does the Lexion deal fit into the IAM vision? - Management indicated that Lexion's technology will enhance the IAM platform, particularly in legal workflow automation, and improve agreement AI capabilities [32][60] Question: What is the strategy for selling IAM? - The company is focusing on creating a repeatable go-to-market motion and is investing in sales enablement programs to prepare the sales channel for consultative selling [116] Question: How does the company view macroeconomic conditions affecting guidance? - Management stated that macro stability has been consistent, with no significant changes impacting the outlook, and consumption trends have improved [121][127] Question: What are the expectations for revenue impact from IAM? - Management expects some revenue lift from IAM next year but is not ready to specify the exact magnitude [109] Question: How will the company balance existing business with new IAM initiatives? - Management emphasized the importance of executing on both existing business and new initiatives, ensuring that both areas are adequately supported [93][112]

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. For the quarter ended April 2024, DocuSign (DOCU) reported revenue of $709.64 million, up 7.3% over the same period last year. EPS came in at $0.82, compared to $0.72 in the year-ago quarter. Non-GAAP billings: $709.54 million vers ...

This quarterly report represents an earnings surprise of 3.80%. A quarter ago, it was expected that this provider of electronic signature technology would post earnings of $0.64 per share when it actually produced earnings of $0.76, delivering a surprise of 18.75%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. There are no easy answers to this key question, ...

DOCUSIGN, INC. Exhibit 99.1 Docusign Announces First Quarter Fiscal 2025 Financial Results; Announces $1.0 Billion Increase to Share Repurchase Program San Francisco – June 6, 2024 – Docusign, Inc. (NASDAQ: DOCU) today announced results for its fiscal quarter ended April 30, 2024. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast. "Docusign is off to a strong start in fiscal 2025. We launched a significant ...

Total revenue was $709.6 million, an increase of 7% year-over-year. Subscription revenue was $691.5 million, an increase of 8% year-over-year. Professional services and other revenue was $18.2 million, a decrease of 18% year-over-year. Billings were $709.5 million, an increase of 5% year-over-year. GAAP gross margin was 78.9% compared to 79.4% in the same period last year. Non-GAAP gross margin was 82.0% compared to 82.6% in the same period last year. GAAP net income per basic share was $0.16 on 206 million ...

What Our Model Says DocuSign, Inc. (DOCU) is scheduled to report its first-quarter fiscal 2025 results on Jun 6, after the bell. The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 23.7%. Expectations This Time Around The Zacks Consensus Estimate for the to-be-reported quarter's revenues is pegged at $706.1 million, indicating 6.8% year-over-year growth. We expect an increase in reve ...

DocuSign, Inc. (DOCU) has had an impressive run over the past six months. The stock has gained 19.3%, outperforming the 15.9% rally of the Zacks S&P 500 composite. The company recently finalized its acquisition of AI-powered agreement management software provider Lexion, a decision initially announced on May 6, 2024. Founded in 2019, Lexion offers an agreement workflow platform that streamlines and centralizes the contracting process, integrating seamlessly with team workflows. Its products include a reposi ...

Key Points DocuSign is a pioneer in implementing electronic signatures for agreements and contracts. DocuSign has parlayed its signature business into contract lifecycle management, document generation, identity management, analytics and reporting businesses optimized with AI integration. DocuSign acquired Lexion to bolster its AI product portfolio. 5 stocks we like better than DocuSign DocuSign Inc. NASDAQ: DOCU provides electronic signature and contract lifecycle management (LCM) services. Shares hit high ...