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DocuSign(DOCU) - 2025 Q3 - Quarterly Results
DOCUDocuSign(DOCU)2024-12-05 21:07

Revenue and Billings - Total revenue for Q3 FY2025 was 754.8million,an8754.8 million, an 8% year-over-year increase[3] - Subscription revenue for Q3 FY2025 was 734.7 million, an 8% year-over-year increase[3] - Billings for Q3 FY2025 were 752.3million,a9752.3 million, a 9% year-over-year increase[4] - Total revenue for the three months ended October 31, 2024, was 754.8 million, compared to 700.4millioninthesameperiodin2023,representinga7.8700.4 million in the same period in 2023, representing a 7.8% increase[32] - Subscription revenue for the three months ended October 31, 2024, was 734.7 million, up 7.7% from 682.4millioninthesameperiodin2023[32]−RevenueforthethreemonthsendedOctober2024was682.4 million in the same period in 2023[32] - Revenue for the three months ended October 2024 was 754.8 million, an increase from 700.4millioninthesameperiodin2023[52]−Non−GAAPbillingsforthethreemonthsendedOctober2024were700.4 million in the same period in 2023[52] - Non-GAAP billings for the three months ended October 2024 were 752.3 million, up from 691.8millioninthesameperiodin2023[52]−RevenuefortheninemonthsendedOctober2024was691.8 million in the same period in 2023[52] - Revenue for the nine months ended October 2024 was 2.2 billion, compared to 2.05billioninthesameperiodin2023[52]−Non−GAAPbillingsfortheninemonthsendedOctober2024were2.05 billion in the same period in 2023[52] - Non-GAAP billings for the nine months ended October 2024 were 2.19 billion, up from 2.08billioninthesameperiodin2023[52]NetIncomeandEarningsPerShare−GAAPnetincomeperdilutedshareforQ3FY2025was2.08 billion in the same period in 2023[52] Net Income and Earnings Per Share - GAAP net income per diluted share for Q3 FY2025 was 0.30, compared to 0.19inthesameperiodlastyear[5]−NetincomeforthethreemonthsendedOctober31,2024,was0.19 in the same period last year[5] - Net income for the three months ended October 31, 2024, was 62.4 million, compared to 38.8millioninthesameperiodin2023,a60.838.8 million in the same period in 2023, a 60.8% increase[32] - Net income for the three months ended October 31, 2024, was 62.4 million, up from 38.8millioninthesameperiodin2023[39]−GAAPnetincomeforQ32024was38.8 million in the same period in 2023[39] - GAAP net income for Q3 2024 was 62.4 million, compared to 38.8millioninQ32023[49]−Non−GAAPnetincomeforQ32024was38.8 million in Q3 2023[49] - Non-GAAP net income for Q3 2024 was 188.5 million, up from 163.8millioninQ32023[49]−GAAPnetincomeperdilutedshareforQ32024was163.8 million in Q3 2023[49] - GAAP net income per diluted share for Q3 2024 was 0.30, compared to 0.19inQ32023[49]−Non−GAAPnetincomeperdilutedshareforQ32024was0.19 in Q3 2023[49] - Non-GAAP net income per diluted share for Q3 2024 was 0.90, up from 0.79inQ32023[49]CashFlowandFinancialPosition−FreecashflowforQ3FY2025was0.79 in Q3 2023[49] Cash Flow and Financial Position - Free cash flow for Q3 FY2025 was 210.7 million, compared to 240.3millioninthesameperiodlastyear[5]−TotalcurrentassetsasofOctober31,2024,were240.3 million in the same period last year[5] - Total current assets as of October 31, 2024, were 1.33 billion, down from 1.57billionasofJanuary31,2024[35]−CashandcashequivalentsasofOctober31,2024,were1.57 billion as of January 31, 2024[35] - Cash and cash equivalents as of October 31, 2024, were 610.9 million, compared to 797.1millionasofJanuary31,2024[35]−TotalliabilitiesasofOctober31,2024,were797.1 million as of January 31, 2024[35] - Total liabilities as of October 31, 2024, were 1.78 billion, down from 1.84billionasofJanuary31,2024[35]−Stockholders′equityasofOctober31,2024,was1.84 billion as of January 31, 2024[35] - Stockholders' equity as of October 31, 2024, was 1.99 billion, up from 1.13billionasofJanuary31,2024[35]−NetcashprovidedbyoperatingactivitiesforthethreemonthsendedOctober31,2024,was1.13 billion as of January 31, 2024[35] - Net cash provided by operating activities for the three months ended October 31, 2024, was 234.3 million, compared to 264.2millioninthesameperiodin2023[39]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodonOctober31,2024,were264.2 million in the same period in 2023[39] - Cash, cash equivalents, and restricted cash at the end of the period on October 31, 2024, were 620.8 million, down from 1.19billiononOctober31,2023[39]−Non−GAAPfreecashflowforQ32024was1.19 billion on October 31, 2023[39] - Non-GAAP free cash flow for Q3 2024 was 210.7 million, down from 240.3millioninQ32023[49]−NetcashprovidedbyoperatingactivitiesforQ32024was240.3 million in Q3 2023[49] - Net cash provided by operating activities for Q3 2024 was 234.3 million, down from 264.2millioninQ32023[49]ExpensesandProfitMargins−GAAPgrossprofitforthethreemonthsendedOctober31,2024,was264.2 million in Q3 2023[49] Expenses and Profit Margins - GAAP gross profit for the three months ended October 31, 2024, was 598.3 million, compared to 557.8millioninthesameperiodin2023[43]−Non−GAAPgrossprofitforthethreemonthsendedOctober31,2024,was557.8 million in the same period in 2023[43] - Non-GAAP gross profit for the three months ended October 31, 2024, was 622.4 million, up from 581.4millioninthesameperiodin2023[43]−GAAPsubscriptiongrossprofitforthethreemonthsendedOctober31,2024,was581.4 million in the same period in 2023[43] - GAAP subscription gross profit for the three months ended October 31, 2024, was 600.1 million, compared to 568.1millioninthesameperiodin2023[43]−Non−GAAPsubscriptiongrossprofitforthethreemonthsendedOctober31,2024,was568.1 million in the same period in 2023[43] - Non-GAAP subscription gross profit for the three months ended October 31, 2024, was 619.1 million, up from 584.2millioninthesameperiodin2023[43]−GAAPprofessionalservicesandothergrosslossforthethreemonthsendedOctober31,2024,was584.2 million in the same period in 2023[43] - GAAP professional services and other gross loss for the three months ended October 31, 2024, was (1.8) million, compared to (10.3)millioninthesameperiodin2023[43]−Non−GAAPprofessionalservicesandothergrossprofitforthethreemonthsendedOctober31,2024,was(10.3) million in the same period in 2023[43] - Non-GAAP professional services and other gross profit for the three months ended October 31, 2024, was 3.3 million, compared to (2.8)millioninthesameperiodin2023[43]−GAAPsalesandmarketingexpensesforQ32024were(2.8) million in the same period in 2023[43] - GAAP sales and marketing expenses for Q3 2024 were 290.6 million, a slight decrease from 292.5millioninQ32023[46]−Non−GAAPsalesandmarketingexpensesasapercentageofrevenuedecreasedto31.3292.5 million in Q3 2023[46] - Non-GAAP sales and marketing expenses as a percentage of revenue decreased to 31.3% in Q3 2024 from 33.6% in Q3 2023[46] - GAAP research and development expenses increased to 151.1 million in Q3 2024, up from 136.6millioninQ32023[46]−Non−GAAPoperatingmarginimprovedto29.6136.6 million in Q3 2023[46] - Non-GAAP operating margin improved to 29.6% in Q3 2024 from 26.8% in Q3 2023[46] Product and Market Developments - Docusign announced new capabilities for its Intelligent Agreement Management (IAM) platform, including Docusign Navigator and global expansion of IAM with Maestro and App Center[6] - Docusign was named a Leader in the 2024 Gartner Magic Quadrant for Contract Life Cycle Manager report for the fifth consecutive year[9] - Docusign held its first-ever agreement management ecosystem event, Docusign Discover 2024, showcasing IAM integrations with Microsoft, SAP, and Workday[10] Guidance and Future Outlook - Guidance for Q4 FY2025 includes total revenue of 758 to 762millionandbillingsof762 million and billings of 870 to 880million[11]−GuidanceforFY2025includestotalrevenueof880 million[11] - Guidance for FY2025 includes total revenue of 2,959 to 2,963millionandbillingsof2,963 million and billings of 3,056 to 3,066million[11]ContractandBillingDetails−Billingsreflectsalestonewcustomersplussubscriptionrenewalsandadditionalsalestoexistingcustomers,withamountsinvoicedtocustomersinagivenperiodincludedinbillings[28]−Mostcustomerspayinannualinstallmentsoneyearinadvance,withthecompanyrecognizingamajorityoftherelatedrevenueratablyovertime[28]−Thecompanyusesbillingstomeasureandmonitoritsabilitytoprovideworkingcapitalgeneratedbyupfrontpaymentsfromcustomers[28]−ContractliabilitiesandrefundliabilityattheendoftheperiodforthethreemonthsendedOctober2024were3,066 million[11] Contract and Billing Details - Billings reflect sales to new customers plus subscription renewals and additional sales to existing customers, with amounts invoiced to customers in a given period included in billings[28] - Most customers pay in annual installments one year in advance, with the company recognizing a majority of the related revenue ratably over time[28] - The company uses billings to measure and monitor its ability to provide working capital generated by upfront payments from customers[28] - Contract liabilities and refund liability at the end of the period for the three months ended October 2024 were 1.33 billion, compared to 1.23billioninthesameperiodin2023[52]−ContractassetsandunbilledaccountsreceivableattheendoftheperiodforthethreemonthsendedOctober2024were1.23 billion in the same period in 2023[52] - Contract assets and unbilled accounts receivable at the end of the period for the three months ended October 2024 were 18.3 million, down from 25.3millioninthesameperiodin2023[52]−ContractassetsandunbilledaccountsreceivablebyacquisitionsfortheninemonthsendedOctober2024were25.3 million in the same period in 2023[52] - Contract assets and unbilled accounts receivable by acquisitions for the nine months ended October 2024 were 53,000, compared to none in the same period in 2023[52] - Contract liabilities and refund liability contributed by acquisitions for the nine months ended October 2024 were 5.07million,comparedtononeinthesameperiodin2023[52]Stock−BasedCompensation−Stock−basedcompensationexpenseforthethreemonthsendedOctober31,2024,was5.07 million, compared to none in the same period in 2023[52] Stock-Based Compensation - Stock-based compensation expense for the three months ended October 31, 2024, was 153.2 million, slightly down from $159.4 million in the same period in 2023[39]