DocuSign(US:DOCU)2024-09-05 20:06Financial Performance - Total revenue for Q2 FY2025 was $736.0 million, a 7% increase year-over-year[1] - Subscription revenue reached $717.4 million, also a 7% increase year-over-year[1] - Billings amounted to $724.5 million, reflecting a 2% year-over-year increase[1] - GAAP net income per diluted share was $4.26, compared to $0.04 in the same period last year[1] - Non-GAAP net income per diluted share was $0.97, up from $0.72 year-over-year[1] - Free cash flow for the quarter was $197.9 million, compared to $183.6 million in the same period last year[1] - Total revenue for the three months ended July 31, 2024, was $736,027,000, representing a 7% increase from $687,687,000 in the same period of 2023[18] - Subscription revenue increased to $717,366,000 for the three months ended July 31, 2024, compared to $669,367,000 in the prior year, marking an increase of 7%[18] - Net income for the three months ended July 31, 2024, was $888,211,000, significantly higher than $7,395,000 in the same period of 2023[18] - Basic net income per share attributable to common stockholders was $4.34 for the three months ended July 31, 2024, compared to $0.04 in the same period of 2023[18] - The company reported a total revenue of $1,445,667,000 for the six months ended July 31, 2024, compared to $1,349,075,000 for the same period in 2023, marking an increase of approximately 7.1%[31] Guidance and Projections - The company expects total revenue for Q3 FY2025 to be between $743 million and $747 million[3] - Non-GAAP gross margin guidance for Q3 FY2025 is projected to be between 81.0% and 82.0%[3] Operational Changes - Docusign launched its Intelligent Agreement Management platform, with applications now available in the U.S. and select international markets[2] - Docusign appointed Paula Hansen as President and Chief Revenue Officer and Sagnik Nandy as Chief Technology Officer[2] Assets and Liabilities - Total assets increased to $3,753,941,000 as of July 31, 2024, from $2,971,290,000 as of January 31, 2024, representing a growth of 26%[20] - Cash and cash equivalents decreased to $619,064,000 as of July 31, 2024, down from $797,060,000 as of January 31, 2024[20] - Total liabilities decreased to $1,792,535,000 as of July 31, 2024, from $1,841,551,000 as of January 31, 2024[20] - Stockholders' equity increased to $1,961,406,000 as of July 31, 2024, compared to $1,129,739,000 as of January 31, 2024, reflecting a growth of 74%[20] Cash Flow and Expenses - Net cash provided by operating activities for the six months ended July 31, 2024, was $475,034, compared to $444,651 for the same period in 2023, reflecting an increase of about 6.8%[22] - Total cash, cash equivalents, and restricted cash at the end of the period was $628,027, down from $1,022,980 at the end of the same period in 2023[22] - Stock-based compensation expense for the three months ended July 31, 2024, was $164,656, compared to $151,707 in the same period of 2023, marking an increase of about 8.5%[22] - The company reported a net cash used in investing activities of $176,110 for the three months ended July 31, 2024, compared to $64,723 for the same period in 2023[22] - Total cash used in financing activities for the six months ended July 31, 2024, was $(408,942), compared to $(90,251) for the same period in 2023[29] Profitability Metrics - Non-GAAP gross profit for the three months ended July 31, 2024, was $605,036, up from $565,791 in the same period last year, indicating a growth of approximately 6.9%[24] - GAAP gross margin for the three months ended July 31, 2024, was 78.9%, slightly up from 78.8% in the same period of 2023[24] - Non-GAAP subscription gross profit for the three months ended July 31, 2024, was $604,249, compared to $569,248 in the same period last year, showing an increase of approximately 6.1%[24] - GAAP subscription gross profit for the three months ended July 31, 2024, was $584,994, up from $553,182 in the same period last year, indicating a growth of approximately 5.7%[24] - Non-GAAP operating margin for the three months ended July 31, 2024, was 32.2%, compared to 24.7% for the same period in 2023[27] - GAAP income from operations for the three months ended July 31, 2024, was $57,801, significantly higher than $6,612 for the same period in 2023[27] Contractual Obligations - Contract liabilities and refund liability at the end of the period were $1,334,461,000, up from $1,233,894,000 at the end of the previous year, indicating a growth of approximately 8.2%[31] - Contract assets and unbilled accounts receivable at the beginning of the period were $17,179,000, down from $22,936,000, showing a decrease of about 25.3%[31] - The beginning balance of contract liabilities and refund liability was $1,340,680,000, compared to $1,210,965,000 in the previous year, reflecting an increase of approximately 10.7%[31] - The company experienced a decrease in contract assets and unbilled accounts receivable at the end of the period to $17,461,000 from $22,358,000, a decline of about 21.5%[31] - Total non-GAAP billings for the six months ended July 31, 2024, were $1,434,046,000, compared to $1,385,957,000 for the same period in 2023, indicating an increase of approximately 3.5%[31]