DocuSign(DOCU) - 2025 Q3 - Quarterly Results

Revenue and Billings - Total revenue for Q3 FY2025 was $754.8 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 $752.3 million, a 9% year-over-year increase[4] - Total revenue for the three months ended October 31, 2024, was $754.8 million, compared to $700.4 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 $682.4 million in the same period in 2023[32] - Revenue for the three months ended October 2024 was $754.8 million, an increase from $700.4 million in the same period in 2023[52] - Non-GAAP billings for the three months ended October 2024 were $752.3 million, up from $691.8 million in the same period in 2023[52] - Revenue for the nine months ended October 2024 was $2.2 billion, compared to $2.05 billion in the same period in 2023[52] - Non-GAAP billings for the nine months ended October 2024 were $2.19 billion, up from $2.08 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 $0.19 in the same period last year[5] - Net income for the three months ended October 31, 2024, was $62.4 million, compared to $38.8 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 $38.8 million in the same period in 2023[39] - GAAP net income for Q3 2024 was $62.4 million, compared to $38.8 million in Q3 2023[49] - Non-GAAP net income for Q3 2024 was $188.5 million, up from $163.8 million in Q3 2023[49] - GAAP net income per diluted share for Q3 2024 was $0.30, compared to $0.19 in Q3 2023[49] - Non-GAAP net income per diluted share for Q3 2024 was $0.90, up from $0.79 in Q3 2023[49] Cash Flow and Financial Position - Free cash flow for Q3 FY2025 was $210.7 million, compared to $240.3 million in the same period last year[5] - Total current assets as of October 31, 2024, were $1.33 billion, down from $1.57 billion as of January 31, 2024[35] - Cash and cash equivalents as of October 31, 2024, were $610.9 million, compared to $797.1 million as of January 31, 2024[35] - Total liabilities as of October 31, 2024, were $1.78 billion, down from $1.84 billion as of January 31, 2024[35] - Stockholders' equity as of October 31, 2024, was $1.99 billion, up from $1.13 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 $264.2 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 $1.19 billion on October 31, 2023[39] - Non-GAAP free cash flow for Q3 2024 was $210.7 million, down from $240.3 million in Q3 2023[49] - Net cash provided by operating activities for Q3 2024 was $234.3 million, down from $264.2 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 $557.8 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 $581.4 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 $568.1 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 $584.2 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) 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) million in the same period in 2023[43] - GAAP sales and marketing expenses for Q3 2024 were $290.6 million, a slight decrease from $292.5 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 $136.6 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 $762 million and billings of $870 to $880 million[11] - Guidance for FY2025 includes total revenue of $2,959 to $2,963 million and billings of $3,056 to $3,066 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 $1.23 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 $25.3 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 $5.07 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]