DocuSign(DOCU) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 FY2025 was $776.3 million, a 9% year-over-year increase, with subscription revenue also increasing by 9% to $757.8 million[4] - Billings for Q4 FY2025 reached $923.2 million, marking an 11% year-over-year increase[4] - GAAP net income per diluted share for Q4 FY2025 was $0.39, compared to $0.13 in the same period last year[4] - Non-GAAP net income per diluted share for Q4 FY2025 was $0.86, up from $0.76 in Q4 FY2024[4] - Gross profit for the three months ended January 31, 2025, was $616,041,000, compared to $564,479,000 in the prior year, reflecting an increase of 9%[30] - Net income for the three months ended January 31, 2025, was $83,491,000, significantly higher than $27,241,000 in the same period of 2024, marking a growth of 207%[30] - Non-GAAP net income for the year ended January 31, 2025, was $747,209 thousand, an increase from $622,887 thousand in 2024, which is a growth of 20.0%[43] Revenue Guidance - The company expects total revenue for Q1 FY2026 to be between $745 million and $749 million[9] - For FY2026, total revenue guidance is set between $3.129 billion and $3.141 billion[10] Cash and Investments - Cash, cash equivalents, restricted cash, and investments totaled $1.1 billion at the end of Q4 FY2025[4] - Cash and cash equivalents decreased to $648,623,000 as of January 31, 2025, from $797,060,000 in 2024, a decline of 19%[32] - Free cash flow for the year ended January 31, 2025, was $1,017,272,000, compared to $979,526,000 in 2024, showing an increase of 4%[35] Stock and Shareholder Returns - The company repurchased $161.7 million of common stock in Q4 FY2025, totaling $683.5 million for the fiscal year[4] Margins and Expenses - Docusign's non-GAAP gross margin for Q4 FY2025 was 82.3%, slightly down from 82.5% in the same period last year[4] - GAAP operating margin improved to 7.8% for the three months ended January 31, 2025, compared to 1.4% in the same period of 2024[42] - Non-GAAP operating margin for the year ended January 31, 2025, was 29.8%, up from 23.1% in 2024, showing an increase of 6.7 percentage points[42] - Total GAAP sales and marketing expenses for the three months ended January 31, 2025, were $301,288 thousand, a slight increase from $300,221 thousand in 2024[40] - Non-GAAP sales and marketing expenses as a percentage of revenue decreased to 31.5% for the year ended January 31, 2025, from 34.3% in 2024[40] Assets and Liabilities - Total assets as of January 31, 2025, amounted to $4,012,705,000, up from $2,971,290,000 in 2024, representing a growth of 35%[32] - Total liabilities increased to $2,010,013,000 as of January 31, 2025, compared to $1,841,551,000 in 2024, reflecting a rise of 9%[32] Contractual Obligations - Contract liabilities and refund liability at the end of the period for January 31, 2025, were $1,479,266,000, up from $1,343,792,000 at the end of January 31, 2024, marking an increase of 10.1%[46] - The company reported a total of $1,479,266,000 in contract liabilities at the end of the period, which is a key indicator of future revenue recognition[46] New Initiatives - Docusign launched its AI-powered agreement management platform, Docusign IAM, which is gaining traction with customers[2]