DocuSign(US:DOCU)2025-12-04 21:06Financial Performance - Revenue for Q3 fiscal 2026 was $818.4 million, an 8% year-over-year increase, with subscription revenue at $801.0 million, a 9% increase [6]. - Billings for Q3 were $829.5 million, a 10% year-over-year increase [6]. - GAAP net income per diluted share was $0.40, compared to $0.30 in the same period last year [6]. - Free cash flow for Q3 was $262.9 million, up from $210.7 million in the same period last year [6]. - Total revenue for the three months ended October 31, 2025, was $818.35 million, a 8.4% increase from $754.82 million in the same period of 2024 [29]. - Subscription revenue reached $800.96 million, up 9.0% from $734.69 million year-over-year [29]. - Operating income for the three months ended October 31, 2025, was $85.36 million, an increase of 44.5% from $59.03 million in the prior year [29]. - Net income for the three months ended October 31, 2025, was $83.73 million, compared to $62.42 million in the same period of 2024, reflecting a year-over-year increase of 34.2% [29]. - Free cash flow for the nine months ended October 31, 2025, was $787.79 million, indicating strong liquidity after capital expenditures [23]. - Total revenue for the nine months ended October 31, 2025, reached $2,382,640,000, up from $2,200,487,000 in the same period of 2024, indicating an increase of approximately 8.3% [45]. Cash Flow and Assets - Cash and cash equivalents decreased to $583.29 million from $648.62 million at the beginning of the year [31]. - Total assets as of October 31, 2025, were $3.98 billion, a slight decrease from $4.01 billion as of January 31, 2025 [31]. - Total cash provided by operating activities for the nine months ended October 2025 was $787,786, compared to $709,360 for the same period in 2024, indicating a growth of 11.0% [43]. Operating Expenses and Margins - Total operating expenses for the three months ended October 31, 2025, were $562.45 million, up from $539.25 million in the same period of 2024 [29]. - GAAP operating margin improved to 10.4% in Q3 2025 from 7.8% in Q3 2024 [40]. - Non-GAAP operating margin for Q3 2025 was 31.4%, compared to 29.6% in Q3 2024, showing an increase of 1.8 percentage points [40]. Customer and Product Developments - Docusign surpassed 25,000 customers on its AI-native IAM platform, with approximately 150 million opted-in agreements in the Docusign Navigator repository [4]. - Docusign achieved FedRAMP Moderate and GovRAMP authorization in Q3, expanding its identity portfolio [11]. - Docusign Navigator is now available in Brazilian-Portuguese and Spanish, and in Japan [11]. - The company announced new integrations with ChatGPT and other AI platforms at the Docusign Discover'25 developer event [7]. - Docusign received the Salesforce Partner Innovation Award for its Docusign for Agentforce solution during Dreamforce [11]. Profitability Metrics - Gross profit for the three months ended October 31, 2025, was $647.80 million, representing a gross margin of 79.2% compared to 79.3% in the same period of 2024 [29]. - GAAP gross profit for Q3 2025 was $647,804, an increase from $598,283 in Q3 2024, representing a growth of 8.5% [37]. - Non-GAAP gross profit for Q3 2025 reached $669,489, compared to $622,370 in Q3 2024, reflecting a year-over-year increase of 7.6% [37]. - GAAP subscription gross profit for Q3 2025 was $650,586, an increase from $600,106 in Q3 2024, reflecting an 8.4% growth [37]. - Non-GAAP subscription gross margin for Q3 2025 was 83.4%, compared to 84.3% in Q3 2024, showing a slight decline of 0.9 percentage points [37]. Contract Liabilities and Receivables - Contract liabilities and refund liability at the end of the period for October 31, 2025, were $1,479,491,000, compared to $1,332,828,000 at the end of October 31, 2024, showing a growth of about 11.0% [45]. - Contract assets and unbilled accounts receivable at the beginning of the period for October 31, 2025, were $13,824,000, down from $17,461,000 at the beginning of the same period in 2024 [45]. - The total contract assets and unbilled accounts receivable at the end of the period for October 31, 2025, were $13,588,000, compared to $18,341,000 at the end of the same period in 2024 [45]. - The company experienced a decrease in contract assets and unbilled accounts receivable at the end of the period, indicating potential challenges in revenue recognition [45].