DocuSign(US:DOCU)2023-12-07 16:00Revenue and Income - Total revenue for the three months ended October 31, 2023, was $700.4 million, a 8.5% increase from $645.5 million in the same period of 2022[98] - Subscription revenue accounted for 97% of total revenue for both the three and nine months ended October 31, 2023, and 2022[93] - Net income for the three months ended October 31, 2023, was $38.8 million, compared to a net loss of $29.9 million in the same period of 2022[98] - Total revenue for the three months ended October 31, 2023, was $700,421,000, a 9% increase from $645,463,000 in the same period of 2022[119] - Subscription revenue increased by $58.3 million, or 9%, in the three months ended October 31, 2023, and by $192.5 million, or 11%, in the nine months ended October 31, 2023[119] - GAAP net income for the three months ended October 31, 2023, was $38,805, compared to a loss of $29,866 in the same period of 2022[164] - Non-GAAP net income for the nine months ended October 31, 2023, was $463,640, up from $285,690 in the same period of 2022[164] Customer Metrics - The number of customers increased to over 1.4 million as of October 31, 2023, up from over 1.3 million a year earlier, with approximately 233,000 being enterprise and commercial customers[99] - The number of customers with greater than $300,000 in annualized contract value decreased slightly from 1,052 as of October 31, 2022, to 1,051 as of October 31, 2023[97] Expenses and Costs - Total stock-based compensation expense for the three months ended October 31, 2023, was $159.4 million, compared to $140.8 million in the same period of 2022[98] - Research and development expenses increased by $20.7 million, or 18%, in the three months ended October 31, 2023, primarily due to investments in workforce and product innovation[123] - General and administrative expenses rose by $22.7 million, or 26%, in the three months ended October 31, 2023, driven by workforce investments and increased spending on professional services[125] - Subscription cost of revenue increased by $11.7 million, or 11%, in the three months ended October 31, 2023, primarily due to higher costs to support the growing customer base[120] Cash and Investments - Cash, cash equivalents, restricted cash, and investments totaled $1.7 billion as of October 31, 2023[98] - The company had $1.6 billion in cash and cash equivalents and short-term investments as of October 31, 2023, along with $55.4 million in long-term investments[135] - Cash provided by operating activities was $708.8 million for the nine months ended October 31, 2023, compared to $369.7 million for the same period in 2022, reflecting strong cash collections[144][145] - Cash used in investing activities was $22.6 million for the nine months ended October 31, 2023, primarily driven by net purchases of marketable securities and property and equipment[147] - Cash used in financing activities was $211.0 million for the nine months ended October 31, 2023, mainly due to stock repurchase programs and the repayment of 2023 Notes[149] - The company repurchased 3.1 million shares of common stock at an average price of $47.57 per share, totaling $145.5 million[149] Operating Performance - Total operating expenses decreased to $538,038,000, representing 77% of total revenue, down from 84% in the same period of 2022[122] - Interest income and other income (expense), net increased by $16.9 million in the three months ended October 31, 2023, primarily due to rising interest rates[130] - Restructuring and other related charges decreased by $27.4 million, or 97%, in the three months ended October 31, 2023, due to the 2023 Restructuring Plan[129] - The provision for income taxes increased by $10.2 million in the nine months ended October 31, 2023, due to higher pre-tax income and limitations on net operating losses[133] Future Outlook and Strategy - The company plans to continue investing in research and development to drive product innovation and meet customer needs at scale[105] - The accumulated deficit stood at $1.7 billion as of October 31, 2023, indicating ongoing operating losses due to strategic investments[140] - The company expects to continue incurring operating losses for the foreseeable future while requiring additional capital resources for growth initiatives[140] - The projected non-GAAP tax rate for fiscal 2023 and 2024 is set at 20% to enhance consistency across reporting periods[158] Billings and Margins - Billings, defined as total revenues plus changes in contract liabilities, are a key metric for measuring periodic performance, reflecting sales to new and existing customers[160][161] - Non-GAAP free cash flow for the three months ended October 31, 2023, was $240,336, significantly up from $36,060 in the same period of 2022[165] - Non-GAAP gross profit for the three months ended October 31, 2023, was $581,431, compared to $537,662 in the same period of 2022[162] - GAAP operating margin improved to 3% for the three months ended October 31, 2023, from a negative 4% in the same period of 2022[163] - GAAP subscription gross margin for the three months ended October 31, 2023, was 83%, compared to 84% in the same period of 2022[162] - Non-GAAP billings for the nine months ended October 31, 2023, were $2,077,763, compared to $1,920,692 in the same period of 2022[166] Interest Rate Impact - A hypothetical 100 basis point increase in interest rates would result in an approximate $1.9 million decrease in the fair value of the investment portfolio[168]