Docusign Announces Second Quarter Fiscal 2025 Financial Results

Core Viewpoint - Docusign reported improved business stability and efficiency, achieving record operating profit and launching its Intelligent Agreement Management platform, which received positive early feedback from customers [2]. Financial Highlights - Total revenue for the second quarter was $736.0 million, a 7% increase year-over-year [2]. - Subscription revenue reached $717.4 million, also up 7% year-over-year [2]. - Professional services and other revenue amounted to $18.7 million, a 2% increase year-over-year [2]. - Billings were $724.5 million, reflecting a 2% year-over-year increase [2]. - GAAP gross margin was 78.9%, slightly up from 78.8% in the same period last year [2]. - Non-GAAP gross margin was 82.2%, down from 82.3% year-over-year [2]. - GAAP net income per basic share was $4.34, compared to $0.04 in the same period last year [2]. - Non-GAAP net income per diluted share was $0.97, up from $0.72 year-over-year [2]. - Free cash flow was $197.9 million, compared to $183.6 million in the same period last year [2]. Operational Highlights - Docusign announced the general availability of its Intelligent Agreement Management (IAM) platform, which aims to streamline and automate agreement processes [3]. - IAM applications include IAM Core, IAM for Sales, and IAM for Customer Experience, with a rollout planned for various customer segments throughout the fiscal year [4]. Executive Changes - Paula Hansen was appointed as President and Chief Revenue Officer, previously serving at Alteryx [4]. - Sagnik Nandy joined as Chief Technology Officer, coming from Okta [4]. Guidance - For the quarter ending October 31, 2024, Docusign expects total revenue between $743 million and $747 million [5]. - Subscription revenue guidance is set between $722 million and $726 million [6]. - Billings are projected to be between $710 million and $720 million [6]. - Non-GAAP gross margin is expected to be between 81.0% and 82.0% [6]. - For the fiscal year ending January 31, 2025, total revenue is anticipated to be between $2.94 billion and $2.95 billion [7].