Docusign Announces Fourth Quarter and Fiscal Year 2025 Financial Results
Docusign (NASDAQ: DOCU) reported strong Q4 and fiscal year 2025 results, with Q4 total revenue reaching $776.3 million, up 9% year-over-year. Q4 subscription revenue grew 9% to $757.8 million, while billings increased 11% to $923.2 million.
The company's Q4 GAAP net income per diluted share was $0.39, compared to $0.13 in the same period last year. For fiscal year 2025, total revenue grew 8% to $2.98 billion, with subscription revenue up 8% to $2.90 billion.
Key developments include the global release of Intelligent Agreement Management (IAM) platform and launch of Docusign for Developers. The company introduced several new features including AI-Assisted Review for CLM, Identity Wallet for Liveness, and enhanced integration with Microsoft Power Automate.
Docusign (NASDAQ: DOCU) ha riportato risultati solidi per il quarto trimestre e l'anno fiscale 2025, con un fatturato totale del Q4 che ha raggiunto 776,3 milioni di dollari, in aumento del 9% rispetto all'anno precedente. I ricavi da abbonamento del Q4 sono cresciuti del 9% a 757,8 milioni di dollari, mentre le fatturazioni sono aumentate dell'11% a 923,2 milioni di dollari.
Il reddito netto GAAP per azione diluita della società nel Q4 è stato di 0,39 dollari, rispetto a 0,13 dollari nello stesso periodo dell'anno scorso. Per l'anno fiscale 2025, il fatturato totale è cresciuto dell'8% a 2,98 miliardi di dollari, con i ricavi da abbonamento in aumento dell'8% a 2,90 miliardi di dollari.
Tra gli sviluppi chiave ci sono il rilascio globale della piattaforma Intelligent Agreement Management (IAM) e il lancio di Docusign per sviluppatori. L'azienda ha introdotto diverse nuove funzionalità, tra cui la Revisione Assistita da IA per CLM, il Wallet Identità per Liveness e un'integrazione migliorata con Microsoft Power Automate.
Docusign (NASDAQ: DOCU) reportó resultados sólidos para el cuarto trimestre y el año fiscal 2025, con un ingreso total del Q4 que alcanzó 776,3 millones de dólares, un aumento del 9% en comparación con el año anterior. Los ingresos por suscripción del Q4 crecieron un 9% a 757,8 millones de dólares, mientras que las facturaciones aumentaron un 11% a 923,2 millones de dólares.
El ingreso neto GAAP por acción diluida de la compañía en el Q4 fue de 0,39 dólares, en comparación con 0,13 dólares en el mismo período del año pasado. Para el año fiscal 2025, el ingreso total creció un 8% a 2,98 mil millones de dólares, con ingresos por suscripción en aumento del 8% a 2,90 mil millones de dólares.
Entre los desarrollos clave se incluyen el lanzamiento global de la plataforma Intelligent Agreement Management (IAM) y el lanzamiento de Docusign para desarrolladores. La compañía introdujo varias nuevas características, incluyendo Revisión Asistida por IA para CLM, Wallet de Identidad para Liveness y una integración mejorada con Microsoft Power Automate.
도큐사인 (NASDAQ: DOCU)은 2025 회계연도 4분기 및 연간 실적을 발표했으며, 4분기 총 수익이 7억 7630만 달러에 달해 전년 대비 9% 증가했습니다. 4분기 구독 수익은 9% 증가한 7억 5780만 달러였으며, 청구액은 11% 증가하여 9억 2320만 달러에 달했습니다.
회사의 4분기 GAAP 희석 주당 순이익은 0.39달러로, 지난해 같은 기간 0.13달러와 비교됩니다. 2025 회계연도 동안 총 수익은 8% 증가하여 29억 8000만 달러에 달했으며, 구독 수익은 8% 증가하여 29억 달러에 달했습니다.
주요 개발 사항으로는 Intelligent Agreement Management (IAM) 플랫폼의 글로벌 출시 및 개발자를 위한 도큐사인 출시가 포함됩니다. 회사는 CLM을 위한 AI 지원 검토, Liveness를 위한 신원 지갑 및 Microsoft Power Automate와의 향상된 통합 등 여러 새로운 기능을 도입했습니다.
Docusign (NASDAQ: DOCU) a annoncé de solides résultats pour le quatrième trimestre et l'exercice fiscal 2025, avec un chiffre d'affaires total du Q4 atteignant 776,3 millions de dollars, en hausse de 9% par rapport à l'année précédente. Les revenus d'abonnement du Q4 ont augmenté de 9% pour atteindre 757,8 millions de dollars, tandis que les facturations ont augmenté de 11% pour atteindre 923,2 millions de dollars.
Le bénéfice net par action diluée selon les normes GAAP de l'entreprise pour le Q4 était de 0,39 dollar, contre 0,13 dollar au cours de la même période l'année dernière. Pour l'exercice fiscal 2025, le chiffre d'affaires total a augmenté de 8% pour atteindre 2,98 milliards de dollars, avec des revenus d'abonnement en hausse de 8% pour atteindre 2,90 milliards de dollars.
Les développements clés incluent le lancement mondial de la plateforme Intelligent Agreement Management (IAM) et le lancement de Docusign pour les développeurs. L'entreprise a introduit plusieurs nouvelles fonctionnalités, notamment la révision assistée par IA pour CLM, le portefeuille d'identité pour Liveness et une intégration améliorée avec Microsoft Power Automate.
Docusign (NASDAQ: DOCU) hat starke Ergebnisse für das vierte Quartal und das Geschäftsjahr 2025 gemeldet, mit einem Gesamtumsatz im Q4 von 776,3 Millionen Dollar, was einem Anstieg von 9% im Vergleich zum Vorjahr entspricht. Die Abonnementumsätze im Q4 stiegen um 9% auf 757,8 Millionen Dollar, während die Rechnungsbeträge um 11% auf 923,2 Millionen Dollar zunahmen.
Der GAAP-Nettoeinkommen pro verwässerter Aktie des Unternehmens im Q4 betrug 0,39 Dollar, verglichen mit 0,13 Dollar im gleichen Zeitraum des Vorjahres. Für das Geschäftsjahr 2025 wuchs der Gesamtumsatz um 8% auf 2,98 Milliarden Dollar, wobei die Abonnementumsätze um 8% auf 2,90 Milliarden Dollar stiegen.
Zu den wichtigsten Entwicklungen gehören die globale Einführung der Intelligent Agreement Management (IAM) Plattform und der Start von Docusign für Entwickler. Das Unternehmen stellte mehrere neue Funktionen vor, darunter die KI-unterstützte Überprüfung für CLM, die Identitäts-Wallet für Liveness und eine verbesserte Integration mit Microsoft Power Automate.
- Q4 revenue grew 9% YoY to $776.3 million
- Q4 billings increased 11% YoY to $923.2 million
- Q4 GAAP net income per share tripled from $0.13 to $0.39
- Strong cash position with $1.1 billion in cash and investments
- Q4 operating cash flow increased to $307.9 million from $270.7 million YoY
- Slight decline in non-GAAP gross margin to 82.3% from 82.5% YoY in Q4
- Professional services revenue growth remained flat for full fiscal year
- Full-year billings growth of 7% was lower than revenue growth of 8%
Insights
Docusign delivered solid Q4 and FY2025 results with notable improvements across key metrics. Q4 revenue reached
Profitability metrics show substantial improvement. Q4 non-GAAP EPS of
Cash generation remains robust with Q4 operating cash flow of
The AI-powered Intelligent Agreement Management (IAM) platform appears to be gaining traction and represents Docusign's strategic pivot beyond its core e-signature business. The global expansion of the platform and developer tools suggests Docusign is building an ecosystem to extract more value from the agreement lifecycle, potentially creating stickier customer relationships and expanding average revenue per customer.
Docusign's product strategy is showing clear signs of evolution beyond its signature-focused origins. The company's new Intelligent Agreement Management (IAM) platform represents a strategic expansion into the full agreement lifecycle - creating, executing, and managing contracts. This positions Docusign to capture more value throughout the document workflow rather than just at the signing stage.
The global rollout of IAM for Sales and IAM Core, along with Navigator's expansion to all 14 supported languages, demonstrates an aggressive go-to-market approach. Particularly noteworthy is the AI extraction capability supporting multiple languages (English variants, French, and German), which addresses a critical pain point in contract analysis for multinational organizations.
The developer-focused initiatives, including APIs, SDKs, and integration with Microsoft Power Automate, indicate Docusign is wisely pursuing an ecosystem strategy rather than a closed platform approach. This should accelerate adoption by reducing friction for enterprise customers with complex existing workflows.
Most compelling is the AI-Assisted Review for Contract Lifecycle Management, which directly addresses the legal bottleneck in contract negotiations. By allowing non-legal team members to participate in reviews while maintaining compliance, Docusign is solving a genuine business problem that impacts deal velocity. If successful, this feature could become a key competitive differentiator against both traditional e-signature competitors and broader document management platforms.
"Fiscal 2025 was a transformative year for Docusign. We launched Docusign IAM, our AI-powered agreement management platform, which is driving rapid traction with customers," said Allan Thygesen, CEO of Docusign. "In Q4, our business generated strong revenue growth and profitability. We're well positioned to pursue the significant opportunity ahead."
Fourth Quarter Financial Highlights
- Total revenue was
$776.3 million 9% year-over-year increase. Subscription revenue was$757.8 million 9% year-over-year increase. Professional services and other revenue was$18.5 million 11% year-over-year increase. - Billings were
$923.2 million 11% year-over-year increase. - GAAP gross margin was
79.4% compared to79.2% in the same period last year. Non-GAAP gross margin was82.3% compared to82.5% in the same period last year. - GAAP net income per basic share was
$0.41 $0 - GAAP net income per diluted share was
$0.39 $0.13 - Non-GAAP net income per diluted share was
$0.86 $0 - Net cash provided by operating activities was
$307.9 $270.7 million - Free cash flow was
$279.6 million $248.6 million - Cash, cash equivalents, restricted cash and investments were
$1.1 billion - Repurchases of common stock were
$161.7 million
Fiscal 2025 Financial Highlights
- Total revenue was
$2.98 billion 8% year-over-year increase. Subscription revenue was$2.90 billion 8% year-over-year increase. Professional services and other revenue was$75.4 million - Billings were
$3.1 billion 7% year-over-year increase. - GAAP gross margin was
79.1% compared to79.3% in the prior year. Non-GAAP gross margin was82.2% compared to82.6% in the prior year. - GAAP net income per basic share was
$5.23 $0 - GAAP net income per diluted share was
$5.08 $0.36 - Non-GAAP net income per diluted share was
$3.55 $2.98 - Repurchases of common stock were
$683.5 million $145.5 million
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures and Other Key Metrics."
Key Business Highlights:
Global Expansion of Intelligent Agreement Management ("IAM") Platform:
- Docusign announced the global release of IAM for Sales and IAM Core in December 2024, excluding
Japan . As part of the global expansion, Navigator became available to customers in every country where Docusign products are available for sale. Navigator has been localized in all 14 Docusign-supported languages. Navigator AI extractions are built to support agreements in English-language variants, French, and German only. - In November 2024, IAM plans were made available for Enterprise customers specific to departmental use cases.
- Docusign for Developers: Launched in November of 2024, Docusign for Developers enables partners to build integrations on IAM through a suite of performant and secure application programming interfaces ("APIs") and software development kits ("SDKs"), create extension apps for IAM, and build automated workflows in Maestro.
Additional IAM launches are categorized into the three steps of the agreement journey, including:
Create:
- Docusign + Microsoft Power Automate: Docusign integration with Power Automate allows customers to automate workflows to synchronize agreements, get notifications, and generate personalized agreements.
- Advanced Web Forms - Document Exclusion Rules and Multi-Recipient Forms: Web Forms streamline data collection and accelerate agreement signing through interactive, mobile-friendly forms that enhance customer experiences. Users can now conditionally display the correct documents within a template based on data collected and support forms with multiple recipients.
Commit:
- Identity Wallet for Liveness: Identity Wallet allows customers to easily and securely re-apply stored identity to every agreement. Users can quickly set up Identity Wallet to store their verified identity details while maintaining consistent security.
Manage:
- Docusign Navigator Agreement Sets: For contract managers who oversee large volumes of agreements, Navigator agreement sets provide a transformative way for organizations to organize agreements into flexible sets.
- Party Management in Docusign Navigator: Party Management allows customers to gain a holistic view of their contracts to understand the state of the contractual relationship and obligations by reducing duplicate identification of customers.
Contract Lifecycle Management ("CLM") Product Releases and Highlights:
- AI-Assisted Review for CLM: Docusign AI-Assisted Review for Docusign CLM accelerates contract review, enabling more team members to participate in negotiations without compromising compliance, freeing legal teams to focus on strategic work. This tool, available to
U.S. CLM and CLM+ customers, uses generative AI to automate reviews, suggest compliant language, and quickly answer contract-related questions, streamlining the path to signature.
Guidance
The company currently expects the following guidance:
- Quarter ending April 30, 2025 (in millions, except percentages):
Total revenue [1] | to | ||
Subscription revenue | to | ||
Billings [2] | to | ||
Non-GAAP gross margin | 80.5 % | to | 81.5 % |
Non-GAAP operating margin | 27.0 % | to | 28.0 % |
Non-GAAP diluted weighted-average shares outstanding | 210 | to | 215 |
- Fiscal year ending January 31, 2026 (in millions, except percentages):
Total revenue [1] | to | ||
Subscription revenue | to | ||
Billings [2] | to | ||
Non-GAAP gross margin | 80.5 % | to | 81.5 % |
Non-GAAP operating margin | 27.8 % | to | 28.8 % |
Non-GAAP diluted weighted-average shares outstanding | 210 | to | 215 |
[1] Excluding the impact of foreign currency exchange rates on year-over-year guided growth, revenue guidance range would be approximately |
[2] Excluding the impact of foreign currency exchange rates on year-over-year guided growth, billings guidance range would be approximately |
A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by many factors, including the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release.
Webcast Conference Call Information
The company will host a conference call on March 13, 2025 at 2:00 p.m. PT (5:00 p.m. ET) to discuss its financial results. A live webcast of the event will be available on the Docusign Investor Relations website at investor.docusign.com. Prepared remarks and the news release with the financial results will also be accessible on Docusign's website prior to the webcast. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (ET) March 27, 2025, using the passcode 13751751.
About Docusign
Docusign brings agreements to life. Nearly 1.7 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using Docusign's IAM platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and CLM. Learn more at www.docusign.com.
Copyright 2025. Docusign, Inc. is the owner of DOCUSIGN® and all its other marks (www.docusign.com/IP).
Investor Relations:
Docusign Investor Relations
investors@docusign.com
Media Relations:
Docusign Corporate Communications
media@docusign.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. All statements contained in this press release other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, objectives for future operations, and the impact of such assumptions on our financial condition and results of operations are forward-looking statements. Forward-looking statements in this press release also include, among other things, statements under "Guidance" above and any other statements about expected financial metrics, such as revenue, billings, non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted weighted-average shares outstanding, and non-financial metrics, as well as statements related to our expectations regarding the benefits, rollout and customer demand of the Docusign IAM platform. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions.
Forward-looking statements contained in this press release include, but are not limited to, statements about: our expectations regarding global macro-economic conditions, including the effects of inflation, volatile interest rates or foreign exchange rates, and market volatility on the global economy; our inability to accurately estimate our market opportunity; our ability to compete effectively in an evolving and competitive market; the impact of any interruptions or delays in performance of our technical infrastructure, or data breaches, cyberattacks or other fraudulent or malicious activity attempting to exploit our technology systems, platform or brand name; our ability to effectively sustain and manage our growth and future expenses and maintain or increase profitability; our ability to attract new customers and retain and expand our existing customer base, including our ability to attract large organizations as users; our ability to scale and update our platform to respond to customers' needs and rapid technological change, including our ability to successfully incorporate generative artificial intelligence into our existing and future products and to successfully deploy them; our ability to successfully develop, launch and sell Intelligent Agreement Management ("IAM") solutions; our ability to expand use cases within existing customers and vertical solutions; our ability to expand our operations and increase adoption of our platform internationally; our ability to strengthen and foster our relationships with developers; our ability to retain our direct sales force, customer success team and strategic partnerships around the world; our ability to identify targets for and execute potential acquisitions and to successfully integrate and realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash, cash equivalents and capital resources to satisfy our liquidity needs; limitations on us due to obligations we have under our credit facility; our ability to realize the anticipated benefits of our stock repurchase program; our failure or the failure of our software to comply with applicable industry standards, laws and regulations; our ability to maintain, protect and enhance our intellectual property; our ability to successfully defend litigation against us; our ability to maintain our corporate culture; our ability to offer high-quality customer support; our ability to hire, retain and motivate qualified personnel, including executive level management; our ability to successfully manage and integrate executive management transitions; uncertainties regarding the impact of general economic and market conditions, including as a result of geopolitical conflict or changes in trade policy; and our ability to maintain proper and effective internal controls.
Additional risks and uncertainties that could affect our financial results are included in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for the fiscal year ended January 31, 2024, filed on March 21, 2024, quarterly report on Form 10-Q for the quarter ended October 31, 2024, filed on December 6, 2024 with the Securities and Exchange Commission (the "SEC"), and other filings that we make from time to time with the SEC. The forward-looking statements made in this press release relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this press release or to conform such statements to actual results or revised expectations, except as required by law.
Non-GAAP Financial Measures and Other Key Metrics
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We present these non-GAAP measures to assist investors in seeing our financial performance using a management view, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, these non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income per share: We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, amortization of debt discount and issuance costs, acquisition-related expenses, fair value adjustments to strategic investments, lease-related impairment and lease-related charges, restructuring and other related charges, as these costs are not reflective of ongoing operations and, as applicable, other special items. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies and over multiple periods. In addition to these exclusions, we subtract an assumed provision for income taxes to calculate non-GAAP net income. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For each of the years ended January 31, 2025 and 2024, we have determined the projected non-GAAP tax rate to be
Free cash flow: We define free cash flow as net cash provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.
Billings: We define billings as total revenues plus the change in our contract liabilities and refund liability less contract assets and unbilled accounts receivable in a given period. Billings reflects sales to new customers plus subscription renewals and additional sales to existing customers. Only amounts invoiced to a customer in a given period are included in billings. We believe billings can be used to measure our periodic performance, when taking into consideration the timing aspects of customer renewals, which represents a large component of our business. Given that most of our customers pay in annual installments one year in advance, but we typically recognize a majority of the related revenue ratably over time, we use billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited) | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
Revenue: | |||||||
Subscription | $ 757,767 | $ 695,682 | $ 2,901,309 | $ 2,686,708 | |||
Professional services and other | 18,485 | 16,704 | 75,430 | 75,174 | |||
Total revenue | 776,252 | 712,386 | 2,976,739 | 2,761,882 | |||
Cost of revenue: | |||||||
Subscription | 138,884 | 120,551 | 532,445 | 459,905 | |||
Professional services and other | 21,327 | 27,356 | 89,214 | 112,716 | |||
Total cost of revenue | 160,211 | 147,907 | 621,659 | 572,621 | |||
Gross profit | 616,041 | 564,479 | 2,355,080 | 2,189,261 | |||
Operating expenses: | |||||||
Sales and marketing | 301,288 | 300,221 | 1,160,993 | 1,168,137 | |||
Research and development | 155,463 | 151,524 | 588,455 | 539,488 | |||
General and administrative | 98,821 | 102,711 | 375,983 | 419,621 | |||
Restructuring and other related charges | — | 88 | 29,721 | 30,381 | |||
Total operating expenses | 555,572 | 554,544 | 2,155,152 | 2,157,627 | |||
Income from operations | 60,469 | 9,935 | 199,928 | 31,634 | |||
Interest expense | (400) | (1,709) | (1,550) | (6,844) | |||
Interest income and other income, net | 7,818 | 21,516 | 49,563 | 68,889 | |||
Income before provision for (benefit from) income taxes | 67,887 | 29,742 | 247,941 | 93,679 | |||
Provision for (benefit from) income taxes | (15,604) | 2,501 | (819,944) | 19,699 | |||
Net income | $ 83,491 | $ 27,241 | $ 1,067,885 | $ 73,980 | |||
Net income per share attributable to common stockholders: | |||||||
Basic | $ 0.41 | $ 0.13 | $ 5.23 | $ 0.36 | |||
Diluted | $ 0.39 | $ 0.13 | $ 5.08 | $ 0.36 | |||
Weighted-average shares used in computing net income per share: | |||||||
Basic | 203,299 | 205,514 | 204,329 | 204,070 | |||
Diluted | 214,507 | 209,581 | 210,339 | 208,950 | |||
Stock-based compensation expense included in costs and expenses: | |||||||
Cost of revenue—subscription | $ 13,712 | $ 13,517 | $ 58,348 | $ 51,660 | |||
Cost of revenue—professional services and other | 4,174 | 6,977 | 18,639 | 28,336 | |||
Sales and marketing | 48,213 | 53,251 | 202,609 | 203,855 | |||
Research and development | 53,422 | 54,753 | 204,238 | 184,211 | |||
General and administrative | 30,426 | 32,502 | 121,665 | 143,773 | |||
Restructuring and other related charges | — | 16 | 4,836 | 5,012 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(Unaudited) | |||
(in thousands) | January 31, | January 31, | |
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 648,623 | $ 797,060 | |
Investments—current | 314,924 | 248,402 | |
Accounts receivable, net | 429,582 | 439,299 | |
Contract assets—current | 13,764 | 15,922 | |
Prepaid expenses and other current assets | 82,368 | 66,984 | |
Total current assets | 1,489,261 | 1,567,667 | |
Investments—noncurrent | 134,105 | 121,977 | |
Property and equipment, net | 299,370 | 245,173 | |
Operating lease right-of-use assets | 109,630 | 123,188 | |
Goodwill | 454,477 | 353,138 | |
Intangible assets, net | 76,388 | 50,905 | |
Deferred contract acquisition costs—noncurrent | 467,201 | 409,627 | |
Deferred tax assets—noncurrent | 840,470 | 2,031 | |
Other assets—noncurrent | 141,803 | 97,584 | |
Total assets | $ 4,012,705 | $ 2,971,290 | |
Liabilities and Equity | |||
Current liabilities | |||
Accounts payable | $ 30,697 | $ 19,029 | |
Accrued expenses and other current liabilities | 99,579 | 104,037 | |
Accrued compensation | 227,115 | 195,266 | |
Contract liabilities—current | 1,455,442 | 1,320,059 | |
Operating lease liabilities—current | 19,077 | 22,230 | |
Total current liabilities | 1,831,910 | 1,660,621 | |
Contract liabilities—noncurrent | 21,523 | 21,980 | |
Operating lease liabilities—noncurrent | 105,350 | 120,823 | |
Deferred tax liability—noncurrent | 20,596 | 16,795 | |
Other liabilities—noncurrent | 30,634 | 21,332 | |
Total liabilities | 2,010,013 | 1,841,551 | |
Stockholders' equity | |||
Common stock | 20 | 21 | |
Treasury stock | (2,871) | (2,164) | |
Additional paid-in capital | 3,321,242 | 2,821,461 | |
Accumulated other comprehensive loss | (28,376) | (19,360) | |
Accumulated deficit | (1,287,323) | (1,670,219) | |
Total stockholders' equity | 2,002,692 | 1,129,739 | |
Total liabilities and equity | $ 4,012,705 | $ 2,971,290 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Cash flows from operating activities: | |||||||
Net income | $ 83,491 | $ 27,241 | $ 1,067,885 | $ 73,980 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 28,707 | 23,633 | 107,804 | 95,062 | |||
Amortization of deferred contract acquisition and fulfillment costs | 64,486 | 52,382 | 237,217 | 200,163 | |||
Amortization of debt discount and transaction costs | 139 | 1,027 | 554 | 4,749 | |||
Non-cash operating lease costs | 4,602 | 4,811 | 19,065 | 21,310 | |||
Stock-based compensation expense | 149,947 | 161,016 | 610,335 | 616,847 | |||
Deferred income taxes | (22,103) | (973) | (839,989) | 6,292 | |||
Other | (361) | (551) | 6,111 | (1,904) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (128,616) | (81,221) | 2,075 | 71,681 | |||
Prepaid expenses and other current assets | (9,334) | 7,300 | (17,634) | (657) | |||
Deferred contract acquisition and fulfillment costs | (87,618) | (78,649) | (302,166) | (255,159) | |||
Other assets | (5,884) | (1,413) | (22,002) | (15,432) | |||
Accounts payable | 9,152 | 4,263 | 7,638 | (4,826) | |||
Accrued expenses and other liabilities | 10,081 | 4,101 | 2,935 | 6,473 | |||
Accrued compensation | 70,364 | 38,347 | 29,236 | 33,979 | |||
Contract liabilities | 146,285 | 115,371 | 129,854 | 152,247 | |||
Operating lease liabilities | (5,426) | (5,987) | (21,646) | (25,279) | |||
Net cash provided by operating activities | 307,912 | 270,698 | 1,017,272 | 979,526 | |||
Cash flows from investing activities: | |||||||
Cash paid for acquisition, net of acquired cash | — | — | (143,611) | — | |||
Purchases of marketable securities | (77,699) | (132,875) | (411,236) | (336,221) | |||
Maturities of marketable securities | 74,500 | 222,352 | 340,334 | 473,869 | |||
Purchases of strategic and other investments | (750) | (125) | (1,375) | (645) | |||
Purchases of property and equipment | (28,342) | (22,114) | (96,988) | (92,391) | |||
Net cash provided by (used in) by investing activities | (32,291) | 67,238 | (312,876) | 44,612 | |||
Cash flows from financing activities: | |||||||
Repayments of convertible senior notes | — | (689,896) | — | (726,979) | |||
Repurchases of common stock | (161,725) | — | (683,528) | (145,515) | |||
Settlement of capped calls, net of related costs | — | — | — | 23,688 | |||
Payment of tax withholding obligation on net RSU settlement and ESPP purchase | (81,148) | (45,922) | (213,282) | (144,218) | |||
Proceeds from exercise of stock options | 11,359 | 784 | 22,705 | 13,991 | |||
Proceeds from employee stock purchase plan | — | — | 35,314 | 32,994 | |||
Net cash used in financing activities | (231,514) | (735,034) | (838,791) | (946,039) | |||
Effect of foreign exchange on cash, cash equivalents and restricted cash | (5,311) | 5,096 | (7,550) | 199 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 38,796 | (392,002) | (141,945) | 78,298 | |||
Cash, cash equivalents and restricted cash at beginning of period (1) | 620,758 | 1,193,501 | 801,499 | 723,201 | |||
Cash, cash equivalents and restricted cash at end of period (1) | $ 659,554 | $ 801,499 | $ 659,554 | $ 801,499 | |||
(1) Cash, cash equivalents and restricted cash included restricted cash of |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||
(Unaudited) | |||||||
Reconciliation of gross profit (loss) and gross margin: | |||||||
Three Months Ended | Year Ended January 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
GAAP gross profit | $ 616,041 | $ 564,479 | $ 2,355,080 | $ 2,189,261 | |||
Add: Stock-based compensation | 17,886 | 20,494 | 76,987 | 79,996 | |||
Add: Amortization of acquisition-related intangibles | 3,564 | 2,070 | 12,267 | 8,857 | |||
Add: Employer payroll tax on employee stock transactions | 1,176 | 337 | 3,909 | 2,262 | |||
Add: Lease-related impairment and lease-related charges | — | — | — | 721 | |||
Non-GAAP gross profit | $ 638,667 | $ 587,380 | $ 2,448,243 | $ 2,281,097 | |||
GAAP gross margin | 79.4 % | 79.2 % | 79.1 % | 79.3 % | |||
Non-GAAP adjustments | 2.9 % | 3.3 % | 3.1 % | 3.3 % | |||
Non-GAAP gross margin | 82.3 % | 82.5 % | 82.2 % | 82.6 % | |||
GAAP subscription gross profit | $ 618,883 | $ 575,131 | $ 2,368,864 | $ 2,226,803 | |||
Add: Stock-based compensation | 13,712 | 13,517 | 58,348 | 51,660 | |||
Add: Amortization of acquisition-related intangibles | 3,564 | 2,070 | 12,267 | 8,857 | |||
Add: Employer payroll tax on employee stock transactions | 921 | 232 | 2,882 | 1,464 | |||
Add: Lease-related impairment and lease-related charges | — | — | — | 505 | |||
Non-GAAP subscription gross profit | $ 637,080 | $ 590,950 | $ 2,442,361 | $ 2,289,289 | |||
GAAP subscription gross margin | 81.7 % | 82.7 % | 81.6 % | 82.9 % | |||
Non-GAAP adjustments | 2.4 % | 2.2 % | 2.6 % | 2.3 % | |||
Non-GAAP subscription gross margin | 84.1 % | 84.9 % | 84.2 % | 85.2 % | |||
GAAP professional services and other gross loss | $ (2,842) | $ (13,784) | $ (37,542) | ||||
Add: Stock-based compensation | 4,174 | 6,977 | 18,639 | 28,336 | |||
Add: Employer payroll tax on employee stock transactions | 255 | 105 | 1,027 | 798 | |||
Add: Lease-related impairment and lease-related charges | — | — | — | 216 | |||
Non-GAAP professional services and other gross income (loss) | $ 1,587 | $ (3,570) | $ 5,882 | $ (8,192) | |||
GAAP professional services and other gross margin | (15.4) % | (63.8) % | (18.3) % | (49.9) % | |||
Non-GAAP adjustments | 24.0 % | 42.4 % | 26.1 % | 39.0 % | |||
Non-GAAP professional services and other gross margin | 8.6 % | (21.4) % | 7.8 % | (10.9) % | |||
Reconciliation of operating expenses: | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
GAAP sales and marketing | $ 301,288 | $ 300,221 | $ 1,160,993 | $ 1,168,137 | |||
Less: Stock-based compensation | (48,213) | (53,251) | (202,609) | (203,855) | |||
Less: Amortization of acquisition-related intangibles | (3,354) | (2,631) | (12,450) | (10,518) | |||
Less: Employer payroll tax on employee stock transactions | (2,242) | (1,104) | (7,593) | (5,049) | |||
Less: Lease-related impairment and lease-related charges | — | — | — | (2,171) | |||
Non-GAAP sales and marketing | $ 247,479 | $ 243,235 | $ 938,341 | $ 946,544 | |||
GAAP sales and marketing as a percentage of revenue | 38.8 % | 42.1 % | 39.0 % | 42.3 % | |||
Non-GAAP sales and marketing as a percentage of revenue | 31.9 % | 34.2 % | 31.5 % | 34.3 % | |||
GAAP research and development | $ 155,463 | $ 151,524 | $ 588,455 | $ 539,488 | |||
Less: Stock-based compensation | (53,422) | (54,753) | (204,238) | (184,211) | |||
Less: Employer payroll tax on employee stock transactions | (1,421) | (605) | (7,013) | (4,276) | |||
Less: Lease-related impairment and lease-related charges | — | — | — | (873) | |||
Non-GAAP research and development | $ 100,620 | $ 96,166 | $ 377,204 | $ 350,128 | |||
GAAP research and development as a percentage of revenue | 20.0 % | 21.3 % | 19.8 % | 19.5 % | |||
Non-GAAP research and development as a percentage of revenue | 13.0 % | 13.5 % | 12.7 % | 12.7 % | |||
GAAP general and administrative | $ 98,821 | $ 102,711 | $ 375,983 | $ 419,621 | |||
Less: Stock-based compensation | (30,426) | (32,502) | (121,665) | (143,773) | |||
Less: Employer payroll tax on employee stock transactions | (1,504) | (554) | (3,278) | (2,095) | |||
Less: Acquisition-related expenses | — | — | (4,340) | — | |||
Less: Lease-related impairment and lease-related charges | — | — | — | (695) | |||
Non-GAAP general and administrative | $ 66,891 | $ 69,655 | $ 246,700 | $ 273,058 | |||
GAAP general and administrative as a percentage of revenue | 12.8 % | 14.5 % | 12.4 % | 15.2 % | |||
Non-GAAP general and administrative as a percentage of revenue | 8.6 % | 9.8 % | 8.2 % | 9.8 % | |||
Reconciliation of income from operations and operating margin: | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
GAAP income from operations | $ 60,469 | $ 9,935 | $ 199,928 | $ 31,634 | |||
Add: Stock-based compensation | 149,947 | 161,000 | 605,499 | 611,835 | |||
Add: Amortization of acquisition-related intangibles | 6,918 | 4,701 | 24,717 | 19,375 | |||
Add: Employer payroll tax on employee stock transactions | 6,343 | 2,600 | 21,793 | 13,682 | |||
Add: Acquisition-related expenses | — | — | 4,340 | — | |||
Add: Restructuring and other related charges | — | 88 | 29,721 | 30,381 | |||
Add: Lease-related impairment and lease-related charges | — | — | — | 4,460 | |||
Non-GAAP income from operations | $ 223,677 | $ 178,324 | $ 885,998 | $ 711,367 | |||
GAAP operating margin | 7.8 % | 1.4 % | 6.7 % | 1.1 % | |||
Non-GAAP adjustments | 21.0 % | 23.6 % | 23.1 % | 24.7 % | |||
Non-GAAP operating margin | 28.8 % | 25.0 % | 29.8 % | 25.8 % | |||
Reconciliation of net income and net income per share, basic and diluted: | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
GAAP net income | $ 83,491 | $ 27,241 | $ 1,067,885 | $ 73,980 | |||
Add: Stock-based compensation | 149,947 | 161,000 | 605,499 | 611,835 | |||
Add: Amortization of acquisition-related intangibles | 6,918 | 4,701 | 24,717 | 19,375 | |||
Add: Employer payroll tax on employee stock transactions | 6,343 | 2,600 | 21,793 | 13,682 | |||
Add: Acquisition-related expenses | — | — | 4,340 | — | |||
Add: Restructuring and other related charges | — | 88 | 29,721 | 30,381 | |||
Add: Amortization of debt discount and issuance costs | — | 1,027 | — | 5,175 | |||
Add: Fair value adjustments to strategic investments | — | (98) | — | 22 | |||
Add: Lease-related impairment and lease-related charges | — | — | — | 4,460 | |||
Add: Income tax and other tax adjustments | (61,823) | (37,311) | (1,006,746) | (136,023) | |||
Non-GAAP net income | $ 184,876 | $ 159,248 | $ 747,209 | $ 622,887 | |||
Numerator: | |||||||
Non-GAAP net income | $ 184,876 | $ 159,248 | $ 747,209 | $ 622,887 | |||
Add: Interest expense on convertible senior notes | — | — | — | 425 | |||
Non-GAAP net income attributable to common stockholders, diluted | $ 184,876 | $ 159,248 | $ 747,209 | $ 623,312 | |||
Denominator: | |||||||
Weighted-average common shares outstanding, basic | 203,299 | 205,514 | 204,329 | 204,070 | |||
Effect of dilutive securities | 11,208 | 4,067 | 6,010 | 4,880 | |||
Non-GAAP weighted-average common shares outstanding, diluted | 214,507 | 209,581 | 210,339 | 208,950 | |||
GAAP net income per share, basic | $ 0.41 | $ 0.13 | $ 5.23 | $ 0.36 | |||
GAAP net income per share, diluted | $ 0.39 | $ 0.13 | $ 5.08 | $ 0.36 | |||
Non-GAAP net income per share, basic | $ 0.91 | $ 0.77 | $ 3.66 | $ 3.05 | |||
Non-GAAP net income per share, diluted | $ 0.86 | $ 0.76 | $ 3.55 | $ 2.98 | |||
Computation of free cash flow: | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net cash provided by operating activities | $ 307,912 | $ 270,698 | $ 1,017,272 | $ 979,526 | |||
Less: Purchases of property and equipment | (28,342) | (22,114) | (96,988) | (92,391) | |||
Non-GAAP free cash flow | 279,570 | 248,584 | 920,284 | 887,135 | |||
Net cash provided by (used in) by investing activities | (32,291) | 67,238 | (312,876) | 44,612 | |||
Net cash used in financing activities | |||||||
Computation of billings: | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Revenue | $ 776,252 | $ 712,386 | |||||
Add: Contract liabilities and refund liability, end of period | 1,479,266 | 1,343,792 | 1,479,266 | 1,343,792 | |||
Less: Contract liabilities and refund liability, beginning of period | (1,332,828) | (1,228,174) | (1,343,792) | (1,191,269) | |||
Add: Contract assets and unbilled accounts receivable, beginning of period | 18,341 | 25,253 | 20,189 | 16,615 | |||
Less: Contract assets and unbilled accounts receivable, end of period | (17,825) | (20,189) | (17,825) | (20,189) | |||
Add: Contract assets and unbilled accounts receivable contributed by acquisitions | — | — | 53 | — | |||
Less: Contract liabilities and refund liability contributed by acquisitions | — | — | (5,071) | — | |||
Non-GAAP billings | $ 923,206 | $ 833,068 | |||||
View original content:https://www.prnewswire.com/news-releases/docusign-announces-fourth-quarter-and-fiscal-year-2025-financial-results-302401225.html
SOURCE Docusign, Inc.
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