13/03/2025 - DocuSign Inc.: Docusign Announces Fourth Quarter and Fiscal Year 2025 Financial Results (Form 8-K)

Docusign Announces Fourth Quarter and Fiscal Year 2025 Financial Results

San Francisco - March 13, 2025 - Docusign, Inc. (NASDAQ: DOCU) today announced results for its fourth quarter and fiscal year ended January 31, 2025. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast.

"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, a 9% year-over-year increase. Subscription revenue was $757.8 million, a 9% year-over-year increase. Professional services and other revenue was $18.5 million, an 11% year-over-year increase.

▪Billings were $923.2 million, an 11% year-over-year increase.

▪GAAP gross margin was 79.4% compared to 79.2% in the same period last year. Non-GAAP gross margin was 82.3% compared to 82.5% in the same period last year.

▪GAAP net income per basic share was $0.41 on 203 million shares outstanding compared to $0.13 on 206 million shares outstanding in the same period last year.

▪GAAP net income per diluted share was $0.39 on 215 million shares outstanding compared to $0.13 on 210 million shares outstanding in the same period last year.

▪Non-GAAP net income per diluted share was $0.86 on 215 million shares outstanding compared to $0.76 on 210 million shares outstanding in the same period last year.

▪Net cash provided by operating activities was $307.9 million compared to $270.7 million in the same period last year.

▪Free cash flow was $279.6 million compared to $248.6 million in the same period last year.

▪Cash, cash equivalents, restricted cash and investments were $1.1 billion at the end of the quarter.

▪Repurchases of common stock were $161.7 million.

Fiscal 2025 Financial Highlights

▪Total revenue was $2.98 billion, an 8% year-over-year increase. Subscription revenue was $2.90 billion, an 8% year-over-year increase. Professional services and other revenue was $75.4 million, relatively flat when compared to the same period last year.

▪Billings were $3.1 billion, a 7% year-over-year increase.

▪GAAP gross margin was 79.1% compared to 79.3% in the prior year. Non-GAAP gross margin was 82.2% compared to 82.6% in the prior year.

▪GAAP net income per basic share was $5.23 on 204 million shares outstanding compared to $0.36 on 204 million shares outstanding in fiscal 2024.

▪GAAP net income per diluted share was $5.08 on 210 million shares outstanding compared to $0.36 on 209 million shares outstanding in fiscal 2024.

▪Non-GAAP net income per diluted share was $3.55 on 210 million shares outstanding compared to $2.98 on 209 million shares outstanding in fiscal 2024.

▪Repurchases of common stock were $683.5 million compared to $145.5 million in the same period last year.

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."

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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.

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Guidance

The company currently expects the following guidance:

▪Quarter ending April 30, 2025 (in millions, except percentages):

Total revenue [1]			$745			to			$749
Subscription revenue			$729			to			$733
Billings [2]			$741			to			$751
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]			$3,129			to			$3,141
Subscription revenue			$3,062			to			$3,074
Billings [2]			$3,300			to			$3,354
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 0.7% point higher for both the quarter ending April 30, 2025 and the fiscal year ending January 31, 2026.

[2] Excluding the impact of foreign currency exchange rates on year-over-year guided growth, billings guidance range would be approximately 1.0% point higher for both the quarter ending April 30, 2025 and the fiscal year ending January 31, 2026.

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.

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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

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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.