DocuSign Announces Fourth Quarter and Fiscal Year 2024 Financial Results
PR Newswire
SAN FRANCISCO, March 7, 2024
SAN FRANCISCO, March 7, 2024 /PRNewswire/ — DocuSign, Inc. (NASDAQ: DOCU), which offers the world’s #1 e-signature product as part of its industry leading lineup, today announced results for its fourth quarter and fiscal year ended January 31, 2024.
“DocuSign ended Fiscal 2024 with momentum in product innovation, customer growth, and financial performance, including more than doubling free cash flow year-over-year,” said Allan Thygesen, CEO of DocuSign. “The agreement management opportunity is massive, and we’re excited to deliver category-defining innovation to our 1.5 million customers in Fiscal 2025 and beyond.”
Fourth Quarter Financial Highlights
-- Total revenue was $712.4 million, an increase of 8% year-over-year.
Subscription revenue was $695.7 million, an increase of 8%
year-over-year. Professional services and other revenue was $16.7 million,
an increase of 5% year-over-year.
-- Billings were $833.1 million, an increase of 13% year-over-year.
-- GAAP gross margin was 79% for both periods. Non-GAAP gross margin was 82%
compared to 83% in the same period last year.
-- GAAP net income per basic share was $0.13 on 206 million shares
outstanding compared to $0.02 on 202 million shares outstanding in the
same period last year.
-- GAAP net income per diluted share was $0.13 on 210 million shares
outstanding compared to $0.02 on 206 million shares outstanding in the
same period last year.
-- Non-GAAP net income per diluted share was $0.76 on 210 million shares
outstanding compared to $0.65 on 206 million shares outstanding in the
same period last year.
-- Net cash provided by operating activities was $270.7 million compared to
$137.1 million in the same period last year.
-- Free cash flow was $248.6 million compared to $113.0 million in the same
period last year.
-- Cash, cash equivalents, restricted cash and investments were $1.2 billion
at the end of the quarter. During the quarter, the company repaid $689.9
million principal amount of our 2024 convertible senior notes.
Fiscal 2024 Financial Highlights
-- Total revenue was $2.8 billion, an increase of 10% over the prior year.
Subscription revenue was $2.7 billion, an increase of 10% over the prior
year. Professional services and other revenue was $75.2 million, an
increase of 2% year-over-year.
-- Billings were $2.9 billion, an increase of 9% over the prior year.
-- GAAP gross margin was 79% for both years. Non-GAAP gross margin was 83%
compared to 82% in the prior year.
-- GAAP net income per basic share was $0.36 on 204 million shares
outstanding compared to a loss of $0.49 on 201 million shares outstanding
in fiscal 2023.
-- GAAP net income per diluted share was $0.36 on 209 million shares
outstanding compared to a loss of $0.49 on 201 million shares outstanding
in fiscal 2023.
-- Non-GAAP net income per diluted share was $2.98 on 209 million shares
outstanding compared to $2.03 on 206 million shares outstanding in fiscal
2023.
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.”
Operational and Other Financial Highlights
-- DocuSign Achieves StateRAMP Authorization: State, local and education
customers can now use DocuSign solutions like Contract Lifecycle
Management (CLM) and eSignature (DocuSign Federal) in the
StateRAMP-authorized environment. Customers will be able to reclaim the
time spent on paper-intensive, manual processes and improve constituent
experiences while increasing information security.
-- DocuSign 2023 Release 4: DocuSign announced new product capabilities for
generating agreements, creating better signing experiences and managing
end-to-end agreements. Highlights of our recent product release include:
-- Identity Wallet for Qualified Electronic Signatures (QES): Further
simplifies the QES agreement process for repeat signers by pairing
their Identity Wallet with their mobile or desktop passkey and
leveraging built-in biometric including FaceID and fingerprint
scans. Signers enjoy a streamlined identification process, and
organizations achieve faster completions for their most important
documents.
-- Modernized DocuSign CLM search experience: We've made it easier
for users to access agreements and leverage AI across their
contracts. Our new modern search experience makes agreements more
discoverable and actionable, allowing users to save customized
searches most relevant to their role, filter for specific contract
attributes, and execute bulk actions such as downloading or
exporting agreements right from the results page.
Outlook
The company currently expects the following guidance:
— Quarter ending April 30, 2024 (in millions, except percentages):
Total revenue $704 to $708 Subscription revenue $686 to $690 Billings $685 to $695 Non-GAAP gross margin 81.0 % to 82.0 % Non-GAAP operating margin 27.0 % to 28.0 % Non-GAAP diluted weighted-average shares outstanding 208 to 213
— Fiscal year ending January 31, 2025 (in millions, except percentages):
Total revenue $2,915 to $2,927 Subscription revenue $2,843 to $2,855 Billings $2,970 to $3,024 Non-GAAP gross margin 81.0 % to 82.0 % Non-GAAP operating margin 26.5 % to 28.0 % Non-GAAP diluted weighted-average shares outstanding 208 to 213
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.
About DocuSign
DocuSign redefines how the world comes together and agrees, making agreements smarter, easier and more trusted. As part of its industry leading product lineup, DocuSign offers eSignature, the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, over 1.5 million customers and more than a billion users in over 180 countries use DocuSign products and solutions to accelerate the process of doing business and simplify people’s lives.