On June 6, 2024, DocuSign Inc (DOCU, Financial) released its 8-K filing for the fiscal quarter ended April 30, 2024. DocuSign, a leader in cloud-based software for automating the agreement process, reported robust financial results and strategic advancements.
Company Overview
DocuSign offers the Agreement Cloud, a comprehensive suite of cloud-based software that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. Founded in 2003, DocuSign completed its IPO in May 2018.
Q1 Financial Performance
DocuSign Inc (DOCU, Financial) reported total revenue of $709.6 million for the first quarter of fiscal 2025, surpassing the analyst estimate of $707.46 million. This represents a 7% year-over-year increase. Subscription revenue grew by 8% year-over-year to $691.5 million, while professional services and other revenue decreased by 18% to $18.2 million.
Billings for the quarter were $709.5 million, a 5% increase year-over-year. GAAP gross margin was 78.9%, slightly down from 79.4% in the same period last year, while non-GAAP gross margin was 82.0%, compared to 82.6% last year.
Income and Cash Flow Highlights
DocuSign reported GAAP net income per basic share of $0.16, significantly higher than the $0.00 reported in the same period last year. Non-GAAP net income per diluted share was $0.82, up from $0.72 last year. Net cash provided by operating activities was $254.8 million, compared to $233.6 million in the same period last year, and free cash flow was $232.1 million, up from $214.6 million last year.
Balance Sheet Overview
| Metric | April 30, 2024 | January 31, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $817.4 million | $797.1 million |
| Total Assets | $2.93 billion | $2.97 billion |
| Total Liabilities | $1.79 billion | $1.84 billion |
| Total Stockholders' Equity | $1.14 billion | $1.13 billion |
Strategic Initiatives and Future Outlook
DocuSign announced the launch of its Intelligent Agreement Management (IAM) platform, which aims to transform how customers create, commit, and manage agreements. The platform includes services like DocuSign Maestro, DocuSign Navigator, and the DocuSign App Center, integrating various third-party applications.
Additionally, DocuSign closed its acquisition of Lexion, an AI-based agreement technology company, to bolster its AI-powered IAM roadmap. The company also announced a $1 billion increase to its share repurchase program, reflecting confidence in its long-term growth prospects.
Guidance
For the quarter ending July 31, 2024, DocuSign expects total revenue between $725 million and $729 million, with subscription revenue between $705 million and $709 million. For the fiscal year ending January 31, 2025, the company anticipates total revenue between $2.92 billion and $2.932 billion.
DocuSign's CEO, Allan Thygesen, commented,
Docusign is off to a strong start in fiscal 2025. We launched a significant expansion to our company strategy with our announcement of the Docusign Intelligent Agreement Management platform. In Q1, we continued to stabilize the business and improve profitability, allowing Docusign to continue investing for long term growth."
For more detailed financial information, please refer to DocuSign's 8-K filing.
Explore the complete 8-K earnings release (here) from DocuSign Inc for further details.
