Breaking News
Docusign Announces First Quarter Fiscal 2025 Financial Results; Announces $1.0 Billion Increase to Share Repurchase Program
Docusign, Inc. (NASDAQ: DOCU) has announced results for its fiscal quarter ended April 30, 2024. 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.
“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,” said Allan Thygesen, CEO of Docusign. “In Q1, we continued to stabilize the business and improve profitability, allowing Docusign to continue investing for long term growth.”
First Quarter Financial Highlights
- Total revenue was $709.6 million, an increase of 7% year-over-year. Subscription revenue was $691.5 million, an increase of 8% year-over-year. Professional services and other revenue was $18.2 million, a decrease of 18% year-over-year.
- Billings were $709.5 million, an increase of 5% year-over-year.
- GAAP gross margin was 78.9% compared to 79.4% in the same period last year. Non-GAAP gross margin was 82.0% compared to 82.6% in the same period last year.
- GAAP net income per basic share was $0.16 on 206 million shares outstanding compared to $0.00 on 203 million shares outstanding in the same period last year.
- GAAP net income per diluted share was $0.16 on 210 million shares outstanding compared to $0.00 on 208 million shares outstanding in the same period last year.
- Non-GAAP net income per diluted share was $0.82 on 210 million shares outstanding compared to $0.72 on 208 million shares outstanding in the same period last year.
- Net cash provided by operating activities was $254.8 million compared to $233.6 million in the same period last year.
- Free cash flow was $232.1 million compared to $214.6 million in the same period last year.
- Cash, cash equivalents, restricted cash and investments were $1.2 billion at the end of the quarter.
- 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:
- Launches Docusign IAM (“Intelligent Agreement Management”): Docusign announced a significant expansion of its company strategy at its Momentum24 NYC conference. Docusign IAM is a platform with services that transforms how customers create, commit, and manage agreements. Services include:
- Docusign Maestro: Automate and accelerate agreement creation and processes through flexible, customizable workflows without using code. Maestro integrates Docusign products, including eSignature, ID verification, and data verification, with third-party applications.
- Docusign Navigator: A smart repository that enables organizations to centrally store, manage, and analyze agreements from any source. Powered by Docusign AI, Navigator transforms unstructured agreements into structured data, making it easy for users to find agreements, access vital information, and gain valuable insights from agreements.
- Docusign App Center: Customers can discover, install, and connect third-party applications to integrate their existing systems with IAM. At launch, App Center will feature an initial set of commonly used apps, including HubSpot, ServiceNow, Stripe, and document-sharing services like Google Drive, Microsoft OneDrive, and Microsoft Sharepoint.
- IAM application suites: The IAM platform will be offered through purpose-built applications for specific functions within organizations. With the initial Q2 IAM launch, Docusign will offer IAM for Sales, IAM for Customer Experience, and IAM Core. Future application suites will include IAM for Legal, IAM for Procurement, IAM for Human Resources, and other solutions for functions and industry verticals.
Subsequent to the end of Q1, Docusign announced in late May the general availability of IAM for an initial set of customers. From that point, IAM will gradually roll out across customer segments and geographies.
AI Innovation Leadership:
- Lexion Acquisition: After Q1, Docusign closed its acquisition of DocuSmart, Inc. d/b/a Lexion (“Lexion”). Lexion is a leader in AI-based agreement technology with solutions designed to automate workflows and extract vital information from contracts. Founded in 2019, Lexion accelerates Docusign’s AI-powered IAM roadmap and brings industry leaders into its technology teams.
- AI Momentum24 Announcements: Docusign announced the launch of AI-powered Agreement Summarization in Docusign CLM, enabling the creation of concise summaries of large amounts of agreement text. Docusign is also one of the first integrations with Microsoft Copilot for Sales, giving sellers using Microsoft Dynamics or Salesforce Sales Cloud the power to surface and instantly access agreement data relevant to a CRM record.
- Increase to Stock Repurchase Program
Docusign’s board of directors has authorized an increase to its existing stock repurchase program for an additional amount of up to $1.0 billion of Docusign’s outstanding common stock. The program has no minimum purchase commitment and no mandated end date. The repurchase is expected to be executed, subject to general business and market conditions and other investment opportunities, through open market purchases, and other transactions in accordance with applicable securities laws.
The timing and the amount of any repurchased common stock will be determined by Docusign’s management based on its evaluation of market conditions and other factors. The repurchase program does not obligate Docusign to acquire any particular amount of common stock and the repurchase program may be suspended or discontinued at any time at Docusign’s discretion without prior notice.
People In This Post
Companies In This Post
- dLocal and AZA Finance Forge Strategic Partnership to Expand Footprint in Africa Read more
- Corpay Cross-Border Launches Multi-Currency Accounts Read more
- Intellect Expands Sales Leadership With the Appointment of John Owen as President for the Western Hemisphere to Drive eMACH.ai Growth Read more
- E-Money Markets Ltd Raises £700K Pre-Seed to Transform SME Payment Technology Read more
- Pipe Continues International Expansion to Canada Through Partnership with Housecall Pro Read more