DocuSign, Inc. (NASDAQ: DOCU), which offers the world’s #1 eSignature solution as part of the DocuSign Agreement Cloud, today announced results for its fourth quarter and fiscal year ended. Fintech News
“The fourth quarter wrapped up an exceptional year for DocuSign,” said Dan Springer, CEO of DocuSign. “Since introducing the DocuSign Agreement Cloud a year ago, we have dramatically broadened our offerings while maintaining strong growth from eSignature. With our latest move—the proposed acquisition of contracts AI pioneer Seal Software—we are continuing our drive to make organizations’ end-to-end agreement processes faster, simpler, and smarter.” Investments
Fourth Quarter Financial Highlights
- Total revenue was $274.9 million, an increase of 38% year-over-year. Subscription revenue was $258.1 million, an increase of 38% year-over-year. Professional services and other revenue was $16.8 million, an increase of 38% year-over-year.
- Billings were $366.9 million, an increase of 40% year-over-year.
- GAAP gross margin was 75%, compared to 74% in the same period last year. Non-GAAP gross margin was 79% compared to 78% in the same period last year.
- GAAP net loss per basic and diluted share was $0.26 on 181 million shares outstanding compared to $0.40 on 167 million shares outstanding in the same period last year.
- Non-GAAP net income per diluted share was $0.12 on 194 million shares outstanding compared to $0.06 on 188 million shares outstanding in the same period last year.
- Net cash provided by operating activities was $45.5 million compared to $34.1 million in the same period last year.
- Free cash flow was $15.5 million compared to $22.8 million in the same period last year.
- Cash, cash equivalents, restricted cash and investments were $896.2 million at the end of the quarter.
Fiscal 2020 Financial Highlights
- Total revenue was $974.0 million, an increase of 39% year-over-year. Subscription revenue was $918.5 million, an increase of 38% year-over-year. Professional services and other revenue was $55.5 million, an increase of 49% year-over-year.
- Billings were $1.1 billion, an increase of 38% year-over-year.
- GAAP gross margin was 75%, compared to 73% in fiscal 2019. Non-GAAP gross margin was 79% compared to 80% in fiscal 2019.
- GAAP net loss per basic and diluted share was $1.18 on 177 million shares outstanding compared to $3.16 on 135 million shares outstanding in fiscal 2019.
- Non-GAAP net income per diluted share was $0.31 on 191 million shares outstanding compared to $0.09 on 159 million shares outstanding in fiscal 2019.
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
- Seal Software acquisition. Reflecting the increasingly important role that artificial intelligence (“AI”) will play in the digital transformation of the agreement process, DocuSign announced its intent to acquire contracts AI and legal analytics pioneer Seal Software for $188 million in cash. This acquisition enables DocuSign to integrate Seal’s AI technology across the entire Agreement Cloud—and therefore deliver greater value to organizations looking to prepare, sign, act-on and manage the agreements that are critical to their business.
- DocuSign Momentum. The company hosted its North American customer conference on March 4, 2020. Given the ongoing developments around the COVID-19 (coronavirus) situation, the company took the proactive step to hold the conference virtually. The company showcased AI-powered capabilities by Seal Software and DocuSign’s internal AI team, as well as other new capabilities for every stage of the agreement process.
- Executive appointments. DocuSign announced Rob Giglio as the company’s new chief marketing officer (CMO). Rob was previously with Adobe, where he helped architect the growth strategy for Adobe’s self-service cloud business and oversaw significant international expansion. As CMO, Rob will own all demand generation, self-service sales, digital, creative, and brand functions for DocuSign.
Outlook
The company currently expects the following guidance:
|
▪ Quarter ending April 30, 2020 (in millions, except percentages): |
|||
|
Total revenue |
$280 |
to |
$284 |
|
Subscription revenue |
$266 |
to |
$270 |
|
Billings |
$279 |
to |
$289 |
|
Non-GAAP gross margin |
78% |
to |
80% |
|
Non-GAAP sales and marketing |
47% |
to |
49% |
|
Non-GAAP research and development |
13% |
to |
15% |
|
Non-GAAP general and administrative |
9% |
to |
11% |
|
Non-GAAP interest and other income (expense) |
$2 |
to |
$3 |
|
Provision for income taxes |
$1.5 |
to |
$2.5 |
|
Non-GAAP diluted weighted-average shares outstanding |
195 |
to |
200 |
|
▪ Fiscal year ending January 31, 2021 (in millions, except percentages): |
|||
|
Total revenue |
$1,272 |
to |
$1,276 |
|
Subscription revenue |
$1,210 |
to |
$1,214 |
|
Billings |
$1,430 |
to |
$1,450 |
|
Non-GAAP gross margin |
78% |
to |
80% |
|
Non-GAAP sales and marketing |
47% |
to |
49% |
|
Non-GAAP research and development |
13% |
to |
15% |
|
Non-GAAP general and administrative |
9% |
to |
11% |
|
Non-GAAP interest and other income (expense) |
$8 |
to |
$12 |
|
Provision for income taxes |
$6 |
to |
$10 |
|
Non-GAAP diluted weighted-average shares outstanding |
195 |
to |
200 |
The company has not reconciled its expectations of non-GAAP financial measures to the corresponding GAAP measures because stock-based compensation expense cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
