DocuSign’s FY2023 total revenue surges to $2.5 billion, driven by strong demand for e-signature products
DocuSign Announces Fourth Quarter and Fiscal Year 2023 Financial Results
SAN FRANCISCO, March 9, 2023 — 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, 2023.
“We finished the year strong, delivering across our key financial metrics and making tangible progress on our strategic priorities. We are reshaping DocuSign to invest in our innovation roadmap and self-service capabilities,” said Allan Thygesen, CEO of DocuSign. “Looking ahead, we aim to drive profitable growth at scale by executing our mission of smarter, easier, and trusted agreements.”
Fourth Quarter Financial Highlights
- Total revenue was $659.6 million, an increase of 14% year-over-year. Subscription revenue was $643.7 million, an increase of 14% year-over-year. Professional services and other revenue was $15.9 million, a decrease of 5% year-over-year.
- Billings were $739.0 million, an increase of 10% year-over-year.
- GAAP gross margin was 79%, compared to 77% in the same period last year. Non-GAAP gross margin was 83% compared to 81% in the same period last year.
- GAAP net income per basic share was $0.02 on 202 million shares outstanding compared to a loss of $0.15 on 199 million shares outstanding in the same period last year.
- GAAP net income per diluted share was $0.02 on 206 million shares outstanding compared to a loss of $0.15 on 199 million shares outstanding in the same period last year.
- Non-GAAP net income per diluted share was $0.65 on 206 million shares outstanding compared to $0.48 on 207 million shares outstanding in the same period last year.
- Net cash provided by operating activities was $137.1 million compared to $87.8 million in the same period last year.
- Free cash flow was $113.0 million compared to $70.3 million in the same period last year.
- Cash, cash equivalents, restricted cash and investments were $1.2 billion at the end of the quarter.
Fiscal 2023 Financial Highlights
- Total revenue was $2.5 billion, an increase of 19% year-over-year. Subscription revenue was $2.4 billion, an increase of 20% year-over-year. Professional services and other revenue was $73.7 million, an increase of 5% year-over-year.
- Billings were $2.7 billion, an increase of 13% year-over-year.
- GAAP gross margin was 79%, compared to 78% in fiscal 2022. Non-GAAP gross margin was 82% for both periods.
- GAAP net loss per basic and diluted share was $0.49 on 201 million shares outstanding compared to $0.36 on 197 million shares outstanding in fiscal 2022.
- Non-GAAP net income per diluted share was $2.03 on 206 million shares outstanding compared to $1.98 on 208 million shares outstanding in fiscal 2022.
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
- Executive Appointments. DocuSign appointed the following new key leaders:
- Robert Chatwani as President & General Manager, Growth. Prior to joining DocuSign, Robert was at Atlassian where he served as Chief Marketing Officer. Prior to Atlassian, Robert served as Chief Revenue & Marketing Officer for social e-commerce platform Spring. He also spent more than a decade at eBay, ending his tenure as CMO of North America.
- Anwar Akram as Chief Operating Officer. Anwar joins DocuSign from Google where he was most recently VP of Operational Effectiveness leading cross-functional initiatives to improve operational productivity. Prior to Google, Anwar also held executive and leadership roles at Microsoft and McKinsey & Company.
- Named Customers’ Choice in 2022 Gartner® Peer Insights™ ‘Voice of the Customer’: Electronic Signature. DocuSign was recognized by customers on Gartner Peer Insights as a Customers’ Choice in the December 2022 Gartner Peer Insights ‘Voice of the Customer’: Electronic Signature. Of the 12 solutions included, DocuSign had the highest number of reviews and is the only e-signature vendor recognized with the Gartner Peer Insights Customers’ Choice distinction for meeting or exceeding both the market average for Overall Experience and User Interest and Adoption.
Outlook
The company currently expects the following guidance:
|
▪ Quarter ending April 30, 2023 (in millions, except percentages): |
||||||||||||
|
Total Revenue |
$639 |
to |
$643 |
|||||||||
|
Subscription revenue |
$625 |
to |
$629 |
|||||||||
|
Billings |
$615 |
to |
$625 |
|||||||||
|
Non-GAAP gross margin |
81 % |
to |
82 % |
|||||||||
|
Non-GAAP operating margin |
21 % |
to |
22 % |
|||||||||
|
Non-GAAP diluted weighted-average shares outstanding |
207 |
to |
212 |
|||||||||
|
▪ Fiscal year ending January 31, 2024 (in millions, except percentages): |
||||||||||||
|
Total revenue |
$2,695 |
to |
$2,707 |
|||||||||
|
Subscription revenue |
$2,633 |
to |
$2,645 |
|||||||||
|
Billings |
$2,705 |
to |
$2,725 |
|||||||||
|
Non-GAAP gross margin |
81 % |
to |
82 % |
|||||||||
|
Non-GAAP operating margin |
21 % |
to |
23 % |
|||||||||
|
Non-GAAP diluted weighted-average shares outstanding |
207 |
to |
212 |
|||||||||
The company has not reconciled its guidance 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 has not been provided.
Webcast Conference Call Information
The company will host a conference call on March 9, 2023 at 1:30 p.m. PT (4:30 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. 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 23, 2023, using the passcode 13736321.
About DocuSign
DocuSign helps organizations connect and automate how they navigate their systems of agreement. 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 1.3 million customers and more than a billion users in over 180 countries use the DocuSign platform to accelerate the process of doing business and simplify people’s lives. For more information, visit http://www.docusign.com.
Copyright 2022. DocuSign, Inc. is the owner of DOCUSIGN® and all its other marks (www.docusign.com/IP).
