SAN FRANCISCO, Sept. 2, 2021 /PRNewswire/ -- DocuSign, Inc.
(NASDAQ: DOCU), which offers the world's #1 eSignature solution as
part of the DocuSign Agreement Cloud, today announced results for
its fiscal quarter ended July 31, 2021.
"I'm proud of how our team has continued to stay in front of the
evolving COVID business environment, helping our over one million
customers and over one billion users move forward. This has driven
strong performance for our business, reflected in our 50%
year-over-year Q2 revenue growth," said Dan
Springer, DocuSign's CEO. "Organizations of all types and
sizes are leveraging the power of the Agreement Cloud to digitize
the most foundational process of doing business—the agreement
process—starting with eSignature. In partnership with our
customers, we are eliminating paper, automating end-to-end
agreement processes, and enabling better experiences in the
anywhere economy."
Second Quarter Financial Highlights
- Total revenue was $511.8
million, an increase of 50% year-over-year. Subscription
revenue was $492.8 million, an
increase of 52% year-over-year. Professional services and other
revenue was $19.1 million, an
increase of 3% year-over-year.
- Billings were $595.4
million, an increase of 47% year-over-year.
- GAAP gross margin was 78% compared to 74% in the same
period last year. Non-GAAP gross margin was 82% compared to 78% in
the same period last year.
- GAAP net loss per basic and diluted share was
$0.13 on 196 million shares
outstanding compared to $0.35 on 185
million shares outstanding in the same period last year.
- Non-GAAP net income per diluted share was $0.47 on 208 million shares outstanding compared
to $0.17 on 203 million shares
outstanding in the same period last year.
- Net cash provided by operating activities was
$177.7 million compared to
$118.1 million in the same period
last year.
- Free cash flow was $161.7
million compared to $99.8
million in the same period last year.
- Cash, cash equivalents, restricted cash and
investments were $887.2 million
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
DocuSign Agreement Cloud 2020 Product Release 2. DocuSign
announced many new product capabilities with highlights in the
following areas:
- DocuSign eSignature: Enhancements to ID Verification,
DocuSign Click (for enabling clickwrap agreements), and DocuSign
Monitor (for monitoring eSignature usage for unauthorized
activity)
- DocuSign CLM: A new connector with SAP Ariba Contract
Workspace, a new Obligation Management feature for tracking
important terms and due dates, and enhanced AI-based search and
reporting within CLM+
- Other Areas: Split Documents for DocuSign Rooms for
Mortgage, and new connectors (with Salesforce and SAP Ariba) for
DocuSign Insight.
Outlook
The company currently expects the following guidance:
•
|
Quarter ending
October 31, 2021 (in millions, except percentages):
|
|
Total
revenue
|
$526
|
to
|
$532
|
|
Subscription
revenue
|
$505
|
to
|
$511
|
|
Billings
|
$585
|
to
|
$597
|
|
Non-GAAP gross
margin
|
79%
|
to
|
81%
|
|
Non-GAAP operating
margin
|
17%
|
to
|
19%
|
|
Non-GAAP diluted
weighted-average shares outstanding
|
205
|
to
|
210
|
|
|
|
|
|
|
|
|
|
|
•
|
Year ending
January 31, 2022 (in millions, except percentages):
|
|
Total
revenue
|
$2,078
|
to
|
$2,088
|
|
Subscription
revenue
|
$1,995
|
to
|
$2,005
|
|
Billings
|
$2,409
|
to
|
$2,429
|
|
Non-GAAP gross
margin
|
79%
|
to
|
81%
|
|
Non-GAAP operating
margin
|
16%
|
to
|
18%
|
|
Provision for income
taxes
|
$6
|
to
|
$9
|
|
Non-GAAP diluted
weighted-average shares outstanding
|
205
|
to
|
210
|
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 September 2,
2021 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) September 16, 2021 using the
passcode 13722420.
About DocuSign
DocuSign helps organizations connect and automate how they
prepare, sign, act on, and manage agreements. As part of the
DocuSign Agreement Cloud, DocuSign offers eSignature, the world's
#1 way to sign electronically on practically any device, from
almost anywhere, at any time. Today, over a million customers and
more than a billion users in over 180 countries use the DocuSign
Agreement Cloud to accelerate the process of doing business and
simplify people's lives.
For more information, visit www.docusign.com, call
+1-877-720-2040, or follow @DocuSign on Twitter, LinkedIn, Facebook
and Instagram.
Copyright 2021. DocuSign, Inc. is the owner of DOCUSIGN® and all
its other marks (www.docusign.com/IP).
Investor Relations:
Annie
Leschin
VP Investor Relations
investors@docusign.com
Media Relations:
Adrian
Wainwright
Head of Communications
media@docusign.com
Forward-Looking Statements
This press release contains "forward-looking" statements that
are based on our management's beliefs and assumptions and on
information currently available to management. Forward-looking
statements include all statements that are not historical facts and
can be identified by terms such as "may," "will," "should,"
"expects," "plans," "anticipates," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts,"
"potential," or "continue" or the negative of these words or other
similar terms or expressions that concern our expectations,
strategy, plans or intentions. Forward-looking statements in this
press release include, among other things, statements under
"Outlook" above and any other statements about expected financial
metrics, such as revenue, billings, non-GAAP gross margin, non-GAAP
diluted weighted-average shares outstanding, and non-financial
metrics, such as customer growth, as well as statements related to
our expectations regarding the benefits of the DocuSign Agreement
Cloud, enhancements and additions to it, including as a result of
acquisitions. They also include statements about our future
operating results and financial position, our business strategy and
plans, market growth and trends, and our objectives for future
operations. These statements are subject to substantial risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements.
These risks and uncertainties include, among other things, risks
related to our expectations regarding the impact of the evolving
COVID-19 pandemic on our business, our results of operations and
our financial condition, as well as our future profitability and
growth once the pandemic and its related effects begin to abate or
have abated; our expectations regarding the impact of the evolving
COVID-19 pandemic on the businesses of our customers, partners and
suppliers, and the economy, as well as the macro-and micro-effects
of the pandemic, including the pace of the digital transformation
of business and differing levels of demand for our products as our
customers' priorities, resources, financial conditions and economic
outlook change; our ability to estimate the size of our total
addressable market; our ability to effectively sustain and manage
our growth and future expenses, achieve and maintain future
profitability, attract new customers and maintain and expand our
existing customer base; our ability to scale and update our
platform to respond to customers' needs and rapid technological
change; the effects of increased competition in our market and our
ability to compete effectively; our ability to expand use cases
within existing customers and vertical solutions; our ability to
expand our operations and increase adoption of our platform
internationally; our ability to strengthen and foster our
relationships with developers; our ability to expand our direct
sales force, customer success team and strategic partnerships
around the world; our ability to identify targets for and execute
potential acquisitions; our ability to successfully integrate the
operations of businesses we may acquire, and to realize the
anticipated benefits of such acquisitions; our ability to maintain,
protect and enhance our brand; the sufficiency of our cash, cash
equivalents and capital resources to satisfy our liquidity needs;
limitations on us due to obligations we have under our credit
facility or other indebtedness; our failure or the failure of our
software to comply with applicable industry standards, laws and
regulations; our ability to maintain, protect and enhance our
intellectual property; our ability to successfully defend
litigation against us; our ability to attract large organizations
as users; our ability to maintain our corporate culture; our
ability to offer high-quality customer support; our ability to
hire, retain and motivate qualified personnel; our ability to
estimate the size and potential growth of our target market; and
our ability to maintain proper and effective internal controls.
Additional risks and uncertainties that could affect our financial
results are included in the sections titled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our annual report on Form 10-K for the
fiscal year ended January 31, 2021 filed on March 31, 2021, our quarterly report on Form 10-Q
for the quarter ended April 30, 2021
filed on June 4, 2021 with the
Securities and Exchange Commission (the "SEC"), and other filings
that we make from time to time with the SEC. In addition, any
forward-looking statements contained in this press release are
based on assumptions that we believe to be reasonable as of this
date. Except as required by law, we assume no obligation to update
these forward-looking statements, or to update the reasons if
actual results differ materially from those anticipated in the
forward-looking statements.
Non-GAAP Financial Measures and Other Key Metrics
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use certain
non-GAAP financial measures, as described below, to understand and
evaluate our core operating performance. These non-GAAP financial
measures, which may be different than similarly-titled measures
used by other companies, are presented to enhance investors'
overall understanding of our financial performance and should not
be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects, and
allow for greater transparency with respect to important metrics
used by our management for financial and operational
decision-making. We are presenting these non-GAAP measures to
assist investors in seeing our financial performance using a
management view, and because we believe that these measures provide
an additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in
our industry.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP income from operations, non-GAAP
operating margin, non-GAAP net income and non-GAAP net income per
share: We define these non-GAAP financial measures as the
respective GAAP measures, excluding expenses related to stock-based
compensation, employer payroll tax on employee stock transactions,
amortization of acquisition-related intangibles, amortization of
debt discount and issuance costs, acquisition-related expenses,
fair value adjustments to strategic investments, impairment of
operating lease right-of-use assets, and, as applicable, other
special items. The amount of employer payroll tax-related items on
employee stock transactions is dependent on our stock price and
other factors that are beyond our control and do not correlate to
the operation of the business. When evaluating the performance of
our business and making operating plans, we do not consider these
items (for example, when considering the impact of equity award
grants, we place a greater emphasis on overall stockholder dilution
rather than the accounting charges associated with such grants). We
believe it is useful to exclude these expenses in order to better
understand the long-term performance of our core business and to
facilitate comparison of our results to those of peer companies and
over multiple periods.
Free cash flow: We define free cash flow as net
cash provided by (used in) operating activities less purchases
of property and equipment. We believe free cash flow is an
important liquidity measure of the cash (if any) that is available,
after purchases of property and equipment, for operational
expenses, investment in our business, and to make acquisitions.
Free cash flow is useful to investors as a liquidity measure
because it measures our ability to generate or use cash in excess
of our capital investments in property and equipment. Once our
business needs and obligations are met, cash can be used to
maintain a strong balance sheet and invest in future growth.
Billings: We define billings as total revenues plus the
change in our contract liabilities and refund liability less
contract assets and unbilled accounts receivable in a given period.
Billings reflects sales to new customers plus subscription renewals
and additional sales to existing customers. Only amounts invoiced
to a customer in a given period are included in billings. We
believe billings is a key metric to measure our periodic
performance. Given that most of our customers pay in annual
installments one year in advance, but we typically recognize a
majority of the related revenue ratably over time, we use billings
to measure and monitor our ability to provide our business with the
working capital generated by upfront payments from our
customers.
For a reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measure, please see
"Reconciliation of GAAP to Non-GAAP Financial Measures" below.
DOCUSIGN,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended July
31,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
|
492,758
|
|
|
$
|
323,643
|
|
|
$
|
944,693
|
|
|
$
|
604,565
|
|
Professional services
and other
|
19,086
|
|
|
18,566
|
|
|
36,230
|
|
|
34,661
|
|
Total
revenue
|
511,844
|
|
|
342,209
|
|
|
980,923
|
|
|
639,226
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Subscription
|
84,455
|
|
|
64,730
|
|
|
162,526
|
|
|
116,740
|
|
Professional services
and other
|
29,325
|
|
|
25,885
|
|
|
56,497
|
|
|
47,907
|
|
Total cost of
revenue
|
113,780
|
|
|
90,615
|
|
|
219,023
|
|
|
164,647
|
|
Gross
profit
|
398,064
|
|
|
251,594
|
|
|
761,900
|
|
|
474,579
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing
|
262,372
|
|
|
194,992
|
|
|
501,491
|
|
|
366,785
|
|
Research and
development
|
94,651
|
|
|
63,791
|
|
|
180,067
|
|
|
118,025
|
|
General and
administrative
|
63,652
|
|
|
51,446
|
|
|
113,690
|
|
|
90,257
|
|
Total operating
expenses
|
420,675
|
|
|
310,229
|
|
|
795,248
|
|
|
575,067
|
|
Loss from
operations
|
(22,611)
|
|
|
(58,635)
|
|
|
(33,348)
|
|
|
(100,488)
|
|
Interest
expense
|
(1,669)
|
|
|
(7,684)
|
|
|
(3,341)
|
|
|
(15,244)
|
|
Interest income and
other income (expense), net
|
(1,063)
|
|
|
2,601
|
|
|
4,974
|
|
|
6,343
|
|
Loss before
provision for income taxes
|
(25,343)
|
|
|
(63,718)
|
|
|
(31,715)
|
|
|
(109,389)
|
|
Provision for income
taxes
|
158
|
|
|
842
|
|
|
2,140
|
|
|
2,975
|
|
Net
loss
|
$
|
(25,501)
|
|
|
$
|
(64,560)
|
|
|
$
|
(33,855)
|
|
|
$
|
(112,364)
|
|
Net loss per share
attributable to common stockholders, basic and
diluted
|
$
|
(0.13)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
195,996
|
|
|
184,862
|
|
|
195,183
|
|
|
183,930
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense included in costs and expenses
|
|
|
|
|
|
|
|
Cost of
revenue—subscription
|
$
|
7,539
|
|
|
$
|
5,014
|
|
|
$
|
13,557
|
|
|
$
|
8,878
|
|
Cost of
revenue—professional services and other
|
6,446
|
|
|
5,225
|
|
|
11,980
|
|
|
9,350
|
|
Sales and
marketing
|
46,921
|
|
|
32,305
|
|
|
85,057
|
|
|
56,970
|
|
Research and
development
|
26,275
|
|
|
14,781
|
|
|
46,737
|
|
|
26,666
|
|
General and
administrative
|
12,778
|
|
|
11,442
|
|
|
23,764
|
|
|
20,454
|
|
DOCUSIGN,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
(in
thousands)
|
July 31,
2021
|
|
January 31,
2021
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
518,577
|
|
|
$
|
566,055
|
|
Investments—current
|
304,292
|
|
|
207,450
|
|
Accounts receivable,
net
|
284,730
|
|
|
323,570
|
|
Contract
assets—current
|
13,993
|
|
|
16,883
|
|
Prepaid expenses and
other current assets
|
61,197
|
|
|
48,390
|
|
Total current
assets
|
1,182,789
|
|
|
1,162,348
|
|
Investments—noncurrent
|
64,088
|
|
|
92,717
|
|
Property and
equipment, net
|
173,983
|
|
|
165,039
|
|
Operating lease
right-of-use assets
|
140,589
|
|
|
159,352
|
|
Goodwill
|
355,595
|
|
|
350,151
|
|
Intangible assets,
net
|
110,327
|
|
|
121,828
|
|
Deferred contract
acquisition costs—noncurrent
|
289,636
|
|
|
260,130
|
|
Other
assets—noncurrent
|
38,680
|
|
|
24,942
|
|
Total
assets
|
$
|
2,355,687
|
|
|
$
|
2,336,507
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
33,612
|
|
|
$
|
37,367
|
|
Accrued expenses and
other current liabilities
|
81,817
|
|
|
66,566
|
|
Accrued
compensation
|
142,599
|
|
|
156,158
|
|
Convertible senior
notes—current
|
2,032
|
|
|
20,469
|
|
Contract
liabilities—current
|
914,619
|
|
|
779,642
|
|
Operating lease
liabilities—current
|
34,951
|
|
|
32,971
|
|
Total current
liabilities
|
1,209,630
|
|
|
1,093,173
|
|
Convertible senior
notes, net—noncurrent
|
730,272
|
|
|
693,219
|
|
Contract
liabilities—noncurrent
|
18,138
|
|
|
16,492
|
|
Operating lease
liabilities—noncurrent
|
146,025
|
|
|
165,704
|
|
Deferred tax
liability—noncurrent
|
6,424
|
|
|
6,464
|
|
Other
liabilities—noncurrent
|
33,322
|
|
|
32,328
|
|
Total
liabilities
|
2,143,811
|
|
|
2,007,380
|
|
Convertible senior
notes
|
—
|
|
|
3,390
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
20
|
|
|
19
|
|
Treasury
stock
|
(1,219)
|
|
|
(1,048)
|
|
Additional paid-in
capital
|
1,611,897
|
|
|
1,702,254
|
|
Accumulated other
comprehensive income
|
3,246
|
|
|
4,964
|
|
Accumulated
deficit
|
(1,402,068)
|
|
|
(1,380,452)
|
|
Total stockholders'
equity
|
211,876
|
|
|
325,737
|
|
Total liabilities
and equity
|
$
|
2,355,687
|
|
|
$
|
2,336,507
|
|
DOCUSIGN,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(25,501)
|
|
|
$
|
(64,560)
|
|
|
$
|
(33,855)
|
|
|
$
|
(112,364)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
20,960
|
|
|
17,937
|
|
|
40,997
|
|
|
31,976
|
|
Amortization of
deferred contract acquisition and fulfillment costs
|
32,543
|
|
|
23,834
|
|
|
63,476
|
|
|
45,194
|
|
Amortization of debt
discount and transaction costs
|
1,274
|
|
|
6,942
|
|
|
2,593
|
|
|
13,784
|
|
Fair value adjustments
to strategic investments
|
—
|
|
|
—
|
|
|
(5,119)
|
|
|
—
|
|
Impairment of
operating lease right-of-use assets
|
3,892
|
|
|
—
|
|
|
3,892
|
|
|
—
|
|
Non-cash operating
lease costs
|
6,706
|
|
|
6,795
|
|
|
13,649
|
|
|
13,119
|
|
Stock-based
compensation expense
|
99,458
|
|
|
68,767
|
|
|
181,095
|
|
|
122,318
|
|
Non-cash charitable
donation
|
3,000
|
|
|
—
|
|
|
3,000
|
|
|
—
|
|
Deferred income
taxes
|
(1,514)
|
|
|
(180)
|
|
|
(1,250)
|
|
|
(284)
|
|
Other
|
1,906
|
|
|
(997)
|
|
|
666
|
|
|
(493)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(34,365)
|
|
|
7,915
|
|
|
38,840
|
|
|
25,154
|
|
Contract
assets
|
1,213
|
|
|
2,310
|
|
|
2,820
|
|
|
1,570
|
|
Prepaid expenses and
other current assets
|
5,303
|
|
|
4,272
|
|
|
(10,367)
|
|
|
(5,388)
|
|
Deferred contract
acquisition and fulfillment costs
|
(49,264)
|
|
|
(51,377)
|
|
|
(95,418)
|
|
|
(92,414)
|
|
Other
assets
|
(3,509)
|
|
|
(4,768)
|
|
|
(6,676)
|
|
|
(6,132)
|
|
Accounts
payable
|
12,150
|
|
|
8,829
|
|
|
(9,443)
|
|
|
6,275
|
|
Accrued expenses and
other liabilities
|
5,942
|
|
|
12,626
|
|
|
17,022
|
|
|
11,710
|
|
Accrued
compensation
|
21,001
|
|
|
24,401
|
|
|
(13,047)
|
|
|
22,865
|
|
Contract
liabilities
|
84,976
|
|
|
62,892
|
|
|
136,624
|
|
|
107,486
|
|
Operating lease
liabilities
|
(8,502)
|
|
|
(7,504)
|
|
|
(16,233)
|
|
|
(7,098)
|
|
Net cash provided by
operating activities
|
177,669
|
|
|
118,134
|
|
|
313,266
|
|
|
177,278
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Cash paid for
acquisition, net of acquired cash
|
(6,388)
|
|
|
(180,370)
|
|
|
(6,388)
|
|
|
(180,370)
|
|
Purchases of
marketable securities
|
(88,703)
|
|
|
(11,667)
|
|
|
(185,628)
|
|
|
(11,667)
|
|
Sales of marketable
securities
|
1,000
|
|
|
—
|
|
|
3,002
|
|
|
28,986
|
|
Maturities of
marketable securities
|
75,658
|
|
|
131,345
|
|
|
113,171
|
|
|
301,416
|
|
Purchases of
strategic and other investments
|
—
|
|
|
(241)
|
|
|
(500)
|
|
|
(3,241)
|
|
Purchases of property
and equipment
|
(15,938)
|
|
|
(18,362)
|
|
|
(28,534)
|
|
|
(44,751)
|
|
Net cash (used in)
provided by investing activities
|
(34,371)
|
|
|
(79,295)
|
|
|
(104,877)
|
|
|
90,373
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Repayments of
convertible senior notes
|
(25,030)
|
|
|
—
|
|
|
(61,714)
|
|
|
—
|
|
Payment of tax
withholding obligation on net share settlement of restricted stock
units
|
(122,522)
|
|
|
(87,137)
|
|
|
(228,575)
|
|
|
(133,860)
|
|
Proceeds from
exercise of stock options
|
5,202
|
|
|
5,403
|
|
|
11,818
|
|
|
13,038
|
|
Proceeds from
employee stock purchase plan
|
—
|
|
|
—
|
|
|
23,167
|
|
|
13,590
|
|
Net cash used in
financing activities
|
(142,350)
|
|
|
(81,734)
|
|
|
(255,304)
|
|
|
(107,232)
|
|
Effect of foreign
exchange on cash, cash equivalents and restricted cash
|
(1,342)
|
|
|
4,920
|
|
|
(564)
|
|
|
2,640
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(394)
|
|
|
(37,975)
|
|
|
(47,479)
|
|
|
163,059
|
|
Cash, cash
equivalents and restricted cash at beginning of period
(1)
|
519,252
|
|
|
442,517
|
|
|
566,337
|
|
|
241,483
|
|
Cash, cash
equivalents and restricted cash at end of period
(1)
|
$
|
518,858
|
|
|
$
|
404,542
|
|
|
$
|
518,858
|
|
|
$
|
404,542
|
|
|
(1) $0.3 million of
restricted cash was included in Prepaid expenses and other current
assets at July 31, 2021 and in Other assets—noncurrent at
April 30, 2021 and January 31, 2021.
|
DOCUSIGN,
INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
Reconciliation of
gross profit and gross margin:
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP gross
profit
|
$
|
398,064
|
|
$
|
251,594
|
|
$
|
761,900
|
|
$
|
474,579
|
Add: Stock-based
compensation
|
13,985
|
|
10,239
|
|
25,537
|
|
18,228
|
Add: Amortization of
acquisition-related intangibles
|
3,328
|
|
3,132
|
|
6,500
|
|
4,480
|
Add: Employer payroll
tax on employee stock transactions
|
2,121
|
|
1,738
|
|
4,895
|
|
2,774
|
Non-GAAP gross
profit
|
$
|
417,498
|
|
$
|
266,703
|
|
$
|
798,832
|
|
$
|
500,061
|
GAAP gross
margin
|
78
|
%
|
|
74
|
%
|
|
78
|
%
|
|
74
|
%
|
Non-GAAP
adjustments
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
Non-GAAP gross
margin
|
82
|
%
|
|
78
|
%
|
|
81
|
%
|
|
78
|
%
|
|
|
|
|
|
|
|
|
GAAP subscription
gross profit
|
$
|
408,303
|
|
$
|
258,913
|
|
$
|
782,167
|
|
$
|
487,825
|
Add: Stock-based
compensation
|
7,539
|
|
5,014
|
|
13,557
|
|
8,878
|
Add: Amortization of
acquisition-related intangibles
|
3,328
|
|
3,132
|
|
6,500
|
|
4,480
|
Add: Employer payroll
tax on employee stock transactions
|
971
|
|
926
|
|
2,413
|
|
1,461
|
Non-GAAP subscription
gross profit
|
$
|
420,141
|
|
$
|
267,985
|
|
$
|
804,637
|
|
$
|
502,644
|
GAAP subscription
gross margin
|
83
|
%
|
|
80
|
%
|
|
83
|
%
|
|
81
|
%
|
Non-GAAP
adjustments
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
Non-GAAP subscription
gross margin
|
85
|
%
|
|
83
|
%
|
|
85
|
%
|
|
83
|
%
|
|
|
|
|
|
|
|
|
GAAP professional
services and other gross loss
|
$
|
(10,239)
|
|
$
|
(7,319)
|
|
$
|
(20,267)
|
|
$
|
(13,246)
|
Add: Stock-based
compensation
|
6,446
|
|
5,225
|
|
11,980
|
|
9,350
|
Add: Employer payroll
tax on employee stock transactions
|
1,150
|
|
812
|
|
2,482
|
|
1,313
|
Non-GAAP professional
services and other gross loss
|
$
|
(2,643)
|
|
$
|
(1,282)
|
|
$
|
(5,805)
|
|
$
|
(2,583)
|
GAAP professional
services and other gross margin
|
(54)
|
%
|
|
(39)
|
%
|
|
(56)
|
%
|
|
(38)
|
%
|
Non-GAAP
adjustments
|
40
|
%
|
|
32
|
%
|
|
40
|
%
|
|
31
|
%
|
Non-GAAP professional
services and other gross margin
|
(14)
|
%
|
|
(7)
|
%
|
|
(16)
|
%
|
|
(7)
|
%
|
|
|
Reconciliation of
operating expenses:
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP sales and
marketing
|
$
|
262,372
|
|
|
$
|
194,992
|
|
|
$
|
501,491
|
|
|
$
|
366,785
|
|
Less: Stock-based
compensation
|
(46,921)
|
|
|
(32,305)
|
|
|
(85,057)
|
|
|
(56,970)
|
|
Less: Amortization of
acquisition-related intangibles
|
(3,333)
|
|
|
(4,284)
|
|
|
(6,691)
|
|
|
(7,195)
|
|
Less: Employer payroll
tax on employee stock transactions
|
(5,706)
|
|
|
(3,958)
|
|
|
(12,484)
|
|
|
(6,867)
|
|
Less:
Acquisition-related expenses
|
—
|
|
|
(186)
|
|
|
—
|
|
|
(186)
|
|
Non-GAAP sales and
marketing
|
$
|
206,412
|
|
|
$
|
154,259
|
|
|
$
|
397,259
|
|
|
$
|
295,567
|
|
GAAP sales and
marketing as a percentage of revenue
|
51
|
%
|
|
57
|
%
|
|
51
|
%
|
|
57
|
%
|
Non-GAAP sales and
marketing as a percentage of revenue
|
40
|
%
|
|
45
|
%
|
|
40
|
%
|
|
46
|
%
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
94,651
|
|
|
$
|
63,791
|
|
|
$
|
180,067
|
|
|
$
|
118,025
|
|
Less: Stock-based
compensation
|
(26,275)
|
|
|
(14,781)
|
|
|
(46,737)
|
|
|
(26,666)
|
|
Less: Employer payroll
tax on employee stock transactions
|
(2,752)
|
|
|
(2,019)
|
|
|
(6,928)
|
|
|
(3,565)
|
|
Non-GAAP research and
development
|
$
|
65,624
|
|
|
$
|
46,991
|
|
|
$
|
126,402
|
|
|
$
|
87,794
|
|
GAAP research and
development as a percentage of revenue
|
18
|
%
|
|
19
|
%
|
|
18
|
%
|
|
18
|
%
|
Non-GAAP research and
development as a percentage of revenue
|
13
|
%
|
|
14
|
%
|
|
13
|
%
|
|
14
|
%
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
63,652
|
|
|
$
|
51,446
|
|
|
$
|
113,690
|
|
|
$
|
90,257
|
|
Less: Stock-based
compensation
|
(12,778)
|
|
|
(11,442)
|
|
|
(23,764)
|
|
|
(20,454)
|
|
Less: Employer payroll
tax on employee stock transactions
|
(1,006)
|
|
|
(1,544)
|
|
|
(3,561)
|
|
|
(2,601)
|
|
Less:
Acquisition-related expenses
|
(221)
|
|
|
(6,746)
|
|
|
(387)
|
|
|
(7,440)
|
|
Less: Impairment of
operating lease right-of-use assets
|
(3,892)
|
|
|
—
|
|
|
(3,892)
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
45,755
|
|
|
$
|
31,714
|
|
|
$
|
82,086
|
|
|
$
|
59,762
|
|
GAAP general and
administrative as a percentage of revenue
|
13
|
%
|
|
15
|
%
|
|
12
|
%
|
|
15
|
%
|
Non-GAAP general and
administrative as a percentage of revenue
|
9
|
%
|
|
9
|
%
|
|
8
|
%
|
|
9
|
%
|
|
|
Reconciliation of
income (loss) from operations and operating margin:
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP loss from
operations
|
$
|
(22,611)
|
|
|
$
|
(58,635)
|
|
|
$
|
(33,348)
|
|
|
$
|
(100,488)
|
|
Add: Stock-based
compensation
|
99,959
|
|
|
68,767
|
|
|
181,095
|
|
|
122,318
|
|
Add: Amortization of
acquisition-related intangibles
|
6,661
|
|
|
7,416
|
|
|
13,191
|
|
|
11,675
|
|
Add: Employer payroll
tax on employee stock transactions
|
11,585
|
|
|
9,259
|
|
|
27,868
|
|
|
15,807
|
|
Add:
Acquisition-related expenses
|
221
|
|
|
6,932
|
|
|
387
|
|
|
7,626
|
|
Add: Impairment of
operating lease right-of-use assets
|
3,892
|
|
|
—
|
|
|
3,892
|
|
|
—
|
|
Non-GAAP income from
operations
|
$
|
99,707
|
|
|
$
|
33,739
|
|
|
$
|
193,085
|
|
|
$
|
56,938
|
|
GAAP operating
margin
|
(4)
|
%
|
|
(17)
|
%
|
|
(3)
|
%
|
|
(16)
|
%
|
Non-GAAP
adjustments
|
23
|
%
|
|
27
|
%
|
|
23
|
%
|
|
25
|
%
|
Non-GAAP operating
margin
|
19
|
%
|
|
10
|
%
|
|
20
|
%
|
|
9
|
%
|
|
|
Reconciliation of
net income (loss) and net income (loss) per share, basic and
diluted:
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net
loss
|
$
|
(25,501)
|
|
|
$
|
(64,560)
|
|
|
$
|
(33,855)
|
|
|
$
|
(112,364)
|
|
Add: Stock-based
compensation
|
99,959
|
|
|
68,767
|
|
|
181,095
|
|
|
122,318
|
|
Add: Amortization of
acquisition-related intangibles
|
6,661
|
|
|
7,416
|
|
|
13,191
|
|
|
11,675
|
|
Add: Employer payroll
tax on employee stock transactions
|
11,585
|
|
|
9,259
|
|
|
27,868
|
|
|
15,807
|
|
Add: Amortization of
debt discount and issuance costs
|
1,274
|
|
|
6,942
|
|
|
2,593
|
|
|
13,784
|
|
Less: Fair value
adjustments to strategic investments
|
(151)
|
|
|
—
|
|
|
(5,270)
|
|
|
—
|
|
Add:
Acquisition-related expenses
|
221
|
|
|
6,932
|
|
|
387
|
|
|
7,626
|
|
Add: Impairment of
operating lease right-of-use assets
|
3,892
|
|
|
—
|
|
|
3,892
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
97,940
|
|
|
$
|
34,756
|
|
|
$
|
189,901
|
|
|
$
|
58,846
|
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
97,940
|
|
|
$
|
34,756
|
|
|
$
|
189,901
|
|
|
$
|
58,846
|
|
Add: Interest expense
on convertible senior notes
|
61
|
|
|
—
|
|
|
97
|
|
|
—
|
|
Non-GAAP net income
attributable to common stockholders, diluted
|
$
|
98,001
|
|
|
$
|
34,756
|
|
|
$
|
189,998
|
|
|
$
|
58,846
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding, basic
|
195,996
|
|
|
184,862
|
|
|
195,183
|
|
|
183,930
|
|
Effect of dilutive
securities
|
12,154
|
|
|
18,547
|
|
|
12,811
|
|
|
16,247
|
|
Non-GAAP
weighted-average common shares outstanding, diluted
|
208,150
|
|
|
203,409
|
|
|
207,994
|
|
|
200,177
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
share, basic and diluted
|
$
|
(0.13)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
Non-GAAP net income
per share, basic
|
0.50
|
|
|
0.19
|
|
|
0.97
|
|
|
0.32
|
|
Non-GAAP net income
per share, diluted
|
0.47
|
|
|
0.17
|
|
|
0.91
|
|
|
0.29
|
|
|
|
Computation of
free cash flow:
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
$
|
177,669
|
|
|
$
|
118,134
|
|
|
$
|
313,266
|
|
|
$
|
177,278
|
|
Less: Purchases of
property and equipment
|
(15,938)
|
|
|
(18,362)
|
|
|
(28,534)
|
|
|
(44,751)
|
|
Non-GAAP free cash
flow
|
$
|
161,731
|
|
|
$
|
99,772
|
|
|
$
|
284,732
|
|
|
$
|
132,527
|
|
Net cash (used in)
provided by investing activities
|
$
|
(34,371)
|
|
|
$
|
(79,295)
|
|
|
$
|
(104,877)
|
|
|
$
|
90,373
|
|
Net cash used in
financing activities
|
$
|
(142,350)
|
|
|
$
|
(81,734)
|
|
|
$
|
(255,304)
|
|
|
$
|
(107,232)
|
|
|
|
Computation of
billings:
|
|
Three Months
Ended
July 31,
|
|
Six Months
Ended
July 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
|
511,844
|
|
|
$
|
342,209
|
|
|
$
|
980,923
|
|
|
$
|
639,226
|
|
Add: Contract
liabilities and refund liability, end of period
|
939,826
|
|
|
638,790
|
|
|
939,826
|
|
|
638,790
|
|
Less: Contract
liabilities and refund liability, beginning of period
|
(857,969)
|
|
|
(568,544)
|
|
|
(800,940)
|
|
|
(522,201)
|
|
Add: Contract assets
and unbilled accounts receivable, beginning of period
|
19,737
|
|
|
16,390
|
|
|
21,021
|
|
|
15,082
|
|
Less: Contract assets
and unbilled accounts receivable, end of period
|
(18,067)
|
|
|
(20,395)
|
|
|
(18,067)
|
|
|
(20,395)
|
|
Add: Contract assets
and unbilled accounts receivable by acquisitions
|
—
|
|
|
6,589
|
|
|
—
|
|
|
6,589
|
|
Less: Contract
liabilities and refund liability contributed by
acquisitions
|
—
|
|
|
(9,344)
|
|
|
—
|
|
|
(9,344)
|
|
Non-GAAP
billings
|
$
|
595,371
|
|
|
$
|
405,695
|
|
|
$
|
1,122,763
|
|
|
$
|
747,747
|
|
View original
content:https://www.prnewswire.com/news-releases/docusign-announces-second-quarter-fiscal-2022-financial-results-301368681.html
SOURCE DocuSign, Inc.