DocuSign Announces Fourth Quarter and Fiscal Year 2020 Financial Results
SAN FRANCISCO, March 12, 2020 /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 fourth quarter and fiscal year ended.
"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."
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.
Webcast Conference Call Information
The company will host a conference call on March 12, 2020 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 26, 2020, using the passcode 13699284.
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, more than half a million customers and hundreds of millions of users in over 180 countries use DocuSign to accelerate the process of doing business and to 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 2020. 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 and enhancements to it, additions to the Agreement Cloud suite of products, and the anticipated benefits of the acquisition of Seal Software. 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 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 relationship 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, or to realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash and cash equivalents to satisfy our liquidity needs; our failure or the failure of our software suite of services 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; 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 quarterly report on Form 10-Q for the quarter ended October 31, 2019 filed on December 6, 2019 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 (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) 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 from our convertible senior notes issued in September 2018, 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 flows: 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 January 31, Year Ended January 31,
(in thousands, except per
share data) 2020 2019 2020 2019
Revenue:
Subscription $
258,122 $
187,572 $
918,463 $
663,657
Professional services and
other 16,773 12,160 55,508 37,312
Total revenue 274,895 199,732 973,971 700,969
Cost of revenue:
Subscription 48,162 33,560 163,931 117,764
Professional services and
other 19,913 19,133 79,303 74,657
Total cost of revenue 68,075 52,693 243,234 192,421
Gross profit 206,820 147,039 730,737 508,548
Operating expenses:
Sales and marketing 161,326 127,691 591,379 539,606
Research and development 52,094 42,921 185,552 185,968
General and administrative 35,753 39,055 147,315 209,297
Total operating expenses 249,173 209,667 924,246 934,871
Loss from operations (42,353) (62,628) (193,509) (426,323)
Interest expense (7,461) (7,101) (29,254) (10,844)
Interest income and other
income, net 3,658 4,794 19,207 8,959
Loss before provision for
(benefit from) income taxes (46,156) (64,935) (203,556) (428,208)
Provision for (benefit from)
income taxes 1,251 1,309 4,803 (1,750)
Net loss $
(47,407) $
(66,244) $
(208,359) $
(426,458)
Net loss per share
attributable to common
stockholders, basic and
diluted $
(0.26) $
(0.40) $
(1.18) $
(3.16)
Weighted-average number of
shares used in computing
net loss per share
attributable to common
stockholders, basic and
diluted 180,859 167,269 176,704 135,163
Stock-based compensation expense included in
costs and expenses:
Cost of revenue-
subscription $
3,951 $
2,241 $
12,882 $
16,182
Cost of revenue-
professional services and
other 3,826 3,413 15,703 25,858
Sales and marketing 26,170 20,505 94,863 172,115
Research and development 12,252 9,562 43,211 74,108
General and administrative 9,406 13,550 39,745 122,715
DOCUSIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per
share data) January 31, 2020 January 31, 2019
---
Assets
Current assets
Cash and cash equivalents $
241,203 $
517,811
Investments-current 414,939 251,203
Restricted cash 280 367
Accounts receivable 237,841 174,548
Contract assets-current 12,502 10,616
Prepaid expenses and other current
assets 37,125 29,976
Total current assets 943,890 984,521
Investments-noncurrent 239,729 164,220
Property and equipment, net 128,293 75,832
Operating lease right-of-use
assets 149,833
Goodwill 194,882 195,225
Intangible assets, net 56,500 74,203
Deferred contract acquisition
costs-noncurrent 153,333 112,583
Other assets-noncurrent 24,678 8,833
Total assets $
1,891,138 $
1,615,417
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $
28,144 $
19,590
Accrued expenses and other current
liabilities 54,344 35,658
Accrued compensation 83,189 77,553
Contract liabilities-current 507,560 381,060
Operating lease liabilities-
current 20,728
Deferred rent-current - 2,452
Total current liabilities 693,965 516,313
Convertible senior notes, net 465,321 438,932
Contract liabilities-noncurrent 11,478 7,712
Operating lease liabilities-
noncurrent 162,432
Deferred rent-noncurrent - 24,195
Deferred tax liability-noncurrent 4,920 4,207
Other liabilities-noncurrent 6,695 9,696
Total liabilities 1,344,811 1,001,055
Stockholders' equity
Common stock 18 17
Additional paid-in capital 1,685,167 1,545,088
Accumulated other comprehensive
loss (1,673) (1,965)
Accumulated deficit (1,137,185) (928,778)
Total stockholders' equity 546,327 614,362
Total liabilities and stockholders'
equity $
1,891,138 $
1,615,417
DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended January 31, Year Ended January 31,
(in thousands) 2020 2019 2020 2019
Cash flows from operating activities:
Net loss $
(47,407) $
(66,244) $
(208,359) $
(426,458)
Adjustments to reconcile net loss to net cash
used in operating activities
Depreciation and amortization 13,266 12,003 50,182 38,027
Amortization of deferred
contract acquisition and
fulfillment costs 20,387 12,223 69,747 42,112
Amortization of debt discount
and transaction costs 6,742 6,360 26,389 9,507
Non-cash operating lease
costs 5,592 19,435
Stock-based compensation
expense 55,605 49,271 206,404 410,978
Deferred income taxes 1,245 2,346 1,287 (5,001)
Other 401 2,879 (1,741) 800
Changes in operating assets and liabilities
Accounts receivable (78,377) (43,937) (63,293) (42,571)
Contract assets 5,715 1,430 (1,508) 4,204
Prepaid expenses and other
current assets (1,106) (900) (3,142) (3,283)
Deferred contract acquisition
and fulfillment costs (37,923) (28,324) (115,723) (80,869)
Other assets 612 656 1,538 2,658
Accounts payable 1,543 (1,390) 3,849 (7,380)
Accrued expenses and other
liabilities 4,662 (1,122) 9,353 6,449
Accrued compensation 12,329 23,868 5,636 26,039
Contract liabilities 85,957 65,018 130,266 100,874
Operating lease liabilities (3,738) (14,624)
Net cash provided by operating
activities 45,505 34,137 115,696 76,086
Cash flows from investing activities:
Purchases of marketable
securities (107,318) (415,132) (861,252) (415,132)
Maturities of marketable
securities 166,599 627,309
Purchases of strategic
investments - (15,500)
Cash paid for acquisition, net
of acquired cash - (218,779)
Purchases of property and
equipment (29,975) (11,317) (72,046) (30,413)
Net cash provided by (used in)
investing activities 29,306 (426,449) (321,489) (664,324)
Cash flows from financing activities:
Proceeds from issuance of
convertible senior notes, net
of initial purchasers'
discounts and transaction
costs - 560,756
Purchase of capped calls
related to issuance of
convertible senior notes - (67,563)
Proceeds from issuance of
common stock in initial
public offering, net of
underwriting commissions - 529,305
Payment of tax withholding
obligation on RSU settlement (41,216) (215,332) (166,504) (215,332)
Proceeds from exercise of
stock options 9,914 34,846 72,177 50,211
Proceeds from employee stock
purchase plan - 23,872
Payment of deferred offering
costs - (319) (4,011)
Other financing - (250) (250)
Net cash provided by (used in)
financing activities (31,302) (181,055) (70,455) 853,116
Effect of foreign exchange on
cash, cash equivalents and
restricted cash (137) (2,955) (447) (4,136)
Net increase (decrease) in
cash, cash equivalents and
restricted cash 43,372 (576,322) (276,695) 260,742
Cash, cash equivalents and
restricted cash at beginning
of period 198,111 1,094,500 518,178 257,436
Cash, cash equivalents and
restricted cash at end of
period $
241,483 $
518,178 $
241,483 $
518,178
DOCUSIGN, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
Reconciliation of gross profit and gross margin:
Three Months Ended January 31, Year Ended January 31,
(in thousands) 2020 2019 2020 2019
GAAP gross profit $
206,820 $
147,039 $
730,737 $
508,548
Add: Stock-based compensation 7,777 5,654 28,585 42,040
Add: Amortization of
acquisition-related
intangibles 1,348 1,778 5,704 6,081
Add: Employer payroll tax on
employee stock transactions 668 1,949 2,577 1,949
Add: Acquisition-related
expenses - 108
Non-GAAP gross profit $
216,613 $
156,420 $
767,603 $
558,726
GAAP gross margin 75
% 74
% 75
% 73
%
Non-GAAP adjustments 4
% 4
% 4
% 7
%
Non-GAAP gross margin 79
% 78
% 79
% 80
%
GAAP subscription gross profit $
209,960 $
154,012 $
754,532 $
545,893
Add: Stock-based compensation 3,951 2,241 12,882 16,182
Add: Amortization of
acquisition-related
intangibles 1,348 1,778 5,704 6,081
Add: Employer payroll tax on
employee stock transactions 285 830 1,054 830
Non-GAAP subscription gross
profit $
215,544 $
158,861 $
774,172 $
568,986
GAAP subscription gross margin 81
% 82
% 82
% 82
%
Non-GAAP adjustments 3
% 3
% 2
% 4
%
Non-GAAP subscription gross
margin 84
% 85
% 84
% 86
%
GAAP professional services and
other gross loss $
(3,140) $
(6,973) $
(23,795) $
(37,345)
Add: Stock-based compensation 3,826 3,413 15,703 25,858
Add: Acquisition-related
expenses - 108
Add: Employer payroll tax on
employee stock transactions 383 1,119 1,523 1,119
Non-GAAP professional
services and other gross
profit (loss) $
1,069 $
(2,441) $
(6,569) $
(10,260)
GAAP professional services and (19)
% (57) (43)
% (100)
other gross margin % %
Non-GAAP adjustments 25
% 37
% 31
% 73
%
Non-GAAP professional
services and other gross %
margin 6
% (20) (12)
% (27)
%
Reconciliation of operating expenses:
Three Months Ended January 31, Year Ended January 31,
(in thousands) 2020 2019 2020 2019
GAAP sales and marketing $
161,326 $
127,691 $
591,379 $
539,606
Less: Stock-based compensation (26,170) (20,505) (94,863) (172,115)
Less: Amortization of
acquisition-related intangibles (2,911) (3,234) (12,013) (7,021)
Less: Employer payroll tax on
employee stock transactions (1,413) (8,051) (7,023) (8,051)
Less: Acquisition-related
expenses - (68)
Non-GAAP sales and marketing $
130,832 $
95,901 $
477,480 $
352,351
GAAP sales and marketing as a
percentage of revenue 59
% 64
% 61
% 77
%
Non-GAAP sales and marketing as
a percentage of revenue 48
% 48
% 49
% 50
%
GAAP research and development $
52,094 $
42,921 $
185,552 $
185,968
Less: Stock-based compensation (12,252) (9,562) (43,211) (74,108)
Less: Employer payroll tax on
employee stock transactions (636) (2,246) (3,524) (2,246)
Less: Acquisition-related
expenses - (302)
Non-GAAP research and
development $
39,206 $
31,113 $
138,817 $
109,312
GAAP research and development as
a percentage of revenue 19
% 21
% 19
% 27
%
Non-GAAP research and
development as a percentage of
revenue 14
% 16
% 14
% 16
%
GAAP general and administrative $
35,753 $
39,055 $
147,315 $
209,297
Less: Stock-based compensation (9,406) (13,550) (39,745) (122,715)
Less: Employer payroll tax on
employee stock transactions (540) (3,411) (3,596) (3,411)
Less: Acquisition-related
expenses - (1,290)
Non-GAAP general and
administrative $
25,807 $
22,094 $
103,974 $
81,881
GAAP general and administrative
as a percentage of revenue 12
% 20
% 15
% 30
%
Non-GAAP general and
administrative as a percentage
of revenue 9
% 11
% 11
% 12
%
Reconciliation of income (loss) from operations and operating margin:
Three Months Ended January 31, Year Ended January 31,
(in thousands) 2020 2019 2020 2019
GAAP loss from operations $
(42,353) $
(62,628) $
(193,509) $
(426,323)
Add: Stock-based
compensation 55,605 49,271 206,404 410,978
Add: Amortization of
acquisition-related
intangibles 4,259 5,012 17,717 13,102
Add: Employer payroll tax
on employee stock
transactions 3,257 15,657 16,720 15,657
Add: Acquisition-related
expenses - 1,768
Non-GAAP income from
operations $
20,768 $
7,312 $
47,332 $
15,182
GAAP operating margin (15) (31)
% % (20)
% (61)
%
Non-GAAP adjustments 23
% 35
% 25
% 63
%
Non-GAAP operating margin 8
% 4
% 5
% 2
%
Reconciliation of net income (loss) and net income (loss) per share, basic and diluted:
Three Months Ended January 31, Year Ended January 31,
(in thousands, except per
share data) 2020 2019 2020 2019
GAAP net loss $
(47,407) $
(66,244) $
(208,359) $
(426,458)
Add: Stock-based compensation 55,605 49,271 206,404 410,978
Add: Amortization of
acquisition-related
intangibles 4,259 5,012 17,717 13,102
Add: Employer payroll tax on
employee stock transactions 3,257 15,657 16,720 15,657
Add: Acquisition-related
expenses - 1,839
Add: Amortization of debt
discount and issuance costs 6,742 6,360 26,389 9,507
Less: Tax effect of the
SpringCM acquisition(1) - 289 (7,080)
Non-GAAP net income $
22,456 $
10,345 $
58,871 $
17,545
Numerator:
Non-GAAP net income $
22,456 $
10,345 $
58,871 $
17,545
Less: Preferred stock
accretion - (353)
Less: Net income allocated to
participating securities - (2,636)
Non-GAAP net income
attributable to common
stockholders $
22,456 $
10,345 $
58,871 $
14,556
Denominator:
Weighted-average common
shares outstanding, basic 180,859 167,269 176,704 135,163
Effect of dilutive securities 12,869 20,390 14,094 23,513
Non-GAAP weighted-average
common shares outstanding,
diluted 193,728 187,659 190,798 158,676
GAAP net loss per share, basic
and diluted $
(0.26) $
(0.40) $
(1.18) $
(3.16)
Non-GAAP net income per
share, basic 0.12 0.06 0.33 0.11
Non-GAAP net income per
share, diluted 0.12 0.06 0.31 0.09
(1) Represents a tax benefit
related to the release of a
portion of our deferred tax
asset valuation allowance
resulting from the SpringCM
acquisition.
Computation of free cash flow:
Three Months Ended January 31, Year Ended January 31,
(in thousands) 2020 2019 2020 2019
Net cash provided
by operating
activities $
45,505 $
34,137 $
115,696 $
76,086
Less: Purchases of
property and
equipment (29,975) (11,317) (72,046) (30,413)
Non-GAAP free cash
flow 15,530 22,820 43,650 45,673
Net cash provided
by (used in)
investing
activities 29,306 (426,449) (321,489) (664,324)
Net cash provided
by (used in)
financing
activities $
(31,302) $
(181,055) $
(70,455) $
853,116
Computation of billings:
Three Months Ended January 31, Year Ended January 31,
(in thousands) 2020 2019 2020 2019
Revenue $
274,895 $
199,732 $
973,971 $
700,969
Add: Contract
liabilities and
refund liability,
end of period 522,201 390,887 522,201 390,887
Less: Contract
liabilities and
refund liability,
beginning of period (435,898) (330,060) (390,887) (282,943)
Add: Contract assets
and unbilled
accounts
receivable,
beginning of period 20,805 15,229 13,436 16,899
Less: Contract
assets and unbilled
accounts
receivable, end of
period (15,082) (13,436) (15,082) (13,436)
Less: Contract
liabilities and
refund liability
contributed by the
acquisition of
SpringCM - (11,002)
Non-GAAP billings $
366,921 $
262,352 $
1,103,639 $
801,374
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SOURCE DocuSign, Inc.
