Mar 13, 2020

DocuSign Announces Fourth Quarter and Fiscal Year 2020 Finan

Bizclik Editor
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SAN FRANCISCO, March 12, 2020 /PRNewswire/ -- DocuSign, Inc. (NASDAQ: DOCU), which offer...

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
[email protected]

Media Relations:
Adrian Wainwright
Head of Communications
[email protected]

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 other gross margin

(19)

%


(57)

%


(43)

%


(100)

%

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


 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/docusign-announces-fourth-quarter-and-fiscal-year-2020-financial-results-301022606.html

SOURCE DocuSign, Inc.

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