DocuSign Announces Third Quarter Fiscal 2023 Financial Results – PR Newswire
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SAN FRANCISCO, Dec. 8, 2022 /PRNewswire/ — DocuSign, Inc. (NASDAQ: DOCU), which offers the world’s #1 e-signature product as part of its industry leading lineup, today announced results for its fiscal quarter ended October 31, 2022.
“We delivered solid third quarter results, and are pleased with the continued progress against our critical priorities,” said Allan Thygesen, CEO of DocuSign. “DocuSign is the pioneer and leader in eSignature. This gives us a strong foundation to create and deliver a delightful and differentiated workflow experience, making agreements smarter and easier for companies of all sizes. I look forward to continuing to advance our business, as we both innovate and operate at scale to deliver value for all of our stakeholders.”
Third Quarter Financial Highlights
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:
Outlook
The company currently expects the following guidance:
▪ Quarter ending January 31, 2023 (in millions, except percentages):
Total revenue
$637
to
$641
Subscription revenue
$624
to
$628
Billings
$705
to
$715
Non-GAAP gross margin
82 %
to
83 %
Non-GAAP operating margin
20 %
to
22 %
Non-GAAP diluted weighted-average shares outstanding
205
to
210
▪ Year ending January 31, 2023 (in millions, except percentages):
Total revenue
$2,493
to
$2,497
Subscription revenue
$2,423
to
$2,427
Billings
$2,626
to
$2,636
Non-GAAP gross margin
81 %
to
82 %
Non-GAAP operating margin
18 %
to
20 %
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 December 8, 2022 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) December 22, 2022 using the passcode 13734316.
About DocuSign
DocuSign helps organizations connect and automate how they navigate their systems of agreement. As part of its industry leading product lineup, DocuSign offers eSignature, the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, over 1.3 million customers and more than a billion users in over 180 countries use the DocuSign platform to accelerate the process of doing business and simplify people’s lives. For more information visit http://www.docusign.com
Copyright 2022. DocuSign, Inc. is the owner of DOCUSIGN® and all its other marks (www.docusign.com/IP).
Investor Relations:
DocuSign Investor Relations
[email protected]
Media Relations:
DocuSign Corporate Communications
[email protected]
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management’s beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. 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 our growth. 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 global macro-economic conditions, including the effects of inflation, rising and fluctuating interest rates and market volatility on the global economy; our ability to estimate the size and growth of our total addressable market, and the development of the market for our products, which is new and evolving; 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 effectively implement and execute our restructuring plan; the impact of the coronavirus pandemic (the “COVID-19 pandemic”) or its abatement, on our business, results of operations, financial condition, and future profitability and growth; the impact of the evolving COVID-19 pandemic on the businesses of our customers, partners and suppliers, and the economy; 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; the impact of any data breaches, cyberattacks or other malicious activity on our technology systems; 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, including executive level management; our ability to successfully manage and integrate executive management transitions; uncertainties regarding the impact of general economic and market conditions, including as a result of regional and global conflicts or related government sanctions; our ability to successfully implement and maintain new and existing information technology systems, including our ERP system; 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, 2022 filed on March 25, 2022, our quarterly report on Form 10-Q for the quarter ended October 31, 2022, which we expect to file on December 8, 2022 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 present 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. However, these non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results.
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, executive transition costs, lease-related impairment and lease-related charges, restructuring and other related charges, as these costs are not reflective of ongoing operations 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. In addition to these exclusions, we subtract an assumed provision for income taxes to calculate non-GAAP net income. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2023, we determined the projected non-GAAP tax rate to be 20% tax rate.
Free cash flow: We define free cash flow as net cash provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash that is available (if any), 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. In this press release, we have not reconciled our 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands, except per share data)
2022
2021
2022
2021
Revenue:
Subscription
$ 624,055
$ 528,573
$ 1,798,500
$ 1,473,266
Professional services and other
21,408
16,890
57,839
53,119
Total revenue
645,463
545,463
1,856,339
1,526,385
Cost of revenue:
Subscription
102,524
84,579
315,614
247,105
Professional services and other
27,018
31,396
83,048
87,892
Total cost of revenue
129,542
115,975
398,662
334,997
Gross profit
515,921
429,488
1,457,677
1,191,388
Operating expenses:
Sales and marketing
313,783
275,619
938,062
777,110
Research and development
115,934
102,603
354,693
282,670
General and administrative
85,553
54,624
224,587
168,314
Restructuring and other related charges
28,082
—
28,082
—
Total operating expenses
543,352
432,846
1,545,424
1,228,094
Loss from operations
(27,431)
(3,358)
(87,747)
(36,706)
Interest expense
(1,456)
(1,485)
(4,737)
(4,826)
Interest income and other income (expense), net
820
(940)
(2,827)
4,034
Loss before provision for (benefit from) income taxes
(28,067)
(5,783)
(95,311)
(37,498)
Provision for (benefit from) income taxes
1,799
(107)
7,006
2,033
Net loss
$ (29,866)
$ (5,676)
$ (102,317)
$ (39,531)
Net loss per share attributable to common stockholders, basic and diluted
$ (0.15)
$ (0.03)
$ (0.51)
$ (0.20)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted
201,393
197,597
200,569
195,996
Stock-based compensation expense included in costs and expenses
Cost of revenue—subscription
$ 11,665
$ 8,095
$ 35,272
$ 21,652
Cost of revenue—professional services and other
6,767
7,270
18,327
19,250
Sales and marketing
57,925
49,663
166,574
134,720
Research and development
35,506
30,074
108,689
76,811
General and administrative
23,384
14,338
58,314
38,103
Restructuring and other related charges
5,590
—
5,590
—
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
October 31, 2022
January 31, 2022
Assets
Current assets
Cash and cash equivalents
$ 632,620
$ 509,059
Investments—current
342,730
293,763
Accounts receivable, net
422,612
440,950
Contract assets—current
13,609
12,588
Prepaid expenses and other current assets
68,814
63,236
Total current assets
1,480,385
1,319,596
Investments—noncurrent
129,783
94,938
Property and equipment, net
196,127
184,664
Operating lease right-of-use assets
92,155
126,021
Goodwill
352,423
355,058
Intangible assets, net
75,232
98,816
Deferred contract acquisition costs—noncurrent
329,958
311,835
Other assets—noncurrent
75,521
50,337
Total assets
$ 2,731,584
$ 2,541,265
Liabilities and stockholders’ equity
Current liabilities
Accounts payable
$ 47,176
$ 52,804
Accrued expenses and other current liabilities
96,227
91,377
Accrued compensation
146,297
160,163
Convertible senior notes—current
36,921
—
Contract liabilities—current
1,088,197
1,029,891
Operating lease liabilities—current
34,713
37,404
Total current liabilities
1,449,531
1,371,639
Convertible senior notes, net—noncurrent
684,861
718,487
Contract liabilities—noncurrent
15,242
16,725
Operating lease liabilities—noncurrent
81,237
126,340
Deferred tax liability—noncurrent
10,400
9,316
Other liabilities—noncurrent
21,807
23,255
Total liabilities
2,263,078
2,265,762
Stockholders’ equity
Common stock
20
20
Treasury stock
(1,785)
(1,532)
Additional paid-in capital
2,108,062
1,720,013
Accumulated other comprehensive loss
(34,244)
(4,809)
Accumulated deficit
(1,603,547)
(1,438,189)
Total stockholders’ equity
468,506
275,503
Total liabilities and stockholders’ equity
$ 2,731,584
$ 2,541,265
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands)
2022
2021
2022
2021
Cash flows from operating activities:
Net loss
$ (29,866)
$ (5,676)
$ (102,317)
$ (39,531)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization
21,532
20,166
63,976
61,163
Amortization of deferred contract acquisition and fulfillment costs
44,806
37,283
134,381
100,759
Amortization of debt discount and transaction costs
1,243
1,255
3,725
3,848
Non-cash operating lease costs
7,002
6,527
20,468
20,176
Stock-based compensation expense
140,835
109,441
392,765
290,536
Deferred income taxes
(23)
(1,110)
3,045
(2,360)
Other
5,441
3,159
13,540
5,598
Changes in operating assets and liabilities:
Accounts receivable
(83,084)
(20,869)
18,338
17,969
Prepaid expenses and other current assets
8,435
(2,523)
(7,593)
(12,890)
Deferred contract acquisition and fulfillment costs
(53,305)
(52,528)
(161,620)
(147,946)
Other assets
(8,452)
(7,434)
(15,707)
(11,290)
Accounts payable
2,948
16,146
(1,739)
6,703
Accrued expenses and other liabilities
(2,094)
(5,136)
873
11,886
Accrued compensation
(1,808)
(9,734)
(15,827)
(22,781)
Contract liabilities
15,010
24,423
56,824
161,047
Operating lease liabilities
(16,083)
(7,979)
(33,430)
(24,212)
Net cash provided by operating activities
52,537
105,411
369,702
418,675
Cash flows from investing activities:
Cash paid for acquisition, net of acquired cash
—
—
—
(6,388)
Purchases of marketable securities
(105,956)
(117,134)
(402,249)
(302,762)
Sales of marketable securities
—
68
—
3,070
Maturities of marketable securities
121,590
79,900
311,769
193,071
Purchases of strategic and other investments
(1,000)
(250)
(3,625)
(750)
Purchases of property and equipment
(16,477)
(15,392)
(53,590)
(43,926)
Net cash used in investing activities
(1,843)
(52,808)
(147,695)
(157,685)
Cash flows from financing activities:
Repayments of convertible senior notes
—
(3,121)
(16)
(64,835)
Repurchases of common stock
(38,034)
—
(63,041)
—
Payment of tax withholding obligation on net RSU settlement and ESPP purchase
(23,263)
(94,534)
(67,120)
(323,109)
Proceeds from exercise of stock options
383
9,358
11,009
21,176
Proceeds from employee stock purchase plan
12,375
22,910
36,526
46,077
Net cash used in financing activities
(48,539)
(65,387)
(82,642)
(320,691)
Effect of foreign exchange on cash, cash equivalents and restricted cash
(6,612)
(1,909)
(14,652)
(2,472)
Net increase (decrease) in cash, cash equivalents and restricted cash
(4,457)
(14,693)
124,713
(62,173)
Cash, cash equivalents and restricted cash at beginning of period (1)
638,849
518,857
509,679
566,336
Cash, cash equivalents and restricted cash at end of period (1)
$ 634,392
$ 504,164
$ 634,392
$ 504,163
(1) Cash, cash equivalents and restricted cash included restricted cash of $1.8 million and $0.6 million at October 31, 2022 and January 31, 2022.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
Reconciliation of gross profit and gross margin:
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands)
2022
2021
2022
2021
GAAP gross profit
$ 515,921
$ 429,488
$ 1,457,677
$ 1,191,388
Add: Stock-based compensation
18,432
15,365
53,599
40,902
Add: Amortization of acquisition-related intangibles
2,425
2,766
7,232
9,266
Add: Employer payroll tax on employee stock transactions
471
1,800
1,792
6,695
Add: Lease-related impairment and lease-related charges
413
—
678
—
Non-GAAP gross profit
$ 537,662
$ 449,419
$ 1,520,978
$ 1,248,251
GAAP gross margin
80 %
79 %
79 %
78 %
Non-GAAP adjustments
3 %
3 %
3 %
4 %
Non-GAAP gross margin
83 %
82 %
82 %
82 %
GAAP subscription gross profit
$ 521,531
$ 443,994
$ 1,482,886
$ 1,226,161
Add: Stock-based compensation
11,665
8,095
35,272
21,652
Add: Amortization of acquisition-related intangibles
2,425
2,766
7,232
9,266
Add: Employer payroll tax on employee stock transactions
310
873
1,150
3,286
Add: Lease-related impairment and lease-related charges
127
—
321
—
Non-GAAP subscription gross profit
$ 536,058
$ 455,728
$ 1,526,861
$ 1,260,365
GAAP subscription gross margin
84 %
84 %
82 %
83 %
Non-GAAP adjustments
2 %
2 %
3 %
3 %
Non-GAAP subscription gross margin
86 %
86 %
85 %
86 %
GAAP professional services and other gross loss
$ (5,610)
$ (14,506)
$ (25,209)
$ (34,773)
Add: Stock-based compensation
6,767
7,270
18,327
19,250
Add: Employer payroll tax on employee stock transactions
161
927
642
3,409
Add: Lease-related impairment and lease-related charges
286
—
357
—
Non-GAAP professional services and other gross profit (loss)
$ 1,604
$ (6,309)
$ (5,883)
$ (12,114)
GAAP professional services and other gross margin
(26) %
(86) %
(44) %
(65) %
Non-GAAP adjustments
33 %
49 %
34 %
42 %
Non-GAAP professional services and other gross margin
7 %
(37) %
(10) %
(23) %
Reconciliation of operating expenses:
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands)
2022
2021
2022
2021
GAAP sales and marketing
$ 313,783
$ 275,619
$ 938,062
$ 777,110
Less: Stock-based compensation
(57,925)
(49,663)
(166,574)
(134,720)
Less: Amortization of acquisition-related intangibles
(2,688)
(3,205)
(8,522)
(9,896)
Less: Employer payroll tax on employee stock transactions
(1,277)
(5,184)
(5,250)
(17,668)
Less: Lease-related impairment and lease-related charges
(1,467)
—
(2,353)
—
Non-GAAP sales and marketing
$ 250,426
$ 217,567
$ 755,363
$ 614,826
GAAP sales and marketing as a percentage of revenue
49 %
51 %
51 %
51 %
Non-GAAP sales and marketing as a percentage of revenue
39 %
40 %
41 %
40 %
GAAP research and development
$ 115,934
$ 102,603
$ 354,693
$ 282,670
Less: Stock-based compensation
(35,506)
(30,074)
(108,689)
(76,811)
Less: Employer payroll tax on employee stock transactions
(608)
(2,316)
(3,009)
(9,244)
Less: Lease-related impairment and lease-related charges
(434)
—
(819)
—
Non-GAAP research and development
$ 79,386
$ 70,213
$ 242,176
$ 196,615
GAAP research and development as a percentage of revenue
18 %
19 %
19 %
19 %
Non-GAAP research and development as a percentage of revenue
12 %
13 %
13 %
13 %
GAAP general and administrative
$ 85,553
$ 54,624
$ 224,587
$ 168,314
Less: Stock-based compensation
(23,384)
(14,338)
(58,314)
(38,103)
Less: Acquisition-related expenses
—
—
—
(387)
Less: Employer payroll tax on employee stock transactions
(180)
(804)
(926)
(4,365)
Less: Executive transition costs
(830)
—
(2,634)
—
Less: Lease-related impairment and lease-related charges
(363)
—
(655)
(3,892)
Non-GAAP general and administrative
$ 60,796
$ 39,482
$ 162,058
$ 121,567
GAAP general and administrative as a percentage of revenue
13 %
9 %
12 %
10 %
Non-GAAP general and administrative as a percentage of revenue
9 %
7 %
9 %
8 %
Reconciliation of income (loss) from operations and operating margin:
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands)
2022
2021
2022
2021
GAAP loss from operations
$ (27,431)
$ (3,358)
$ (87,747)
$ (36,706)
Add: Stock-based compensation
135,247
109,440
387,176
290,536
Add: Amortization of acquisition-related intangibles
5,113
5,971
15,754
19,162
Add: Employer payroll tax on employee stock transactions
2,536
10,104
10,977
37,972
Add: Acquisition-related expenses
—
—
—
387
Add: Restructuring and other related charges
28,082
—
28,082
—
Add: Executive transition costs
830
—
2,634
—
Add: Lease-related impairment and lease-related charges
2,677
—
4,505
3,892
Non-GAAP income from operations
$ 147,054
$ 122,157
$ 361,381
$ 315,243
GAAP operating margin
(4) %
(1) %
(5) %
(2) %
Non-GAAP adjustments
27 %
23 %
24 %
23 %
Non-GAAP operating margin
23 %
22 %
19 %
21 %
Reconciliation of net income (loss) and net income (loss) per share, basic and diluted:
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands, except per share data)
2022
2021
2022
2021
GAAP net loss
$ (29,866)
$ (5,676)
$ (102,317)
$ (39,531)
Add: Stock-based compensation
135,247
109,440
387,176
290,536
Add: Amortization of acquisition-related intangibles
5,113
5,971
15,754
19,162
Add: Employer payroll tax on employee stock transactions
2,536
10,104
10,977
37,972
Add: Amortization of debt discount and issuance costs
1,197
1,255
3,679
3,848
Less: Fair value adjustments to strategic investments
45
—
(384)
(5,270)
Add: Acquisition-related expenses
—
—
—
387
Add: Restructuring and other related charges
28,082
—
28,082
—
Add: Executive transition costs
830
—
2,634
—
Add: Lease-related impairment and lease-related charges
2,677
—
4,505
3,892
Add: Income tax effect of non-GAAP adjustments (1)
(27,733)
—
(64,416)
—
Non-GAAP net income
$ 118,128
$ 121,094
$ 285,690
$ 310,996
Numerator:
Non-GAAP net income
$ 118,128
$ 121,094
$ 285,690
$ 310,996
Add: Interest expense on convertible senior notes
46
(84)
75
12
Non-GAAP net income attributable to common stockholders, diluted
$ 118,174
$ 121,010
$ 285,765
$ 311,008
Denominator:
Weighted-average common shares outstanding, basic
201,393
197,597
200,569
195,996
Effect of dilutive securities
4,255
10,508
5,721
12,221
Non-GAAP weighted-average common shares outstanding, diluted
205,648
208,105
206,290
208,217
GAAP net loss per share, basic and diluted
$ (0.15)
$ (0.03)
$ (0.51)
$ (0.20)
Non-GAAP net income per share, basic
0.59
0.61
1.42
1.59
Non-GAAP net income per share, diluted
0.57
0.58
1.39
1.49
(1) Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%. Estimating a non-GAAP tax rate of 20%, the income tax effect of non-GAAP adjustments was $24.3 million for the three months ended October 31, 2021, and $60.6 million for the nine months ended October 31, 2021.
Computation of free cash flow:
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands)
2022
2021
2022
2021
Net cash provided by operating activities
$ 52,537
$ 105,411
$ 369,702
$ 418,675
Less: Purchases of property and equipment
(16,477)
(15,392)
(53,590)
(43,926)
Non-GAAP free cash flow
$ 36,060
$ 90,019
$ 316,112
$ 374,749
Net cash used in investing activities
$ (1,843)
$ (52,808)
$ (147,695)
$ (157,685)
Net cash used in financing activities
$ (48,539)
$ (65,387)
$ (82,642)
$ (320,691)
Computation of billings:
Three Months Ended
October 31,
Nine Months Ended
October 31,
(in thousands)
2022
2021
2022
2021
Revenue
$ 645,463
$ 545,463
$ 1,856,339
$ 1,526,385
Add: Contract liabilities and refund liability, end of period
1,113,131
961,243
1,113,131
961,243
Less: Contract liabilities and refund liability, beginning of period
(1,094,939)
(939,826)
(1,049,106)
(800,940)
Add: Contract assets and unbilled accounts receivable, beginning of period
13,695
18,067
18,273
21,020
Less: Contract assets and unbilled accounts receivable, end of period
(17,945)
(19,708)
(17,945)
(19,708)
Non-GAAP billings
$ 659,405
$ 565,239
$ 1,920,692
$ 1,688,000
SOURCE DocuSign, Inc.
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