SAN FRANCISCO, June 4,
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 fiscal quarter
ended April 30, 2020.
"Our strong first quarter results reflect our ability to help
organizations accelerate their digital transformation as they adapt
to the changing business environment, magnified by COVID-19. Many
are taking their first steps with us, while others are expanding
their initiatives," said Dan
Springer, DocuSign's CEO. "Led by eSignature, our Agreement
Cloud offerings are not only helping customers carry on with
business in this time of crisis, but will continue to deliver value
as the world emerges from it."
First Quarter Financial Highlights
- Total revenue was $297.0
million, an increase of 39% year-over-year. Subscription
revenue was $280.9 million, an
increase of 39% year-over-year. Professional services and other
revenue was $16.1 million, an
increase of 29% year-over-year.
- Billings were $342.1
million, an increase of 59% year-over-year.
- GAAP gross margin was 75%, compared to 76% in the same
period last year. Non-GAAP gross margin was 79% in both comparative
periods.
- GAAP net loss per basic and diluted share was
$0.26 on 183 million shares
outstanding compared to $0.27 on 172
million shares outstanding in the same period last year.
- Non-GAAP net income per diluted share was $0.12 on 197 million shares outstanding compared
to $0.07 on 189 million shares
outstanding in the same period last year.
- Net cash provided by operating activities was
$59.1 million compared to
$45.7 million in the same period last
year.
- Free cash flow was $32.8
million compared to $30.4
million in the same period last year.
- Cash, cash equivalents, restricted cash and
investments were $898.3 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 Release 1. As the latest
in DocuSign's regular cadence of product updates, this year's first
release focused on enhancements and features requested primarily by
customers. This included the Agreement Cloud Editor, which helps
create agreement templates using Salesforce data fields; DocuSign
Click Enhancements, which offer greater clickwrap customization and
support; ID Evidence, which enables the capture of ID document
information for companies in regulated industries; and the
expansion of DocuSign Payments to all countries and currencies
supported by our payment gateway partners: Stripe, Braintree,
Authorize.net, CyberSource and Zuora.
- Closing of Seal Software acquisition. On May 1, DocuSign completed its acquisition of Seal
Software, one of the leading contract analytics and artificial
intelligence ("AI") technology providers. DocuSign will now work to
bring the power of Seal's AI engine first to DocuSign CLM and over
time to the entire product portfolio as part of the drive to make
the Agreement Cloud smart.
Outlook
The company currently expects the following guidance:
- Quarter ending July 31, 2020 (in millions,
except percentages):
|
Total
revenue
|
$316
|
to
|
$320
|
Subscription
revenue
|
$298
|
to
|
$302
|
Billings
|
$333
|
to
|
$343
|
Non-GAAP gross
margin
|
78%
|
to
|
80%
|
Non-GAAP sales and
marketing
|
48%
|
to
|
50%
|
Non-GAAP research and
development
|
14%
|
to
|
16%
|
Non-GAAP general and
administrative
|
9%
|
to
|
11%
|
Non-GAAP interest and
other income (expense)
|
$2
|
to
|
$3
|
Provision for income
taxes
|
$2.5
|
to
|
$3.5
|
Non-GAAP diluted
weighted-average shares outstanding
|
200
|
to
|
205
|
|
- Year ending January 31, 2021 (in
millions, except percentages):
|
Total
revenue
|
$1,313
|
to
|
$1,317
|
Subscription
revenue
|
$1,243
|
to
|
$1,247
|
Billings
|
$1,515
|
to
|
$1,535
|
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
|
200
|
to
|
205
|
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 June 4, 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)
June 18, 2020 using the passcode
13703586.
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 and integration 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 include, among other things, risks related to the
impact of the COVID-19 pandemic on our business, financial
condition and results of operations; 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, execute and
realize the anticipated benefits of potential 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 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; 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, 2020 filed
on March 27, 2020 and other filings
that we make from time to time with the with the Securities and
Exchange Commission (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 from our convertible senior notes
issued in September 2018,
acquisition-related expenses, 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 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
April 30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
Revenue:
|
|
|
|
Subscription
|
$
|
280,922
|
|
|
$
|
201,458
|
|
Professional services
and other
|
16,095
|
|
|
12,504
|
|
Total
revenue
|
297,017
|
|
|
213,962
|
|
Cost of
revenue:
|
|
|
|
Subscription
|
52,010
|
|
|
33,119
|
|
Professional services
and other
|
22,022
|
|
|
18,900
|
|
Total cost of
revenue
|
74,032
|
|
|
52,019
|
|
Gross
profit
|
222,985
|
|
|
161,943
|
|
Operating
expenses:
|
|
|
|
Sales and
marketing
|
171,793
|
|
|
129,936
|
|
Research and
development
|
54,234
|
|
|
37,183
|
|
General and
administrative
|
38,811
|
|
|
37,261
|
|
Total operating
expenses
|
264,838
|
|
|
204,380
|
|
Loss from
operations
|
(41,853)
|
|
|
(42,437)
|
|
Interest
expense
|
(7,560)
|
|
|
(7,156)
|
|
Interest income and
other income, net
|
3,742
|
|
|
5,217
|
|
Loss before
provision for income taxes
|
(45,671)
|
|
|
(44,376)
|
|
Provision for income
taxes
|
2,133
|
|
|
1,346
|
|
Net
loss
|
$
|
(47,804)
|
|
|
$
|
(45,722)
|
|
Net loss per share
attributable to common stockholders, basic and
diluted
|
$
|
(0.26)
|
|
|
$
|
(0.27)
|
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
182,978
|
|
|
172,101
|
|
|
|
|
|
Stock-based
compensation expense included in costs and expenses:
|
|
|
|
Cost of
revenue—subscription
|
$
|
3,864
|
|
|
$
|
2,282
|
|
Cost of
revenue—professional services and other
|
4,125
|
|
|
3,440
|
|
Sales and
marketing
|
24,665
|
|
|
18,102
|
|
Research and
development
|
11,885
|
|
|
7,317
|
|
General and
administrative
|
9,012
|
|
|
11,130
|
|
DOCUSIGN,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(in
thousands)
|
April 30,
2020
|
|
January 31,
2020
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
442,237
|
|
|
$
|
241,203
|
|
Investments—current
|
315,712
|
|
|
414,939
|
|
Restricted
cash
|
280
|
|
|
280
|
|
Accounts
receivable
|
220,602
|
|
|
237,841
|
|
Contract
assets—current
|
13,236
|
|
|
12,502
|
|
Prepaid expenses and
other current assets
|
51,176
|
|
|
37,125
|
|
Total current
assets
|
1,043,243
|
|
|
943,890
|
|
Investments—noncurrent
|
140,117
|
|
|
239,729
|
|
Property and
equipment, net
|
134,811
|
|
|
128,293
|
|
Operating lease
right-of-use assets
|
161,484
|
|
|
149,833
|
|
Goodwill
|
193,594
|
|
|
194,882
|
|
Intangible assets,
net
|
52,241
|
|
|
56,500
|
|
Deferred contract
acquisition costs—noncurrent
|
169,686
|
|
|
153,333
|
|
Other
assets—noncurrent
|
26,312
|
|
|
24,678
|
|
Total
assets
|
$
|
1,921,488
|
|
|
$
|
1,891,138
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
21,504
|
|
|
$
|
28,144
|
|
Accrued expenses and
other current liabilities
|
46,475
|
|
|
54,344
|
|
Accrued
compensation
|
81,653
|
|
|
83,189
|
|
Contract
liabilities—current
|
552,345
|
|
|
507,560
|
|
Operating lease
liabilities—current
|
27,613
|
|
|
20,728
|
|
Total current
liabilities
|
729,590
|
|
|
693,965
|
|
Convertible senior
notes, net
|
472,162
|
|
|
465,321
|
|
Contract
liabilities—noncurrent
|
11,287
|
|
|
11,478
|
|
Operating lease
liabilities—noncurrent
|
173,750
|
|
|
162,432
|
|
Deferred tax
liability—noncurrent
|
4,814
|
|
|
4,920
|
|
Other
liabilities—noncurrent
|
7,097
|
|
|
6,695
|
|
Total
liabilities
|
1,398,700
|
|
|
1,344,811
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
18
|
|
|
18
|
|
Additional paid-in
capital
|
1,714,462
|
|
|
1,685,167
|
|
Accumulated other
comprehensive loss
|
(6,703)
|
|
|
(1,673)
|
|
Accumulated
deficit
|
(1,184,989)
|
|
|
(1,137,185)
|
|
Total stockholders'
equity
|
522,788
|
|
|
546,327
|
|
Total liabilities
and stockholders' equity
|
$
|
1,921,488
|
|
|
$
|
1,891,138
|
|
DOCUSIGN,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(47,804)
|
|
|
$
|
(45,722)
|
|
Adjustments to
reconcile net to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
14,039
|
|
|
11,971
|
|
Amortization of
deferred contract acquisition and fulfillment costs
|
21,360
|
|
|
14,260
|
|
Amortization of debt
discount and transaction costs
|
6,842
|
|
|
6,454
|
|
Non-cash operating
lease costs
|
6,324
|
|
|
4,128
|
|
Stock-based
compensation expense
|
53,551
|
|
|
42,271
|
|
Deferred income
taxes
|
(104)
|
|
|
52
|
|
Other
|
504
|
|
|
(1,111)
|
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
17,239
|
|
|
57,414
|
|
Contract
assets
|
(740)
|
|
|
(2,701)
|
|
Prepaid expenses and
other current assets
|
(9,660)
|
|
|
(7,107)
|
|
Deferred contract
acquisition and fulfillment costs
|
(41,037)
|
|
|
(20,487)
|
|
Other
assets
|
(1,364)
|
|
|
541
|
|
Accounts
payable
|
(2,554)
|
|
|
282
|
|
Accrued expenses and
other liabilities
|
(916)
|
|
|
4,710
|
|
Accrued
compensation
|
(1,536)
|
|
|
(19,869)
|
|
Contract
liabilities
|
44,594
|
|
|
4,274
|
|
Operating lease
liabilities
|
406
|
|
|
(3,705)
|
|
Net cash provided by
operating activities
|
59,144
|
|
|
45,655
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
marketable securities
|
—
|
|
|
(375,211)
|
|
Sales of marketable
securities
|
28,986
|
|
|
—
|
|
Maturities of
marketable securities
|
170,071
|
|
|
92,457
|
|
Purchases of
strategic investments
|
—
|
|
|
(15,500)
|
|
Purchases of other
investments
|
(3,000)
|
|
|
—
|
|
Purchases of property
and equipment
|
(26,389)
|
|
|
(15,237)
|
|
Net cash provided by
(used in) investing activities
|
169,668
|
|
|
(313,491)
|
|
Cash flows from
financing activities:
|
|
|
|
Payment of tax
withholding obligation on RSU settlement
|
(46,723)
|
|
|
(56,137)
|
|
Proceeds from
exercise of stock options
|
7,635
|
|
|
32,254
|
|
Proceeds from
employee stock purchase plan
|
13,590
|
|
|
10,563
|
|
Net cash used in
financing activities
|
(25,498)
|
|
|
(13,320)
|
|
Effect of foreign
exchange on cash, cash equivalents and restricted cash
|
(2,280)
|
|
|
(379)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
201,034
|
|
|
(281,535)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
241,483
|
|
|
518,178
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
442,517
|
|
|
$
|
236,643
|
|
DOCUSIGN,
INC.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
|
|
Reconciliation of
gross profit and gross margin:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2020
|
|
2019
|
GAAP gross
profit
|
$
|
222,985
|
|
|
$
|
161,943
|
|
Add: Stock-based
compensation
|
7,989
|
|
|
5,722
|
|
Add: Amortization of
acquisition-related intangibles
|
1,348
|
|
|
1,627
|
|
Add: Employer payroll
tax on employee stock transactions
|
1,036
|
|
|
652
|
|
Non-GAAP gross
profit
|
$
|
233,358
|
|
|
$
|
169,944
|
|
GAAP gross
margin
|
75
|
%
|
|
76
|
%
|
Non-GAAP
adjustments
|
4
|
%
|
|
3
|
%
|
Non-GAAP gross
margin
|
79
|
%
|
|
79
|
%
|
|
|
|
|
GAAP subscription
gross profit
|
$
|
228,912
|
|
|
$
|
168,339
|
|
Add: Stock-based
compensation
|
3,864
|
|
|
2,282
|
|
Add: Amortization of
acquisition-related intangibles
|
1,348
|
|
|
1,627
|
|
Add: Employer payroll
tax on employee stock transactions
|
535
|
|
|
221
|
|
Non-GAAP subscription
gross profit
|
$
|
234,659
|
|
|
$
|
172,469
|
|
GAAP subscription
gross margin
|
81
|
%
|
|
84
|
%
|
Non-GAAP
adjustments
|
3
|
%
|
|
2
|
%
|
Non-GAAP subscription
gross margin
|
84
|
%
|
|
86
|
%
|
|
|
|
|
GAAP professional
services and other gross loss
|
$
|
(5,927)
|
|
|
$
|
(6,396)
|
|
Add: Stock-based
compensation
|
4,125
|
|
|
3,440
|
|
Add: Employer payroll
tax on employee stock transactions
|
501
|
|
|
431
|
|
Non-GAAP professional
services and other gross loss
|
$
|
(1,301)
|
|
|
$
|
(2,525)
|
|
GAAP professional
services and other gross margin
|
(37)
|
%
|
|
(51)
|
%
|
Non-GAAP
adjustments
|
29
|
%
|
|
31
|
%
|
Non-GAAP professional
services and other gross margin
|
(8)
|
%
|
|
(20)
|
%
|
Reconciliation of
operating expenses:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2020
|
|
2019
|
GAAP sales and
marketing
|
$
|
171,793
|
|
|
$
|
129,936
|
|
Less: Stock-based
compensation
|
(24,665)
|
|
|
(18,102)
|
|
Less: Amortization of
acquisition-related intangibles
|
(2,911)
|
|
|
(3,106)
|
|
Less: Employer payroll
tax on employee stock transactions
|
(2,909)
|
|
|
(2,351)
|
|
Non-GAAP sales and
marketing
|
$
|
141,308
|
|
|
$
|
106,377
|
|
GAAP sales and
marketing as a percentage of revenue
|
58
|
%
|
|
61
|
%
|
Non-GAAP sales and
marketing as a percentage of revenue
|
48
|
%
|
|
50
|
%
|
|
|
|
|
GAAP research and
development
|
$
|
54,234
|
|
|
$
|
37,183
|
|
Less: Stock-based
compensation
|
(11,885)
|
|
|
(7,317)
|
|
Less: Employer payroll
tax on employee stock transactions
|
(1,546)
|
|
|
(1,150)
|
|
Non-GAAP research and
development
|
$
|
40,803
|
|
|
$
|
28,716
|
|
GAAP research and
development as a percentage of revenue
|
18
|
%
|
|
17
|
%
|
Non-GAAP research and
development as a percentage of revenue
|
14
|
%
|
|
13
|
%
|
|
|
|
|
GAAP general and
administrative
|
$
|
38,811
|
|
|
$
|
37,261
|
|
Less: Stock-based
compensation
|
(9,012)
|
|
|
(11,130)
|
|
Less: Employer payroll
tax on employee stock transactions
|
(1,057)
|
|
|
(1,602)
|
|
Less:
Acquisition-related expenses
|
(694)
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
28,048
|
|
|
$
|
24,529
|
|
GAAP general and
administrative as a percentage of revenue
|
13
|
%
|
|
18
|
%
|
Non-GAAP general and
administrative as a percentage of revenue
|
9
|
%
|
|
11
|
%
|
Reconciliation of
income (loss) from operations and operating margin:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2020
|
|
2019
|
GAAP loss from
operations
|
$
|
(41,853)
|
|
|
$
|
(42,437)
|
|
Add: Stock-based
compensation
|
53,551
|
|
|
42,271
|
|
Add: Amortization of
acquisition-related intangibles
|
4,259
|
|
|
4,733
|
|
Add: Employer payroll
tax on employee stock transactions
|
6,548
|
|
|
5,755
|
|
Add:
Acquisition-related expenses
|
694
|
|
|
—
|
|
Non-GAAP income from
operations
|
$
|
23,199
|
|
|
$
|
10,322
|
|
GAAP operating
margin
|
(14)
|
%
|
|
(20)
|
%
|
Non-GAAP
adjustments
|
22
|
%
|
|
25
|
%
|
Non-GAAP operating
margin
|
8
|
%
|
|
5
|
%
|
Reconciliation of
net income (loss) and net income (loss) per share, basic and
diluted:
|
|
|
Three Months Ended
April 30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
GAAP net
loss
|
$
|
(47,804)
|
|
|
$
|
(45,722)
|
|
Add: Stock-based
compensation
|
53,551
|
|
|
42,271
|
|
Add: Amortization of
acquisition-related intangibles
|
4,259
|
|
|
4,733
|
|
Add: Employer payroll
tax on employee stock transactions
|
6,548
|
|
|
5,755
|
|
Add: Amortization of
debt discount and issuance costs
|
6,842
|
|
|
6,454
|
|
Add:
Acquisition-related expenses
|
694
|
|
|
$
|
—
|
|
Non-GAAP net
income
|
$
|
24,090
|
|
|
$
|
13,491
|
|
|
|
|
|
Numerator:
|
|
|
|
Non-GAAP net
income
|
$
|
24,090
|
|
|
$
|
13,491
|
|
|
|
|
|
Denominator:
|
|
|
|
Weighted-average
common shares outstanding, basic
|
182,978
|
|
|
172,101
|
|
Effect of dilutive
securities
|
13,947
|
|
|
17,080
|
|
Non-GAAP
weighted-average common shares outstanding, diluted
|
196,925
|
|
|
189,181
|
|
|
|
|
|
GAAP net loss per
share, basic and diluted
|
$
|
(0.26)
|
|
|
$
|
(0.27)
|
|
Non-GAAP net income
per share, basic
|
0.13
|
|
|
0.08
|
|
Non-GAAP net income
per share, diluted
|
0.12
|
|
|
0.07
|
|
Computation of
free cash flow:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2020
|
|
2019
|
Net cash provided by
operating activities
|
$
|
59,144
|
|
|
$
|
45,655
|
|
Less: Purchases of
property and equipment
|
(26,389)
|
|
|
(15,237)
|
|
Non-GAAP free cash
flow
|
$
|
32,755
|
|
|
$
|
30,418
|
|
Net cash provided by
(used in) investing activities
|
$
|
169,668
|
|
|
$
|
(313,491)
|
|
Net cash used in
financing activities
|
$
|
(25,498)
|
|
|
$
|
(13,320)
|
|
Computation of
billings:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2020
|
|
2019
|
Revenue
|
$
|
297,017
|
|
|
$
|
213,962
|
|
Add: Contract
liabilities and refund liability, end of period
|
568,544
|
|
|
395,254
|
|
Less: Contract
liabilities and refund liability, beginning of period
|
(522,201)
|
|
|
(390,887)
|
|
Add: Contract assets
and unbilled accounts receivable, beginning of period
|
15,082
|
|
|
13,436
|
|
Less: Contract assets
and unbilled accounts receivable, end of period
|
(16,390)
|
|
|
(16,810)
|
|
Non-GAAP
billings
|
$
|
342,052
|
|
|
$
|
214,955
|
|
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SOURCE DocuSign, Inc.