A password will be e-mailed to you.

DocuSign Announces Third Quarter Fiscal 2022 Financial Results
DocuSign Stock Plunges As Revenue Guidance Misses Expectations

DocuSign stock plunged after its October-quarter earnings and revenue topped Wall Street targets but revenue guidance for DOCU stock missed expectations.

San Francisco-based DocuSign (DOCU) reported third-quarter earnings after the market close on Thursday. Demand for its products surged during the early part of the coronavirus outbreak but many businesses are resuming in-person meetings.

Docusign

Image: Docusign

“Third quarter revenue growth of 42% year-over-year and operating margin of 22% exceeded our expectations. After six quarters of accelerated growth, we saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth,” said Dan Springer, CEO of DocuSign. “With a $50 billion TAM and 1.11 million customers worldwide, we are confident in the value DocuSign delivers in an increasingly digital anywhere economy.”

Third Quarter Financial Highlights

Total revenue was $545.5 million, an increase of 42% year-over-year. Subscription revenue was $528.6 million, an increase of 44% year-over-year. Professional services and other revenue was $16.9 million, an increase of 4% year-over-year.

Billings were $565.2 million, an increase of 28% year-over-year.

GAAP gross margin was 79% compared to 74% in the same period last year. The non-GAAP gross margin was 82% compared to 79% in the same period last year.

GAAP net loss per basic and diluted share was $0.03 on 198 million shares outstanding compared to $0.31 on 186 million shares outstanding in the same period last year.

Non-GAAP net income per diluted share was $0.58 on 208 million shares outstanding compared to $0.22 on 206 million shares outstanding in the same period last year.

Net cash provided by operating activities was $105.4 million compared to $57.4 million in the same period last year.

Free cash flow was $90.0 million compared to $38.1 million in the same period last year.

Cash, cash equivalents, restricted cash, and investments were $908.2 million at the end of the quarter.

For the final three months of the year, growth is expected to come in at around 30%, which CEO Dan Springer acknowledged as a disappointment after “exceptionally high growth rates at scale” during the first half of 2020.

“While we had expected an eventual step down from the peak levels of growth achieved during the height of the pandemic, the environment shifted more quickly than we anticipated,” Springer said on the earnings call.

Prior to the after-hours plunge, DocuSign’s stock was up about 4% for the year, trailing the S&P 500′s 20% gain. Last year, DocuSign shares tripled in value.

Financial Statement:

 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended
October 31,

Nine Months Ended
October 31,

(in thousands, except per share data)

2021

2020

2021

2020

Revenue:

Subscription

$

528,573

$

366,617

$

1,473,266

$

971,182

Professional services and other

16,890

16,306

53,119

50,967

Total revenue

545,463

382,923

1,526,385

1,022,149

Cost of revenue:

Subscription

84,579

69,905

247,105

186,645

Professional services and other

31,396

27,926

87,892

75,833

Total cost of revenue

115,975

97,831

334,997

262,478

Gross profit

429,488

285,092

1,191,388

759,671

Operating expenses:

Sales and marketing

275,619

209,944

777,110

576,729

Research and development

102,603

73,362

282,670

191,387

General and administrative

54,624

50,256

168,314

140,513

Total operating expenses

432,846

333,562

1,228,094

908,629

Loss from operations

(3,358)

(48,470)

(36,706)

(148,958)

Interest expense

(1,485)

(7,769)

(4,826)

(23,013)

Interest income and other income (expense), net

(940)

(311)

4,034

6,032

Loss before provision for (benefit from) income taxes

(5,783)

(56,550)

(37,498)

(165,939)

Provision for (benefit from) income taxes

(107)

1,941

2,033

4,916

Net loss

$

(5,676)

$

(58,491)

$

(39,531)

$

(170,855)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.03)

$

(0.31)

$

(0.20)

$

(0.92)

Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

197,597

186,423

195,996

184,767

Stock-based compensation expense included in costs and expenses

Cost of revenue—subscription

$

8,095

$

5,777

$

21,652

$

14,655

Cost of revenue—professional services and other

7,270

6,005

19,250

15,355

Sales and marketing

49,663

36,881

134,720

93,851

Research and development

30,074

18,896

76,811

45,562

General and administrative

14,338

13,361

38,103

33,815

Comments

comments

No more articles
Send this to a friend