DocuSign(DOCU) - 2026 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended April 30, 2025, was $763.654 million, a 7.6$709.640 million in the same period of 2024[92] - Total revenue for the three months ended April 30, 2025, was $763.7 million, an increase of 8$709.6 million in the same period of 2024[116] - Subscription revenue accounted for 98% of total revenue in Q1 2025, compared to 97% in Q1 2024[87] - Subscription revenue increased by $54.7 million, or 8$739,612,000, compared to $709,538,000 in 2024, reflecting an increase in customer sales and renewals[156] Customer Growth - The number of customers with annualized contract values over$300,000 increased to 1,123 as of April 30, 2025, up from 1,059 a year earlier[91] - The number of total customers reached over 1.7 million as of April 30, 2025, an increase from over 1.5 million in the previous year[97] Profitability - Net income for the three months ended April 30, 2025, was $72.087 million, compared to$33.760 million in the same period of 2024[92] - For the three months ended April 30, 2025, Docusign reported a GAAP gross profit of $606,385,000, up from$560,194,000 in the same period of 2024, resulting in a GAAP gross margin of 79.4%[152] - Non-GAAP gross profit for the same period was $628,727,000, compared to$582,170,000 in 2024, with a non-GAAP gross margin of 82.3%[152] - GAAP net income for the three months ended April 30, 2025, was $72,087,000, an increase from$33,760,000 in 2024, while non-GAAP net income was $190,851,000, up from$172,843,000[154] - Free cash flow for the three months ended April 30, 2025, was $227,815,000, slightly down from$232,073,000 in 2024[155] Expenses and Investments - Operating expenses increased to $546.1 million, representing 71$25.1 million, or 19%, primarily due to workforce investments to support product innovation[120] - The total stock-based compensation expense for Q1 2025 was $145.596 million, slightly up from$142.504 million in Q1 2024[92] Cash and Financing - Cash, cash equivalents, restricted cash, and investments totaled $1.1 billion as of April 30, 2025[92] - The company had$948.7 million in cash and cash equivalents as of April 30, 2025, along with $160.1 million in long-term investments[124] - Cash provided by operating activities was$251.4 million for the three months ended April 30, 2025, slightly down from $254.8 million in 2024[134] - Net cash used in financing activities was$223.5 million, primarily due to stock repurchases and tax withholding payments[138] - The stock repurchase program resulted in the repurchase of 2.3 million shares for $183.4 million during the three months ended April 30, 2025[131] - The company may seek additional equity or debt financing in the future to support growth and operational needs[128] Strategic Initiatives - The company plans to invest in product innovation and enhance its go-to-market strategies to support long-term growth[93][94] - The company aims to strengthen its omnichannel go-to-market approach by optimizing direct sales, partner-assisted sales, and digital self-service channels[94] International Revenue - International revenue grew by 10$750 million in May 2025, which may be increased by an additional $250 million[159] - Docusign has not engaged in hedging foreign currency transactions to date, but may consider it in the future, with no material effect expected from a 10% change in the U.S. dollar's value against other currencies[160]