DocuSign(DOCU)2025-06-05 20:22Revenue and Growth - Revenue for Q1 fiscal 2026 was $763.7 million, an 8% year-over-year increase, with subscription revenue at $746.2 million, also an 8% increase [6]. - Billings increased to $739.6 million, representing a 4% year-over-year growth [6]. - Total revenue for the three months ended April 30, 2025, was $763,654,000, an increase from $709,640,000 in the same period of 2024, representing a growth of approximately 7.6% [31]. - Subscription revenue reached $746,202,000, up from $691,483,000 year-over-year, indicating a growth of about 7.9% [31]. - Revenue for Q2 2025 reached $763,654,000, a 7.6% increase from $709,640,000 in Q2 2024 [46]. Profitability - GAAP net income per diluted share was $0.34, compared to $0.16 in the same period last year, reflecting a significant improvement [6]. - Non-GAAP net income per diluted share rose to $0.90, up from $0.82 year-over-year [6]. - Net income for the quarter was $72,087,000, significantly higher than $33,760,000 in the same quarter of 2024, marking an increase of approximately 113.0% [31]. - Basic net income per share rose to $0.35 from $0.16, representing a growth of 118.8% [31]. - GAAP net income for Q2 2025 was $72,087,000, compared to $33,760,000 in Q2 2024, representing a 113% increase [44]. - Non-GAAP net income attributable to common stockholders for Q2 2025 was $190,851,000, up from $172,843,000 in Q2 2024, reflecting an increase of 10.4% [44]. Cash Flow and Financial Position - Free cash flow for the quarter was $251,439,000, slightly down from $254,826,000 in the previous year [36]. - Non-GAAP free cash flow for Q2 2025 was $227,815,000, slightly down from $232,073,000 in Q2 2024 [45]. - The company reported cash, cash equivalents, and investments totaling $1.1 billion at the end of the quarter [6]. - Total assets decreased to $3,947,403,000 from $4,012,705,000 as of January 31, 2025 [33]. - Total liabilities decreased to $1,932,601,000 from $2,010,013,000, indicating improved financial health [33]. Guidance and Projections - The guidance for the quarter ending July 31, 2025, projects total revenue between $777 million and $781 million [12]. - For the fiscal year ending January 31, 2026, total revenue is expected to be between $3,151 million and $3,163 million [13]. - The projected non-GAAP tax rate for fiscal 2025 and 2026 is set at 20% [25]. Operational Highlights - Docusign's Intelligent Agreement Management platform surpassed 10,000 customers, indicating strong market adoption [3]. - New AI-driven features, including AI Contract Agents, are expected to launch later this year, enhancing the platform's capabilities [7]. Expenses and Margins - Non-GAAP gross profit for the quarter was $628,727,000, compared to $582,170,000 in the prior year, reflecting an increase of approximately 8.0% [39]. - Non-GAAP gross margin improved to 82.3% from 82.0% year-over-year [39]. - GAAP operating margin improved to 7.9% in Q2 2025 from 3.2% in Q2 2024 [42]. - Non-GAAP operating margin for Q2 2025 was 29.5%, compared to 28.5% in Q2 2024 [42]. - GAAP sales and marketing expenses for Q2 2025 were $296,413,000, up from $281,644,000 in Q2 2024, with a percentage of revenue decreasing from 39.7% to 38.8% [41]. - Non-GAAP research and development expenses for Q2 2025 were $99,935,000, compared to $87,553,000 in Q2 2024, with a percentage of revenue increasing from 12.3% to 13.1% [41]. Shareholder Returns - The company announced a $1.0 billion increase to its stock repurchase program, bringing the total remaining authorization to $1.4 billion [11].