DocuSign Announces Fourth Quarter and Fiscal Year 2021 Financial Results

  • Cloud , Data
  • 12.03.2021 02:20 pm

DocuSign, Inc. (NASDAQ: DOCU), which offers the world's #1 eSignature solution as part of the DocuSign Agreement Cloud, today announced results for its fourth quarter and fiscal year ended January 31, 2021.

"Fiscal 2021 was a milestone year for DocuSign. We became a pillar of the 'anywhere economy' that lets people increasingly do anything in life and work from anywhere," said Dan Springer, CEO of DocuSign. "In the process, we grew our business nearly 50%, reached almost $1.5 billion in revenues, and achieved a record net retention rate of 123%. We believe this performance represents an acceleration of the ongoing trend towards the digital transformation of agreements."

Fourth Quarter Financial Highlights

·       Total revenue was $430.9 million, an increase of 57% year-over-year. Subscription revenue was $410.2 million, an increase of 59% year-over-year. Professional services and other revenue was $20.7 million, an increase of 23% year-over-year.

·       Billings were $534.9 million, an increase of 46% year-over-year.

·       GAAP gross margin was 76%, compared to 75% in the same period last year. Non-GAAP gross margin was 80% compared to 79% in the same period last year.

·       GAAP net loss per share was $0.38 on 189 million shares outstanding compared to $0.26 on 181 million shares outstanding in the same period last year.

·       Non-GAAP net income per diluted share was $0.37 on 209 million shares outstanding compared to $0.12 on 194 million shares outstanding in the same period last year.

·       Net cash provided by operating activities was $62.2 million compared to $45.5 million in the same period last year.

·       Free cash flow was $44.0 million compared to $15.5 million in the same period last year. Free cash flow includes a portion of the Q4'21 repayment of convertible senior notes of $75.2 million.

·       Cash, cash equivalents, restricted cash and investments were $866.5 million at the end of the quarter.

Fiscal 2021 Financial Highlights

·       Total revenue was $1.5 billion, an increase of 49% year-over-year. Subscription revenue was $1.4 billion, an increase of 50% year-over-year. Professional services and other revenue was $71.7 million, an increase of 29% year-over-year.

·       Billings were $1.7 billion, an increase of 56% year-over-year.

·       GAAP gross margin was 75% in both periods. Non-GAAP gross margin was 79% in both periods.

·       GAAP net loss per share was $1.31 on 186 million shares outstanding compared to $1.18 on 177 million shares outstanding in fiscal 2020.

·       Non-GAAP net income per diluted share was $0.90 on 204 million shares outstanding compared to $0.31 on 191 million shares outstanding in fiscal 2020.

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

·       Convertible Senior Notes: On January 15, 2021, the company issued $690 million of 0% convertible senior notes due in 2024. The company used a significant portion of the net proceeds, together with shares of DocuSign common stock, to repurchase a majority of its existing convertible senior notes due in 2023 and intends to use the remainder of the proceeds for working capital and other general corporate purposes.

·       Credit Facility: On January 11, 2021, the company closed a new $500 million, 5-year senior secured revolving credit facility, with an accordion feature allowing for an additional $250 million capacity. The facility will help to further optimize the company's financial position and provide it with greater balance sheet flexibility to deliver on its growth agenda.

Outlook

The company currently expects the following guidance:

▪ Quarter ending April 30, 2021 (in millions, except percentages):

Total revenue

$432

to

$436

Subscription revenue

$415

to

$419

Billings

$457

to

$467

Non-GAAP gross margin

79%

to

81%

Non-GAAP operating margin

12%

to

14%

Non-GAAP diluted weighted-average shares outstanding

205

to

210

 

▪       Fiscal year ending January 31, 2022 (in millions, except percentages):

Total revenue

$1,963

to

$1,973

Subscription revenue

$1,886

to

$1,896

Billings

$2,260

to

$2,280

Non-GAAP gross margin

79%

to

81%

Non-GAAP operating margin

13%

to

15%

Provision for income taxes

$8

to

$10

Non-GAAP diluted weighted-average shares outstanding

205

to

210

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 March 11, 2021 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) March 25, 2021, using the passcode 13716345.

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