SAN FRANCISCO, June 6, 2019 /PRNewswire/ -- DocuSign
(NASDAQ: DOCU), which offers the world's #1 eSignature solution as
part of the DocuSign Agreement Cloud for digitally transforming how
organizations prepare, sign, act on, and manage agreements, today
announced results for its fiscal quarter ended April 30,
2019.
"Overall, we posted a solid first quarter for Fiscal
2020—revenues grew 37% year-over-year, we were again profitable on
a non-GAAP basis, and we now have over half a million paying
customers around the world. What's more, we are seeing strong
results from the work we've done to optimize our go-to-market sales
motion, bringing in net new customers and expanding use cases
within our installed base. And with the announcement of the
DocuSign Agreement Cloud this quarter—our suite of products and
integrations for automating the entire agreement process—we can now
deliver a much broader set of solutions to market, positioning us
as the next 'must-have' cloud." said Dan
Springer, CEO of DocuSign.
First Quarter Financial Highlights
- Total revenue was $214.0
million, an increase of 37% year-over-year. Subscription
revenue was $201.5 million, an
increase of 36% year-over-year. Professional services and other
revenue was $12.5 million, an
increase of 64% year-over-year.
- Billings were $215.0
million, an increase of 27% year-over-year.
- GAAP gross margin was 76%, compared to 63% in the same
period last year. Non-GAAP gross margin was 79% compared to 80% in
the same period last year.
- GAAP net loss per basic and diluted share was
$0.27 on 172 million shares
outstanding compared to GAAP net loss per share of $7.46 in the first quarter of fiscal 2019 on 36
million shares outstanding.
- Non-GAAP net income per diluted share was $0.07 on 189 million shares outstanding compared
to non-GAAP net income per share of $0.01 in the first quarter of fiscal 2019 on 60
million shares outstanding.
- Net cash provided by operating activities was
$45.7 million, compared to
$15.0 million in the same period last
year.
- Free cash flow was $30.4
million in the first quarter of fiscal 2020 compared to free
cash flow of $8.8 million in the same
period last year.
- Cash, cash equivalents, restricted cash and
investments were $937.0 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. In March the company announced
the DocuSign Agreement Cloud—a suite of more than a dozen products
and 350 integrations for digitally transforming how organizations
prepare, sign, act on and manage agreements. By helping to automate
and connect the entire agreement process, the DocuSign Agreement
Cloud allows organizations to do business faster, with less risk,
and lower costs, and in turn deliver better experiences for
customers, partners, and employees. This comprehensive suite
defines a new category of cloud software that we believe has the
potential to significantly expand our total addressable
market.
- DocuSign Spring 19 Release. The company launched several
new products and updates as part of the DocuSign Agreement Cloud:
DocuSign Gen for Salesforce, which simplifies and accelerates the
generation of signature-ready contracts from within Salesforce;
DocuSign Click, which allows organizations of any size to capture
consent to standard agreement terms on websites, such as a privacy
policy, with a single click; and DocuSign Identify, which enables
companies to automate the verification of government-issued IDs and
European eIDs, for transactions that require them.
- Seal Software Investment. The company announced a
$15 million investment in Seal
Software, a leader in artificial intelligence. Building on the
partnership between DocuSign and Seal Software, this investment in
Seal's artificial intelligence-based agreement discovery and
analytics solutions builds on DocuSign's commitment to make the
DocuSign Agreement Cloud offering smarter and more impactful for
customers.
Outlook
The company currently expects the following guidance:
•
Quarter ending July 31, 2019 (in millions, except
percentages):
|
|
|
|
|
Total
revenue
|
$218
|
to
|
$222
|
Billings
|
$215
|
to
|
$225
|
Non-GAAP gross
margin
|
78%
|
to
|
80%
|
Non-GAAP sales and
marketing
|
48%
|
to
|
50%
|
Non-GAAP research and
development
|
15%
|
to
|
17%
|
Non-GAAP general and
administrative
|
10%
|
to
|
14%
|
Interest and other
income (expense)
|
$3
|
to
|
$4
|
Provision for income
taxes
|
$2
|
to
|
$2.2
|
Non-GAAP diluted
weighted-average shares outstanding
|
185
|
to
|
190
|
|
|
• Year
ending January 31, 2020 (in millions, except
percentages):
|
|
|
|
|
Total
revenue
|
$917
|
to
|
$922
|
Billings
|
$1,010
|
to
|
$1,030
|
Non-GAAP gross
margin
|
78%
|
to
|
80%
|
Non-GAAP sales and
marketing
|
48%
|
to
|
50%
|
Non-GAAP research and
development
|
15%
|
to
|
17%
|
Non-GAAP general and
administrative
|
10%
|
to
|
13%
|
Interest and other
income (expense)
|
$12
|
to
|
$16
|
Provision for income
taxes
|
$8
|
to
|
$10
|
Non-GAAP diluted
weighted-average shares outstanding
|
190
|
to
|
195
|
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 6, 2019
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 docusign.com/investors. 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 20, 2019 using the passcode 13690792.
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 500,000 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 2003-2019. 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 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 the
benefits of the DocuSign Agreement Cloud, our estimated total
addressable market and the impact of DocuSign Agreement Cloud on
such market, the potential benefits of our investment in, and
partnership with, Seal Software, and our ability to deliver product
innovation. They also include statements about our possible or
assumed business strategies, potential growth opportunities and
potential market opportunities.
Forward-looking statements include all statements that are not
historical facts and can be identified by terms such as "believe,"
"could," "potential," "will," "would" or similar expressions and
the negatives of those terms. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. These risks include, but are not limited to, risks and
uncertainties related to: our ability to estimate the size of our
total addressable market; our ability to 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, rapid technological change
and increased competition in our market; our ability to compete
effectively, expand our operations and increase adoption of our
platform internationally; our ability to successfully integrate
SpringCM's operations; our ability to pay off our convertible
senior notes when due; our ability to successfully defend
assertions by third parties that we violate their intellectual
property rights; and our ability to respond to a network or data
security incident that allows unauthorized access to our network or
data or our customers' data. Additional risks and uncertainties
that could affect our financial results are included in the section
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 year ended January 31,
2019, and other filings that we make from time to time with
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 (loss) from operations,
non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP
net income (loss) 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, 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. 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 (used in) 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)
|
2019
|
|
2018
|
Revenue:
|
|
|
|
Subscription
|
$
|
201,458
|
|
|
$
|
148,198
|
|
Professional services
and other
|
12,504
|
|
|
7,610
|
|
Total
revenue
|
213,962
|
|
|
155,808
|
|
Cost of
revenue:
|
|
|
|
Subscription
|
33,119
|
|
|
32,438
|
|
Professional services
and other
|
18,900
|
|
|
25,856
|
|
Total cost of
revenue
|
52,019
|
|
|
58,294
|
|
Gross
profit
|
161,943
|
|
|
97,514
|
|
Operating
expenses:
|
|
|
|
Sales and
marketing
|
129,936
|
|
|
191,085
|
|
Research and
development
|
37,183
|
|
|
70,870
|
|
General and
administrative
|
37,261
|
|
|
103,117
|
|
Total
expenses
|
204,380
|
|
|
365,072
|
|
Loss from
operations
|
(42,437)
|
|
|
(267,558)
|
|
Interest
expense
|
(7,156)
|
|
|
(193)
|
|
Interest income and
other income (expense), net
|
5,217
|
|
|
(2,228)
|
|
Loss before
provision for income taxes
|
(44,376)
|
|
|
(269,979)
|
|
Provision for income
taxes
|
1,346
|
|
|
708
|
|
Net
loss
|
$
|
(45,722)
|
|
|
$
|
(270,687)
|
|
Net loss per share
attributable to common stockholders, basic and
diluted
|
$
|
(0.27)
|
|
|
$
|
(7.46)
|
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
172,101
|
|
|
36,334
|
|
|
|
|
|
Stock-based
compensation expense included in costs and expenses:
|
|
|
|
Cost of
revenue—subscription
|
$
|
2,282
|
|
|
$
|
9,955
|
|
Cost of
revenue—professional services
|
3,440
|
|
|
16,045
|
|
Sales and
marketing
|
18,102
|
|
|
112,481
|
|
Research and
development
|
7,317
|
|
|
47,268
|
|
General and
administrative
|
11,130
|
|
|
84,045
|
|
DOCUSIGN,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(in
thousands)
|
April 30,
2019
|
|
January 31,
2019
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
236,476
|
|
|
$
|
517,811
|
|
Investments—current
|
515,648
|
|
|
251,203
|
|
Restricted
cash
|
167
|
|
|
367
|
|
Accounts
receivable
|
117,134
|
|
|
174,548
|
|
Contract
assets—current
|
13,360
|
|
|
10,616
|
|
Prepaid expense and
other current assets
|
39,341
|
|
|
29,976
|
|
Total current
assets
|
922,126
|
|
|
984,521
|
|
Investments—noncurrent
|
184,683
|
|
|
164,220
|
|
Property and
equipment, net
|
84,094
|
|
|
75,832
|
|
Operating lease
right-of-use assets
|
143,361
|
|
|
—
|
|
Goodwill
|
194,775
|
|
|
195,225
|
|
Intangible assets,
net
|
69,490
|
|
|
74,203
|
|
Deferred contract
acquisition costs—noncurrent
|
115,924
|
|
|
112,583
|
|
Other
assets—noncurrent
|
23,947
|
|
|
8,833
|
|
Total
assets
|
$
|
1,738,400
|
|
|
$
|
1,615,417
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
21,436
|
|
|
$
|
19,590
|
|
Accrued
expenses
|
28,133
|
|
|
21,755
|
|
Accrued
compensation
|
57,684
|
|
|
77,553
|
|
Contract
liabilities—current
|
385,460
|
|
|
381,060
|
|
Operating lease
liabilities—current
|
16,921
|
|
|
—
|
|
Deferred
rent—current
|
—
|
|
|
2,452
|
|
Other
liabilities—current
|
12,973
|
|
|
13,903
|
|
Total current
liabilities
|
522,607
|
|
|
516,313
|
|
Convertible senior
notes, net
|
445,385
|
|
|
438,932
|
|
Contract
liabilities—noncurrent
|
7,586
|
|
|
7,712
|
|
Operating lease
liabilities—noncurrent
|
154,778
|
|
|
—
|
|
Deferred
rent—noncurrent
|
—
|
|
|
24,195
|
|
Deferred tax
liability—noncurrent
|
4,267
|
|
|
4,207
|
|
Other
liabilities—noncurrent
|
6,095
|
|
|
9,696
|
|
Total
liabilities
|
1,140,718
|
|
|
1,001,055
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
17
|
|
|
17
|
|
Additional paid-in
capital
|
1,575,471
|
|
|
1,545,088
|
|
Accumulated other
comprehensive loss
|
(3,258)
|
|
|
(1,965)
|
|
Accumulated
deficit
|
(974,548)
|
|
|
(928,778)
|
|
Total stockholders'
equity
|
597,682
|
|
|
614,362
|
|
Total liabilities
and stockholders' equity
|
$
|
1,738,400
|
|
|
$
|
1,615,417
|
|
DOCUSIGN,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(45,722)
|
|
|
$
|
(270,687)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
11,971
|
|
|
8,600
|
|
Amortization of
deferred contract acquisition and fulfillment costs
|
14,260
|
|
|
9,246
|
|
Amortization of debt
discount and transaction costs
|
6,454
|
|
|
—
|
|
Amortization of
operating lease right-of-use assets
|
4,128
|
|
|
—
|
|
Stock-based
compensation expense
|
42,271
|
|
|
269,794
|
|
Deferred income
taxes
|
52
|
|
|
(6)
|
|
Other
|
(1,111)
|
|
|
2,225
|
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
57,414
|
|
|
19,622
|
|
Contract
assets
|
(2,701)
|
|
|
2,546
|
|
Prepaid expenses and
other current assets
|
(7,107)
|
|
|
(6,519)
|
|
Deferred contract
acquisition and fulfillment costs
|
(20,487)
|
|
|
(12,326)
|
|
Other
assets
|
541
|
|
|
440
|
|
Accounts
payable
|
282
|
|
|
(7,218)
|
|
Accrued
expenses
|
6,442
|
|
|
3,302
|
|
Accrued
compensation
|
(19,869)
|
|
|
(16,947)
|
|
Contract
liabilities
|
4,274
|
|
|
12,611
|
|
Operating lease
liabilities
|
(3,705)
|
|
|
—
|
|
Other
liabilities
|
(1,732)
|
|
|
309
|
|
Net cash provided by
operating activities
|
45,655
|
|
|
14,992
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
marketable securities
|
(375,211)
|
|
|
—
|
|
Maturities of
marketable securities
|
92,457
|
|
|
—
|
|
Purchases of
strategic investments
|
(15,500)
|
|
|
—
|
|
Purchases of property
and equipment
|
(15,237)
|
|
|
(6,184)
|
|
Net cash used in
investing activities
|
(313,491)
|
|
|
(6,184)
|
|
Cash flows from
financing activities:
|
|
|
|
Payment of tax
withholding obligation on RSU settlement
|
(56,137)
|
|
|
—
|
|
Proceeds from
exercise of stock options
|
32,254
|
|
|
7,815
|
|
Proceeds from
employee stock purchase plan
|
10,563
|
|
|
—
|
|
Payment of deferred
offering costs
|
—
|
|
|
(2,194)
|
|
Net cash provided by
(used in) financing activities
|
(13,320)
|
|
|
5,621
|
|
Effect of foreign
exchange on cash, cash equivalents and restricted cash
|
(379)
|
|
|
(2,069)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(281,535)
|
|
|
12,360
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
518,178
|
|
|
257,436
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
236,643
|
|
|
$
|
269,796
|
|
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)
|
2019
|
|
2018
|
GAAP gross
profit
|
$
|
161,943
|
|
|
$
|
97,514
|
|
Add: Stock-based
compensation
|
5,722
|
|
|
26,000
|
|
Add: Amortization of
acquisition-related intangibles
|
1,627
|
|
|
1,668
|
|
Add: Employer payroll
tax on employee stock transactions
|
652
|
|
|
—
|
|
Non-GAAP gross
profit
|
$
|
169,944
|
|
|
$
|
125,182
|
|
GAAP gross
margin
|
76
|
%
|
|
63
|
%
|
Non-GAAP
adjustments
|
3
|
%
|
|
17
|
%
|
Non-GAAP gross
margin
|
79
|
%
|
|
80
|
%
|
|
|
|
|
GAAP subscription
gross profit
|
$
|
168,339
|
|
|
$
|
115,760
|
|
Add: Stock-based
compensation
|
2,282
|
|
|
9,955
|
|
Add: Amortization of
acquisition-related intangibles
|
1,627
|
|
|
1,668
|
|
Add: Employer payroll
tax on employee stock transactions
|
221
|
|
|
—
|
|
Non-GAAP subscription
gross profit
|
$
|
172,469
|
|
|
$
|
127,383
|
|
GAAP subscription
gross margin
|
84
|
%
|
|
78
|
%
|
Non-GAAP
adjustments
|
2
|
%
|
|
8
|
%
|
Non-GAAP subscription
gross margin
|
86
|
%
|
|
86
|
%
|
|
|
|
|
GAAP professional
services and other gross loss
|
$
|
(6,396)
|
|
|
$
|
(18,246)
|
|
Add: Stock-based
compensation
|
3,440
|
|
|
16,045
|
|
Add: Employer payroll
tax on employee stock transactions
|
431
|
|
|
—
|
|
Non-GAAP professional
services and other gross loss
|
$
|
(2,525)
|
|
|
$
|
(2,201)
|
|
GAAP professional
services and other gross margin
|
(51)
|
%
|
|
(240)
|
%
|
Non-GAAP
adjustments
|
31
|
%
|
|
211
|
%
|
Non-GAAP professional
services and other gross margin
|
(20)
|
%
|
|
(29)
|
%
|
Reconciliation of
operating expenses:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2019
|
|
2018
|
GAAP sales and
marketing
|
$
|
129,936
|
|
|
$
|
191,085
|
|
Less: Stock-based
compensation
|
(18,102)
|
|
|
(112,481)
|
|
Less: Amortization of
acquisition-related intangibles
|
(3,106)
|
|
|
(765)
|
|
Less: Employer
payroll tax on employee stock transactions
|
(2,351)
|
|
|
—
|
|
Non-GAAP sales and
marketing
|
$
|
106,377
|
|
|
$
|
77,839
|
|
GAAP sales and
marketing as a percentage of revenue
|
61
|
%
|
|
123
|
%
|
Non-GAAP sales and
marketing as a percentage of revenue
|
50
|
%
|
|
50
|
%
|
|
|
|
|
GAAP research and
development
|
$
|
37,183
|
|
|
$
|
70,870
|
|
Less: Stock-based
compensation
|
(7,317)
|
|
|
(47,268)
|
|
Less: Employer
payroll tax on employee stock transactions
|
(1,150)
|
|
|
—
|
|
Non-GAAP research and
development
|
$
|
28,716
|
|
|
$
|
23,602
|
|
GAAP research and
development as a percentage of revenue
|
17
|
%
|
|
45
|
%
|
Non-GAAP research and
development as a percentage of revenue
|
13
|
%
|
|
15
|
%
|
|
|
|
|
GAAP general and
administrative
|
$
|
37,261
|
|
|
$
|
103,117
|
|
Less: Stock-based
compensation
|
(11,130)
|
|
|
(84,045)
|
|
Less: Employer
payroll tax on employee stock transactions
|
(1,602)
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
24,529
|
|
|
$
|
19,072
|
|
GAAP general and
administrative as a percentage of revenue
|
18
|
%
|
|
67
|
%
|
Non-GAAP general and
administrative as a percentage of revenue
|
11
|
%
|
|
12
|
%
|
Reconciliation of
income (loss) from operations and operating margin:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2019
|
|
2018
|
GAAP operating
loss
|
$
|
(42,437)
|
|
|
$
|
(267,558)
|
|
Add: Stock-based
compensation
|
42,271
|
|
|
269,794
|
|
Add: Amortization of
acquisition-related intangibles
|
4,733
|
|
|
2,433
|
|
Add: Employer payroll
tax on employee stock transactions
|
5,755
|
|
|
—
|
|
Non-GAAP operating
income
|
$
|
10,322
|
|
|
$
|
4,669
|
|
GAAP operating
margin
|
(20)
|
%
|
|
(172)
|
%
|
Non-GAAP
adjustments
|
25
|
%
|
|
175
|
%
|
Non-GAAP operating
margin
|
5
|
%
|
|
3
|
%
|
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)
|
2019
|
|
2018
|
GAAP net
loss
|
$
|
(45,722)
|
|
|
$
|
(270,687)
|
|
Add: Stock-based
compensation
|
42,271
|
|
|
269,794
|
|
Add: Amortization of
acquisition-related intangibles
|
4,733
|
|
|
2,433
|
|
Add: Employer payroll
tax on employee stock transactions
|
5,755
|
|
|
—
|
|
Add: Amortization of
debt discount and issuance costs
|
6,454
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
13,491
|
|
|
$
|
1,540
|
|
|
|
|
|
Numerator:
|
|
|
|
Non-GAAP net
income
|
$
|
13,491
|
|
|
$
|
1,540
|
|
Less: preferred stock
accretion
|
—
|
|
|
(353)
|
|
Less: net income
allocated to participating securities
|
—
|
|
|
(871)
|
|
Non-GAAP net income
attributable to common stockholders
|
$
|
13,491
|
|
|
$
|
316
|
|
|
|
|
|
Denominator:
|
|
|
|
Weighted-average
common shares outstanding, basic
|
172,101
|
|
|
36,334
|
|
Effect of dilutive
securities
|
17,080
|
|
|
23,833
|
|
Non-GAAP
weighted-average common shares outstanding, diluted
|
189,181
|
|
|
60,167
|
|
|
|
|
|
GAAP net loss per
share, basic and diluted
|
$
|
(0.27)
|
|
|
$
|
(7.46)
|
|
Non-GAAP net income
per share, basic
|
0.08
|
|
|
0.01
|
|
Non-GAAP net income
per share, diluted
|
0.07
|
|
|
0.01
|
|
Computation of
free cash flow:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2019
|
|
2018
|
Net cash provided by
operating activities
|
$
|
45,655
|
|
|
$
|
14,992
|
|
Less: purchase of
property and equipment
|
(15,237)
|
|
|
(6,184)
|
|
Non-GAAP free cash
flow
|
$
|
30,418
|
|
|
$
|
8,808
|
|
Net cash used in
investing activities
|
$
|
(313,491)
|
|
|
$
|
(6,184)
|
|
Net cash provided by
(used in) financing activities
|
$
|
(13,320)
|
|
|
$
|
5,621
|
|
Computation of
billings:
|
|
|
Three Months Ended
April 30,
|
(in
thousands)
|
2019
|
|
2018
|
Revenue
|
$
|
213,962
|
|
|
$
|
155,808
|
|
Add: Contract
liabilities and refund liability, end of period
|
395,254
|
|
|
293,667
|
|
Less: Contract
liabilities and refund liability, beginning of period
|
(390,887)
|
|
|
(282,943)
|
|
Add: Contract assets
and unbilled accounts receivable, beginning of period
|
13,436
|
|
|
16,899
|
|
Less: Contract assets
and unbilled accounts receivable, end of period
|
(16,810)
|
|
|
(14,555)
|
|
Non-GAAP
billings
|
$
|
214,955
|
|
|
$
|
168,876
|
|
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SOURCE DocuSign, Inc.