#United States #San Francisco #Fiscal 2025 #Docusign #Intelligent Agreement Management

Docusign’s Third Quarter Results for Fiscal 2025

Docusign, Inc. (NASDAQ: DOCU), a leader in electronic signatures and contract lifecycle management, recently released its financial results for the third quarter of fiscal year 2025, which ended on October 31, 2024. The results indicate a robust performance and meaningful advancements in its product offerings.

Financial Highlights

In the reported quarter, Docusign achieved a total revenue of $754.8 million, marking an 8% increase compared to the same quarter last year. The breakdown showed that subscription revenue contributed $734.7 million, while professional services generated $20.1 million, an increase of 11% year-over-year. Key figures from the financial statement include:

• - Billings reached $752.3 million, reflecting a 9% growth over the previous year.
• - GAAP gross margin slightly decreased to 79.3%, down from 79.6% year-over-year, while non-GAAP gross margin held steady at 82.5%.
• - The company's net income per diluted share was $0.30 as compared to $0.19 in the same period last year, showcasing a solid performance.
• - Net cash from operating activities amounted to $234.3 million, although it saw a decrease from the prior year’s $264.2 million.

The company also utilized $172.7 million for share repurchases in this quarter, an increase from $75 million in the same quarter last year, indicating a commitment to returning value to shareholders.

Key Product Innovations

Docusign’s focus on innovation is evident with its recent improvements in the Intelligent Agreement Management (IAM) platform. CEO Allan Thygesen highlighted how early momentum for IAM outpaced expectations. Key capabilities recently introduced include:

• - Docusign Navigator: Now integrated with AI technology from Lexion, enabling users to gain insights from various agreement types while improving document import functionalities from popular storage partners like Box and Google Drive.
• - Global Expansion of IAM: Following the platform’s successful initial launch in the US, Canada, and Australia, the global reach of IAM with Docusign Maestro and IAM App Center has been extended, allowing a wider audience to benefit from Docusign’s innovative features.

Additionally, advancements in contract lifecycle management are notable, with the introduction of the Docusign Connector for SAP Ariba. This integration is designed to streamline source-to-pay processes, reducing operational friction.

Developer Ecosystem and Future Integration

Docusign also hosted its inaugural Discover 2024 event, which connected customers, partners, and developers to explore the full potential of agreement management through product integrations with Microsoft, SAP, and Workday. A standout addition to the development landscape is Copilot for Microsoft 365, which enhances user experience by allowing AI-assisted searches for agreements.

Guidance for Future Growth

Looking ahead, Docusign anticipates continued growth. For the quarter ending January 31, 2025, the company expects total revenue between $758 million and $762 million and billings between $870 million and $880 million. For the fiscal year ending January 31, 2025, total revenue is projected to fall between $2.959 billion and $2.963 billion.

Conclusion

Docusign's third-quarter results not only showcase strong financial metrics but also the company’s commitment to innovation in the rapidly evolving digital agreement landscape. As businesses increasingly look to streamline their processes, Docusign's advancements position it as a key player in enabling more efficient contract management and electronic signing solutions.

With a solid foundation of growth and innovation, Docusign is poised to continue making impactful contributions to the way agreements are made and managed across the globe.