DocuSign Reports 7% Revenue Growth in Q1 2025

DocuSign, Inc. (NASDAQ: DOCU) has released its financial results for the first quarter of fiscal 2025, ending on April 30, 2024. The company reported a total revenue of $709.6 million, representing a 7% increase compared to the same period last year. Subscription revenue also saw an 8% year-over-year increase, reaching $691.5 million.

In terms of billings, DocuSign reported $709.5 million, marking a 5% increase year-over-year. The GAAP gross margin was reported at 78.9%, slightly lower than the 79.4% from the previous year, while the non-GAAP gross margin was 82.0%, down from 82.6% in the same period last year.

The company's net income per diluted share was $0.16 on 210 million shares outstanding, a substantial improvement from the $0.00 reported on 208 million shares outstanding in the same period last year. The non-GAAP net income per diluted share also showed growth, reaching $0.82 on 210 million shares outstanding compared to $0.72 on 208 million shares outstanding in the same period last year.

DocuSign's net cash provided by operating activities increased to $254.8 million from $233.6 million in the same period last year, and free cash flow also saw a rise to $232.1 million, up from $214.6 million in the prior year's corresponding period. The company's cash, cash equivalents, restricted cash, and investments stood at $1.2 billion at the end of the quarter.

Additionally, the company announced a significant expansion of its company strategy with the launch of the DocuSign Intelligent Agreement Management platform, which includes services such as DocuSign Maestro, DocuSign Navigator, and DocuSign App Center.

Furthermore, DocuSign closed its acquisition of DocuSmart, Inc. d/b/a Lexion, a leader in AI-based agreement technology, which is expected to accelerate DocuSign’s AI-powered intelligent agreement management roadmap.

Finally, the company's board of directors authorized an increase to its existing stock repurchase program for an additional amount of up to $1.0 billion of DocuSign’s outstanding common stock, indicating a commitment to delivering value to shareholders.

Looking ahead, DocuSign provided guidance for the quarter ending July 31, 2024, and the fiscal year ending January 31, 2025. The company expects total revenue for the quarter to be in the range of $725 million to $729 million and subscription revenue to be between $705 million to $709 million. For the fiscal year, total revenue is anticipated to fall between $2,920 million to $2,932 million, with subscription revenue projected to be in the range of $2,844 million to $2,856 million.

Today the company's shares have moved 2.0% to a price of $54.6. For the full picture, make sure to review DocuSign's 8-K report.

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