DocuSign, Inc. recently released its 10-Q report, providing a comprehensive overview of its financial condition and results of operations. The company, headquartered in San Francisco, California, offers electronic signature solutions and Contract Lifecycle Management (CLM) services. DocuSign's products include eSignature solutions for sending and signing agreements, Contract Lifecycle Management (CLM) for automating workflows, Document Generation for creating custom agreements, and Gen for Salesforce for generating agreements within Salesforce.
In the third quarter of fiscal 2025, DocuSign reported total revenue of $754.82 million, marking an increase from the previous year's $700.42 million in the same period. The company's total costs and expenses for the same period were $695.79 million, with a gross profit of $59.03 million. Net income for the quarter was $62.42 million, up from $38.81 million in the previous year's corresponding period. DocuSign's net cash provided by operating activities for the three months ended October 31, 2024, was $234.33 million.
The company's international revenue represented 28% of total revenue in the third quarter of fiscal 2025, compared to 26% in the same period of the previous year. DocuSign has over 1.6 million customers, including approximately 256,000 enterprise and commercial customers. The company's customer base spans across various industries, with no significant customer concentration, and no single customer accounted for more than 10% of total revenue in any of the periods presented.
DocuSign's long-term strategy includes evolving its go-to-market channels, investing in product innovation and research and development, and strengthening its omnichannel approach. The company also aims to increase its international customer base and enhance its operational and financial efficiency to sustain growth effectively.
The 10-Q report indicates that DocuSign generates the majority of its revenue from sales of subscriptions, which accounted for 97% of its revenue in each of the three and nine-month periods ended October 31, 2024 and 2023. The company also generates revenue from professional and other non-subscription services, with professional services revenue including fees associated with providing deployment and integration services.
In terms of cost of revenue, DocuSign allocates shared overhead costs, such as facilities, information technology, and recruiting costs to all departments based on headcount. The company's operating expenses include sales and marketing, research and development, general and administrative, and restructuring and other related charges.
The market has reacted to these announcements by moving the company's shares 27.9% to a price of $106.99. For more information, read the company's full 10-Q submission here.
