DocuSign, Inc. (NASDAQ: DOCU) has announced its financial results for the first quarter ended April 30, 2025, showcasing a series of significant changes and developments compared to the same period last year.
Revenue for the quarter was reported at $763.7 million, marking an 8% year-over-year increase, despite a 0.6% negative impact from foreign currency exchange rates. Subscription revenue also saw an 8% year-over-year increase, reaching $746.2 million, while professional services and other revenue experienced a 4% year-over-year decrease, reaching $17.5 million.
Billings for the period amounted to $739.6 million, reflecting a 4% year-over-year increase. Additionally, GAAP gross margin grew to 79.4%, up from 78.9% in the same period last year, while non-GAAP gross margin was reported at 82.3%, compared to 82.0% in the prior year.
GAAP net income per basic share also saw a substantial increase, reaching $0.35 on 203 million shares outstanding, compared to $0.16 on 206 million shares outstanding in the same period last year. Similarly, GAAP net income per diluted share was $0.34 on 213 million shares outstanding, compared to $0.16 on 210 million shares outstanding in the previous year. Non-GAAP net income per diluted share also rose to $0.90 on 213 million shares outstanding, up from $0.82 on 210 million shares outstanding in the same period last year.
In terms of cash flow, net cash provided by operating activities was $251.4 million, slightly down from $254.8 million in the same period last year. Meanwhile, free cash flow was reported at $227.8 million, a decrease from $232.1 million in the previous year.
The company's cash, cash equivalents, restricted cash, and investments stood at $1.1 billion at the end of the quarter, representing a strong financial position. Moreover, repurchases of common stock amounted to $183.4 million, up from $149.1 million in the same period last year.
DocuSign also announced an increase to its existing stock repurchase program, authorizing an additional amount of up to $1.0 billion of its outstanding common stock, bringing the total remaining authorization under the stock repurchase plan to up to $1.4 billion as of June 5, 2025.
Looking ahead, the company provided guidance for the quarter ending July 31, 2025, with total revenue expected to fall within the range of $777 million to $781 million, and subscription revenue projected to reach $760 million to $764 million. Additionally, the company anticipates billings to fall within the range of $757 million to $767 million for the same period.
For the fiscal year ending January 31, 2026, DocuSign expects total revenue to range between $3,151 million to $3,163 million, and subscription revenue to reach $3,083 million to $3,095 million. Billings for the fiscal year are projected to be in the range of $3,285 million to $3,339 million.
The company's non-GAAP gross margin and non-GAAP operating margin for both the upcoming quarter and the fiscal year are also anticipated to exhibit positive growth compared to the previous year.
Following these announcements, the company's shares moved -0.13%, and are now trading at a price of $93.72. Check out the company's full 8-K submission here.
