DOCU
$249.28
Docusign
($.97)
(.39%)
Earnings Details
3rd Quarter October 2020
Thursday, December 3, 2020 4:05:00 PM
Tweet Share Watch
Summary

Docusign Misses

Docusign (DOCU) reported 3rd Quarter October 2020 earnings of $0.16 per share on revenue of $382.9 million. The consensus earnings estimate was $0.14 per share on revenue of $360.4 million. The Earnings Whisper number was $0.19 per share. Revenue grew 53.5% on a year-over-year basis.

The company said it expects fourth quarter revenue of $404.0 million to $408.0 million. The current consensus revenue estimate is $386.94 million for the quarter ending January 31, 2021.

Results
Reported Earnings
$0.16
Earnings Whisper
$0.19
Consensus Estimate
$0.14
Reported Revenue
$382.9 Mil
Revenue Estimate
$360.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

DocuSign Announces Third Quarter Fiscal 2021 Financial Results

SAN FRANCISCO, Dec. 3, 2020 /PRNewswire/ -- DocuSign, Inc. (NASDAQ: DOCU), which offers the world's #1 eSignature solution as part of the DocuSign Agreement Cloud, today announced results for its fiscal quarter ended October 31, 2020.

"As companies accelerate the digital transformation of their business and agreement processes, DocuSign's role as an essential cloud platform continues to grow," said Dan Springer, DocuSign CEO. "Our Q3 results reflect that tailwind, as well as the immediate and long-term value that customers see from eSignature and our broader Agreement Cloud."

Third Quarter Financial Highlights

  • Total revenue was $382.9 million, an increase of 53% year-over-year. Subscription revenue was $366.6 million, an increase of 54% year-over-year. Professional services and other revenue was $16.3 million, an increase of 43% year-over-year.
  • Billings were $440.4 million, an increase of 63% year-over-year.
  • GAAP gross margin was 74% compared to 75% in the same period last year. Non-GAAP gross margin was 79% in both comparative periods.
  • GAAP net loss per basic and diluted share was $0.31 on 186 million shares outstanding compared to $0.26 on 178 million shares outstanding in the same period last year.
  • Non-GAAP net income per diluted share was $0.22 on 206 million shares outstanding compared to $0.11 on 191 million shares outstanding in the same period last year.
  • Net cash provided by operating activities was $57.4 million compared to $1.9 million net cash used in operating activities in the same period last year.
  • Free cash flow was $38.1 million compared to negative $14.1 million in the same period last year.
  • Cash, cash equivalents, restricted cash and investments were $675.6 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 2020 Product Release 3. DocuSign announced more than a dozen new product capabilities to help customers get remote work done faster and easier. This includes:
    • eSignature for Slack which enables users to send and sign important documents from directly within Slack;
    • Drawing which streamlines processes by enabling a sender or signer to upload an image and leave free-form markups on the image;
    • Agreement Actions which allow admins to easily configure rules to automate common post-signature actions; and
    • iOS App Updates which includes an improved user experience and new features (including drag-and-drop tagging) for DocuSign's eSignature app for iOS.
  • New Products. DocuSign continues to expand the Agreement Cloud with new products that make agreement processes smarter, faster, and more secure.
    • DocuSign Analyzer helps customers negotiate better agreements, faster. It applies the AI-powered advanced contract analytics of DocuSign Insight to incoming contracts, accelerating contract review and negotiation while helping to manage risk.
    • DocuSign CLM+ adds AI-driven analytics from DocuSign Analyzer and Insight to DocuSign's market-leading CLM solution. This combination empowers organizations to automate manual tasks, orchestrate complex workflows and eliminate unnecessary risks intelligently by embedding analytics and machine learning across every stage of the agreement lifecycle.
    • DocuSign Monitor helps protect agreements with round-the-clock activity tracking. It uses advanced analytics to provide near real-time alerts—empowering security teams to detect unusual account activity, investigate incidents and respond to verified threats.
    • DocuSign Quote Gen for Salesforce CPQ+ allows Salesforce CPQ customers to leverage Gen for Salesforce as their document-generation solution within CPQ+.

Outlook

The company currently expects the following guidance:

Quarter ending January 31, 2021 (in millions, except percentages):

Total revenue

$404

to

$408

Subscription revenue

$384

to

$388

Billings

$512

to

$522

Non-GAAP gross margin

78%

to

80%

Non-GAAP sales and marketing

42%

to

44%

Non-GAAP research and development

14%

to

16%

Non-GAAP general and administrative

9%

to

11%

Non-GAAP interest and other income (expense)

$(1)

to

$1

Provision for income taxes

$2

to

$3

Non-GAAP diluted weighted-average shares outstanding

205

to

210

Year ending January 31, 2021 (in millions, except percentages):

Total revenue

$1,426

to

$1,430

Subscription revenue

$1,355

to

$1,359

Billings

$1,700

to

$1,710

Non-GAAP gross margin

78%

to

80%

Non-GAAP sales and marketing

44%

to

46%

Non-GAAP research and development

13%

to

15%

Non-GAAP general and administrative

9%

to

11%

Non-GAAP interest and other income

$3

to

$5

Provision for income taxes

$7

to

$8

Non-GAAP diluted weighted-average shares outstanding

200

to

205

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 December 3, 2020 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 investor.docusign.com. 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) December 17, 2020 using the passcode 13713254.

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, over 820,000 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 2020. 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 all statements that are not historical facts and can be identified by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, among other things, statements under "Outlook" above and any other 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 our expectations regarding the benefits of the DocuSign Agreement Cloud and enhancements to it, additions to the Agreement Cloud suite of products, and the anticipated benefits of the acquisition and integration of Seal Software and Liveoak Technologies. They also include statements about our future operating results and financial position, our business strategy and plans, market growth and trends, and our objectives for future operations. These statements are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These risks include, among other things, risks related to the impact of the COVID-19 pandemic on our business, financial condition and results of operations as well as the businesses of our customers and partners and the economy as a whole; our ability to estimate the size of our total addressable market; our ability to effectively 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 and rapid technological change; the effects of increased competition in our market and our ability to compete effectively; our ability to expand use cases within existing customers and vertical solutions; our ability to expand our operations and increase adoption of our platform internationally; our ability to strengthen and foster our relationship with developers; our ability to expand our direct sales force, customer success team and strategic partnerships around the world; our ability to identify targets for, execute on, integrate the operations of and realize the anticipated benefits of potential acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash and cash equivalents to satisfy our liquidity needs; our failure or the failure of our software to comply with applicable industry standards, laws and regulations; our ability to maintain, protect and enhance our intellectual property; our ability to successfully defend litigation against us; our ability to attract large organizations as users; our ability to maintain our corporate culture; our ability to offer high-quality customer support; our ability to hire, retain and motivate qualified personnel; and our ability to maintain proper and effective internal controls. Additional risks and uncertainties that could affect our financial results are included in the sections 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 fiscal year ended January 31, 2020 filed on March 27, 2020, our quarterly report on Form 10-Q for the quarter ended July 31, 2020 filed on September 4, 2020, and other filings that we make from time to time with the with the Securities and Exchange Commission (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 from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income 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, acquisition-related expenses, 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 that do not correlate to the operation of the business. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). 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 operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash that is available (if any), 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 October 31,


Nine Months Ended October 31,

(in thousands, except per share data)

2020


2019


2020


2019

Revenue:








Subscription

$

366,617



$

238,072



$

971,182



$

660,341


Professional services and other

16,306



11,430



50,967



38,735


Total revenue

382,923



249,502



1,022,149



699,076


Cost of revenue:








Subscription

69,905



43,178



186,645



115,769


Professional services and other

27,926



18,786



75,833



59,390


Total cost of revenue

97,831



61,964



262,478



175,159


Gross profit

285,092



187,538



759,671



523,917


Operating expenses:








Sales and marketing

209,944



149,231



576,729



430,053


Research and development

73,362



48,758



191,387



133,458


General and administrative

50,256



33,546



140,513



111,562


Total operating expenses

333,562



231,535



908,629



675,073


Loss from operations

(48,470)



(43,997)



(148,958)



(151,156)


Interest expense

(7,769)



(7,364)



(23,013)



(21,793)


Interest income and other income (expense), net

(311)



5,801



6,032



15,549


Loss before provision for income taxes

(56,550)



(45,560)



(165,939)



(157,400)


Provision for income taxes

1,941



1,038



4,916



3,552


Net loss

$

(58,491)



$

(46,598)



$

(170,855)



$

(160,952)


Net loss per share attributable to common stockholders, basic and diluted

$

(0.31)



$

(0.26)



$

(0.92)



$

(0.92)


Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

186,423



178,314



184,767



175,303










Stock-based compensation expense included in costs and expenses:








Cost of revenue—subscription

$

5,777



$

3,534



$

14,655



$

8,931


Cost of revenue—professional services and other

6,005



3,616



15,355



11,877


Sales and marketing

36,881



24,649



93,851



68,693


Research and development

18,896



11,679



45,562



30,959


General and administrative

13,361



9,258



33,815



30,339


 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)





(in thousands)

October 31, 2020


January 31, 2020

Assets




Current assets




Cash and cash equivalents

$

374,984



$

241,203


Investments—current

223,590



414,939


Restricted cash

281



280


Accounts receivable, net

261,085



237,841


Contract assets—current

22,477



12,502


Prepaid expenses and other current assets

47,343



37,125


Total current assets

929,760



943,890


Investments—noncurrent

76,782



239,729


Property and equipment, net

159,652



128,293


Operating lease right-of-use assets

160,362



149,833


Goodwill

348,504



194,882


Intangible assets, net

128,414



56,500


Deferred contract acquisition costs—noncurrent

225,115



153,333


Other assets—noncurrent

22,530



24,678


Total assets

$

2,051,119



$

1,891,138


Liabilities and Stockholders' Equity




Current liabilities




Accounts payable

$

32,309



$

28,144


Accrued expenses and other current liabilities

59,752



54,344


Accrued compensation

114,221



83,189


Contract liabilities—current

686,185



507,560


Operating lease liabilities—current

30,633



20,728


Total current liabilities

923,100



693,965


Convertible senior notes, net

486,149



465,321


Contract liabilities—noncurrent

14,717



11,478


Operating lease liabilities—noncurrent

169,078



162,432


Deferred tax liability—noncurrent

7,974



4,920


Other liabilities—noncurrent

24,069



6,695


Total liabilities

1,625,087



1,344,811


Stockholders' equity




Common stock

19



18


Treasury stock

(1,048)




Additional paid-in capital

1,736,241



1,685,167


Accumulated other comprehensive loss

(1,140)



(1,673)


Accumulated deficit

(1,308,040)



(1,137,185)


Total stockholders' equity

426,032



546,327


Total liabilities and stockholders' equity

$

2,051,119



$

1,891,138


 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands)

2020


2019


2020


2019

Cash flows from operating activities:








Net loss

$

(58,491)



$

(46,598)



$

(170,855)



$

(160,952)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities








Depreciation and amortization

19,479



12,655



51,455



36,916


Amortization of deferred contract acquisition and fulfillment costs

25,593



18,211



70,787



49,360


Amortization of debt discount and transaction costs

7,044



6,645



20,828



19,647


Non-cash operating lease costs

6,963



4,980



20,082



13,843


Stock-based compensation expense

80,920



52,736



203,238



150,799


Deferred income taxes

(766)



14



(1,050)



42


Other

1,699



229



1,206



(2,142)


Changes in operating assets and liabilities








Accounts receivable

(36,583)



(20,812)



(11,429)



15,084


Contract assets

(5,460)



(2,318)



(3,890)



(7,223)


Prepaid expenses and other current assets

3,553



(341)



(1,835)



(2,036)


Deferred contract acquisition and fulfillment costs

(52,225)



(27,899)



(144,639)



(77,800)


Other assets

(331)



(33)



(6,463)



926


Accounts payable

(2,620)



718



3,655



2,306


Accrued expenses and other liabilities

10,242



(9,811)



21,952



4,691


Accrued compensation

688



(9,120)



23,553



(6,693)


Contract liabilities

65,034



22,563



172,520



44,309


Operating lease liabilities

(7,296)



(3,688)



(14,394)



(10,886)


Net cash provided by (used in) operating activities

57,443



(1,869)



234,721



70,191


Cash flows from investing activities:








Cash paid for acquisition, net of acquired cash





(180,370)




Purchases of marketable securities

(68,982)



(223,048)



(80,649)



(753,934)


Sales of marketable securities





28,986




Maturities of marketable securities

103,366



216,261



404,782



460,710


Purchases of strategic investments

(5,300)





(5,300)



(15,500)


Purchases of other investments





(3,241)




Purchases of property and equipment

(19,393)



(12,280)



(64,144)



(42,071)


Net cash provided by (used in) investing activities

9,691



(19,067)



100,064



(350,795)


Cash flows from financing activities:








Payment of tax withholding obligation on RSU settlement

(113,417)



(39,310)



(247,277)



(125,288)


Proceeds from exercise of stock options

1,945



19,815



14,983



62,263


Proceeds from employee stock purchase plan

16,269



13,309



29,859



23,872


Net cash used in financing activities

(95,203)



(6,186)



(202,435)



(39,153)


Effect of foreign exchange on cash, cash equivalents and restricted cash

(1,208)



810



1,432



(310)


Net increase (decrease) in cash, cash equivalents and restricted cash

(29,277)



(26,312)



133,782



(320,067)


Cash, cash equivalents and restricted cash at beginning of period

404,542



224,423



241,483



518,178


Cash, cash equivalents and restricted cash at end of period

$

375,265



$

198,111



$

375,265



$

198,111


 

 

DOCUSIGN, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)


Reconciliation of gross profit and gross margin:






Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands)

2020


2019


2020


2019

GAAP gross profit

$

285,092



$

187,538



$

759,671



$

523,917


Add: Stock-based compensation

11,782



7,150



30,010



20,808


Add: Amortization of acquisition-related intangibles

3,376



1,348



7,856



4,356


Add: Employer payroll tax on employee stock transactions

1,676



715



4,450



1,908


Non-GAAP gross profit

$

301,926



$

196,751



$

801,987



$

550,989


GAAP gross margin

74

%


75

%


74

%


75

%

Non-GAAP adjustments

5

%


4

%


4

%


4

%

Non-GAAP gross margin

79

%


79

%


78

%


79

%









GAAP subscription gross profit

$

296,712



$

194,894



$

784,537



$

544,572


Add: Stock-based compensation

5,777



3,534



14,655



8,931


Add: Amortization of acquisition-related intangibles

3,376



1,348



7,856



4,356


Add: Employer payroll tax on employee stock transactions

722



337



2,183



769


Non-GAAP subscription gross profit

$

306,587



$

200,113



$

809,231



$

558,628


GAAP subscription gross margin

81

%


82

%


81

%


82

%

Non-GAAP adjustments

3

%


2

%


2

%


3

%

Non-GAAP subscription gross margin

84

%


84

%


83

%


85

%









GAAP professional services and other gross loss

$

(11,620)



$

(7,356)



$

(24,866)



$

(20,655)


Add: Stock-based compensation

6,005



3,616



15,355



11,877


Add: Employer payroll tax on employee stock transactions

954



378



2,267



1,139


Non-GAAP professional services and other gross loss

$

(4,661)



$

(3,362)



$

(7,244)



$

(7,639)


GAAP professional services and other gross margin

(71)

%


(64)

%


(49)

%


(53)

%

Non-GAAP adjustments

42

%


35

%


35

%


33

%

Non-GAAP professional services and other gross margin

(29)

%


(29)

%


(14)

%


(20)

%

 

Reconciliation of operating expenses:


Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands)

2020


2019


2020


2019

GAAP sales and marketing

$

209,944



$

149,231



$

576,729



$

430,053


Less: Stock-based compensation

(36,881)



(24,649)



(93,851)



(68,693)


Less: Amortization of acquisition-related intangibles

(3,981)



(2,957)



(11,176)



(9,102)


Less: Acquisition-related expenses





(186)




Less: Employer payroll tax on employee stock transactions

(4,125)



(1,682)



(10,992)



(5,610)


Non-GAAP sales and marketing

$

164,957



$

119,943



$

460,524



$

346,648


GAAP sales and marketing as a percentage of revenue

55

%


60

%


56

%


62

%

Non-GAAP sales and marketing as a percentage of revenue

43

%


48

%


45

%


50

%









GAAP research and development

$

73,362



$

48,758



$

191,387



$

133,458


Less: Stock-based compensation

(18,896)



(11,679)



(45,562)



(30,959)


Less: Employer payroll tax on employee stock transactions

(1,752)



(712)



(5,317)



(2,888)


Non-GAAP research and development

$

52,714



$

36,367



$

140,508



$

99,611


GAAP research and development as a percentage of revenue

19

%


20

%


19

%


19

%

Non-GAAP research and development as a percentage of revenue

14

%


15

%


14

%


14

%









GAAP general and administrative

$

50,256



$

33,546



$

140,513



$

111,562


Less: Stock-based compensation

(13,361)



(9,258)



(33,815)



(30,339)


Less: Acquisition-related expenses

(336)





(7,776)




Less: Employer payroll tax on employee stock transactions

(1,406)



(735)



(4,007)



(3,057)


Non-GAAP general and administrative

$

35,153



$

23,553



$

94,915



$

78,166


GAAP general and administrative as a percentage of revenue

13

%


13

%


14

%


16

%

Non-GAAP general and administrative as a percentage of revenue

9

%


9

%


9

%


11

%

 

Reconciliation of income (loss) from operations and operating margin:


Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands)

2020


2019


2020


2019

GAAP loss from operations

$

(48,470)



$

(43,997)



$

(148,958)



$

(151,156)


Add: Stock-based compensation

80,920



52,736



203,238



150,799


Add: Amortization of acquisition-related intangibles

7,357



4,305



19,032



13,458


Add: Acquisition-related expenses

336





7,962




Add: Employer payroll tax on employee stock transactions

8,959



3,844



24,766



13,463


Non-GAAP income from operations

$

49,102



$

16,888



$

106,040



$

26,564


GAAP operating margin

(13)

%


(18)

%


(15)

%


(22)

%

Non-GAAP adjustments

26

%


25

%


25

%


26

%

Non-GAAP operating margin

13

%


7

%


10

%


4

%

 

Reconciliation of net income (loss) and net income (loss) per share, basic and diluted:


Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands, except per share data)

2020


2019


2020


2019

GAAP net loss

$

(58,491)



$

(46,598)



$

(170,855)



$

(160,952)


Add: Stock-based compensation

80,920



52,736



203,238



150,799


Add: Amortization of acquisition-related intangibles

7,357



4,305



19,032



13,458


Add: Acquisition-related expenses

336





7,962




Add: Employer payroll tax on employee stock transactions

8,959



3,844



24,766



13,463


Add: Amortization of debt discount and issuance costs

7,044



6,645



20,828



19,647


Non-GAAP net income

$

46,125



$

20,932



$

104,971



$

36,415










Numerator:








Non-GAAP net income

$

46,125



$

20,932



$

104,971



$

36,415










Denominator:








Weighted-average common shares outstanding, basic

186,423



178,314



184,767



175,303


Effect of dilutive securities

19,425



12,478



17,623



14,503


Non-GAAP weighted-average common shares outstanding, diluted

205,848



190,792



202,390



189,806










GAAP net loss per share, basic and diluted

$

(0.31)



$

(0.26)



$

(0.92)



$

(0.92)


Non-GAAP net income per share, basic

0.25



0.12



0.57



0.21


Non-GAAP net income per share, diluted

0.22



0.11



0.52



0.19


 

Computation of free cash flow:


Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands)

2020


2019


2020


2019

Net cash provided by operating activities

$

57,443



$

(1,869)



$

234,721



$

70,191


Less: Purchases of property and equipment

(19,393)



(12,280)



(64,144)



(42,071)


Non-GAAP free cash flow

$

38,050



$

(14,149)



$

170,577



$

28,120


Net cash provided by (used in) investing activities

$

9,691



$

(19,067)



$

100,064



$

(350,795)


Net cash used in financing activities

$

(95,203)



$

(6,186)



$

(202,435)



$

(39,153)


 

Computation of billings:


Three Months Ended October 31,


Nine Months Ended October 31,

(in thousands)

2020


2019


2020


2019

Revenue

$

382,923



$

249,502



$

1,022,149



$

699,076


Add: Contract liabilities and refund liability, end of period

702,691



435,898



702,691



435,898


Less: Contract liabilities and refund liability, beginning of period

(638,790)



(412,953)



(522,201)



(390,887)


Add: Contract assets and unbilled accounts receivable, beginning of period

20,395



17,757



15,082



13,436


Less: Contract assets and unbilled accounts receivable, end of period

(26,808)



(20,805)



(26,808)



(20,805)


Add: Contract assets and unbilled accounts receivable by acquisitions





6,589




Less: Contract liabilities and refund liability contributed by acquisitions





(9,344)




Non-GAAP billings

$

440,411



$

269,399



$

1,188,158



$

736,718


 

 

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SOURCE DocuSign, Inc.