DocuSign Announces Fourth Quarter and Fiscal Year 2021 Financial Results

SAN FRANCISCO, March 11, 2021 /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 fourth quarter and fiscal year ended January 31, 2021.

"Fiscal 2021 was a milestone year for DocuSign. We became a pillar of the 'anywhere economy' that lets people increasingly do anything in life and work from anywhere," said Dan Springer, CEO of DocuSign. "In the process, we grew our business nearly 50%, reached almost $1.5 billion in revenues, and achieved a record net retention rate of 123%. We believe this performance represents an acceleration of the ongoing trend towards the digital transformation of agreements."

Fourth Quarter Financial Highlights

  • Total revenue was $430.9 million, an increase of 57% year-over-year. Subscription revenue was $410.2 million, an increase of 59% year-over-year. Professional services and other revenue was $20.7 million, an increase of 23% year-over-year.
  • Billings were $534.9 million, an increase of 46% year-over-year.
  • GAAP gross margin was 76%, compared to 75% in the same period last year. Non-GAAP gross margin was 80% compared to 79% in the same period last year.
  • GAAP net loss per share was $0.38 on 189 million shares outstanding compared to $0.26 on 181 million shares outstanding in the same period last year.
  • Non-GAAP net income per diluted share was $0.37 on 209 million shares outstanding compared to $0.12 on 194 million shares outstanding in the same period last year.
  • Net cash provided by operating activities was $62.2 million compared to $45.5 million in the same period last year.
  • Free cash flow was $44.0 million compared to $15.5 million in the same period last year. Free cash flow includes a portion of the Q4'21 repayment of convertible senior notes of $75.2 million.
  • Cash, cash equivalents, restricted cash and investments were $866.5 million at the end of the quarter.

Fiscal 2021 Financial Highlights

  • Total revenue was $1.5 billion, an increase of 49% year-over-year. Subscription revenue was $1.4 billion, an increase of 50% year-over-year. Professional services and other revenue was $71.7 million, an increase of 29% year-over-year.
  • Billings were $1.7 billion, an increase of 56% year-over-year.
  • GAAP gross margin was 75% in both periods. Non-GAAP gross margin was 79% in both periods.
  • GAAP net loss per share was $1.31 on 186 million shares outstanding compared to $1.18 on 177 million shares outstanding in fiscal 2020.
  • Non-GAAP net income per diluted share was $0.90 on 204 million shares outstanding compared to $0.31 on 191 million shares outstanding in fiscal 2020.

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

  • Convertible Senior Notes: On January 15, 2021, the company issued $690 million of 0% convertible senior notes due in 2024. The company used a significant portion of the net proceeds, together with shares of DocuSign common stock, to repurchase a majority of its existing convertible senior notes due in 2023 and intends to use the remainder of the proceeds for working capital and other general corporate purposes.
  • Credit Facility: On January 11, 2021, the company closed a new $500 million, 5-year senior secured revolving credit facility, with an accordion feature allowing for an additional $250 million capacity. The facility will help to further optimize the company's financial position and provide it with greater balance sheet flexibility to deliver on its growth agenda.

Outlook

The company currently expects the following guidance:

▪       Quarter ending April 30, 2021 (in millions, except percentages):

Total revenue

$432

to

$436

Subscription revenue

$415

to

$419

Billings

$457

to

$467

Non-GAAP gross margin

79%

to

81%

Non-GAAP operating margin

12%

to

14%

Non-GAAP diluted weighted-average shares outstanding

205

to

210


▪       Fiscal year ending January 31, 2022 (in millions, except percentages):

Total revenue

$1,963

to

$1,973

Subscription revenue

$1,886

to

$1,896

Billings

$2,260

to

$2,280

Non-GAAP gross margin

79%

to

81%

Non-GAAP operating margin

13%

to

15%

Provision for income taxes

$8

to

$10

Non-GAAP diluted weighted-average shares outstanding

205

to

210

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 March 11, 2021 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) March 25, 2021, using the passcode 13716345.

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, more than 890,000 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 2021. 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 DocuSign Agreement Cloud software suite of products, including as a result of acquisitions, and the anticipated benefits of our issuances of convertible notes and the establishment of our credit facility. 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 and uncertainties include, among other things, risks related to our ability to estimate the size of our total addressable market; our expectations regarding the impact of the ongoing COVID-19 pandemic on our business, the results of our operations and our financial condition, as well as our future profitability and growth once the pandemic has abated; our expectations regarding the impact of the ongoing COVID-19 pandemic on the businesses of our customers, partners and suppliers, and the economy; 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 and execute potential acquisitions; our ability to successfully integrate the operations of businesses we may acquire, or to realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash and cash equivalents to satisfy our liquidity needs; limitations on us due to obligations we have under our credit facility or other indebtedness; our failure or the failure of our software suite of services 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; our ability to estimate the size and potential growth of our target market; 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 quarterly report on Form 10-Q for the quarter ended October 31, 2020 filed on December 4, 2020 with the Securities and Exchange Commission (the "SEC"), and other filings that we make from time to time with 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, acquisition-related expenses, loss on extinguishment of debt, tax impact related to an intercompany IP transfer 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 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 flow: We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, 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
January 31,


Year Ended January 31,

(in thousands, except per share data)

2021


2020


2021


2020

Revenue:








Subscription

$

410,215



$

258,122



$

1,381,397



$

918,463


Professional services and other

20,683



16,773



71,650



55,508


Total revenue

430,898



274,895



1,453,047



973,971


Cost of revenue:








Subscription

73,347



48,162



259,992



163,931


Professional services and other

28,233



19,913



104,066



79,303


Total cost of revenue

101,580



68,075



364,058



243,234


Gross profit

329,318



206,820



1,088,989



730,737


Operating expenses:








Sales and marketing

221,896



161,326



798,625



591,379


Research and development

80,135



52,094



271,522



185,552


General and administrative

52,184



35,753



192,697



147,315


Total operating expenses

354,215



249,173



1,262,844



924,246


Loss from operations

(24,897)



(42,353)



(173,855)



(193,509)


Interest expense

(7,786)



(7,461)



(30,799)



(29,254)


Loss on extinguishment of debt

(33,752)





(33,752)




Interest income and other income, net

2,882



3,658



8,914



19,207


Loss before provision for income taxes

(63,553)



(46,156)



(229,492)



(203,556)


Provision for income taxes

8,859



1,251



13,775



4,803


Net loss

$

(72,412)



$

(47,407)



$

(243,267)



$

(208,359)


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

$

(0.38)



$

(0.26)



$

(1.31)



$

(1.18)


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

188,717



180,859



185,760



176,704










Stock-based compensation expense included in costs and expenses:








Cost of revenue—subscription

$

6,138



$

3,951



$

20,793



$

12,882


Cost of revenue—professional services and other

6,510



3,826



21,865



15,703


Sales and marketing

37,190



26,170



131,041



94,863


Research and development

20,328



12,252



65,890



43,211


General and administrative

13,473



9,406



47,288



39,745


 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(in thousands, except share and per share data)

January 31, 2021


January 31, 2020

Assets




Current assets




Cash and cash equivalents

$

566,055



$

241,203


Investments—current

207,450



414,939


Accounts receivable, net

323,570



237,841


Contract assets—current

16,883



12,502


Prepaid expenses and other current assets

48,390



37,405


Total current assets

1,162,348



943,890


Investments—noncurrent

92,717



239,729


Property and equipment, net

165,039



128,293


Operating lease right-of-use assets

159,352



149,833


Goodwill

350,151



194,882


Intangible assets, net

121,828



56,500


Deferred contract acquisition costs—noncurrent

260,130



153,333


Other assets—noncurrent

24,942



24,678


Total assets

$

2,336,507



$

1,891,138


Liabilities and Equity




Current liabilities




Accounts payable

$

37,367



$

28,144


Accrued expenses and other current liabilities

66,566



54,344


Accrued compensation

156,158



83,189


Convertible senior notes—current

20,469




Contract liabilities—current

779,642



507,560


Operating lease liabilities—current

32,971



20,728


Total current liabilities

1,093,173



693,965


Convertible senior notes, net—noncurrent

693,219



465,321


Operating lease liabilities—noncurrent

165,704



162,432


Contract liabilities—noncurrent

16,492



11,478


Deferred tax liability—noncurrent

6,464



4,920


Other liabilities—noncurrent

32,328



6,695


Total liabilities

2,007,380



1,344,811


Convertible senior notes

3,390




Stockholders' equity




Common stock

19



18


Treasury stock

(1,048)




Additional paid-in capital

1,702,254



1,685,167


Accumulated other comprehensive gains (loss)

4,964



(1,673)


Accumulated deficit

(1,380,452)



(1,137,185)


Total stockholders' equity

325,737



546,327


Total liabilities and equity

$

2,336,507



$

1,891,138


 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2021


2020


2021


2020

Cash flows from operating activities:








Net loss

$

(72,412)



$

(47,407)



$

(243,267)



$

(208,359)


Adjustments to reconcile net loss to net cash provided by operating activities








Depreciation and amortization

19,635



13,266



71,090



50,182


Amortization of deferred contract acquisition and fulfillment costs

28,597



20,387



99,384



69,747


Amortization of debt discount and transaction costs

7,173



6,742



28,001



26,389


Loss on extinguishment of debt

33,752





33,752




Operating cash flow related to repayments of convertible senior notes

(75,165)





(75,165)




Non-cash operating lease costs

6,646



5,592



26,728



19,435


Stock-based compensation expense

83,639



55,605



286,877



206,404


Deferred income taxes

(1,360)



1,245



(2,410)



1,287


Other

(1,416)



401



(210)



(1,741)


Changes in operating assets and liabilities








Accounts receivable

(62,484)



(78,377)



(73,913)



(63,293)


Contract assets

5,802



5,715



1,912



(1,508)


Prepaid expenses and other current assets

680



(1,106)



(1,155)



(3,142)


Deferred contract acquisition and fulfillment costs

(63,871)



(37,923)



(208,510)



(115,723)


Other assets

457



612



(6,006)



1,538


Accounts payable

8,473



1,543



12,128



3,849


Accrued expenses and other liabilities

15,203



4,662



37,155



9,353


Accrued compensation

41,033



12,329



64,586



5,636


Contract liabilities

95,230



85,957



267,750



130,266


Operating lease liabilities

(7,379)



(3,738)



(21,773)



(14,624)


Net cash provided by operating activities

62,233



45,505



296,954



115,696


Cash flows from investing activities:








Cash paid for acquisition, net of acquired cash





(180,370)




Purchases of marketable securities

(84,340)



(107,318)



(164,989)



(861,252)


Sales of marketable securities





28,986




Maturities of marketable securities

83,756



166,599



488,538



627,309


Purchases of strategic investments





(5,300)



(15,500)


Purchases of other investments





(3,241)




Purchases of property and equipment

(18,251)



(29,975)



(82,395)



(72,046)


Net cash (used in) provided by investing activities

(18,835)



29,306



81,229



(321,489)


Cash flows from financing activities:








Proceeds from issuance of convertible senior notes, net of initial purchasers' discounts and transaction costs

677,370





677,370




Purchase of capped calls related to issuance of convertible senior notes

(31,395)





(31,395)




Repayments of convertible senior notes

(384,199)





(384,199)




Payment of revolving credit facility costs

(2,453)





(2,453)




Payment of tax withholding obligation on RSU settlement and ESPP purchase

(125,186)



(41,216)



(372,463)



(166,504)


Proceeds from exercise of stock options

9,322



9,914



24,305



72,177


Proceeds from employee stock purchase plan





29,859



23,872


Net cash (used in) provided by financing activities

143,459



(31,302)



(58,976)



(70,455)


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

4,214



(137)



5,646



(447)


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

191,071



43,372



324,853



(276,695)


Cash, cash equivalents and restricted cash at beginning of period (1)

375,265



198,111



241,483



518,178


Cash, cash equivalents and restricted cash at end of period (1)

$

566,336



$

241,483



$

566,336



$

241,483



(1) $0.3 million of restricted cash was included in Other assets—noncurrent at January 31, 2021 and Prepaid expenses and other current assets at January 31, 2020.


 

DOCUSIGN, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)


Reconciliation of gross profit and gross margin: 


Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2021


2020


2021


2020

GAAP gross profit

$

329,318



$

206,820



$

1,088,989



$

730,737


Add: Stock-based compensation

12,648



7,777



42,658



28,585


Add: Amortization of acquisition-related intangibles

3,196



1,348



11,052



5,704


Add: Employer payroll tax on employee stock transactions

1,454



668



5,904



2,577


Non-GAAP gross profit

$

346,616



$

216,613



$

1,148,603



$

767,603


GAAP gross margin

76

%


75

%


75

%


75

%

Non-GAAP adjustments

4

%


4

%


4

%


4

%

Non-GAAP gross margin

80

%


79

%


79

%


79

%









GAAP subscription gross profit

$

336,868



$

209,960



$

1,121,405



$

754,532


Add: Stock-based compensation

6,138



3,951



20,793



12,882


Add: Amortization of acquisition-related intangibles

3,196



1,348



11,052



5,704


Add: Employer payroll tax on employee stock transactions

679



285



2,862



1,054


Non-GAAP subscription gross profit

$

346,881



$

215,544



$

1,156,112



$

774,172


GAAP subscription gross margin

82

%


81

%


81

%


82

%

Non-GAAP adjustments

3

%


3

%


3

%


2

%

Non-GAAP subscription gross margin

85

%


84

%


84

%


84

%









GAAP professional services and other gross loss

$

(7,550)



$

(3,140)



$

(32,416)



$

(23,795)


Add: Stock-based compensation

6,510



3,826



21,865



15,703


Add: Employer payroll tax on employee stock transactions

775



383



3,042



1,523


Non-GAAP professional services and other gross profit (loss)

$

(265)



$

1,069



$

(7,509)



$

(6,569)


GAAP professional services and other gross margin

(37)

%


(19)

%


(45)

%


(43)

%

Non-GAAP adjustments

36

%


25

%


35

%


31

%

Non-GAAP professional services and other gross margin

(1)

%


6

%


(10)

%


(12)

%



Reconciliation of operating expenses:


Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2021


2020


2021


2020

GAAP sales and marketing

$

221,896



$

161,326



$

798,625



$

591,379


Less: Stock-based compensation

(37,190)



(26,170)



(131,041)



(94,863)


Less: Amortization of acquisition-related intangibles

(3,390)



(2,911)



(14,566)



(12,013)


Less: Employer payroll tax on employee stock transactions

(3,198)



(1,413)



(14,190)



(7,023)


Less: Acquisition-related expenses





(186)




Non-GAAP sales and marketing

$

178,118



$

130,832



$

638,642



$

477,480


GAAP sales and marketing as a percentage of revenue

51

%


59

%


55

%


61

%

Non-GAAP sales and marketing as a percentage of revenue

41

%


48

%


44

%


49

%









GAAP research and development

$

80,135



$

52,094



$

271,522



$

185,552


Less: Stock-based compensation

(20,328)



(12,252)



(65,890)



(43,211)


Less: Employer payroll tax on employee stock transactions

(2,012)



(636)



(7,329)



(3,524)


Non-GAAP research and development

$

57,795



$

39,206



$

198,303



$

138,817


GAAP research and development as a percentage of revenue

19

%


19

%


19

%


19

%

Non-GAAP research and development as a percentage of revenue

13

%


14

%


14

%


14

%









GAAP general and administrative

$

52,184



$

35,753



$

192,697



$

147,315


Less: Stock-based compensation

(13,473)



(9,406)



(47,288)



(39,745)


Less: Employer payroll tax on employee stock transactions

(2,612)



(540)



(6,619)



(3,596)


Less: Acquisition-related expenses





(7,776)




Non-GAAP general and administrative

$

36,099



$

25,807



$

131,014



$

103,974


GAAP general and administrative as a percentage of revenue

12

%


12

%


13

%


15

%

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
January 31,


Year Ended January 31,

(in thousands)

2021


2020


2021


2020

GAAP loss from operations

$

(24,897)



$

(42,353)



$

(173,855)



$

(193,509)


Add: Stock-based compensation

83,639



55,605



286,877



206,404


Add: Amortization of acquisition-related intangibles

6,586



4,259



25,618



17,717


Add: Employer payroll tax on employee stock transactions

9,276



3,257



34,042



16,720


Add: Acquisition-related expenses





7,962




Non-GAAP income from operations

$

74,604



$

20,768



$

180,644



$

47,332


GAAP operating margin

(6)

%


(15)

%


(12)

%


(20)

%

Non-GAAP adjustments

23

%


23

%


24

%


25

%

Non-GAAP operating margin

17

%


8

%


12

%


5

%



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


Three Months Ended
January 31,


Year Ended January 31,

(in thousands, except per share data)

2021


2020


2021


2020

GAAP net loss

$

(72,412)



$

(47,407)



$

(243,267)



$

(208,359)


Add: Stock-based compensation

83,639



55,605



286,877



206,404


Add: Amortization of acquisition-related intangibles

6,586



4,259



25,618



17,717


Add: Employer payroll tax on employee stock transactions

9,276



3,257



34,042



16,720


Add: Acquisition-related expenses





7,962




Add: Amortization of debt discount and issuance costs

7,173



6,742



28,001



26,389


Add: Loss on extinguishment of debt

33,752





33,752




Add: Tax expense related to intercompany IP transfer(1)

9,294





9,294




Non-GAAP net income

$

77,308



$

22,456



$

182,279



$

58,871










Numerator:








Non-GAAP net income and non-GAAP net income attributable to common stockholders, basic

$

77,308



$

22,456



$

182,279



$

58,871


Add: Interest expense on convertible senior notes

617





617




Non-GAAP net income attributable to common stockholders, diluted

$

77,925



$

22,456



$

182,896



$

58,871










Denominator:








Weighted-average common shares outstanding, basic

188,717



180,859



185,760



176,704


Effect of dilutive securities

19,797



12,869



17,929



14,094


Non-GAAP weighted-average common shares outstanding, diluted

208,514



193,728



203,689



190,798










GAAP net loss per share, basic and diluted

$

(0.38)



$

(0.26)



$

(1.31)



$

(1.18)


Non-GAAP net income per share, basic

0.41



0.12



0.98



0.33


Non-GAAP net income per share, diluted

0.37



0.12



0.90



0.31



(1)        Represents net change in tax liabilities related to an intercompany IP transfer



Computation of free cash flow:


Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2021


2020


2021


2020

Net cash provided by operating activities

$

62,233



$

45,505



$

296,954



$

115,696


Less: Purchases of property and equipment

(18,251)



(29,975)



(82,395)



(72,046)


Non-GAAP free cash flow

43,982



15,530



214,559



43,650


Net cash (used in) provided by investing activities

(18,835)



29,306



81,229



(321,489)


Net cash (used in) provided by financing activities

$

143,459



$

(31,302)



$

(58,976)



$

(70,455)




Computation of billings:


Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2021


2020


2021


2020

Revenue

$

430,898



$

274,895



$

1,453,047



$

973,971


Add: Contract liabilities and refund liability, end of period

800,940



522,201



800,940



522,201


Less: Contract liabilities and refund liability, beginning of period

(702,691)



(435,898)



(522,201)



(390,887)


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

26,808



20,805



15,082



13,436


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

(21,021)



(15,082)



(21,021)



(15,082)


Add: Contract assets and unbilled accounts receivable contributed by acquisitions





6,589




Less: Contract liabilities and refund liability contributed by acquisitions





(9,344)




Non-GAAP billings

$

534,934



$

366,921



$

1,723,092



$

1,103,639


 

SOURCE DocuSign, Inc.