NASDAQ$DOCU

DocuSign Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

DocuSign's Q4 2024 financial performance highlighted by increased revenue, billings, and free cash flow, alongside product innovation and customer growth.

DocuSign reported a strong finish to Fiscal Year 2024, marked by significant growth in key financial metrics. Total revenue for Q4 reached $712.4 million, up 8% year-over-year, with billings increasing by 13% to $833.1 million. The company's free cash flow more than doubled compared to the previous year, and they continue to innovate their product offerings for over 1.5 million customers.

  • Total revenue increased by 8% year-over-year, reaching $712.4 million.
  • Billings grew by 13% year-over-year, totaling $833.1 million.
  • Free cash flow more than doubled compared to the same period last year, amounting to $248.6 million.
  • GAAP net income per diluted share was $0.13, compared to $0.02 in the same period last year.

Headline financials

Total Revenue

$712M

Previous: $660M+8.0%
EPS (adj)

$0.76

Previous: $0.65+16.9%
Total Billings

$833M

Previous: $739M+12.7%
Capital Expenditures

-$22.1M

Previous: $24.1M-191.9%
Net Income

$27.2M

Previous: $4.86M+460.2%
Operating Income

$9.94M

Previous: -$284K+3598.2%
Gross Profit

$564M

Previous: $522M+8.1%
R&D Expense

$152M

No prior period

Revenue & EPS history

DocuSign · Revenue · Quarterly

$712M

Q4 2024+8%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

DocuSign · $701M total across 2 segments · Q3 2024

  • Subscription
    $682M+9.3%
  • Professional Services
    $18.1M-15.5%

Forward guidance

The company expects total revenue between $704 million and $708 million for the quarter ending April 30, 2024. They anticipate subscription revenue between $686 million and $690 million, and billings between $685 million and $695 million. Non-GAAP gross margin is projected to be 81.0% to 82.0%, with a non-GAAP operating margin of 27.0% to 28.0%.

Tailwinds

  • Total revenue is expected to be between $704 million and $708 million.
  • Subscription revenue is projected to be between $686 million and $690 million.
  • Billings are anticipated to be between $685 million and $695 million.
  • Non-GAAP gross margin is forecasted to be 81.0% to 82.0%.
  • Non-GAAP operating margin is expected to be 27.0% to 28.0%.

Headwinds

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort.
  • Stock-based compensation-related charges are impacted by many factors, including the timing of employee stock transactions and the future fair market value of our common stock.
  • The company's future hiring and retention needs are difficult to predict and subject to constant change.
  • Global macro-economic conditions, including the effects of inflation, volatile interest rates, instability in the global banking sector, and market volatility on the global economy may affect future results.
  • The company's ability to estimate the size and growth of our total addressable market may affect future outlook.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.9%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+0.1%

Avg return

30 days after

48%

16 / 33 earnings

Positive

+27.4%

Q3 2025

Best reaction

-41.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-7.3%-11.3%
Q4 2026+1.8%+2.6%-3.8%
Q3 2026-7.7%-3.2%-8.8%
Q2 2026+4.7%+3.4%-8.5%
Q1 2026+0.0%+1.4%+2.3%
Q4 2025+14.8%+14.6%-0.5%
Q3 2025+27.4%+14.1%+7.4%
Q2 2025+3.1%-5.0%+11.2%
Q1 2025-2.8%-2.7%+1.7%
Q4 2024+6.7%+11.5%+13.3%
Q3 2024+5.0%+18.2%+15.4%
Q2 2024-4.9%-12.1%-20.2%
Q1 2024-0.3%-3.4%-13.1%
Q4 2023-24.3%-15.5%-14.0%
Q3 2023+16.8%+37.9%+29.6%
Q2 2023+16.1%+10.5%-13.3%
Q1 2023-26.8%-36.4%-26.2%
Q4 2022-23.5%-21.8%+4.0%
Q3 2022-41.5%-39.9%-34.0%
Q2 2022+4.3%-1.9%-13.3%
Q1 2022+16.3%+20.8%+39.0%
Q4 2021-1.1%-0.7%+0.1%
Q3 2021+11.7%+7.9%+2.1%
Q2 2021-18.4%-22.5%-17.7%
Q1 2021-5.3%-3.8%+29.5%
Q4 2020+3.1%-5.4%+20.8%
Q3 2020+8.0%+4.0%+7.9%
Q2 2020+20.1%+27.9%+33.2%
Q1 2020-9.7%-10.2%-2.2%
Q4 2019-2.1%-1.7%-4.2%
Q3 2019-4.4%+0.5%-1.4%
Q2 2019-10.8%-16.8%-30.2%
Q1 2019+1.0%+7.8%-4.2%
Q3 2017
Q2 2017
Q1 2017

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