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Oct 31, 2020

DocuSign Q3 2021 Earnings Report

DocuSign's Q3 2021 financial results reflected strong growth driven by digital transformation and the value customers see in eSignature and the Agreement Cloud.

Key Takeaways

DocuSign announced its Q3 Fiscal Year 2021 financial results, with total revenue reaching $382.9 million, a 53% increase year-over-year. The company's growth is attributed to the acceleration of digital transformation among businesses and the increasing recognition of DocuSign's platform as essential.

Total revenue was $382.9 million, up 53% year-over-year.

Subscription revenue reached $366.6 million, a 54% increase year-over-year.

Billings increased by 63% year-over-year, totaling $440.4 million.

Free cash flow was $38.1 million, compared to negative $14.1 million in the same period last year.

Total Revenue
$383M
Previous year: $250M
+53.5%
EPS
$0.22
Previous year: $0.11
+100.0%
Total Billings
$440M
Previous year: $269M
+63.5%
Gross Profit
$285M
Cash and Equivalents
$375M
Free Cash Flow
$38.1M
Total Assets
$2.05B

DocuSign

DocuSign

DocuSign Revenue by Segment

Forward Guidance

The company expects the following for the quarter ending January 31, 2021: Total revenue between $404 million and $408 million, subscription revenue between $384 million and $388 million and billings between $512 million and $522 million.

Positive Outlook

  • Total revenue between $404 million and $408 million
  • Subscription revenue between $384 million and $388 million
  • Billings between $512 million and $522 million
  • Non-GAAP gross margin between 78% and 80%
  • Non-GAAP diluted weighted-average shares outstanding 205 to 210

Challenges Ahead

  • Non-GAAP interest and other income (expense) $(1) to $1 million
  • Provision for income taxes $2 to $3 million
  • Non-GAAP sales and marketing 42% to 44%
  • Non-GAAP research and development 14% to 16%
  • Non-GAAP general and administrative 9% to 11%

Revenue & Expenses

Visualization of income flow from segment revenue to net income