DocuSign, Inc. (DOCU) Bundle
A Brief History of DocuSign
Company Overview
DocuSign, Inc. is a leader in electronic signature technology and digital transaction management services. As of 2024, the company has maintained a robust market presence with significant growth in its subscription revenue.
Financial Performance
As of July 31, 2024, DocuSign reported total revenue of $736.0 million for the three months ended July 31, 2024, compared to $687.7 million for the same period in 2023. For the six months ended July 31, 2024, total revenue was $1.45 billion, up from $1.35 billion in the prior year.
| Period | Revenue (in millions) | Net Income (in millions) | Gross Margin (%) |
|---|---|---|---|
| Q2 2024 | $736.0 | $888.2 | 79% |
| Q2 2023 | $687.7 | $7.4 | 79% |
| 6 Months 2024 | $1,445.7 | $921.9 | 79% |
| 6 Months 2023 | $1,349.1 | $7.9 | 79% |
Stock Performance and Repurchase Program
In 2024, DocuSign authorized a stock repurchase program, increasing the total amount to $1.0 billion. During the six months ended July 31, 2024, the company repurchased 6.3 million shares for a total of $350.8 million, indicating a strong commitment to returning value to shareholders.
Cost Management
The company has effectively managed costs, with total costs and expenses slightly decreasing from $681.1 million in Q2 2023 to $678.2 million in Q2 2024. This reflects a strategic focus on operational efficiency even as revenues grow.
Acquisitions and Growth Strategy
In early 2024, DocuSign acquired Lexion for $154.0 million, enhancing its capabilities in contract management. This acquisition is expected to drive future revenue growth by expanding the product offerings.
Cash Flow Analysis
For the six months ended July 31, 2024, net cash provided by operating activities was $475.0 million, showcasing strong cash generation capabilities. The company’s cash and cash equivalents totaled $938.4 million as of July 31, 2024.
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash from Operating Activities | $475.0 |
| Net Cash Used in Investing Activities | ($236.9) |
| Net Cash Used in Financing Activities | ($408.9) |
Market Position and Future Outlook
DocuSign's international revenue represented 28% of total revenue in 2024, emphasizing its growth in global markets. The company continues to invest in product innovation and customer acquisition strategies to sustain its competitive edge.
Stockholder Equity
As of July 31, 2024, total stockholders' equity was reported at $1.96 billion, reflecting a healthy balance sheet as the company continues to navigate market challenges.
| Equity Component | Amount (in millions) |
|---|---|
| Total Stockholders' Equity | $1,961.4 |
| Accumulated Deficit | ($1,099.0) |
| Accumulated Other Comprehensive Loss | ($24.5) |
DocuSign's strategic initiatives and financial performance as of 2024 position it well for future growth in the digital transaction management space.
A Who Owns DocuSign, Inc. (DOCU)
Ownership Structure
As of 2024, DocuSign, Inc. (DOCU) has a diverse ownership structure comprising institutional investors, insiders, and retail shareholders. The following table illustrates the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Shares Owned (in millions) | Ownership Percentage (%) |
|---|---|---|---|
| Institutional | The Vanguard Group, Inc. | 27.54 | 13.41 |
| Institutional | BlackRock, Inc. | 25.12 | 12.30 |
| Institutional | State Street Corporation | 15.39 | 7.53 |
| Insider | Dan Springer (CEO) | 0.95 | 0.47 |
| Insider | Graham Smith (CFO) | 0.75 | 0.37 |
| Retail | Others | 158.50 | 76.92 |
Institutional Ownership
Institutional investors hold a significant portion of DocuSign's shares, reflecting confidence in the company's growth potential. Below is a detailed breakdown of the top institutional investors as of 2024.
| Institution | Shares Owned (in millions) | Ownership Percentage (%) |
|---|---|---|
| The Vanguard Group, Inc. | 27.54 | 13.41 |
| BlackRock, Inc. | 25.12 | 12.30 |
| State Street Corporation | 15.39 | 7.53 |
| Invesco Ltd. | 10.22 | 5.01 |
| Fidelity Investments | 8.45 | 4.14 |
Insider Ownership
Insider ownership is also notable, with key executives holding shares in the company. The following table lists the major insiders and their ownership stakes.
| Insider Name | Position | Shares Owned (in millions) | Ownership Percentage (%) |
|---|---|---|---|
| Dan Springer | CEO | 0.95 | 0.47 |
| Graham Smith | CFO | 0.75 | 0.37 |
| Teresa Briggs | Director | 0.50 | 0.25 |
| Jim Shaughnessy | Chief Legal Officer | 0.40 | 0.20 |
| Other Insiders | - | 1.00 | 0.49 |
Recent Developments in Ownership
In the recent fiscal period, DocuSign has implemented a stock repurchase program, which has affected the overall ownership structure. As of July 31, 2024, the company repurchased approximately 6.3 million shares for a total of $350.8 million, which is part of an ongoing strategy to enhance shareholder value.
Market Capitalization
As of July 31, 2024, DocuSign's market capitalization was approximately $20.63 billion, reflecting a strong position in the e-signature and digital transaction management market. This valuation is based on a share price of approximately $100.98 at that time.
Conclusion on Ownership Trends
DocuSign continues to attract substantial institutional investment, indicating a robust outlook for growth. The active participation of insiders in share ownership further aligns their interests with those of shareholders, reflecting confidence in the company's strategic direction.
DocuSign, Inc. (DOCU) Mission Statement
Company Overview
DocuSign, Inc. offers solutions for agreement workflows and digital transformation, including electronic signature and contract lifecycle management (CLM) products. The company enables organizations to enhance productivity, speed up contract review cycles, and derive actionable insights from agreement data.
Mission Statement
DocuSign's mission is to provide the world’s leading e-signature solution, allowing businesses to connect and automate the entire agreement process. This is achieved by leveraging technology to simplify and streamline how organizations create, sign, and manage agreements.
Financial Performance
As of July 31, 2024, DocuSign reported the following financial metrics:
| Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $736,027,000 | $687,687,000 | $1,445,667,000 | $1,349,075,000 |
| Total Costs and Expenses | $678,226,000 | $681,075,000 | $1,365,238,000 | $1,347,114,000 |
| Net Income | $888,211,000 | $7,395,000 | $921,971,000 | $7,934,000 |
| Net Cash Provided by Operating Activities | $220,208,000 | $211,016,000 | $475,034,000 | $444,651,000 |
Customer Base
As of July 31, 2024, DocuSign served approximately 1.6 million customers, including about 253,000 enterprise and commercial customers, compared to 1.4 million customers and 226,000 enterprise customers a year earlier. The company focuses on expanding its customer base through an omnichannel sales strategy.
Revenue Breakdown
The company generates approximately 97% of its revenue from subscription services, which are recognized over time. Professional services and other non-subscription services contribute to the remainder of the revenue.
| Revenue Source | Percentage of Total Revenue |
|---|---|
| Subscription Services | 97% |
| Professional Services and Other | 3% |
International Revenue
International revenue accounted for 28% of total revenue for the three and six months ended July 31, 2024, compared to 26% in the same periods in 2023.
Future Outlook
DocuSign anticipates continued growth driven by strategic investments in product innovation and market expansion. The company aims to enhance its offerings through the Intelligent Agreement Management platform and increase its presence in international markets.
Recent Developments
In March 2024, DocuSign introduced its Intelligent Agreement Management platform, expanding its service offerings and enhancing customer engagement capabilities. The rollout of this platform is expected to further drive revenue growth in the upcoming fiscal periods.
How DocuSign, Inc. (DOCU) Works
Company Overview
DocuSign, Inc. (DOCU) is a leader in electronic signature technology and digital transaction management services. As of July 31, 2024, the company serves approximately 1.6 million customers, including about 253,000 enterprise and commercial customers, a growth from over 1.4 million total customers in 2023.
Financial Performance
For the six months ended July 31, 2024, DocuSign reported the following financial results:
| Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Revenue | $1,445,667 | $1,349,075 | 7% |
| Subscription Revenue | $1,408,849 | $1,308,674 | 8% |
| Professional Services Revenue | $36,818 | $40,401 | (9%) |
| Net Income | $921,971 | $7,934 | 11,598% |
| Operating Income | $80,429 | $1,961 | 4,100% |
Revenue Breakdown
DocuSign generates the majority of its revenue from subscription services, which accounted for 97% of total revenue as of July 31, 2024. The breakdown by geography is as follows:
| Region | Q2 2024 Revenue (in thousands) | Q2 2023 Revenue (in thousands) |
|---|---|---|
| U.S. | $1,042,178 | $1,001,042 |
| International | $403,489 | $348,033 |
Cost Structure
For the six months ended July 31, 2024, DocuSign's total costs and expenses were $1,365,238, compared to $1,347,114 in 2023, reflecting a slight increase in operational costs. The major components are:
- Cost of Revenue: $304,911 (2024) vs. $282,069 (2023)
- Sales and Marketing: $569,108 (2024) vs. $575,443 (2023)
- Research and Development: $281,891 (2024) vs. $251,324 (2023)
- General and Administrative: $179,607 (2024) vs. $208,695 (2023)
Cash Flow Analysis
DocuSign reported cash flows for the six months ended July 31, 2024, as follows:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $475,034 | $444,651 |
| Investing Activities | ($236,887) | ($56,911) |
| Financing Activities | ($408,942) | ($90,251) |
| Net Change in Cash | ($173,472) | $299,779 |
Debt and Equity
As of July 31, 2024, DocuSign had no outstanding borrowings under its revolving credit facility of $500 million. The company repaid all convertible senior notes that totaled $727 million during fiscal 2024.
Stock Repurchase Program
DocuSign's board authorized a stock repurchase program totaling $1.0 billion in May 2024. In the six months ended July 31, 2024, the company repurchased 6.3 million shares for $350.8 million.
Tax Considerations
For the three months ended July 31, 2024, DocuSign recorded a tax benefit of $(816.3 million), primarily due to the release of a valuation allowance related to deferred tax assets.
Future Outlook
DocuSign continues to invest in growth initiatives, focusing on expanding its customer base, enhancing product offerings, and optimizing its go-to-market strategies. The company is also focused on increasing international revenue, which represented 28% of total revenue for the six months ended July 31, 2024.
How DocuSign, Inc. (DOCU) Makes Money
Revenue Streams
DocuSign primarily generates revenue through two main streams:
- Subscription Revenue: This accounts for approximately 97% of total revenue. For the three months ended July 31, 2024, subscription revenue was $717.4 million, compared to $669.4 million in the same period of 2023. For the six months ended July 31, 2024, it was $1.41 billion, up from $1.31 billion in 2023.
- Professional Services and Other Revenue: This includes fees for deployment and integration services, accounting for the remaining 3% of total revenue. For the three months ended July 31, 2024, this revenue was $18.7 million, down from $18.3 million in 2023.
Customer Base
As of July 31, 2024, DocuSign had approximately 1.6 million customers, which includes about 253,000 enterprise and commercial customers. This marked an increase from 1.4 million customers and 226,000 enterprise and commercial customers in July 2023.
Geographic Revenue Distribution
DocuSign's revenue is also segmented by geography, with the following distribution for the three months ended July 31, 2024:
| Geographic Area | Revenue (in thousands) |
|---|---|
| U.S. | $529,452 |
| International | $206,575 |
| Total Revenue | $736,027 |
International revenue represented 28% of total revenue for the three months ended July 31, 2024.
Cost Structure
DocuSign's cost of revenue consists of:
- Subscription Costs: For the three months ended July 31, 2024, the cost of subscription revenue was $132.4 million, leading to a subscription gross margin of 82%.
- Professional Services Costs: The cost for professional services was $23.1 million, resulting in a negative gross margin of (24)%.
Total costs of revenue for the three months ended July 31, 2024, were $155.5 million.
Operating Expenses
Operating expenses include:
- Sales and Marketing: $287.5 million, which is 39% of total revenue for the three months ended July 31, 2024.
- Research and Development: $147.6 million, representing 20% of total revenue.
- General and Administrative: $87.1 million, accounting for 12% of total revenue.
Total operating expenses for the three months ended July 31, 2024, were $522.8 million.
Net Income
DocuSign reported a net income of $888.2 million for the three months ended July 31, 2024, compared to $7.4 million for the same period in 2023. For the six months ended July 31, 2024, net income was $922.0 million, up from $7.9 million in 2023.
Cash Flow
For the six months ended July 31, 2024, DocuSign generated $475.0 million from operating activities.
Stock Repurchase Program
As of July 31, 2024, DocuSign's board of directors authorized a stock repurchase program totaling up to $1.0 billion, with $201.7 million spent on repurchases during the three months ended July 31, 2024.
DocuSign, Inc. (DOCU) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support