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SAN FRANCISCO - Docusign, Inc. (NASDAQ: DOCU), a $18.8 billion market cap leader in e-signature and contract lifecycle management (CLM), disclosed its financial outcomes for the quarter ending April 30, 2025, showing an 8% increase in revenue to $763.7 million compared to the same period last year. The company’s stock has shown remarkable strength, delivering a 75% return over the past year. This growth includes a slight 0.6% negative impact from foreign currency exchange rates.
The company’s subscription revenue, which forms the bulk of its earnings, also rose by 8% year-over-year to $746.2 million. However, professional services and other revenue experienced a decrease of 4%, settling at $17.5 million.
Docusign’s gross margin on a GAAP basis improved modestly to 79.4% from 78.9% in the prior year, while the non-GAAP gross margin saw a slight increase to 82.3% from 82.0%. GAAP net income per basic and diluted share showed significant growth, from $0.16 last year to $0.35 and $0.34, respectively, on a higher share count.
The company’s operating activities generated $251.4 million in net cash, a slight decline from $254.8 million in the previous year. Free cash flow also saw a decrease to $227.8 million from $232.1 million. Docusign ended the quarter with $1.1 billion in cash, cash equivalents, restricted cash, and investments. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, demonstrating strong financial health with an overall score of 3.31 out of 5.
In the same announcement, Docusign’s board authorized an additional $1.0 billion for stock repurchases, bringing the total authorization to $1.4 billion. The repurchase program does not have a fixed end date and will be subject to market conditions and other factors.
Looking forward, the company provided guidance for the quarter ending July 31, 2025, anticipating total revenue in the range of $777 million to $781 million, with subscription revenue contributing $760 million to $764 million. Billings are expected to be between $757 million and $767 million. Non-GAAP gross margin and operating margin are projected to be 80.5% to 81.5% and 26.5% to 27.5%, respectively.
This financial report is based on a press release statement by Docusign. The company emphasizes its commitment to expanding its Intelligent Agreement Management platform capabilities, as demonstrated by the launch of various AI-driven innovations and product enhancements. These advancements are expected to improve workflow efficiencies and outcomes across the agreement lifecycle. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be undervalued. Discover comprehensive analysis and 12 additional exclusive ProTips by accessing the detailed Pro Research Report, available for over 1,400 top US stocks.
In other recent news, Docusign Inc. has seen several noteworthy developments. Analysts from both Citi and Citizens JMP have maintained their positive outlooks on the company. Citi continues to rate Docusign as a Buy, with a price target of $115, citing optimism around the company’s Identity and Access Management (IAM) initiatives and new product introductions. Meanwhile, Citizens JMP reaffirmed a Market Outperform rating with a $124 price target, highlighting Docusign’s strong position in the e-signature market and its potential for long-term growth. Docusign’s recent introduction of eight new features at its Momentum 2025 user conference underscores its commitment to advancing workflow automation.
In leadership news, Michael Adams has been appointed as the new Chief Information Security Officer, bringing 30 years of security expertise to bolster the company’s data protection efforts. Additionally, the company announced the immediate resignation of Daniel Springer from its Board of Directors, a decision noted to be personal and not due to any disagreements with the company. These recent changes in leadership and analyst ratings reflect ongoing strategic shifts and investor interest in Docusign’s growth potential.
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