DOCU Q3 Earnings Highlights

Investment Analysis Clubs Saul’s Investing Discussions
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Third Quarter Financial Highlights

Total revenue was $382.9 million, an increase of 53% year-over-year.

Subscription revenue was $366.6 million, an increase of 54% year-over-year.

Professional services and other revenue was $16.3 million, an increase of 43% year-over-year.

Billings were $440.4 million, an increase of 63% year-over-year.

GAAP gross margin was 74% compared to 75% in the same period last year.

Non-GAAP gross margin was 79% in both comparative periods.

GAAP net loss per basic and diluted share was $0.31 on 186 million shares outstanding compared to $0.26 on 178 million shares outstanding in the same period last year.

Non-GAAP net income per diluted share was $0.22 on 206 million shares outstanding compared to $0.11 on 191 million shares outstanding in the same period last year.

Net cash provided by operating activities was $57.4 million compared to $1.9 million net cash used in operating activities in the same period last year.

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

Cash, cash equivalents, restricted cash and investments were $675.6 million at the end of the quarter.

https://investor.docusign.com/investors/press-releases/press…

Take care!
-Charles

52 Likes
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And if my math is right, the Q4 guidance is for +48%, which they don’t have to beat by much to accelerate the revenue growth even higher than the +53% achieved this quarter!

-mekong

18 Likes
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Seems like a good one!

YoY vs QoQ at a glance:


Quarter 	**Q3'21**	Q2'21	Q1'21	Q4'20	Q3'20	Q3'20
Revenue 	**382.9**	342.2	297	274.9	249.5	235.6
YoY     	**53%**	45%	39%	38%	40%	41%
QoQ     	**11.9%**	15.2%	8.0%	10.2%	5.9%	10.1%

…so not as good as last quarter sequentially, but still really good historically! YoY accelerated for what that is worth.

I saw the growth in subscriptions and services are about the same, so symmetrical growth. I choose to see that as impressive since it should be easier to grow subscriptions. It could be seen the opposite way, that they could have grown subs more, but the overall growth is still pretty good here. Thoughts?

8 Likes
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A fairly constant QoQ growth rate implies that it is not correlated with COVID. So the growth driver “wind” at our backs isn’t going away soon.

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A few things I loved:

  1. Maintained Gross Margins at 79%, with Subscription Gross Margin at 84%

  2. Headcount up from 3,723 to 5,364 - Int’l now 28% of total headcount.

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

  4. “As companies accelerate the digital transformation of their business and agreement processes, DocuSign’s role as an essential cloud platform continues to grow,” said Dan Springer, DocuSign CEO. “Our Q3 results reflect that tailwind, as well as the immediate and long-term value that customers see from eSignature and our broader Agreement Cloud.”

  5. Billings up 63% YoY.

  6. International Growth up 77%, now contributing to 20% of total revenue.

15 Likes