I’m with Chris. I liked the quarter and can’t say it wasn’t expected given the rest of their year. DOCU really did have a phenomenal 2020. Here’s what I noted last quarter updated for today:
• Revenue Growth: 39%, 45%, 54%, 57% (FY $1.45B; +49% YoY)
• Subscription Revenue: 39%, 47%, 54%, 59% (FY $1.38B; +50% and 95% of total)
• Billings: 59% 61%, 64%, 46% (FY $1.7B, +56%)
• International Revenue: 46%, 59%, 77%, 83% (FY $287M; +67% and 21% of total)
• Contract Liabilities – Current: 43%, 55%, 62%, 54% ($780M)
• Total Customer Growth: 31%, 40%, 46%, 51% (892,000 !!!)
• Total Customers Added: 72K, 88K, 73K, 70K
• Enterprise Customer Growth: 48%, 55%, 64%, 67% (125,000 !!!)
• Enterprise Customers Added: 14K, 10K, 14K, 12K
• Operating Expenses as a % of Revenue: 71%, 68%, 66%, 63%
• Net Retention Rate: 119%, 120%, 122%, 123% (new record and 4th straight acceleration)
• Gross Profit: 37%, 45%, 54%, 60% (FY $1.15B; +50%)
• Subscription Gross Profit: 36%, 44%, 53%, 61% (FY $1.16B; +49%)
• Operating Margin: 8%, 10%, 13%, 17% (FY $181M; 12%)
• Net Margin: 8%, 10%, 12%, 18% (FY $182M; 13%)
• EPS: $.12, $.17, $.22, $.37 (FY $.90; +190%)
I also feel similarly about the guides. This management has always been conservative and already told us growth would be better than pre-COVID but not as good as 2020. An initial 36% guide is right in line with that statement and means we are probably looking at something at least low-40% by the end of the year with very strong profits.
CEO Dan Springer Springer said:
“DocuSign went from a crisis response solution last year to a business-as-usual solution today…We don’t believe our new or expanded customers will be going back to paper, even after the pandemic recedes…We call the products and services supporting this trend the ‘anywhere economy.’ We believe we’re a key pillar, and it’s only just beginning. You’ll hear more from us about this in the coming weeks.”
I plan on sticking around at my current allocation at least until I hear what he has to say.