DocuSign, Inc. Files 2024 10-K Report

TL;DR

<b>DocuSign's 2024 10-K reveals $2.50 billion in total revenue, with subscription revenue forming the bulk of sales.</b>

AI Summary

DOCUSIGN, INC. (DOCU) filed a Annual Report (10-K) with the SEC on March 21, 2024. Total revenue for the fiscal year ended January 31, 2024, was $2.50 billion. Subscription and circulation revenue reached $2.37 billion for the fiscal year ended January 31, 2024. Professional services and other revenue amounted to $130.5 million for the fiscal year ended January 31, 2024. Cost of subscription and circulation revenue was $503.1 million for the fiscal year ended January 31, 2024. Selling and marketing expenses totaled $930.1 million for the fiscal year ended January 31, 2024.

Why It Matters

For investors and stakeholders tracking DOCUSIGN, INC., this filing contains several important signals. The company's reliance on subscription revenue highlights the importance of customer retention and recurring revenue streams for its financial stability. Significant investment in selling and marketing expenses ($930.1 million) indicates a focus on customer acquisition and market expansion, which could drive future growth but also impacts profitability.

Risk Assessment

Risk Level: medium — DOCUSIGN, INC. shows moderate risk based on this filing. The company's significant investment in sales and marketing, coupled with a competitive market for e-signature solutions, presents a medium risk to sustained profitability and market share.

Analyst Insight

Monitor DocuSign's customer acquisition costs and retention rates in upcoming quarters to assess the effectiveness of its sales and marketing investments.

Revenue Breakdown

Key Numbers

• 2.50B — Total Revenue (Fiscal year ended January 31, 2024)
• 2.37B — Subscription and Circulation Revenue (Fiscal year ended January 31, 2024)
• 130.5M — Professional Services and Other Revenue (Fiscal year ended January 31, 2024)
• 503.1M — Cost of Subscription and Circulation Revenue (Fiscal year ended January 31, 2024)
• 930.1M — Selling and Marketing Expense (Fiscal year ended January 31, 2024)

Key Players & Entities

• DOCUSIGN, INC. (company) — Filer
• DOCU (company) — Ticker Symbol

FAQ

Industry Context

DocuSign operates in the software industry, specifically focusing on e-signature and agreement cloud solutions. This sector is characterized by rapid technological advancement and increasing demand for digital transformation tools.

Regulatory Implications

The company is subject to various U.S. and international regulations concerning data privacy, electronic signatures, and cybersecurity, which can impact its operations and product development.

What Investors Should Do

1. Analyze the year-over-year growth in subscription revenue to assess customer expansion and retention.
2. Evaluate the efficiency of sales and marketing spend relative to revenue growth.
3. Review any disclosed risks related to competition or technological obsolescence.

Key Dates

• 2024-01-31: Fiscal Year End — End of reporting period for the 10-K filing.
• 2024-03-21: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no prior period comparison is available.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share DOCU The Nasdaq Global Select
• $53.82 — 31, 2023, based on the closing price of $53.82 for shares of the registrant's common s
• $0 — 5,129 shares of common stock, par value $0.0001, outstanding at February 29, 2024.
• $50 b — an addressable market of approximately $50 billion, according to our estimates. To
• $50 billion — er the signature. We believe there is a $50 billion market opportunity for customer expansi

Filing Documents

• docu-20240131.htm (10-K) — 2041KB
• fy24exhibit211subsidiaries.htm (EX-21.1) — 11KB
• fy24exhibit231pwcconsent.htm (EX-23.1) — 2KB
• fy24exhibit311.htm (EX-31.1) — 10KB
• fy24exhibit312.htm (EX-31.2) — 10KB
• fy24exhibit321.htm (EX-32.1) — 8KB
• fy2410-kex971clawbackpolicy.htm (EX-97.1) — 64KB
• docu-20240131_g1.jpg (GRAPHIC) — 91KB
• 0001261333-24-000045.txt (&nbsp;) — 10312KB
• docu-20240131.xsd (EX-101.SCH) — 56KB
• docu-20240131_cal.xml (EX-101.CAL) — 109KB
• docu-20240131_def.xml (EX-101.DEF) — 324KB
• docu-20240131_lab.xml (EX-101.LAB) — 837KB
• docu-20240131_pre.xml (EX-101.PRE) — 611KB
• docu-20240131_htm.xml (XML) — 1388KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 39 I tem 1C. C ybersecurity 39 Item 2.

Properties

Properties 40 Item 3.

Legal Proceedings

Legal Proceedings 40 Item 4. Mine Safety Disclosures 41 PART II 41 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41 Item 6. Reserved 43 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 58 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 59 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 94 Item 9A.

Controls and Procedures

Controls and Procedures 94 Item 9B. Other Information 95 Item 9C Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 95 PART III 96 Item 10. Directors, Executive Officers and Corporate Governance 96 Item 11.

Executive Compensation

Executive Compensation 96 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 96 Item 13. Certain Relationships and Related Transactions, and Director Independence 96 Item 14. Principal Accounting Fees and Services 96 PART IV 97 Item 15. Exhibits, Financial Statement Schedules 97 Item 16. Form 10–K Summary 98 EXHIBIT INDEX 98

SIGNATURES

SIGNATURES 100 DocuSign, Inc.| 2024 Form 10-K | 2 NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risk and uncertainties. All statements contained in this Annual Report on Form 10-K other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, objectives for future operations, and the impact of such assumptions on our financial condition and results of operations are forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements about: our expectations regarding global macro-economic conditions, including the effects of inflation, volatile interest rates, instability in the global banking sector, and market volatility on the global economy; our ability to estimate the size and growth of our total addressable market; our ability to compete effectively in an evolving and competitive market; the impact of any data breaches, cyberattacks or other malicious activity on our technology systems; our ability to effectively sustain and manage our growth and future expenses and achieve and maintain future profitability;

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

BUSINESS

ITEM 1. BUSINESS Overview DocuSign offers products that address agreement workflows and digital transformation as part of its agreement management platform, enabling agreements to be signed electronically on a wide variety of devices, from virtually anywhere in the world, securely. DocuSign's core product offerings, including the world's leading electronic signature product , allow organizations to do business faster with less risk and at a lower cost, while providing a better experience for customers. DocuSign also offers contract lifecycle management software that automates pre- and post-signature workflows. This includes automatically generating an agreement from data in other systems, supporting negotiation workflows, verifying identities, enabling remote online notarization, collecting payment after signatures, and using artificial intelligence ("AI") to analyze a collection of agreements for risks and opportunities. At the core of every business is a series of agreements and every agreement involves a workflow that guides how we create, commit, and manage agreements. However, traditional agreement processes are slow, expensive and error-prone as they involve many manual steps, disconnected systems, and paper signing. Our value proposition is simple to understand: eliminate the paper-based processes, automate agreement workflows, and connect to the applications and systems where work gets done. DocuSign has over 900 active partner integrations, so businesses can easily integrate mission-critical business processes with agreement workflows. This allows organizations to reduce turnaround times and costs, largely eliminate errors, and deliver a streamlined customer experience. As of January 31, 2024, over 1.5 million customers and more than a billion users in over 180 countries use our products and solutions to accelerate and simplify the process of doing business. We offer subscriptions to our products, which include editions with varying functionality

View Full Filing

View this 10-K filing on SEC EDGAR