DocuSign 8-K Signals Restructuring Costs, Operational Changes

TL;DR

**DocuSign's 8-K hints at upcoming restructuring costs and operational shifts.**

AI Summary

DocuSign, Inc. filed an 8-K on February 6, 2024, to disclose information related to "Cost Associated with Exit or Disposal Activities" and "Regulation FD Disclosure." This filing indicates that DocuSign is likely undergoing a restructuring or making significant operational changes that will incur specific costs. For investors, this matters because such activities can impact future profitability and operational efficiency, potentially leading to short-term expenses but long-term strategic benefits or risks.

Why It Matters

This filing suggests DocuSign is making strategic operational adjustments, which could lead to one-time costs but potentially improve long-term efficiency and profitability for shareholders.

Risk Assessment

Risk Level: medium — The filing indicates potential restructuring costs, which can create short-term financial uncertainty, but the specific details and impact are not yet fully disclosed.

Analyst Insight

A smart investor would monitor DocuSign's upcoming financial disclosures for specific details on the nature and magnitude of the 'exit or disposal activities' and their potential impact on future earnings and operational efficiency, as these could signal strategic shifts.

Key Players & Entities

• DOCUSIGN, INC. (company) — the registrant filing the 8-K
• February 6, 2024 (date) — date of earliest event reported and filing date
• 001-38465 (number) — Commission File Number for DocuSign
• Delaware (company) — State of Incorporation for DocuSign
• 91-2183967 (number) — I.R.S. Employer Identification Number for DocuSign
• 221 Main St. Suite 1550 San Francisco California 94105 (company) — Address of Principal Executive Offices for DocuSign
• 415-489-4940 (number) — Registrant's Telephone Number for DocuSign
• Common Stock, par value $0.0001 per share (company) — Title of each class of securities registered
• DOCU (company) — Trading Symbol for DocuSign
• The Nasdaq Global Select Market (company) — Name of each exchange on which DocuSign is registered

Forward-Looking Statements

• DocuSign will provide more specific financial details regarding the 'Cost Associated with Exit or Disposal Activities' in its next earnings report or subsequent filing. (DOCUSIGN, INC.) — high confidence, target: Q1 2024 Earnings Report
• The 'Regulation FD Disclosure' suggests DocuSign may have communicated material non-public information to certain parties, which will likely be publicly disclosed soon. (DOCUSIGN, INC.) — medium confidence, target: Within 30 days

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share DOCU The Nasdaq Global Select
• $28 — it will incur charges of approximately $28 to $32 million in connection with the R
• $32 million — l incur charges of approximately $28 to $32 million in connection with the Restructuring Pl

Filing Documents

• docu-20240206.htm (8-K) — 29KB
• exhibit991pressrelease.htm (EX-99.1) — 6KB
• exhibit992emlfromallanreev.htm (EX-99.2) — 13KB
• 0001261333-24-000015.txt ( ) — 182KB
• docu-20240206.xsd (EX-101.SCH) — 2KB
• docu-20240206_lab.xml (EX-101.LAB) — 24KB
• docu-20240206_pre.xml (EX-101.PRE) — 13KB
• docu-20240206_htm.xml (XML) — 3KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On February 6, 2024, DocuSign, Inc. (the "Company") announced a restructuring plan (the "Restructuring Plan") designed to strengthen and support the Company's financial and operational efficiency while continuing to invest in product and related initiatives that will provide the foundation to realize its multi-year growth aspirations as an independent public company. As part of the Restructuring Plan, the Company expects it will restructure and reduce its current workforce by approximately 6%, with the majority in the Company's Sales & Marketing organizations. The Company currently estimates that it will incur charges of approximately $28 to $32 million in connection with the Restructuring Plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits, and related costs as well as non-cash expenses related to vesting of share-based awards. The Company expects that the majority of the restructuring charges will be incurred in the first quarter of fiscal 2025, and that the execution of the Restructuring Plan will be substantially complete by the end of the second quarter of fiscal 2025.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On February 6, 2024, DocuSign issued a press release announcing the Restructuring Plan and its expectation that its fourth quarter and fiscal 2024 financial results will meet or exceed the ranges it previously provided on December 7, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. An email from Allan Thygesen, DocuSign's Chief Executive Officer, to DocuSign's employees is also attached as Exhibit 99.2 to this Current Report on Form 8-K. The Company will share further financial details about the restructuring during its fourth quarter fiscal 2024 results publication. The information in this Item 7.01 and Exhibits 99.1 and 99.2 attached hereto are furnished to, but not "filed" with, the Securities and Exchange Commission ("SEC") and shall not be deemed to be incorporated by reference into any of the Company's filings with the SEC under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing. Safe Harbor Statement Information provided in this Current Report on Form 8-K may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives and expectations related to its Restructuring Plan, including timing, potential cost savings and expected impacts to its financial results and business operations. For a discussion of such risks and uncertainties, see "Risk Factors" as described in the Company's Annual Report for the year ended January 31, 2023 on Form 10-K filed with the SEC on March 27, 2023, the Company's Quarterly Report on Form 10-Q for the quarter ended October 31, 2023 filed with the SEC on

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: Exhibit No. Description 99.1 Press release dated February 6, 2024, concerning restructuring 99.2 Email to DocuSign employees from Allan Thygesen, dated February 6, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: February 6, 2024 DOCUSIGN, INC. By: /s/ James P. Shaughnessy James P. Shaughnessy Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR