EX-99.1 3 q422ex-991er.htm EX-99.1 Document

DOCUSIGN, INC.
Exhibit 99.1

DocuSign Announces Fourth Quarter and Fiscal Year 2022 Financial Results

San Francisco – March 10, 2022 – DocuSign, Inc. (NASDAQ: DOCU), which offers the world’s #1 e-signature solution as part of the DocuSign Agreement Cloud, today announced results for its fourth quarter and fiscal year ended January 31, 2022.

"In fiscal 2022, we grew revenues by 45% and billings by 37% year-over-year, while generating record operating and cash flow margins. While the year unfolded differently than expected, we are proud of the ongoing performance and resilience of our team as we scaled to become a multi-billion dollar company. Together, we helped another 280,000 new customers begin digitizing how they agree as we surpassed 1.17 million total customers overall," said Dan Springer, CEO of DocuSign. "As we head into Fiscal 2023, digital transformation and the need to agree from anywhere remains a high priority for organizations across the globe. As people begin to return to the office, they are not returning to paper. eSignature and the broader Agreement Cloud will only continue to gain prominence in the evolving Anywhere Economy."

Fourth Quarter Financial Highlights

▪Total revenue was $580.8 million, an increase of 35% year-over-year. Subscription revenue was $564.0 million, an increase of 37% year-over-year. Professional services and other revenue was $16.8 million, a decrease of 19% year-over-year.
▪Billings were $670.1 million, an increase of 25% year-over-year.
▪GAAP gross margin was 77%, compared to 76% in the same period last year. Non-GAAP gross margin was 81% compared to 80% in the same period last year.
▪GAAP net loss per basic and diluted share was $0.15 on 199 million shares outstanding compared to $0.38 on 189 million shares outstanding in the same period last year.
▪Non-GAAP net income per diluted share was $0.48 on 207 million shares outstanding compared to $0.37 on 209 million shares outstanding in the same period last year.
▪Net cash provided by operating activities was $87.8 million compared to $62.2 million in the same period last year.
▪Free cash flow was $70.3 million compared to $44.0 million in the same period last year.
▪Cash, cash equivalents, restricted cash and investments were $898.4 million at the end of the quarter.

Fiscal 2022 Financial Highlights

▪Total revenue was $2.1 billion, an increase of 45% year-over-year. Subscription revenue was $2.0 billion, an increase of 47% year-over-year. Professional services and other revenue was $69.9 million, a decrease of 2% year-over-year.
▪Billings were $2.4 billion, an increase of 37% year-over-year.
▪GAAP gross margin was 78%, compared to 75% in fiscal 2021. Non-GAAP gross margin was 82%, compared to 79% in fiscal 2021.
▪GAAP net loss per basic and diluted share was $0.36 on 197 million shares outstanding compared to $1.31 on 186 million shares outstanding in fiscal 2021.
▪Non-GAAP net income per diluted share was $1.98 on 208 million shares outstanding compared to $0.90 on 204 million shares outstanding in fiscal 2021.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Other Key Metrics.”


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DOCUSIGN, INC.


Stock Repurchase Authorization

•DocuSign's Board of Directors has authorized a stock repurchase program of up to $200 million of DocuSign's outstanding common stock. The program has no minimum purchase commitment and no mandated end date. The repurchase is expected to be executed, subject to general business and market conditions and other investment opportunities, through open market purchases, and other transactions in accordance with applicable securities laws. The timing and the amount of any repurchased common stock will be determined by DocuSign's management based on its evaluation of market conditions and other factors. The repurchase program does not obligate DocuSign to acquire any particular amount of common stock and the repurchase program may be suspended or discontinued at any time at DocuSign's discretion without prior notice.

Operational and Other Financial Highlights

•Partnership with Zoom: On February 15, 2022, DocuSign and Zoom Communications announced a partnership to make it even easier to complete agreements from anywhere. DocuSign eSignature for Zoom enables organizations to reimagine agreement processes with virtual, face-to-face signing experiences that accelerate time to agreement while building trust and loyalty. Through this partnership, signers can find, review and complete agreements live within Zoom. DocuSign eSignature for Zoom can also safeguard agreements by automatically verifying a signer's government-issued photo ID or eID in real-time with ID Verification.

•Chief Diversity & Engagement Officer appointment. On March 7, 2022, DocuSign announced Iesha Berry as its new Chief Diversity & Engagement Officer. Prior to joining DocuSign, Iesha served as the first Chief Inclusion, Diversity and Equity Officer for Slalom where she led the company’s diversity and inclusion programs, as well as its environmental, social responsibility, and sustainability efforts. With more than 20 years' experience with Diversity, Equity & Inclusion roles at companies including Bank of America, Pfizer, Microsoft and Prudential Financial, Iesha will focus on accelerating DocuSign’s Diversity, Inclusion and Belonging strategy while building off the existing accomplishments DocuSign has achieved.

•Updated SMS and Phone Authentication: DocuSign has updated its SMS authentication to provide signers the option of receiving a one-time access passcode via either calls or text messages. This helps signers with a landline phone number to successfully complete authentication.

Outlook

The company currently expects the following guidance:

▪Quarter ending April 30, 2022 (in millions, except percentages):
Total revenue$579to$583
Subscription revenue$562to$566
Billings$573to$583
Non-GAAP gross margin79%to81%
Non-GAAP operating margin16%to18%
Non-GAAP diluted weighted-average shares outstanding205to210

▪Fiscal year ending January 31, 2023 (in millions, except percentages):
Total revenue$2,470to$2,482
Subscription revenue$2,394to$2,406
Billings$2,706to$2,726
Non-GAAP gross margin79%to81%
Non-GAAP operating margin16%to18%
Provision for income taxes$4to$8
Non-GAAP diluted weighted-average shares outstanding205to210

The company has not reconciled its guidance of non-GAAP financial measures to the corresponding GAAP measures because stock-based compensation expense cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation has not been provided.
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DOCUSIGN, INC.
Webcast Conference Call Information

The company will host a conference call on March 10, 2022 at 1:30 p.m. PT (4:30 p.m. ET) to discuss its financial results. A live webcast of the event will be available on the DocuSign Investor Relations website at investor.docusign.com. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (ET) March 24, 2022, using the passcode 13727117.

About DocuSign

DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements. As part of the DocuSign Agreement Cloud, DocuSign offers eSignature, the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, over a million customers and more than a billion users in over 180 countries use the DocuSign Agreement Cloud to accelerate the process of doing business and simplify people’s lives.

For more information, visit www.docusign.com, call +1-877-720-2040, or follow @DocuSign on Twitter, LinkedIn, Facebook and Instagram.

Copyright 2022. DocuSign, Inc. is the owner of DOCUSIGN® and all its other marks (www.docusign.com/IP).

Investor Relations:
DocuSign Investor Relations
investors@docusign.com

Media Relations:
DocuSign Corporate Communications
media@docusign.com

Forward-Looking Statements

This press release 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, that are based on our management’s beliefs and assumptions and on information currently available to management. and which statements involve substantial risk and uncertainties. Forward-looking statements include all statements that are not historical facts and can be identified by terms 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 in this press release include, among other things, statements under “Outlook” above and any other statements about expected financial metrics, such as revenue, billings, non-GAAP gross margin, non-GAAP diluted weighted-average shares outstanding, and non-financial metrics, such as customer growth, as well as statements related to our expectations regarding the benefits of the DocuSign Agreement Cloud and DocuSign's intention to implement a program to repurchase up to $200 million of DocuSign's common stock, including the expected timing, duration, volume and nature of such stock repurchase program. They also include statements about our future operating results and financial position, our business strategy and plans, market growth and trends, and our objectives for future operations. These statements are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These risks and uncertainties include, among other things, risks related to our expectations regarding the impact of the COVID-19 pandemic, including the easing of related regulations and measures as the pandemic and its related effects begin to abate or have abated, on our business, results of operations, financial condition, and future profitability and growth; our expectations regarding the impact of the evolving COVID-19 pandemic on the businesses of our customers, partners and suppliers, and the economy, as well as the macro- and micro-effects of the pandemic, including the pace of the digital transformation of business and differing levels of demand for our products as our customers' priorities, resources, financial conditions and economic outlook change; our ability to estimate the size of our total addressable market, and the development of the market for our products, which is new and evolving; our ability to effectively sustain and manage our growth and future expenses, achieve and maintain future profitability, attract new customers and maintain and expand our existing customer base; our ability to scale and update our platform to respond to customers' needs and rapid technological change; the effects of increased competition in our market and our ability to compete effectively; our ability to expand use cases within existing customers and vertical solutions; our ability to expand our operations and increase adoption of our platform internationally; our ability to strengthen and foster our relationships with developers; our ability to expand our direct sales force, customer success team and strategic partnerships around the world; the impact of any data breaches, cyberattacks or other malicious activity on our technology systems; our
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DOCUSIGN, INC.
ability to identify targets for and execute potential acquisitions; our ability to successfully integrate the operations of businesses we may acquire, and to realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash, cash equivalents and capital resources to satisfy our liquidity needs; limitations on us due to obligations we have under our credit facility or other indebtedness; our failure or the failure of our software to comply with applicable industry standards, laws and regulations; our ability to maintain, protect and enhance our intellectual property; our ability to successfully defend litigation against us; our ability to attract large organizations as users; our ability to maintain our corporate culture; our ability to offer high-quality customer support; our ability to hire, retain and motivate qualified personnel; our ability to estimate the size and potential growth of our target market; uncertainties regarding the impact of general economic and market conditions, including as a result of regional and global conflicts or related government sanctions; and our ability to maintain proper and effective internal controls. Additional risks and uncertainties that could affect our financial results are included in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our quarterly report on Form 10-Q for the quarter ended October 31, 2021 filed on December 6, 2021 with the Securities and Exchange Commission (the “SEC”), and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures and Other Key Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We present these non-GAAP measures to assist investors in seeing our financial performance using a management view, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, these non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income per share: We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, amortization of debt discount and issuance costs, acquisition-related expenses, loss on extinguishment of debt, fair value adjustments to strategic investments, impairment of operating lease right-of-use assets, tax impact related to an intercompany IP transfer and, as applicable, other special items. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies and over multiple periods.

Free cash flow: We define free cash flow as net cash provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

Billings: We define billings as total revenues plus the change in our contract liabilities and refund liability less contract assets and unbilled accounts receivable in a given period. Billings reflects sales to new customers plus subscription renewals and additional sales to existing customers. Only amounts invoiced to a customer in a given period are included in billings. We believe billings is a key metric to measure our periodic performance. Given that most of our customers pay in annual installments one year in advance, but we typically recognize a majority of the related revenue ratably over time, we use billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers.

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DOCUSIGN, INC.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
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DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended January 31,Year Ended January 31,
(in thousands, except per share data)2022202120222021
Revenue:
Subscription$564,006 $410,215 $2,037,272 $1,381,397 
Professional services and other16,822 20,683 69,941 71,650 
Total revenue580,828 430,898 2,107,213 1,453,047 
Cost of revenue:
Subscription96,556 73,347 343,661 259,992 
Professional services and other34,898 28,233 122,790 104,066 
Total cost of revenue131,454 101,580 466,451 364,058 
Gross profit449,374 329,318 1,640,762 1,088,989 
Operating expenses:
Sales and marketing299,417 221,896 1,076,527 798,625 
Research and development110,692 80,135 393,362 271,522 
General and administrative64,443 52,184 232,757 192,697 
Total operating expenses474,552 354,215 1,702,646 1,262,844 
Loss from operations(25,178)(24,897)(61,884)(173,855)
Interest expense(1,617)(7,786)(6,443)(30,799)
Loss on extinguishment of debt— (33,752)— (33,752)
Interest income and other income (expense), net(2,621)2,882 1,413 8,914 
Loss before provision for income taxes(29,416)(63,553)(66,914)(229,492)
Provision for income taxes1,029 8,859 3,062 13,775 
Net loss$(30,445)$(72,412)$(69,976)$(243,267)
Net loss per share attributable to common stockholders, basic and diluted$(0.15)$(0.38)$(0.36)$(1.31)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted198,687 188,717 196,675 185,760 
Stock-based compensation expense included in costs and expenses:
Cost of revenue—subscription$9,500 $6,138 $31,152 $20,793 
Cost of revenue—professional services and other8,096 6,510 27,347 21,865 
Sales and marketing52,040 37,190 186,759 131,041 
Research and development31,712 20,328 108,523 65,890 
General and administrative16,659 13,473 54,761 47,288 

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DOCUSIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)January 31, 2022January 31, 2021
Assets
Current assets
Cash and cash equivalents$509,059 $566,055 
Investments—current293,763 207,450 
Accounts receivable, net440,950 323,570 
Contract assets—current12,588 16,883 
Prepaid expenses and other current assets63,236 48,390 
Total current assets1,319,596 1,162,348 
Investments—noncurrent94,938 92,717 
Property and equipment, net184,664 165,039 
Operating lease right-of-use assets126,021 159,352 
Goodwill355,058 350,151 
Intangible assets, net98,816 121,828 
Deferred contract acquisition costs—noncurrent311,835 260,130 
Other assets—noncurrent50,337 24,942 
Total assets$2,541,265 $2,336,507 
Liabilities and Equity
Current liabilities
Accounts payable$52,804 $37,367 
Accrued expenses and other current liabilities91,377 66,566 
Accrued compensation160,163 156,158 
Convertible senior notes—current— 20,469 
Contract liabilities—current1,029,891 779,642 
Operating lease liabilities—current37,404 32,971 
Total current liabilities1,371,639 1,093,173 
Convertible senior notes, net—noncurrent718,487 693,219 
Contract liabilities—noncurrent16,725 16,492 
Operating lease liabilities—noncurrent126,340 165,704 
Deferred tax liability—noncurrent9,316 6,464 
Other liabilities—noncurrent23,255 32,328 
Total liabilities2,265,762 2,007,380 
Convertible senior notes— 3,390 
Stockholders’ equity
Common stock20 19 
Treasury stock(1,532)(1,048)
Additional paid-in capital1,720,013 1,702,254 
Accumulated other comprehensive income (loss)(4,809)4,964 
Accumulated deficit(1,438,189)(1,380,452)
Total stockholders’ equity275,503 325,737 
Total liabilities and equity$2,541,265 $2,336,507 

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DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended January 31,Year Ended January 31,
(in thousands)2022202120222021
Cash flows from operating activities:
Net loss$(30,445)$(72,412)$(69,976)$(243,267)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization20,750 19,635 81,913 71,090 
Amortization of deferred contract acquisition and fulfillment costs43,683 28,597 144,442 99,384 
Amortization of debt discount and transaction costs1,250 7,173 5,098 28,001 
Loss on extinguishment of debt— 33,752 — 33,752 
Operating cash flow related to repayments of convertible senior notes— (75,165)— (75,165)
Non-cash operating lease costs6,643 6,646 26,819 26,728 
Stock-based compensation expense118,006 83,639 408,542 286,877 
Deferred income taxes3,729 (1,360)1,369 (2,410)
Other4,274 (1,416)9,871 (210)
Changes in operating assets and liabilities
Accounts receivable(135,349)(62,484)(117,380)(73,913)
Contract assets2,471 5,802 4,893 1,912 
Prepaid expenses and other current assets5,816 680 (7,074)(1,155)
Deferred contract acquisition and fulfillment costs(59,447)(63,871)(207,393)(208,510)
Other assets(2,677)457 (16,389)(6,006)
Accounts payable5,445 8,473 12,148 12,128 
Accrued expenses and other liabilities(1,058)15,203 10,828 37,155 
Accrued compensation23,909 41,033 1,128 64,586 
Contract liabilities89,435 95,230 250,482 267,750 
Operating lease liabilities(8,642)(7,379)(32,854)(21,773)
Net cash provided by operating activities87,793 62,233 506,467 296,954 
Cash flows from investing activities:
Cash paid for acquisition, net of acquired cash— — (6,388)(180,370)
Purchases of marketable securities(81,366)(84,340)(384,128)(164,989)
Sales of marketable securities4,499 — 7,569 28,986 
Maturities of marketable securities90,113 83,756 283,184 488,538 
Purchases of strategic and other investments(1,000)— (1,750)(8,541)
Purchases of property and equipment(17,470)(18,251)(61,396)(82,395)
Net cash (used in) provided by investing activities(5,224)(18,835)(162,909)81,229 
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of initial purchasers' discounts and transaction costs— 677,370 — 677,370 
Purchase of capped calls related to issuance of convertible senior notes— (31,395)— (31,395)
Repayments of convertible senior notes(13,071)(384,199)(77,906)(384,199)
Payment of revolving credit facility costs— (2,453)— (2,453)
Payment of tax withholding obligation on RSU settlement and ESPP purchase(63,412)(125,186)(386,521)(372,463)
Proceeds from exercise of stock options2,553 9,322 23,729 24,305 
Proceeds from employee stock purchase plan— — 46,077 29,859 
Net cash (used in) provided by financing activities(73,930)143,459 (394,621)(58,976)
Effect of foreign exchange on cash, cash equivalents and restricted cash(3,122)4,214 (5,594)5,646 
Net increase (decrease) in cash, cash equivalents and restricted cash5,517 191,071 (56,657)324,853 
Cash, cash equivalents and restricted cash at beginning of period (1)
504,162 375,265 566,336 241,483 
Cash, cash equivalents and restricted cash at end of period (1)
$509,679 $566,336 $509,679 $566,336 
(1) $0.6 million of restricted cash was included in both Prepaid expenses and other current assets and Other assets—noncurrent at January 31, 2022. $0.3 million of restricted cash was included in Prepaid expenses and other current assets at October 31, 2021 and in Other assets—noncurrent at January 31, 2021 and October 31, 2020.
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DOCUSIGN, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

Reconciliation of gross profit and gross margin:
Three Months Ended January 31,Year Ended January 31,
(in thousands)2022202120222021
GAAP gross profit$449,374 $329,318 $1,640,762 $1,088,989 
Add: Stock-based compensation17,596 12,648 58,499 42,658 
Add: Amortization of acquisition-related intangibles2,403 3,196 11,670 11,052 
Add: Employer payroll tax on employee stock transactions829 1,454 7,524 5,904 
Non-GAAP gross profit$470,202 $346,616 $1,718,455 $1,148,603 
GAAP gross margin77 %76 %78 %75 %
Non-GAAP adjustments4 %4 %4 %4 %
Non-GAAP gross margin81 %80 %82 %79 %
GAAP subscription gross profit$467,450 $336,868 $1,693,611 $1,121,405 
Add: Stock-based compensation9,500 6,138 31,152 20,793 
Add: Amortization of acquisition-related intangibles2,403 3,196 11,670 11,052 
Add: Employer payroll tax on employee stock transactions417 679 3,703 2,862 
Non-GAAP subscription gross profit$479,770 $346,881 $1,740,136 $1,156,112 
GAAP subscription gross margin83 %82 %83 %81 %
Non-GAAP adjustments2 %3 %2 %3 %
Non-GAAP subscription gross margin85 %85 %85 %84 %
GAAP professional services and other gross loss$(18,076)$(7,550)$(52,849)$(32,416)
Add: Stock-based compensation8,096 6,510 27,347 21,865 
Add: Employer payroll tax on employee stock transactions412 775 3,821 3,042 
Non-GAAP professional services and other gross loss$(9,568)$(265)$(21,681)$(7,509)
GAAP professional services and other gross margin(107)%(37)%(76)%(45)%
Non-GAAP adjustments50 %36 %45 %35 %
Non-GAAP professional services and other gross margin(57)%(1)%(31)%(10)%

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DOCUSIGN, INC.
Reconciliation of operating expenses:
Three Months Ended January 31,Year Ended January 31,
(in thousands)2022202120222021
GAAP sales and marketing$299,417 $221,896 $1,076,527 $798,625 
Less: Stock-based compensation(52,040)(37,190)(186,759)(131,041)
Less: Amortization of acquisition-related intangibles(3,205)(3,390)(13,100)(14,566)
Less: Employer payroll tax on employee stock transactions(1,960)(3,198)(19,628)(14,190)
Less: Acquisition-related expenses— — — (186)
Non-GAAP sales and marketing$242,212 $178,118 $857,040 $638,642 
GAAP sales and marketing as a percentage of revenue52 %51 %51 %55 %
Non-GAAP sales and marketing as a percentage of revenue42 %41 %41 %44 %
GAAP research and development$110,692 $80,135 $393,362 $271,522 
Less: Stock-based compensation(31,712)(20,328)(108,523)(65,890)
Less: Employer payroll tax on employee stock transactions(1,097)(2,012)(10,341)(7,329)
Non-GAAP research and development$77,883 $57,795 $274,498 $198,303 
GAAP research and development as a percentage of revenue19 %19 %19 %19 %
Non-GAAP research and development as a percentage of revenue13 %13 %13 %14 %
GAAP general and administrative$64,443 $52,184 $232,757 $192,697 
Less: Stock-based compensation(16,659)(13,473)(54,761)(47,288)
Less: Employer payroll tax on employee stock transactions(334)(2,612)(4,699)(6,619)
Less: Acquisition-related expenses— — (387)(7,776)
Less: Impairment of operating lease right-of-use assets(1,207)— (5,099)— 
Non-GAAP general and administrative$46,243 $36,099 $167,811 $131,014 
GAAP general and administrative as a percentage of revenue10 %12 %11 %13 %
Non-GAAP general and administrative as a percentage of revenue8 %9 %8 %9 %

Reconciliation of income (loss) from operations and operating margin:
Three Months Ended January 31,Year Ended January 31,
(in thousands)2022202120222021
GAAP loss from operations$(25,178)$(24,897)$(61,884)$(173,855)
Add: Stock-based compensation118,007 83,639 408,542 286,877 
Add: Amortization of acquisition-related intangibles5,608 6,586 24,770 25,618 
Add: Employer payroll tax on employee stock transactions4,220 9,276 42,192 34,042 
Add: Acquisition-related expenses— — 387 7,962 
Add: Impairment of operating lease right-of-use assets1,207 — 5,099 — 
Non-GAAP income from operations$103,864 $74,604 $419,106 $180,644 
GAAP operating margin(4)%(6)%(3)%(12)%
Non-GAAP adjustments22 %23 %23 %24 %
Non-GAAP operating margin18 %17 %20 %12 %

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DOCUSIGN, INC.
Reconciliation of net income (loss) and net income (loss) per share, basic and diluted:
Three Months Ended January 31,Year Ended January 31,
(in thousands, except per share data)2022202120222021
GAAP net loss$(30,445)$(72,412)$(69,976)$(243,267)
Add: Stock-based compensation118,007 83,639 408,542 286,877 
Add: Amortization of acquisition-related intangibles5,608 6,586 24,770 25,618 
Add: Employer payroll tax on employee stock transactions4,220 9,276 42,192 34,042 
Add: Acquisition-related expenses— — 387 7,962 
Add: Amortization of debt discount and issuance costs1,250 7,173 5,098 28,001 
Add: Loss on extinguishment of debt— 33,752 — 33,752 
Add: Tax expense related to intercompany IP transfer(1)
— 9,294 — 9,294 
Less: Fair value adjustments to strategic investments— — (5,270)— 
Add: Impairment of operating lease right-of-use assets1,207 — 5,099 — 
Non-GAAP net income$99,847 $77,308 $410,842 $182,279 
Numerator:
Non-GAAP net income$99,847 $77,308 $410,842 $182,279 
Add: Interest expense on convertible senior notes25 617 37 617 
Non-GAAP net income attributable to common stockholders, diluted$99,872 $77,925 $410,879 $182,896 
Denominator:
Weighted-average common shares outstanding, basic198,687 188,717 196,675 185,760 
Effect of dilutive securities8,474 19,797 11,322 17,929 
Non-GAAP weighted-average common shares outstanding, diluted207,161 208,514 207,997 203,689 
GAAP net loss per share, basic and diluted$(0.15)$(0.38)$(0.36)$(1.31)
Non-GAAP net income per share, basic0.50 0.41 2.09 0.98 
Non-GAAP net income per share, diluted0.48 0.37 1.98 0.90 
(1)Represents net change in tax liabilities related to an intercompany IP transfer

Computation of free cash flow:
Three Months Ended January 31,Year Ended January 31,
(in thousands)2022202120222021
Net cash provided by operating activities$87,793 $62,233 $506,467 $296,954 
Less: Purchases of property and equipment(17,470)(18,251)(61,396)(82,395)
Non-GAAP free cash flow70,323 43,982 445,071 214,559 
Net cash (used in) provided by investing activities(5,224)(18,835)(162,909)81,229 
Net cash (used in) provided by financing activities$(73,930)$143,459 $(394,621)$(58,976)

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DOCUSIGN, INC.
Computation of billings:
Three Months Ended January 31,Year Ended January 31,
(in thousands)2022202120222021
Revenue$580,828 $430,898 $2,107,213 $1,453,047 
Add: Contract liabilities and refund liability, end of period1,049,106 800,940 1,049,106 800,940 
Less: Contract liabilities and refund liability, beginning of period(961,243)(702,691)(800,940)(522,201)
Add: Contract assets and unbilled accounts receivable, beginning of period19,708 26,808 21,021 15,082 
Less: Contract assets and unbilled accounts receivable, end of period(18,273)(21,021)(18,273)(21,021)
Add: Contract assets and unbilled accounts receivable contributed by acquisitions— — — 6,589 
Less: Contract liabilities and refund liability contributed by acquisitions— — — (9,344)
Non-GAAP billings$670,126 $534,934 $2,358,127 $1,723,092 

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