Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 30, 2024 | May 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38465 | |
Entity Registrant Name | DOCUSIGN, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 91-2183967 | |
Entity Address, Address Line One | 221 Main St. | |
Entity Address, Address Line Two | Suite 1550 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 489-4940 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | DOCU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 204,716,354 | |
Entity Central Index Key | 0001261333 | |
Current Fiscal Year End Date | --01-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Current assets | ||
Cash and cash equivalents | $ 817,388 | $ 797,060 |
Investments—current | 269,400 | 248,402 |
Accounts receivable, net of allowance for doubtful accounts of $5,890 and $5,499 as of April 30, 2024 and January 31, 2024 | 306,152 | 439,299 |
Contract assets—current | 12,319 | 15,922 |
Prepaid expenses and other current assets | 84,540 | 66,984 |
Total current assets | 1,489,799 | 1,567,667 |
Investments—noncurrent | 139,108 | 121,977 |
Property and equipment, net | 255,736 | 245,173 |
Operating lease right-of-use assets | 119,997 | 123,188 |
Goodwill | 352,450 | 353,138 |
Intangible assets, net | 46,206 | 50,905 |
Deferred contract acquisition costs—noncurrent | 415,739 | 409,627 |
Other assets—noncurrent | 107,654 | 99,615 |
Total assets | 2,926,689 | 2,971,290 |
Current liabilities | ||
Accounts payable | 17,700 | 19,029 |
Accrued expenses and other current liabilities | 99,177 | 104,037 |
Accrued compensation | 153,932 | 195,266 |
Contract liabilities—current | 1,313,227 | 1,320,059 |
Operating lease liabilities—current | 20,925 | 22,230 |
Total current liabilities | 1,604,961 | 1,660,621 |
Contract liabilities—noncurrent | 23,840 | 21,980 |
Operating lease liabilities—noncurrent | 117,444 | 120,823 |
Deferred tax liability—noncurrent | 18,037 | 16,795 |
Other liabilities—noncurrent | 25,407 | 21,332 |
Total liabilities | 1,789,689 | 1,841,551 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding as of April 30, 2024 and January 31, 2024 | 0 | 0 |
Common stock, $0.0001 par value; 500,000 shares authorized, 204,701 shares outstanding as of April 30, 2024; 500,000 shares authorized, 205,326 shares outstanding as of January 31, 2024 | 20 | 21 |
Treasury stock, at cost: 26 shares as of April 30, 2024; 18 shares as of January 31, 2024 | (2,670) | (2,164) |
Additional paid-in capital | 2,950,081 | 2,821,461 |
Accumulated other comprehensive loss | (24,910) | (19,360) |
Accumulated deficit | (1,785,521) | (1,670,219) |
Total stockholders’ equity | 1,137,000 | 1,129,739 |
Total liabilities and equity | $ 2,926,689 | $ 2,971,290 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 5,890 | $ 5,499 |
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 204,701,000 | 205,326,000 |
Treasury stock, shares (in shares) | 26,000 | 18,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Revenue: | ||
Total revenue | $ 709,640 | $ 661,388 |
Cost of revenue: | ||
Total cost of revenue | 149,446 | 136,487 |
Gross profit | 560,194 | 524,901 |
Operating expenses: | ||
Sales and marketing | 281,644 | 280,605 |
Research and development | 134,320 | 115,364 |
General and administrative | 92,478 | 104,811 |
Restructuring and other related charges | 29,124 | 28,772 |
Total operating expenses | 537,566 | 529,552 |
Income (loss) from operations | 22,628 | (4,651) |
Interest expense | (144) | (1,966) |
Interest income and other income, net | 14,109 | 12,245 |
Income before provision for income taxes | 36,593 | 5,628 |
Provision for income taxes | 2,833 | 5,089 |
Net income | $ 33,760 | $ 539 |
Net income per share attributable to common stockholders: | ||
Basic (in usd per share) | $ 0.16 | $ 0 |
Diluted (in usd per share) | $ 0.16 | $ 0 |
Weighted-average shares used in computing net income per share: | ||
Basic (in shares) | 205,870 | 202,631 |
Diluted (in shares) | 209,896 | 208,071 |
Comprehensive income: | ||
Foreign currency translation gain (loss), net of tax | $ (4,301) | $ 431 |
Unrealized gains (losses) on investments, net of tax | (1,249) | 648 |
Other comprehensive income (loss) | (5,550) | 1,079 |
Comprehensive income | 28,210 | 1,618 |
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | 142,504 | 144,706 |
Sales and marketing | ||
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | 46,271 | 45,326 |
Research and development | ||
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | 44,202 | 35,997 |
General and administrative | ||
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | 28,520 | 40,342 |
Restructuring and other related charges | ||
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | 4,628 | 4,954 |
Subscription | ||
Revenue: | ||
Total revenue | 691,483 | 639,307 |
Cost of revenue: | ||
Total cost of revenue | 126,602 | 108,942 |
Subscription | Cost of revenue | ||
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | 14,181 | 11,357 |
Professional services and other | ||
Revenue: | ||
Total revenue | 18,157 | 22,081 |
Cost of revenue: | ||
Total cost of revenue | 22,844 | 27,545 |
Professional services and other | Cost of revenue | ||
Stock-based compensation expense included in costs and expenses: | ||
Stock-based compensation expense | $ 4,702 | $ 6,730 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2023 | 201,904 | |||||
Beginning balance at Jan. 31, 2023 | $ 617,287 | $ 20 | $ 2,240,732 | $ (1,785) | $ (22,996) | $ (1,598,684) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 15 | |||||
Exercise of stock options | 127 | 127 | ||||
Settlement of restricted stock units and employee stock purchase plan (in shares) | 1,144 | |||||
Tax withholding on net share settlement of restricted stock units and employee stock purchase plan (in shares) | (415) | |||||
Tax withholding on net share settlement of restricted stock units and employee stock purchase plan | (23,076) | (22,834) | (242) | |||
Employee stock purchase plan (in shares) | 420 | |||||
Employee stock purchase plan | $ 18,390 | 18,390 | ||||
Repurchases of common stock (in shares) | (700) | (709) | ||||
Repurchases of common stock | $ (40,472) | (40,472) | ||||
Settlement of capped calls, net of related costs | 23,688 | 23,688 | ||||
Employee stock-based compensation | 151,930 | 151,930 | ||||
Net income | 539 | 539 | ||||
Other comprehensive loss, net | 1,079 | 1,079 | ||||
Ending balance (in shares) at Apr. 30, 2023 | 202,359 | |||||
Ending balance at Apr. 30, 2023 | $ 749,492 | $ 20 | 2,412,033 | (2,027) | (21,917) | (1,638,617) |
Beginning balance (in shares) at Jan. 31, 2024 | 205,326 | 205,326 | ||||
Beginning balance at Jan. 31, 2024 | $ 1,129,739 | $ 21 | 2,821,461 | (2,164) | (19,360) | (1,670,219) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 56 | 55 | ||||
Exercise of stock options | $ 634 | 634 | ||||
Settlement of restricted stock units and employee stock purchase plan (in shares) | 2,088 | |||||
Tax withholding on net share settlement of restricted stock units and employee stock purchase plan (in shares) | (796) | |||||
Tax withholding on net share settlement of restricted stock units and employee stock purchase plan | (45,351) | (44,845) | (506) | |||
Employee stock purchase plan (in shares) | 564 | |||||
Employee stock purchase plan | $ 20,190 | 20,190 | ||||
Repurchases of common stock (in shares) | (2,500) | (2,536) | ||||
Repurchases of common stock | $ (149,063) | $ (1) | (149,062) | |||
Employee stock-based compensation | 152,641 | 152,641 | ||||
Net income | 33,760 | 33,760 | ||||
Other comprehensive loss, net | $ (5,550) | (5,550) | ||||
Ending balance (in shares) at Apr. 30, 2024 | 204,701 | 204,701 | ||||
Ending balance at Apr. 30, 2024 | $ 1,137,000 | $ 20 | $ 2,950,081 | $ (2,670) | $ (24,910) | $ (1,785,521) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 33,760 | $ 539 | |
Adjustments to reconcile net income provided by operating activities: | |||
Depreciation and amortization | 24,506 | 22,867 | |
Amortization of deferred contract acquisition and fulfillment costs | 54,212 | 48,230 | |
Amortization of debt discount and transaction costs | 138 | 1,246 | |
Non-cash operating lease costs | 4,878 | 5,980 | |
Stock-based compensation expense | 142,504 | 144,706 | |
Deferred income taxes | 1,477 | 1,623 | |
Other | 1,472 | (831) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 130,639 | 108,281 | |
Prepaid expenses and other current assets | (17,061) | (16,803) | |
Deferred contract acquisition and fulfillment costs | (63,072) | (56,526) | |
Other assets | 1,917 | (7,661) | |
Accounts payable | (1,163) | (9,021) | |
Accrued expenses and other liabilities | (3,480) | 1,095 | |
Accrued compensation | (45,048) | (21,582) | |
Contract liabilities | (4,973) | 18,287 | |
Operating lease liabilities | (5,880) | (6,795) | |
Net cash provided by operating activities | 254,826 | 233,635 | |
Cash flows from investing activities: | |||
Purchases of marketable securities | (119,638) | (53,830) | |
Maturities of marketable securities | 82,114 | 80,699 | |
Purchases of strategic and other investments | (500) | 0 | |
Purchases of property and equipment | (22,753) | (19,057) | |
Net cash provided by (used in) investing activities | (60,777) | 7,812 | |
Cash flows from financing activities: | |||
Repurchases of common stock | (149,062) | (40,472) | |
Settlement of capped calls, net of related costs | 0 | 23,688 | |
Payment of tax withholding obligation on net RSU settlement and ESPP purchase | (41,637) | (22,637) | |
Proceeds from exercise of stock options | 635 | 127 | |
Proceeds from employee stock purchase plan | 20,190 | 18,390 | |
Net cash used in financing activities | (169,874) | (20,904) | |
Effect of foreign exchange on cash, cash equivalents and restricted cash | (2,915) | 1,011 | |
Net increase in cash, cash equivalents and restricted cash | 21,260 | 221,554 | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 801,499 | 723,201 |
Cash, cash equivalents and restricted cash at end of period | [1] | 822,759 | 944,755 |
Supplemental disclosure: | |||
Cash paid for interest | 0 | 93 | |
Cash paid for operating lease liabilities | 7,689 | 10,861 | |
Cash paid for income taxes | 3,875 | 765 | |
Non-cash investing and financing activities: | |||
Property and equipment in accounts payable and accrued expenses and other current liabilities | 2,416 | 2,727 | |
Operating lease right-of-use assets exchanged for lease obligations | $ 1,837 | $ 0 | |
[1] $5.4 million and $4.4 million of restricted cash was included in Prepaid expenses and other current assets and Other assets—noncurrent at April 30, 2024 and January 31, 2024. $4.3 million and $1.3 million of restricted cash was included in Prepaid expenses and other current assets and in Other assets—noncurrent at April 30, 2023 and January 31, 2023. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 | Jan. 31, 2023 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 5.4 | $ 4.4 | $ 4.3 | $ 1.3 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Description of Business Docusign, Inc. (“we,” “our”, “us”, “Docusign”, or “Company”) was incorporated in the State of Washington in April 2003. We merged with and into Docusign, Inc., a Delaware corporation, in March 2015. Docusign offers solutions that address agreement workflows and digital transformation. Docusign’s core offerings, including the world’s leading electronic signature and contract lifecycle management (“CLM”) products, allow organizations to boost productivity, accelerate contract review cycles, and transform agreement data into insights and actions while providing a better experience for their customers. Additionally, Docusign has introduced its Intelligent Agreement Management (“IAM”) platform, enabling organizations to create, commit to, and manage agreements, from virtually anywhere in the world, securely. Basis of Presentation and Principles of Consolidation Our condensed consolidated financial statements include those of Docusign, Inc. and our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our fiscal 2024 Annual Report on Form 10-K. Our condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and, in our opinion, include all adjustments of a normal recurring nature necessary for the fair statement of our financial position, results of operations and cash flows. Our condensed consolidated balance sheet as of January 31, 2024 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended April 30, 2024 are not necessarily indicative of the results to be expected for the year ending January 31, 2025 . O ur fiscal year ends on January 3 1. References to fiscal 2025, for example, are to the fiscal year ending January 31, 2025 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the condensed consolidated financial statements and notes thereto. Significant items subject to such estimates and assumptions made by management include, but are not limited to, the determination of: • the average period of benefit associated with deferred contract acquisition costs and fulfillment costs; • the fair value of certain stock awards issued; • the useful life and recoverability of long-lived assets; • the discount rate used for operating leases; • the recognition and measurement of loss contingencies; and • the recognition, measurement and valuation of deferred income taxes. Significant Accounting Policies There have been no changes to our significant accounting policies described in our fiscal 2024 Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which enhances disclosures required for operating segments. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for annual filings for the Company’s fiscal year beginning February 1, 2024, and interim filings for the fiscal year beginning February 1, 2025, and should be applied on a retrospective basis to all periods presented. We are currently evaluating the effect of adopting ASU 2023-07 on our financial statement disclosures. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retrospective basis. We are currently evaluating the effect of adopting ASU 2023-09 on our income tax disclosures. In March 2024, the SEC adopted the final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, which requires registrants to provide certain climate-related information in their registration statements and annual reports. As it pertains to the financial statements, the final rules require the financial statement footnotes to include certain disclosures regarding the amounts of expenses (or capitalized costs) incurred that relate to severe weather events and other natural conditions, as well as other disclosures regarding the material impact on financial estimates and assumptions of severe weather events and other natural conditions or disclosed targets or disclosed targets or transition plans. It also requires disclosure of financial statement amounts related to carbon offsets and renewable energy credits. The disclosure requirements will be phased in beginning with our annual filing for the fiscal year ending January 31, 2026. In April 2024, the SEC issued an order staying these rules pending the completion of judicial review of litigation challenging the validity of the rules. We are currently evaluating the disclosure impact of adoption of the standard on our consolidated financial statements. We have not adopted accounting pronouncements during the three months ended April 30, 2024. |
Revenue
Revenue | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Subscription revenue is recognized over time and accounted for approximately 97% of our revenue in each of the three month periods ended April 30, 2024 and 2023. Performance Obligations As of April 30, 2024, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.2 billion. We expect to recognize 56% of the transaction price allocated to remaining performance obligations within the 12 months following April 30, 2024 in our condensed consolidated statement of operations and comprehensive income. Contract Balances Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $12.3 million and $15.9 million as of April 30, 2024 and January 31, 2024. The change in contract assets reflects the difference in timing between our satisfaction of remaining performance obligations and our contractual right to bill our customers. Contract liabilities consist of deferred revenue and payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. For the three months ended April 30, 2024 and 2023, we recognized revenue of $563.3 million and $510.5 million that was included in the corresponding contract liability balance at the beginning of the periods presented. We receive payments from customers based upon contractual billing schedules. We record accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Geographic Information Revenue by geography is based on the address of the customer as specified in our master subscription agreements with our customers. Revenue by geographic area was as follows: Three Months Ended April 30, (in thousands) 2024 2023 U.S. $ 512,726 $ 493,058 International 196,914 168,330 Total revenue $ 709,640 $ 661,388 The following table represents a rollforward of our deferred contract acquisition and fulfillment costs: Three Months Ended April 30, (in thousands) 2024 2023 Deferred Contract Acquisition Costs: Beginning balance $ 409,658 $ 355,389 Additions to deferred contract acquisition costs 52,088 43,239 Amortization of deferred contract acquisition costs (44,400) (35,746) Cumulative translation adjustment (1,603) 826 Ending balance $ 415,743 $ 363,708 Deferred Contract Fulfillment Costs: Beginning balance $ 22,525 $ 21,076 Additions to deferred contract fulfillment costs 10,984 13,287 Amortization of deferred contract fulfillment costs (9,812) (12,484) Cumulative translation adjustment (150) 166 Ending balance $ 23,547 $ 22,045 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes our financial assets that are measured at fair value on a recurring basis: April 30, 2024 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Level 1: Cash equivalents (1) Money market funds $ 337,891 $ — $ — $ 337,891 Level 2: Cash equivalents (1) Commercial paper 25,046 — (6) 25,040 Available-for-sale securities Commercial paper 64,466 — (129) 64,337 Corporate notes and bonds 304,672 4 (1,538) 303,138 U.S. governmental securities 41,122 1 (90) 41,033 Level 2 total 435,306 5 (1,763) 433,548 Total $ 773,197 $ 5 $ (1,763) $ 771,439 January 31, 2024 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Level 1: Cash equivalents (1) Money market funds $ 298,517 $ — $ — $ 298,517 Level 2: Cash equivalents (1) Commercial paper 43,845 — (9) 43,836 U.S. government agency securities 9,968 — (1) 9,967 Available-for-sale securities Commercial paper 42,958 2 (25) 42,935 Corporate notes and bonds 299,166 262 (670) 298,758 U.S. governmental securities 28,752 — (66) 28,686 Level 2 total 424,689 264 (771) 424,182 Total $ 723,206 $ 264 $ (771) $ 722,699 (1) Included in “cash and cash equivalents” in our consolidated balance sheets as of April 30, 2024 and January 31, 2024, in addition to cash of $454.5 million and $444.8 million. We use quoted prices in active markets for identical assets to determine the fair value of our Level 1 investments. The fair value of our Level 2 investments is determined using pricing based on quoted market prices or alternative market observable inputs . The fair values of our available-for-sale securities as of April 30, 2024, by remaining contractual maturities, were as follows (in thousands): Due in one year or less $ 269,400 Due in one to two years 139,108 $ 408,508 As of April 30, 2024 and January 31, 2024, securities in an unrealized loss position were, individually and in aggregate, not material. An allowance for credit losses was deemed unnecessary for these securities, given the extent of the unrealized loss positions as well as the issuers' high credit ratings and consistent payment history. We had no liabilities measured at fair value on a recurring basis as of April 30, 2024 and January 31, 2024. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Apr. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following: (in thousands) April 30, 2024 January 31, 2024 Computer and network equipment $ 141,464 $ 142,241 Software, including capitalized software development costs 195,390 168,584 Furniture and office equipment 18,135 18,196 Leasehold improvements 58,047 58,230 413,036 387,251 Less: Accumulated depreciation (261,585) (244,270) 151,451 142,981 Work in progress 104,285 102,192 Total $ 255,736 $ 245,173 Depreciation and amortization expense associated with property and equipment was $19.8 million and $17.8 million for the three months ended April 30, 2024 and 2023 . This included amortization expense related to capitalized internally developed software costs of $11.7 million and $6.8 million for the three months ended April 30, 2024 and 2023 . For the three months ended April 30, 2024 and 2023, we capitalized $24.7 million and $21.7 million of internally developed software, including $8.6 million and $6.8 million of capitalized stock-based compensation expense in the three months ended April 30, 2024 and 2023. |
Deferred Contract Acquisition a
Deferred Contract Acquisition and Fulfillment Costs | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Contract Acquisition and Fulfillment Costs | Revenue Subscription revenue is recognized over time and accounted for approximately 97% of our revenue in each of the three month periods ended April 30, 2024 and 2023. Performance Obligations As of April 30, 2024, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.2 billion. We expect to recognize 56% of the transaction price allocated to remaining performance obligations within the 12 months following April 30, 2024 in our condensed consolidated statement of operations and comprehensive income. Contract Balances Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $12.3 million and $15.9 million as of April 30, 2024 and January 31, 2024. The change in contract assets reflects the difference in timing between our satisfaction of remaining performance obligations and our contractual right to bill our customers. Contract liabilities consist of deferred revenue and payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. For the three months ended April 30, 2024 and 2023, we recognized revenue of $563.3 million and $510.5 million that was included in the corresponding contract liability balance at the beginning of the periods presented. We receive payments from customers based upon contractual billing schedules. We record accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Geographic Information Revenue by geography is based on the address of the customer as specified in our master subscription agreements with our customers. Revenue by geographic area was as follows: Three Months Ended April 30, (in thousands) 2024 2023 U.S. $ 512,726 $ 493,058 International 196,914 168,330 Total revenue $ 709,640 $ 661,388 The following table represents a rollforward of our deferred contract acquisition and fulfillment costs: Three Months Ended April 30, (in thousands) 2024 2023 Deferred Contract Acquisition Costs: Beginning balance $ 409,658 $ 355,389 Additions to deferred contract acquisition costs 52,088 43,239 Amortization of deferred contract acquisition costs (44,400) (35,746) Cumulative translation adjustment (1,603) 826 Ending balance $ 415,743 $ 363,708 Deferred Contract Fulfillment Costs: Beginning balance $ 22,525 $ 21,076 Additions to deferred contract fulfillment costs 10,984 13,287 Amortization of deferred contract fulfillment costs (9,812) (12,484) Cumulative translation adjustment (150) 166 Ending balance $ 23,547 $ 22,045 |
Debt
Debt | 3 Months Ended |
Apr. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes In September 2018, we issued $575.0 million in aggregate principal amount of the 0.5% Convertible Senior Notes due in 2023 (“2023 Notes”). The net proceeds from the issuance of the 2023 Notes were $560.8 million after deducting the initial purchasers’ discounts and transaction costs. In January 2021, we issued $690.0 million in aggregate principal amount of the 0% Convertible Senior Notes due in 2024 (“2024 Notes,” and together with the 2023 Notes, the “Notes”). The net proceeds from the issuance of the 2024 Notes were $677.3 million after deducting the initial purchasers’ discounts and transaction costs. The 2023 Notes and 2024 Notes were extinguished, and all outstanding amounts were repaid in full during the third and fourth quarters of fiscal 2024, respectively. We repaid in cash $37.1 million and $689.9 million in aggregate principal amount of the 2023 Notes and 2024 Notes. The effective interest rate on the 2023 Notes was 1.0%. The effective interest rate on the 2024 Notes was 0.6%. Interest expense recognized related to the Notes was as follows: Three Months Ended April 30, (in thousands) 2024 2023 Contractual interest expense $ — $ 357 Amortization of transaction costs — 1,109 Total $ — $ 1,466 Capped Calls To minimize the potential economic dilution to our common stock upon conversion of the Notes, we entered into privately negotiated capped call transactions (“Capped Calls”) with certain counterparties. In the first quarter of fiscal 2024, we unwound $23.7 million of the Capped Calls in relation to our 2023 Notes and received cash from the counterparties. All remaining Capped Calls associated with the 2023 Notes and 2024 Notes expired during the third and fourth quarters of fiscal 2024, respectively. Impact on Net Income Per Share In periods when we have net income, the shares of our common stock subject to the Notes outstanding during the period are included in our diluted earnings per share under the if-converted method. In the three months ended April 30, 2023, the Capped Calls were excluded from the calculation of diluted earnings per share, as they were antidilutive. Revolving Credit Facility In January 2021, we entered into a credit agreement, as subsequently amended in May 2023, with a syndicate of banks. The credit agreement extended a senior secured revolving credit facility (the “Credit Facility”) to us in an aggregate principal amount of $500.0 million, which amount may be increased by an additional $250.0 million subject to the terms of the credit agreement. We may use the proceeds of future borrowings under the credit facility to finance working capital, for capital expenditures and for other general corporate purposes, including permitted acquisitions. The Credit Facility matures in January 2026 and requires us to comply with customary affirmative and negative covenants. We were in compliance with all covenants as of April 30, 2024. As of April 30, 2024, there were no outstanding borrowings under the Credit Facility. The Credit Facility is subject to customary fees for loan facilities of this type, including ongoing commitment fees at a rate between 0.25% and 0.30% per annum on the daily undrawn balance. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of April 30, 2024, we had unused letters of credit outstanding totaling $1.3 million, the majority of which are associated with our various operating leases. We have entered into certain noncancelable contractual arrangements that require future purchases of goods and services. These arrangements primarily relate to cloud infrastructure support and sales and marketing activities. As of April 30, 2024, our future noncancelable minimum payments due under these contractual obligations with a remaining term of more than one year were as follows: Fiscal Period: Amount (in thousands) 2025, remainder $ 37,798 2026 55,097 2027 8,820 2028 1,663 2029 1,138 Thereafter 484 Total $ 105,000 We entered into agreements with public cloud computing service providers with minimum commitments through fiscal 2027 and 2028. As of April 30, 2024 our remaining commitments under these agreements are $17.3 million and $108.4 million respectively, which are excluded from the table above. Indemnification We enter into indemnification provisions under our agreements with customers and other companies in the ordinary course of business, including business partners, contractors and parties performing our research and development. Pursuant to these arrangements, we agree to indemnify and defend the indemnified party for certain claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims because of our activities. The duration of these indemnification agreements is generally perpetual. The maximum potential amount of future payments we could be required to make under these indemnification clauses or agreements is not determinable. Historically, we have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the fair value of these indemnification agreements is not material as of April 30, 2024, and January 31, 2024. We maintain commercial general liability insurance and product liability insurance to offset certain of our potential liabilities under these indemnification agreements. We have entered into indemnification agreements with each of our directors, executive officers and certain other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us. Claims and Litigation From time to time, we may be subject to legal proceedings, claims and litigation made against us in the ordinary course of business. Legal costs associated with litigation are expensed as incurred. We believe the final outcome of these matters, including the case described below, will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows. Docusign, Inc. Securities Litigation and Related Derivative Litigation On February 8, 2022, a putative securities class action was filed in the U.S. District Court for the Northern District of California, captioned Weston v. Docusign, Inc., et al., Case No. 3:22-cv-00824, naming Docusign and certain of our then-current and former officers as defendants. An amended complaint was filed on July 8, 2022. As amended, the suit purports to allege claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder, based on allegedly false and misleading statements about our business and prospects during the course of the COVID-19 pandemic. As amended, the suit is purportedly brought on behalf of purchasers of our securities between June 4, 2020 and June 9, 2022. Our motion to dismiss the case at the pleading stage was denied by the U.S. District Court on April 18, 2023 and the suit is now proceeding. An earlier action alleging similar claims against the same defendants, captioned Collins v. Docusign, Inc., et al., Case No. 3:22-cv-00851, filed in the Eastern District of New York and subsequently transferred to the Northern District of California, was voluntarily dismissed on February 14, 2022. Eight putative shareholder derivative cases have been filed containing allegations based on or similar to those in the securities class action (Weston). The cases were filed on May 17, 2022, in the U.S. District Court for the District of Delaware, captioned Pottetti v. Springer, et al., Case No. 1:22-cv-00652; on May 19, 2022, in the U.S. District Court for the Northern District of California, captioned Lapin v. Springer, et al., Case No. 3:22-cv-02980; on May 20, 2022, in the U.S. District Court for the Northern District of California, captioned Votto v. Springer, et al., Case No. 3:22-cv-02987; on September 20, 2022, in the U.S. District Court for the Northern District of California, captioned Fox v. Springer, et al., Case No. 3:22-cv-05343; on March 7, 2024, in the Delaware Court of Chancery, captioned Roy v. Alhadeff, et al., Case No. C.A. 2024-0223-PAF; on April 9, 2024, in the U.S. District Court for the Northern District of California, captioned Alexander v. Springer, et al., Case No. 3:24-cv-02139; on April 11, 2024, in the Delaware Court of Chancery, captioned Ingrao v. Beer, et al., Case No. C.A. 2024-0382-PAF; and on May 28, 2024, in the Delaware Court of Chancery, captioned Jordan v. Springer, et al., Case No. C.A. 2024-0564-PAF. Each case is allegedly brought on the Company’s behalf. The suits name the Company as a nominal defendant and, depending on the particular case, the members of our board of directors or, in certain instances, then-current or former officers, as defendants. While the complaints vary, they are based largely on the same underlying allegations as the securities class action suit described above (Weston), as well as, in certain instances, alleged insider trading. Collectively, these lawsuits purport to assert claims for, among other things, breach of fiduciary duty, aiding and abetting such breach, corporate waste, gross mismanagement, unjust enrichment, and under Sections 10(b) and 21D of the Securities Exchange Act of 1934. The complaints seek to recover unspecified damages and other relief on the Company’s behalf. By court order dated July 19, 2022, the first two cases in the Northern District of California (Lapin and Votto) have been consolidated and stayed in light of the securities class action and no response to the complaints in the action will be due unless and until the stay is lifted. The third case in the Northern District of California (Fox) was related to the other derivative suits and assigned to the same judge, and was similarly stayed by order of the court on December 2, 2022. The most recent case in the Northern District of California (Alexander) was also related to the other derivative suits and assigned to the same judge, and subsequently consolidated with Lapin and Votto and stayed by order of the court on May 8, 2024. The Delaware suit (Pottetti) was voluntarily dismissed on September 1, 2022, and then re-filed in the Delaware Court of Chancery on September 22, 2022, under the caption Pottetti v. Springer, et al., Case No. C.A. 2022-0852-PAF. The Delaware Court of Chancery issued an order on September 30, 2022, staying the action in light of the securities class action. On May 28, 2024, plaintiff filed a notice seeking to voluntarily dismiss the Delaware Court of Chancery Pottetti action. An order of dismissal has not yet issued. Similar to the stay in Pottetti, we anticipate seeking a stay of the newly filed suits (Roy, Ingrao, and Jordan) in light of the securities class action, such that no response to the complaints would be due unless and until the stay is lifted. Docusign Civil Litigation On October 25, 2022, an action was filed in the Delaware Court of Chancery, captioned Daniel D. Springer v. Mary Agnes Wilderotter and Docusign, Inc., Civil Action No. 2022-0963-LWW, concerning Mr. Springer’s resignation from our board of directors. Mr. Springer’s complaint sought relief determining that he did not resign from his position on our board of directors and remains a director, and for an award of attorneys’ fees and costs associated with the civil action. To avoid the cost and distraction of further litigation with Mr. Springer, the Company offered to stipulate to entry of judgment in favor of Mr. Springer as to his disputed resignation and his status as a member of our board of directors. Following our offer, on January 11, 2023, the Chancery Court issued an order declaring and confirming that (i) Mr. Springer has not resigned from the board of directors and (ii) Mr. Springer is currently a member of the board of directors. Mr. Springer subsequently filed a motion seeking payment of his attorneys’ fees. The Court of Chancery dismissed the case after Mr. Springer withdrew his motion for attorneys’ fees earlier this year. In addition, on January 26, 2023, Mr. Springer delivered a demand for arbitration before JAMS, a private alternative dispute resolution firm, captioned Daniel D. Springer v. Docusign, Inc. and Mary Agnes Wilderotter. In the demand, Mr. Springer alleges that he was wrongfully terminated as Chief Executive Officer; asserts related claims against Docusign and Ms. Wilderotter, including defamation, withholding promised compensation and breach of contract; and seeks unspecified damages and other relief, including his attorneys’ fees from the Delaware litigation. The arbitration hearing for this case took place from March 11-15, 2024, and the parties have completed post-hearing briefings. A final order from the arbitrator is expected on or before July 12, 2024. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Equity Incentive Plans We maintain three stock-based compensation plans: the 2018 Equity Incentive Plan (the “2018 Plan”), the Amended and Restated 2011 Equity Incentive Plan and the Amended and Restated 2003 Stock Plan. As of April 30, 2024, 47.0 million shares of our common stock were available for issuance under the 2018 Plan. Restricted Stock Units Restricted stock unit (“RSU”) activity for the three months ended April 30, 2024 was as follows: (in thousands, except per share data) Number of Units Weighted-Average Grant Date Fair Value Unvested at January 31, 2024 26,700 $ 60.70 Granted 1,192 54.47 Vested (2,136) 73.52 Canceled (1,469) 64.35 Unvested at April 30, 2024 24,287 $ 58.79 As of April 30, 2024, our total unrecognized compensation cost related to RSUs was $1.0 billion. We expect to recognize this expense over the remaining weighted-average period of approximately 2.88 years. As of April 30, 2024, the grant date fair value of unvested RSUs subject to market-based and performance-based vesting conditions (“PSU”) was $116.6 million. The number of RSUs granted or canceled included in the table above reflects shares that could be eligible to vest at 100% of target for PSUs and includes adjustments for over or under achievement for PSUs granted in prior periods. Stock Options Option activity for the three months ended April 30, 2024 was as follows: (in thousands, except years and per share data) Number of Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 31, 2024, all vested and exercisable 1,385 $ 17.39 2.63 $ 60,117 Exercised (56) 11.43 Outstanding at April 30, 2024, all vested and exercisable 1,329 $ 17.64 2.48 $ 51,643 As of April 30, 2024, there was no remaining unrecognized compensation cost related to stock option grants. Employee Stock Purchase Plan The Employee Stock Purchase Plan (“ESPP”) allows eligible employees to purchase shares of our common stock at a discounted price, normally through payroll deductions, subject to the terms of the ESPP and applicable law. As of April 30, 2024, 12.1 million shares of our common stock were reserved for issuance under the ESPP. Compensation expense related to the ESPP was $3.0 million and $4.2 million for the three months ended April 30, 2024 and 2023. Stock Repurchase Program In March 2022, our board of directors authorized a stock repurchase program of up to $200.0 million of our outstanding common stock. Subsequently, in September 2023, our board of directors authorized an increase to its existing stock repurchase program for an additional amount of up to $300.0 million of our outstanding common stock. During the three months ended April 30, 2024, we repurchased and cancelled 2.5 million shares of common stock at an average price of $58.78 per share, for an aggregate amount of $149.1 million. During the three months ended April 30, 2023, we repurchased and cancelled 0.7 million shares of common stock at an average price of $57.06 per share, for an aggregate amount of $40.5 million. |
Restructuring and Other Related
Restructuring and Other Related Charges | 3 Months Ended |
Apr. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring 2024 Restructuring Plan During the first quarter of fiscal 2024 , our board of directors authorized a restructuring plan (the “2024 Restructuring Plan”) designed to support our growth, scale and profitability objectives. We incurred costs associated with the 2024 Restructuring Plan related to employee termination benefits and other costs mainly in the first quarter of fiscal 2024. As of the second quarter of fiscal 2024, the 2024 Restructuring Plan had been substantially completed. 2025 Restructuring Plan During the first quarter of fiscal 2025 , our board of directors authorized a restructuring plan (the “2025 Restructuring Plan”) designed to strengthen and support our financial and operational efficiency while continuing to invest in product and related initiatives. We incurred costs associated with the 2025 Restructuring Plan related to employee termination benefits and other costs mainly in the first quarter of fiscal 2025 and expect that the execution of the 2025 Restructuring Plan will be substantially complete by the end of the second quarter of fiscal 2025. These amounts are recorded to the Restructuring and other related charges within our consolidated statements of operations and comprehensive income as they are incurred. For the three months ended April 30, 2024, restructuring and other related charges were $29.1 million for employee termination benefits, including stock-based compensation expense of $4.6 million. For the three months ended April 30, 2023, restructuring and other related charges were $28.8 million, and primarily composed of $27.7 million for employee termination benefits, which included stock-based compensation expense of $5.0 million. Restructuring liability activities during the three months ended April 30, 2024: (in thousands) January 31, 2024 Accruals Cash Payments April 30, 2024 2024 Restructuring Plan Other 122 — (122) — Total $ 122 $ — $ (122) $ — 2025 Restructuring Plan Employee termination benefits $ — $ 24,413 $ (22,255) $ 2,158 Total $ — $ 24,413 $ (22,255) $ 2,158 |
Net Income per Share Attributab
Net Income per Share Attributable to Common Stockholders | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income per Share Attributable to Common Stockholders | Net Income per Share Attributable to Common Stockholders The following table presents the calculation of basic and diluted net income per share attributable to common stockholders for periods presented: Three Months Ended April 30, (in thousands, except per share data) 2024 2023 Numerator: Net income attributable to common stockholders, basic $ 33,760 $ 539 Add: Interest expense on convertible senior notes — 357 Net income attributable to common stockholders, diluted $ 33,760 $ 896 Denominator: Weighted-average common shares outstanding, basic 205,870 202,631 Effect of dilutive securities 4,026 5,440 Weighted-average common shares outstanding, diluted 209,896 208,071 Net income per share attributable to common stockholders: Basic $ 0.16 $ 0.00 Diluted $ 0.16 $ 0.00 Outstanding potentially dilutive securities that were excluded from the diluted per share calculations because they would have been antidilutive are as follows: Three Months Ended April 30, (in thousands) 2024 2023 RSUs 4,480 7,191 ESPP 114 35 Total antidilutive securities 4,594 7,226 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate as prescribed under Accounting Standards Codification (“ASC”) 740, “ Income Taxes ”, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment, which results in a provision or benefit from income taxes in current or subsequent quarters. There were no material discrete items in the quarter. Our income tax provision was $2.8 million and $5.1 million for the three months ended April 30, 2024 and 2023, respectively. The change was primarily due to the decrease of the annual effective tax rate driven by the increase of the forecasted annual pretax earnings.While annual pretax earnings are expected to increase, our income tax provision is expected to remain relatively flat as we have net operating losses and research tax credits in the U.S. to offset an increase in our U.S. tax liability. We review the likelihood that we will realize the benefit of our deferred tax assets and, therefore, the need for valuation allowances, on a quarterly basis. We maintain a valuation allowance against certain deferred tax assets, including all U.S. consolidated group deferred tax assets and certain foreign deferred tax assets as a result of our history of losses in the U.S. and certain foreign jurisdictions, and the variability and uncertainty of our operating results. In the event we determine our deferred tax assets are realizable based on our assessment of relevant factors, an adjustment to the valuation allowance may increase income in the period such determination is made. Given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that during fiscal year 2025, sufficient positive evidence may become available to allow us to reach a conclusion that some portion of or the entire U.S. valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of material U.S. federal and state deferred tax assets and a corresponding decrease to income tax expense estimated to be $750 million to $850 million in the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change based on the level of sustained U.S. profitability that we are able to actually achieve, as well as the amount of tax deductible stock compensation dependent upon our publicly traded stock price, market acceptance for our products and solutions offerings such as our new IAM platform, and macroeconomic conditions, among other factors. As of April 30, 2024, our gross unrecognized tax benefits totaled $62.7 million, excluding related accrued interest and penalties, of which $10.8 million would impact the effective tax rate if recognized. Our policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision. We do not expect material changes to our gross unrecognized tax benefits within the next 12 months. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 5, 2024, Docusign agreed to acquire DocuSmart, Inc. d/b/a Lexion ("Lexion") pursuant to an Agreement and Plan of Merger by and among Docusign, Lexion, Laser Merger Sub, Inc. and Fortis Advisors LLC as stockholders' representative ("Merger Agreement"). The Merger Agreement provides for the acquisition of all outstanding equity interests of Lexion in exchange for consideration of approximately $165 million in cash, subject to adjustments. In connection with the acquisition, we also issued to certain Lexion employees RSUs which will vest subject to each employee’s respective continued employment. Lexion offers an AI-powered contract management platform which features intelligent contract repository and agreement workflow automation and reporting. The acquisition closed on May 31, 2024. Given the timing of the completion of the acquisition, we are currently in the process of valuing the assets acquired and liabilities assumed in the acquisition. As a result, we are unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed and other disclosures. In May 2024, our board of directors authorized an increase to our existing stock repurchase program for an additional amount of up to $1.0 billion of our outstanding common stock. The program has no minimum purchase commitment and no mandated end date. The repurchase program may be suspended or discontinued at any time at our discretion. The timing and amount of any repurchased common stock will be determined by management based on its evaluation of market conditions and other factors. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 33,760 | $ 539 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Apr. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Name Title Adoption Date Earliest Sale Date Expiration Date Aggregate # of securities to be sold Aggregate # of securities to be purchased Robert Chatwani President, GM, Growth March 25, 2024 June 24, 2024 March 31, 2025 Up to 120,038 N/A Stephen Shute (1) President, WW Field Operations April 9, 2024 July 9, 2024 July 31, 2025 Up to 218,521 N/A Daniel Springer Director April 8, 2024 August 1, 2024 April 9, 2025 Up to 716,070 N/A 1. The aggregate # of securities to be sold under Mr. Shute’s plan includes the maximum payout for certain unvested PSUs. Each of the 10b5-1 plans in the above table included a representation from the director or officer to the broker administering the plan that such individual was not in possession of any material nonpublic information regarding the Company or the securities subject to the plan. A similar representation was made to the Company in connection with the adoption of the plan under the Company’s insider trading policy. Those representations were made as of the date of adoption of the 10b5-1 plan, and speak only as of that date. In making those representations, there is no assurance with respect to any material nonpublic information of which the director or officer was unaware, or with respect to any material nonpublic information acquired by the director or officer or the Company after the date of the representation. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Robert Chatwani [Member] | |
Trading Arrangements, by Individual | |
Name | Robert Chatwani |
Title | President, GM, Growth |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 25, 2024 |
Arrangement Duration | 280 days |
Aggregate Available | 120,038 |
Stephen Shute [Member] | |
Trading Arrangements, by Individual | |
Name | Stephen Shute |
Title | President, WW Field Operations |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | April 9, 2024 |
Arrangement Duration | 387 days |
Aggregate Available | 218,521 |
Daniel Springer [Member] | |
Trading Arrangements, by Individual | |
Name | Daniel Springer |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | April 8, 2024 |
Arrangement Duration | 251 days |
Aggregate Available | 716,070 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Our condensed consolidated financial statements include those of Docusign, Inc. and our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our fiscal 2024 Annual Report on Form 10-K. |
Basis of Presentation | Our condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and, in our opinion, include all adjustments of a normal recurring nature necessary for the fair statement of our financial position, results of operations and cash flows. Our condensed consolidated balance sheet as of January 31, 2024 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended April 30, 2024 are not necessarily indicative of the results to be expected for the year ending January 31, 2025 . |
Fiscal Year | O ur fiscal year ends on January 3 1. References to fiscal 2025, for example, are to the fiscal year ending January 31, 2025 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the condensed consolidated financial statements and notes thereto. Significant items subject to such estimates and assumptions made by management include, but are not limited to, the determination of: • the average period of benefit associated with deferred contract acquisition costs and fulfillment costs; • the fair value of certain stock awards issued; • the useful life and recoverability of long-lived assets; • the discount rate used for operating leases; • the recognition and measurement of loss contingencies; and • the recognition, measurement and valuation of deferred income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which enhances disclosures required for operating segments. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for annual filings for the Company’s fiscal year beginning February 1, 2024, and interim filings for the fiscal year beginning February 1, 2025, and should be applied on a retrospective basis to all periods presented. We are currently evaluating the effect of adopting ASU 2023-07 on our financial statement disclosures. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retrospective basis. We are currently evaluating the effect of adopting ASU 2023-09 on our income tax disclosures. In March 2024, the SEC adopted the final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, which requires registrants to provide certain climate-related information in their registration statements and annual reports. As it pertains to the financial statements, the final rules require the financial statement footnotes to include certain disclosures regarding the amounts of expenses (or capitalized costs) incurred that relate to severe weather events and other natural conditions, as well as other disclosures regarding the material impact on financial estimates and assumptions of severe weather events and other natural conditions or disclosed targets or disclosed targets or transition plans. It also requires disclosure of financial statement amounts related to carbon offsets and renewable energy credits. The disclosure requirements will be phased in beginning with our annual filing for the fiscal year ending January 31, 2026. In April 2024, the SEC issued an order staying these rules pending the completion of judicial review of litigation challenging the validity of the rules. We are currently evaluating the disclosure impact of adoption of the standard on our consolidated financial statements. We have not adopted accounting pronouncements during the three months ended April 30, 2024. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues by Geographic Area | Revenue by geographic area was as follows: Three Months Ended April 30, (in thousands) 2024 2023 U.S. $ 512,726 $ 493,058 International 196,914 168,330 Total revenue $ 709,640 $ 661,388 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes our financial assets that are measured at fair value on a recurring basis: April 30, 2024 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Level 1: Cash equivalents (1) Money market funds $ 337,891 $ — $ — $ 337,891 Level 2: Cash equivalents (1) Commercial paper 25,046 — (6) 25,040 Available-for-sale securities Commercial paper 64,466 — (129) 64,337 Corporate notes and bonds 304,672 4 (1,538) 303,138 U.S. governmental securities 41,122 1 (90) 41,033 Level 2 total 435,306 5 (1,763) 433,548 Total $ 773,197 $ 5 $ (1,763) $ 771,439 January 31, 2024 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Level 1: Cash equivalents (1) Money market funds $ 298,517 $ — $ — $ 298,517 Level 2: Cash equivalents (1) Commercial paper 43,845 — (9) 43,836 U.S. government agency securities 9,968 — (1) 9,967 Available-for-sale securities Commercial paper 42,958 2 (25) 42,935 Corporate notes and bonds 299,166 262 (670) 298,758 U.S. governmental securities 28,752 — (66) 28,686 Level 2 total 424,689 264 (771) 424,182 Total $ 723,206 $ 264 $ (771) $ 722,699 (1) Included in “cash and cash equivalents” in our consolidated balance sheets as of April 30, 2024 and January 31, 2024, in addition to cash of $454.5 million and $444.8 million. |
Schedule of Fair Value of Available-for-sale Marketable Securities by Remaining Contractual Maturities | The fair values of our available-for-sale securities as of April 30, 2024, by remaining contractual maturities, were as follows (in thousands): Due in one year or less $ 269,400 Due in one to two years 139,108 $ 408,508 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: (in thousands) April 30, 2024 January 31, 2024 Computer and network equipment $ 141,464 $ 142,241 Software, including capitalized software development costs 195,390 168,584 Furniture and office equipment 18,135 18,196 Leasehold improvements 58,047 58,230 413,036 387,251 Less: Accumulated depreciation (261,585) (244,270) 151,451 142,981 Work in progress 104,285 102,192 Total $ 255,736 $ 245,173 |
Deferred Contract Acquisition_2
Deferred Contract Acquisition and Fulfillment Costs (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Contract Acquisition and Fulfillment Costs | The following table represents a rollforward of our deferred contract acquisition and fulfillment costs: Three Months Ended April 30, (in thousands) 2024 2023 Deferred Contract Acquisition Costs: Beginning balance $ 409,658 $ 355,389 Additions to deferred contract acquisition costs 52,088 43,239 Amortization of deferred contract acquisition costs (44,400) (35,746) Cumulative translation adjustment (1,603) 826 Ending balance $ 415,743 $ 363,708 Deferred Contract Fulfillment Costs: Beginning balance $ 22,525 $ 21,076 Additions to deferred contract fulfillment costs 10,984 13,287 Amortization of deferred contract fulfillment costs (9,812) (12,484) Cumulative translation adjustment (150) 166 Ending balance $ 23,547 $ 22,045 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Expense | Interest expense recognized related to the Notes was as follows: Three Months Ended April 30, (in thousands) 2024 2023 Contractual interest expense $ — $ 357 Amortization of transaction costs — 1,109 Total $ — $ 1,466 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations | As of April 30, 2024, our future noncancelable minimum payments due under these contractual obligations with a remaining term of more than one year were as follows: Fiscal Period: Amount (in thousands) 2025, remainder $ 37,798 2026 55,097 2027 8,820 2028 1,663 2029 1,138 Thereafter 484 Total $ 105,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Schedule of RSU Activity | Restricted stock unit (“RSU”) activity for the three months ended April 30, 2024 was as follows: (in thousands, except per share data) Number of Units Weighted-Average Grant Date Fair Value Unvested at January 31, 2024 26,700 $ 60.70 Granted 1,192 54.47 Vested (2,136) 73.52 Canceled (1,469) 64.35 Unvested at April 30, 2024 24,287 $ 58.79 |
Schedule of Options Activity | Option activity for the three months ended April 30, 2024 was as follows: (in thousands, except years and per share data) Number of Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 31, 2024, all vested and exercisable 1,385 $ 17.39 2.63 $ 60,117 Exercised (56) 11.43 Outstanding at April 30, 2024, all vested and exercisable 1,329 $ 17.64 2.48 $ 51,643 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liabilities | Restructuring liability activities during the three months ended April 30, 2024: (in thousands) January 31, 2024 Accruals Cash Payments April 30, 2024 2024 Restructuring Plan Other 122 — (122) — Total $ 122 $ — $ (122) $ — 2025 Restructuring Plan Employee termination benefits $ — $ 24,413 $ (22,255) $ 2,158 Total $ — $ 24,413 $ (22,255) $ 2,158 |
Net Income per Share Attribut_2
Net Income per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | The following table presents the calculation of basic and diluted net income per share attributable to common stockholders for periods presented: Three Months Ended April 30, (in thousands, except per share data) 2024 2023 Numerator: Net income attributable to common stockholders, basic $ 33,760 $ 539 Add: Interest expense on convertible senior notes — 357 Net income attributable to common stockholders, diluted $ 33,760 $ 896 Denominator: Weighted-average common shares outstanding, basic 205,870 202,631 Effect of dilutive securities 4,026 5,440 Weighted-average common shares outstanding, diluted 209,896 208,071 Net income per share attributable to common stockholders: Basic $ 0.16 $ 0.00 Diluted $ 0.16 $ 0.00 |
Schedule of Antidilutive Securities | Outstanding potentially dilutive securities that were excluded from the diluted per share calculations because they would have been antidilutive are as follows: Three Months Ended April 30, (in thousands) 2024 2023 RSUs 4,480 7,191 ESPP 114 35 Total antidilutive securities 4,594 7,226 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligations | $ 2,200 | ||
Contract assets | 12.3 | $ 15.9 | |
Revenue recognized that was included in contract liability balance at the beginning of the period | $ 563.3 | $ 510.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-05-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 56% | ||
Remaining performance obligations, period of recognition | 12 months | ||
Product Concentration Risk | Revenue | Subscription | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Concentration risk percentage | 97% | 97% |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 709,640 | $ 661,388 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 512,726 | 493,058 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 196,914 | $ 168,330 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | $ 773,197 | $ 723,206 |
Gross Unrealized Gains | 5 | 264 |
Gross Unrealized Losses | (1,763) | (771) |
Estimated Fair Value | 771,439 | 722,699 |
Cash | 454,500 | 444,800 |
Level 2 | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 435,306 | 424,689 |
Gross Unrealized Gains | 5 | 264 |
Gross Unrealized Losses | (1,763) | (771) |
Estimated Fair Value | 433,548 | 424,182 |
Money market funds | Level 1 | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 337,891 | 298,517 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 337,891 | 298,517 |
Commercial paper | Level 2 | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 25,046 | 43,845 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (9) |
Estimated Fair Value | 25,040 | 43,836 |
Commercial paper | Level 2 | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 64,466 | 42,958 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (129) | (25) |
Estimated Fair Value | 64,337 | 42,935 |
Corporate notes and bonds | Level 2 | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 304,672 | 299,166 |
Gross Unrealized Gains | 4 | 262 |
Gross Unrealized Losses | (1,538) | (670) |
Estimated Fair Value | 303,138 | 298,758 |
U.S. governmental securities | Level 2 | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 9,968 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 9,967 | |
U.S. governmental securities | Level 2 | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized Cost | 41,122 | 28,752 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (90) | (66) |
Estimated Fair Value | $ 41,033 | $ 28,686 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value of Available-for-sale Marketable Securities by Remaining Contractual Maturities (Details) - Short-term Investments $ in Thousands | Apr. 30, 2024 USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Due in one year or less | $ 269,400 |
Due in one to two years | 139,108 |
Total available-for-sale securities | $ 408,508 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 255,736 | $ 245,173 | |
Depreciation expense | 19,800 | $ 17,800 | |
Capitalized computer software, amortization | 11,700 | 6,800 | |
Capitalized software costs | 24,700 | 21,700 | |
Capitalized stock-based compensation | 8,600 | $ 6,800 | |
Property and equipment, excluding work in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 413,036 | 387,251 | |
Less: Accumulated depreciation | (261,585) | (244,270) | |
Property and equipment, net | 151,451 | 142,981 | |
Computer and network equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 141,464 | 142,241 | |
Software, including capitalized software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 195,390 | 168,584 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 18,135 | 18,196 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 58,047 | 58,230 | |
Work in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 104,285 | $ 102,192 |
Deferred Contract Acquisition_3
Deferred Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Capitalized Contract Cost, Net [Roll Forward] | ||
Amortization of deferred contract acquisition costs | $ (54,212) | $ (48,230) |
Deferred Contract Acquisition Costs: | ||
Capitalized Contract Cost, Net [Roll Forward] | ||
Beginning balance | 409,658 | 355,389 |
Additions to deferred contract acquisition costs | 52,088 | 43,239 |
Amortization of deferred contract acquisition costs | (44,400) | (35,746) |
Cumulative translation adjustment | (1,603) | 826 |
Ending balance | 415,743 | 363,708 |
Deferred Contract Fulfillment Costs: | ||
Capitalized Contract Cost, Net [Roll Forward] | ||
Beginning balance | 22,525 | 21,076 |
Additions to deferred contract acquisition costs | 10,984 | 13,287 |
Amortization of deferred contract acquisition costs | (9,812) | (12,484) |
Cumulative translation adjustment | (150) | 166 |
Ending balance | $ 23,547 | $ 22,045 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2021 | Sep. 30, 2018 | Apr. 30, 2024 | Jan. 31, 2024 | Oct. 31, 2023 | May 31, 2023 | Apr. 30, 2023 | |
Convertible Senior Notes Due 2023 | Convertible Debt | |||||||
Debt Conversion [Line Items] | |||||||
Principal on face amount of debt | $ 575,000,000 | ||||||
Debt interest rate percentage | 0.50% | ||||||
Proceeds from issuance of debt | $ 560,800,000 | ||||||
Repayments of convertible senior notes | $ 37,100,000 | ||||||
Debt instrument, effective interest rate | 1% | ||||||
Convertible Senior Notes Due 2023 | Convertible Debt | Capped Calls | |||||||
Debt Conversion [Line Items] | |||||||
Settlement of capped calls, net of related costs | $ 23,700,000 | ||||||
Convertible Senior Notes Due 2024 | Convertible Debt | |||||||
Debt Conversion [Line Items] | |||||||
Principal on face amount of debt | $ 690,000,000 | ||||||
Debt interest rate percentage | 0% | ||||||
Proceeds from issuance of debt | $ 677,300,000 | ||||||
Repayments of convertible senior notes | $ 689,900,000 | ||||||
Debt instrument, effective interest rate | 0.60% | ||||||
Credit Facility | Revolving Credit Facility | |||||||
Debt Conversion [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | ||||||
Line of credit, additional borrowing amount | $ 250,000,000 | ||||||
Carrying value of debt | $ 0 | ||||||
Credit Facility | Revolving Credit Facility | Minimum | |||||||
Debt Conversion [Line Items] | |||||||
Line of credit, commitment fee percentage on undrawn balance | 0.25% | ||||||
Credit Facility | Revolving Credit Facility | Maximum | |||||||
Debt Conversion [Line Items] | |||||||
Line of credit, commitment fee percentage on undrawn balance | 0.30% |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - Convertible Debt - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 0 | $ 357 |
Amortization of transaction costs | 0 | 1,109 |
Total | $ 0 | $ 1,466 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Apr. 30, 2024 USD ($) putative_case | Jul. 19, 2022 stayed_case |
Other Commitments [Line Items] | ||
Letters of credit outstanding | $ 1.3 | |
Number of putative shareholder derivative cases filed | putative_case | 8 | |
Number of cases stayed by court order | stayed_case | 2 | |
Cloud Computing Service Provider, Agreement Through Fiscal 2027 | ||
Other Commitments [Line Items] | ||
Minimum commitment | $ 17.3 | |
Cloud Computing Service Provider, Agreement Through Fiscal 2028 | ||
Other Commitments [Line Items] | ||
Minimum commitment | $ 108.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Contractual Obligations (Details) $ in Thousands | Apr. 30, 2024 USD ($) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2025, remainder | $ 37,798 |
2026 | 55,097 |
2027 | 8,820 |
2028 | 1,663 |
2029 | 1,138 |
Thereafter | 484 |
Total | $ 105,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions | 3 Months Ended | |||
Apr. 30, 2024 USD ($) plan $ / shares shares | Apr. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | plan | 3 | |||
Unrecognized compensation cost, options | $ 0 | |||
Employee stock purchase plan, compensation expense | $ 142,504,000 | $ 144,706,000 | ||
Stock repurchase program, authorized amount | $ 200,000,000 | |||
Stock repurchase program, additional authorized amount | $ 300,000,000 | |||
Repurchases of common stock (in shares) | shares | 2.5 | 0.7 | ||
Average price per share of stock repurchased (in usd per share) | $ / shares | $ 58.78 | $ 57.06 | ||
Aggregate purchase price of stock repurchased | $ 149,063,000 | $ 40,472,000 | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, RSUs | $ 1,000,000,000 | |||
Unrecognized compensation cost, remaining weighted-average period for recognition | 2 years 10 months 17 days | |||
RSUs | Market Based and Performance Based Vesting Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of unvested RSU's | $ 116,600,000 | |||
Performance vesting percentage | 100% | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock purchase plan, compensation expense | $ 3,000,000 | $ 4,200,000 | ||
2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reserved for future issuance (in shares) | shares | 47 | |||
2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reserved for future issuance (in shares) | shares | 12.1 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of RSU Activity (Details) - RSUs shares in Thousands | 3 Months Ended |
Apr. 30, 2024 $ / shares shares | |
Number of Units | |
Unvested at beginning of period (in shares) | shares | 26,700 |
Granted (in shares) | shares | 1,192 |
Vested (in shares) | shares | (2,136) |
Canceled (in shares) | shares | (1,469) |
Unvested at end of period (in shares) | shares | 24,287 |
Weighted-Average Grant Date Fair Value | |
Unvested at beginning of period (in usd per share) | $ / shares | $ 60.70 |
Granted (in usd per share) | $ / shares | 54.47 |
Vested (in usd per share) | $ / shares | 73.52 |
Canceled (in usd per share) | $ / shares | 64.35 |
Unvested at end of period (in usd per share) | $ / shares | $ 58.79 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2024 | Jan. 31, 2024 | |
Number of Options | ||
Beginning balance (in shares) | 1,385 | |
Exercised (in shares) | (56) | |
Ending balance (in shares) | 1,329 | 1,385 |
Weighted-Average Exercise Price Per Share | ||
Beginning balance (in usd per share) | $ 17.39 | |
Exercised (in usd per share) | 11.43 | |
Ending balance (in usd per share) | $ 17.64 | $ 17.39 |
Weighted-Average Remaining Contractual Term (Years) | ||
Outstanding balance | 2 years 5 months 23 days | 2 years 7 months 17 days |
Aggregate Intrinsic Value | ||
Outstanding balance | $ 51,643 | $ 60,117 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 29,124 | $ 28,772 |
Stock-based compensation expense | 142,504 | 144,706 |
Employee termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 29,100 | 27,700 |
Stock-based compensation expense | $ 4,600 | $ 5,000 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Schedule of Restructuring Liabilities (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2024 USD ($) | |
2024 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Restructuring, beginning balance | $ 122 |
Accruals | 0 |
Cash Payments | (122) |
Restructuring, ending balance | 0 |
2025 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Restructuring, beginning balance | 0 |
Accruals | 24,413 |
Cash Payments | (22,255) |
Restructuring, ending balance | 2,158 |
Other | 2024 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Restructuring, beginning balance | 122 |
Accruals | 0 |
Cash Payments | (122) |
Restructuring, ending balance | 0 |
Employee termination benefits | 2025 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Restructuring, beginning balance | 0 |
Accruals | 24,413 |
Cash Payments | (22,255) |
Restructuring, ending balance | $ 2,158 |
Net Income per Share Attribut_3
Net Income per Share Attributable to Common Stockholders - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Numerator: | ||
Net income (loss) attributable to common stockholders, basic | $ 33,760 | $ 539 |
Add: Interest expense on convertible senior notes | 0 | 357 |
Net income attributable to common stockholders, diluted | $ 33,760 | $ 896 |
Denominator: | ||
Weighted-average common shares outstanding, basic (in shares) | 205,870 | 202,631 |
Effect of dilutive securities (in shares) | 4,026 | 5,440 |
Weighted-average common shares outstanding, diluted (in shares) | 209,896 | 208,071 |
Net income per share attributable to common stockholders: | ||
Basic (in usd per share) | $ 0.16 | $ 0 |
Diluted (in usd per share) | $ 0.16 | $ 0 |
Net Income per Share Attribut_4
Net Income per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4,594 | 7,226 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4,480 | 7,191 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 114 | 35 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2025 | |
Income Tax Contingency [Line Items] | |||
Provision for income taxes | $ 2,833 | $ 5,089 | |
Unrecognized tax benefits | 62,700 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 10,800 | ||
Minimum | Forecast | |||
Income Tax Contingency [Line Items] | |||
Income tax expense impact related to valuation allowance release | $ 750,000 | ||
Maximum | Forecast | |||
Income Tax Contingency [Line Items] | |||
Income tax expense impact related to valuation allowance release | $ 850,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 05, 2024 | May 31, 2024 | Sep. 30, 2023 |
Subsequent Event [Line Items] | |||
Stock repurchase program, additional authorized amount | $ 300,000,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, additional authorized amount | $ 1,000,000,000 | ||
Subsequent Event | Lexion | |||
Subsequent Event [Line Items] | |||
Consideration to acquire outstanding stock | $ 165,000,000 |