DocuSign Announces Fourth Quarter and Fiscal Year 2019 Financial Results

SAN FRANCISCO, March 14, 2019 /PRNewswire/ -- DocuSign (NASDAQ: DOCU), which offers the world's #1 eSignature solution as part of its broader platform for automating the agreement process, today announced results for its fourth quarter and fiscal year ended January 31, 2019.

DocuSign, Inc. (PRNewsFoto/DocuSign, Inc.)

"Fiscal 2019 was an exciting first fiscal year as a public company for DocuSign. At 35% growth, we posted over $700 million in revenue for the year and achieved non-GAAP profitability for our first full year. We added another 23,000 new customers to bring our global base to 477,000. As we look to fiscal 2020, we are focused on delivering new and innovative solutions to market across the System of Agreement, growing our already-strong partner ecosystem, and continuing our relentless commitment to customer success," said Dan Springer, CEO of DocuSign.

Fourth Quarter Financial Highlights

  • Total revenue was $199.7 million, an increase of 34% year-over-year. Subscription revenue was $187.6 million, an increase of 37% year-over-year. Professional services and other revenue was $12.2 million, an increase of 5% year-over-year.
  • Billings were $262.4 million, an increase of 31% year-over-year.
  • GAAP gross margin was 74%, compared to 79% in the same period last year. Non-GAAP gross margin was 78% compared to 80% in the same period last year.
  • GAAP net loss per basic and diluted share was $0.40 on 167 million shares outstanding compared to GAAP net loss per share of $0.20 in the fourth quarter of fiscal 2018 on 34 million shares outstanding.
  • Non-GAAP net income per diluted share was $0.06 based on 188 million shares outstanding compared to non-GAAP net income per share of $0.01 in the fourth quarter of fiscal 2018 based on 42 million shares outstanding.
  • Net cash provided by operating activities was $34.1 million, compared to $32.0 million in the same period last year.
  • Free cash flow was $22.8 million compared to free cash flow of $28.7 million in the same period last year.
  • Cash, cash equivalents, restricted cash and investments were $933.6 million at the end of the quarter.

Fiscal 2019 Financial Highlights

  • Total revenue was $701.0 million, an increase of 35% year-over-year. Subscription revenue was $663.7 million, an increase of 37% year-over-year. Professional services and other revenue was $37.3 million, an increase of 10% year-over-year.
  • Billings were $801.4 million, an increase of 34% year-over-year.
  • GAAP gross margin was 73%, compared to 77% in fiscal 2018. Non-GAAP gross margin was 80% compared to 79% in fiscal 2018.
  • GAAP net loss per basic and diluted share was $3.16 on 135 million shares outstanding compared to GAAP net loss per share of $1.66 in fiscal 2018 on 32 million shares outstanding.
  • Non-GAAP net income per diluted share was $0.09 based on 159 million shares outstanding compared to non-GAAP net loss per share of $0.43 in fiscal 2018 based on 32 million shares outstanding.

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."

Operational and Other Financial Highlights

  • DocuSign for Salesforce Essentials. The company announced the launch of DocuSign for Salesforce Essentials on the Salesforce AppExchange. Paired with Salesforce Essentials, the product helps small businesses accelerate the completion of agreements, ranging from quotes to contracts to sales orders and more.
  • DocuSign for Forests Initiative. The company will commit $1.5 million this year to support organizations doing critical work to preserve the world's forests-and it plans to donate more over time. DocuSign will also invite new and existing customers to improve their environmental practices by moving more of their paper-based processes onto DocuSign. In return, the company will donate 1% of the expanded revenue to forest-protection causes.
  • DocuSign Winter 2019 Product Release. The company announced several product updates, including a new user experience for the DocuSign app for Apple iOS devices, enhancements to the 21 CFR Part 11 module for life sciences industries regulated by the U.S. Food and Drug Administration, and accessibility enhancements for eSignature sending and signing.

Outlook

The company currently expects the following guidance:

Quarter ending April 30, 2019 (in millions, except percentages):


Total revenue

$205

to

$210


Billings

$210

to

$220


Non-GAAP gross margin

78%

to

80%


Non-GAAP sales and marketing

48%

to

50%


Non-GAAP research and development

15%

to

17%


Non-GAAP general and administrative

10%

to

12%


Interest and other income (expense)

$3

to

$4


Provision for income taxes

$2

to

$2.5


Non-GAAP diluted weighted-average shares outstanding

185

to

190


Capital expenditures

$15

to

$20

 

Fiscal year ending January 31, 2020 (in millions, except percentages):


Total revenue

$910

to

$915


Billings

$1,010

to

$1,030


Non-GAAP gross margin

78%

to

80%


Non-GAAP sales and marketing

48%

to

50%


Non-GAAP research and development

15%

to

17%


Non-GAAP general and administrative

10%

to

12%


Interest and other income (expense)

$12

to

$16


Provision for income taxes

$8

to

$10


Non-GAAP diluted weighted-average shares outstanding

190

to

195


Capital expenditures

$60

to

$70

The company has not reconciled its expectations 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 is not available without unreasonable effort.

Webcast Conference Call Information

The company will host a conference call on March 14, 2019 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 docusign.com/investors. 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 28, 2019, using the passcode 13687713.

About DocuSign

DocuSign (Nasdaq: DOCU) helps organizations connect and automate how they prepare, sign, act on, and manage agreements. As part of its cloud-based System of Agreement Platform, DocuSign offers eSignature—the world's #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, over 475,000 customers and hundreds of millions of users in over 180 countries use DocuSign to accelerate the process of doing business and simplify people's lives.

Investor Relations:
Annie Leschin
VP Investor Relations
[email protected]

Media Relations:
Adrian Wainwright
Head of Communications
[email protected]

Forward-Looking Statements

This press release contains "forward-looking" statements that are based on our management's beliefs and assumptions and on information currently available to management. Forward-looking statements include 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 the benefits of the acquisition of SpringCM and our ability to develop our System of Agreement platform, collaborate with partners and deliver product innovation. They also include statements about our possible or assumed business strategies, potential growth opportunities, new products and potential market opportunities.

Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "believe," "could," "potential," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: our ability to successfully integrate SpringCM's operations; our ability to 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, rapid technological change and increased competition in our market; our ability to compete effectively, expand our operations and increase adoption of our platform internationally; our ability to pay off our convertible senior notes when due; our ability to successfully defend assertions by third parties that we violate their intellectual property rights; and our ability to respond to a network or data security incident that allows unauthorized access to our network or data or our customers' data. Additional risks and uncertainties that could affect our financial results are included in the section 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, 2018 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 are presenting 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.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) 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 from our convertible senior notes issued in September 2018, acquisition-related expenses, partial releases of valuation allowance due to acquisition, 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. Costs associated with acquisitions include legal, accounting, other professional fees and other non-recurring costs. 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 flows: We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, 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.

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.

DOCUSIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended
January 31,


Year Ended January 31,

(in thousands, except per share data)

2019


2018


2019


2018

Revenue:








Subscription

$

187,572



$

137,276



$

663,657



$

484,581


Professional services and other

12,160



11,598



37,312



33,923


Total revenue

199,732



148,874



700,969



518,504


Cost of revenue:








Subscription

33,560



22,166



117,764



83,834


Professional services and other

19,133



9,309



74,657



34,439


Total cost of revenue

52,693



31,475



192,421



118,273


Gross profit

147,039



117,399



508,548



400,231


Operating expenses:








Sales and marketing

127,691



74,630



539,606



277,930


Research and development

42,921



23,431



185,968



92,428


General and administrative

39,055



25,603



209,297



81,526


Total expenses

209,667



123,664



934,871



451,884


Loss from operations

(62,628)



(6,265)



(426,323)



(51,653)


Interest expense

(7,101)



(150)



(10,844)



(624)


Interest income and other income, net

4,794



2,436



8,959



3,135


Loss before provision for (benefit from) income taxes

(64,935)



(3,979)



(428,208)



(49,142)


Provision for (benefit from) income taxes

1,309



2,373



(1,750)



3,134


Net loss

$

(66,244)



$

(6,352)



$

(426,458)



$

(52,276)


Net loss per share attributable to common stockholders, basic and diluted

$

(0.40)



$

(0.20)



$

(3.16)



$

(1.66)


Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

167,269



34,339



135,163



32,294










Stock-based compensation expense included in costs and expenses:








Cost of revenue—subscription

$

2,241



$

214



$

16,182



$

911


Cost of revenue—professional services

3,413



234



25,858



976


Sales and marketing

20,505



1,839



172,115



9,386


Research and development

9,562



1,175



74,108



4,896


General and administrative

13,550



2,772



122,715



13,578


 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(in thousands, except share and per share data)

January 31, 2019


January 31, 2018

Assets




Current assets




Cash and cash equivalents

$

517,811



$

256,867


Investments

251,203




Restricted cash

367



569


Accounts receivable

174,548



123,750


Contract assets—current

10,616



14,260


Prepaid expense and other current assets

29,976



23,349


Total current assets

984,521



418,795


Investments—noncurrent

164,220




Property and equipment, net

75,832



63,019


Goodwill

195,225



37,306


Intangible assets, net

74,203



14,148


Deferred contract acquisition costs—noncurrent

112,583



75,535


Other assets—noncurrent

8,833



11,170


Total assets

$

1,615,417



$

619,973


Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)




Current liabilities




Accounts payable

$

19,590



$

23,713


Accrued expenses

21,755



15,734


Accrued compensation

77,553



50,852


Contract liabilities—current

381,060



270,188


Deferred rent—current

2,452



1,758


Other liabilities—current

13,903



11,574


Total current liabilities

516,313



373,819


Convertible senior notes, net

438,932




Contract liabilities—noncurrent

7,712



7,736


Deferred rent—noncurrent

24,195



23,044


Deferred tax liability—noncurrent

4,207



2,511


Other liabilities—noncurrent

9,696



4,010


Total liabilities

1,001,055



411,120


Redeemable convertible preferred stock



547,501


Stockholders' equity (deficit)




Common stock

17



4


Additional paid-in capital

1,545,088



160,265


Accumulated other comprehensive (loss) income

(1,965)



3,403


Accumulated deficit

(928,778)



(502,320)


Total stockholders' equity (deficit)

614,362



(338,648)


Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)

$

1,615,417



$

619,973


 

DOCUSIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2019


2018


2019


2018

Cash flows from operating activities:








Net loss

$

(66,244)



$

(6,352)



$

(426,458)



$

(52,276)


Adjustments to reconcile net loss to net cash used in operating activities








Depreciation and amortization

12,003



8,047



38,027



31,750


Amortization of deferred contract acquisition and fulfillment costs

12,223



8,355



42,112



30,377


Amortization of debt discount and transaction costs

6,360





9,507




Stock-based compensation expense

49,271



6,234



410,978



29,747


Deferred income taxes

2,346



(1,054)



(5,001)



(996)


Other

2,879



(1,856)



800



(1,877)


Changes in operating assets and liabilities








Accounts receivable

(43,937)



(41,039)



(42,571)



(28,077)


Contract assets

1,430



(4,621)



4,204



(6,934)


Prepaid expenses and other current assets

(900)



2,621



(3,283)



(1,507)


Deferred contract acquisition and fulfillment costs

(28,324)



(20,756)



(80,869)



(52,978)


Other assets

656



(1,271)



2,658



(1,604)


Accounts payable

(1,390)



8,409



(7,380)



2,864


Accrued expenses

604



4,774



4,214



5,992


Accrued compensation

23,868



10,921



26,039



9,168


Contract liabilities

65,018



57,329



100,874



87,774


Deferred rent

1,568



6



1,845



(168)


Other liabilities

(3,294)



2,213



390



3,724


Net cash provided by operating activities

34,137



31,960



76,086



54,979


Cash flows from investing activities:








Cash paid for acquisition, net of acquired cash



(299)



(218,779)



(299)


Purchases of investments

(415,132)





(415,132)




Purchases of property and equipment

(11,317)



(3,237)



(30,413)



(18,929)


Proceeds from sale of business held for sale







467


Net cash used in investing activities

(426,449)



(3,536)



(664,324)



(18,761)


Cash flows from financing activities:








Proceeds from issuance of convertible senior notes, net of initial purchasers' discounts and transaction costs





560,756




Purchase of capped calls related to issuance of convertible senior notes





(67,563)




Proceeds from issuance of common stock in initial public offering, net of underwriting commissions





529,305




Payment of tax withholding obligation on RSU settlement

(215,332)





(215,332)




Proceeds from the exercise of stock options

34,846



4,487



50,211



26,433


Payment of deferred offering costs

(319)



(315)



(4,011)



(315)


Payment of holdback on prior acquisition

(250)





(250)



(390)


Net cash provided by financing activities

(181,055)



4,172



853,116



25,728


Effect of foreign exchange on cash, cash equivalents and restricted cash

(2,955)



2,674



(4,136)



4,246


Net increase in cash, cash equivalents and restricted cash

(576,322)



35,270



260,742



66,192


Cash, cash equivalents and restricted cash at beginning of period

1,094,500



222,166



257,436



191,244


Cash, cash equivalents and restricted cash at end of period

$

518,178



$

257,436



$

518,178



$

257,436


 

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)

2019


2018


2019


2018

GAAP gross profit

$

147,039



$

117,399



$

508,548



$

400,231


Add: Stock-based compensation

5,654



448



42,040



1,887


Add: Amortization of acquisition-related intangibles

1,778



1,714



6,081



6,793


Add: Employer payroll tax on employee stock transactions

1,949





1,949




Add: Acquisition-related expenses





108




Non-GAAP gross profit

$

156,420



$

119,561



$

558,726



$

408,911


GAAP gross margin

74

%


79

%


73

%


77

%

Non-GAAP adjustments

4

%


1

%


7

%


2

%

Non-GAAP gross margin

78

%


80

%


80

%


79

%









GAAP subscription gross profit

$

154,012



$

115,110



$

545,893



$

400,747


Add: Stock-based compensation

2,241



214



16,182



911


Add: Amortization of acquisition-related intangibles

1,778



1,714



6,081



6,793


Add: Employer payroll tax on employee stock transactions

830





830




Non-GAAP subscription gross profit

$

158,861



$

117,038



$

568,986



$

408,451


GAAP subscription gross margin

82

%


84

%


82

%


83

%

Non-GAAP adjustments

3

%


1

%


4

%


1

%

Non-GAAP subscription gross margin

85

%


85

%


86

%


84

%









GAAP professional services and other gross profit (loss)

$

(6,973)



$

2,289



$

(37,345)



$

(516)


Add: Stock-based compensation

3,413



234



25,858



976


Add: Acquisition-related expenses





108




Add: Employer payroll tax on employee stock transactions

1,119





1,119




Non-GAAP professional services and other gross profit (loss)

$

(2,441)



$

2,523



$

(10,260)



$

460


GAAP professional services and other gross margin

(57)

%


20

%


(100)

%


(2)

%

Non-GAAP adjustments

37

%


2

%


73

%


3

%

Non-GAAP professional services and other gross margin

(20)

%


22

%


(27)

%


1

%

 

Reconciliation of operating expenses:



Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2019


2018


2019


2018

GAAP sales and marketing

$

127,691



$

74,630



$

539,606



$

277,930


Less: Stock-based compensation

(20,505)



(1,839)



(172,115)



(9,386)


Less: Amortization of acquisition-related intangibles

(3,234)



(730)



(7,021)



(3,250)


Less: Employer payroll tax on employee stock transactions

(8,051)





(8,051)




Less: Acquisition-related expenses





(68)




Non-GAAP sales and marketing

$

95,901



$

72,061



$

352,351



$

265,294


GAAP sales and marketing as a percentage of revenue

64

%


50

%


77

%


53

%

Non-GAAP sales and marketing as a percentage of revenue

48

%


48

%


50

%


51

%









GAAP research and development

$

42,921



$

23,431



$

185,968



$

92,428


Less: Stock-based compensation

(9,562)



(1,175)



(74,108)



(4,896)


Less: Employer payroll tax on employee stock transactions

(2,246)





(2,246)




Less: Acquisition-related expenses





(302)




Non-GAAP research and development

$

31,113



$

22,256



$

109,312



$

87,532


GAAP research and development as a percentage of revenue

21

%


16

%


27

%


18

%

Non-GAAP research and development as a percentage of revenue

16

%


15

%


16

%


17

%









GAAP general and administrative

$

39,055



$

25,603



$

209,297



$

81,526


Less: Stock-based compensation

(13,550)



(2,772)



(122,715)



(13,578)


Less: Employer payroll tax on employee stock transactions

(3,411)





(3,411)




Less: Acquisition-related expenses





(1,290)




Non-GAAP general and administrative

$

22,094



$

22,831



$

81,881



$

67,948


GAAP general and administrative as a percentage of revenue

20

%


17

%


30

%


16

%

Non-GAAP general and administrative as a percentage of revenue

11

%


15

%


12

%


13

%

 

Reconciliation of income (loss) from operations and operating margin:



Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2019


2018


2019


2018

GAAP loss from operations

$

(62,628)



$

(6,265)



$

(426,323)



$

(51,653)


Add: Stock-based compensation

49,271



6,234



410,978



29,747


Add: Amortization of acquisition-related intangibles

5,012



2,444



13,102



10,043


Add: Employer payroll tax on employee stock transactions

15,657





15,657




Add: Acquisition-related expenses





1,768




Non-GAAP income (loss) from operations

$

7,312



$

2,413



$

15,182



$

(11,863)


GAAP operating margin

(31)

%


(4)

%


(61)

%


(10)

%

Non-GAAP adjustments

35

%


6

%


63

%


8

%

Non-GAAP operating margin (loss)

4

%


2

%


2

%


(2)

%

 

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)

2019


2018


2019


2018

GAAP net loss

$

(66,244)



$

(6,352)



$

(426,458)



$

(52,276)


Add: Stock-based compensation

49,271



6,234



410,978



29,747


Add: Amortization of acquisition-related intangibles

5,012



2,444



13,102



10,043


Add: Employer payroll tax on employee stock transactions

15,657





15,657




Add: Acquisition-related expenses





1,839




Add: Amortization of debt discount and issuance costs

6,360





9,507




Less: Tax effect from the SpringCM acquisition(1)

289





(7,080)




Non-GAAP net income (loss)

$

10,345



$

2,326



$

17,545



$

(12,486)










Numerator:








Non-GAAP net income (loss)

$

10,345



$

2,326



$

17,545



$

(12,486)


Less: preferred stock accretion



(364)



(353)



(1,461)


Less: net income allocated to participating securities



(1,462)



(2,636)




Non-GAAP net income (loss) attributable to common stockholders

$

10,345



$

500



$

14,556



$

(13,947)










Denominator:








Weighted-average common shares outstanding, basic

167,269



34,339



135,163



32,294


Effect of dilutive securities

20,390



8,087



23,513




Non-GAAP weighted-average common shares outstanding, diluted

187,659



42,426



158,676



32,294










GAAP net loss per share, basic and diluted

$

(0.40)



$

(0.20)



$

(3.16)



$

(1.66)


Non-GAAP net income (loss) per share, basic

0.06



0.01



0.11



(0.43)


Non-GAAP net income (loss) per share, diluted

0.06



0.01



0.09



(0.43)




(1)

Represents a tax benefit related to the release of a portion of our deferred tax asset valuation allowance resulting from the SpringCM Acquisition.

 

Computation of free cash flow:



Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2019


2018


2019


2018

Net cash provided by operating activities

$

34,137



$

31,960



$

76,086



$

54,979


Less: purchase of property and equipment

(11,317)



(3,237)



(30,413)



(18,929)


Non-GAAP free cash flow

$

22,820



$

28,723



$

45,673



$

36,050


Net cash provided by operating activities for the fourth quarter of fiscal 2019 includes a payment of $14.4 million of the employer payroll taxes related primarily to the release of RSUs in connection with our IPO. There were no such cash outflows in prior periods.

Computation of billings:



Three Months Ended
January 31,


Year Ended January 31,

(in thousands)

2019


2018


2019


2018

Revenue

$

199,732



$

148,874



$

700,969



$

518,504


Add: Contract liabilities and refund liability, end of period

390,887



282,943



390,887



282,943


Less: Contract liabilities and refund liability, beginning of period

(330,060)



(226,836)



(282,943)



(195,501)


Add: Contract assets and unbilled accounts receivable, beginning of period

15,229



12,678



16,899



10,095


Less: Contract assets and unbilled accounts receivable, end of period

(13,436)



(16,899)



(13,436)



(16,899)


Less: Contract liabilities and refund liability contributed by the acquisition of SpringCM





(11,002)




Non-GAAP billings

$

262,352



$

200,760



$

801,374



$

599,142


 

SOURCE DocuSign, Inc.