DocuSign (DOCU) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 7% year-over-year to $710 million, driven by subscription growth and the launch of the Intelligent Agreement Management (IAM) platform and Lexion acquisition to enhance AI capabilities.

• Free cash flow increased 8% year-over-year to $232 million, with a 33% margin.

• International revenue grew 17% year-over-year, now 28% of total revenue.

• Customer base expanded 11% year-over-year to 1.56 million, with digital and direct customers up 11% and 13%, respectively.

• Focus remains on product innovation, omni-channel go-to-market, and operational efficiency.

Financial highlights

• Q1 total revenue: $710 million, up 7% year-over-year; subscription revenue: $691 million, up 8%; billings: $710 million, up 5%.

• Non-GAAP operating income: $202 million, up 15% year-over-year, with a record 28.5% margin.

• Free cash flow: $232 million, 33% margin.

• Non-GAAP diluted EPS: $0.82, up from $0.72 last year; GAAP diluted EPS: $0.16.

• Cash, cash equivalents, and investments totaled $1.2 billion at quarter end; no debt.

Outlook and guidance

• Q2 FY25 revenue guidance: $725–$729 million; FY25 revenue guidance: $2.92–$2.93 billion (6% year-over-year growth at midpoint).

• Q2 billings expected at $715–$725 million; FY25 billings at $2.98–$3.03 billion.

• Non-GAAP operating margin guidance: 27.0–28.0% for Q2, 26.5–28.0% for FY25.

• Non-GAAP gross margin guidance: 80.5–81.5% for Q2, 81.0–82.0% for FY25.

• Continued investment in product innovation and international expansion, with IAM platform rollout and new pricing models.