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What changed in DOCUSIGN, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of DOCUSIGN, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+368 added−402 removedSource: 10-K (2025-03-18) vs 10-K (2024-03-21)

Top changes in DOCUSIGN, INC.'s 2025 10-K

368 paragraphs added · 402 removed · 253 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe believe the principal factors that drive competition between vendors in the future will include: • breadth and depth of innovative product functionality (including proprietary product differentiators); • breadth and depth of integrations with the applications and systems customers already use; • availability and reliability; • security; • ease of use and deployment; DocuSign, Inc.| 2024 Form 10-K | 11 • brand awareness and reputation; • unit costs and total cost of ownership; • level of customer satisfaction; and • ability to address legal, regulatory, and cultural matters associated with e-signature across jurisdictions.
Biggest changeWe believe the principal factors that drive competition between vendors in the future will include: • breadth and depth of innovative product functionality (including proprietary product differentiators and AI application innovation); • breadth and depth of capability to holistically manage end-to-end agreement workflows in a lightweight, modern software user experience; • ease of use and deployment; • level of customer satisfaction; • brand awareness and reputation; • breadth and depth of integrations with the applications and systems customers already use; • availability and reliability; • security; • unit costs and total cost of ownership; and • ability to address legal, regulatory, and cultural matters associated with e-signature across jurisdictions.
These include broader digital demand generation campaigns; corporate communications and analyst relations; first-party events, such as our annual set of roadshows gathering customers, prospects, developers and partners; participation in third-party events, such as Salesforce’s Dreamforce; comprehensive customer evidence and advocacy programs; developer relations programs; cooperative marketing with strategic partners; and a comprehensive webinar series, among many other things.
These include broader digital demand generation campaigns; corporate communications and analyst relations; first-party events, such as our annual set of roadshows gathering customers, prospects, developers and partners; participation in third-party events, such as Salesforce’s Dreamforce; comprehensive customer evidence programs; developer relations programs; cooperative marketing with strategic partners; and a comprehensive webinar series, among many other things.
“DocuSign,” the DocuSign logo, and other trademarks or service marks of DocuSign, Inc. appearing in this Annual Report on Form 10-K are the property of DocuSign, Inc. This Annual Report on Form 10-K contains additional trade names, trademarks and service marks of others, which are the property of their respective owners.
Docusign, Inc. | 2025 Form 10-K | 11 “Docusign,” the Docusign logo, and other trademarks or service marks of Docusign, Inc. appearing in this Annual Report on Form 10-K are the property of Docusign, Inc. This Annual Report on Form 10-K contains additional trade names, trademarks and service marks of others, which are the property of their respective owners.
We use our website, including our investor relations website at investor.docusign.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. DocuSign, Inc.| 2024 Form 10-K | 12
We use our website, including our investor relations website at investor.docusign.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Docusign, Inc. | 2025 Form 10-K | 12
Digital Sales: Through a strong presence that allows us to scale with low acquisition costs to individual users and small businesses around the world, we drive free 30-day trial and self-service solutions directly on our website, in our mobile applications and through use of our product itself.
Digital E-commerce Sales: Through a strong presence that allows us to scale with low acquisition costs to individual users and small businesses around the world, we drive free 30-day trial and self-service purchase directly on our website, in our mobile applications and through use of our product itself.
For example, eSignature replaces the hassle and costs of faxing, printing, scanning, emailing, and other manual activities with a few clicks or taps—which can be done from practically anywhere, at any time. Our Contract Lifecycle Management (“CLM”) software consolidates and automates every step of the agreement process from generation through negotiation, signature, ongoing management and storage. • Reduced risk.
For example, eSignature replaces the hassle and costs of faxing, printing, scanning, emailing, and other manual activities with a few clicks or taps—which can be done from practically anywhere, at any time. Our CLM software consolidates and automates every step of the agreement process from generation through negotiation, signature, ongoing management and storage. • Tailored industry-specific offerings.
DocuSign, Inc.| 2024 Form 10-K | 8 Partner-assisted Sales : ▪ Global partners : We have partnerships with some of the world’s foremost technology providers including Google, Microsoft, Oracle, Salesforce, SAP, and ServiceNow—that help us sell into a far greater number of accounts than we could do alone.
Partner-assisted Sales : ▪ Global partners : We have partnerships with some of the world’s foremost technology providers including Google, Microsoft, Workday, Salesforce, SAP, and ServiceNow—that help us sell into a far greater number of accounts than we could do alone.
Also, AI technologies can help employees identify risks within large sets of existing agreements that would otherwise be impractical for manual review. Finally, fewer manual interactions during an agreement’s lifecycle means fewer opportunities for mishandling or improper access. • Minimized environmental impact.
Also, AI technologies can help employees identify risks within large sets of existing agreements that would otherwise be impractical for manual review. Finally, fewer manual interactions during an agreement’s lifecycle means fewer opportunities for mishandling or improper access. • Minimized environmental impact. Environmental sustainability has been an important part of Docusign’s mission from the start.
We believe that this engagement with our communities is an important aspect of our company culture and brings long-term value to our stockholders, while making the world a better place.
Engagement with our Communities Docusign is dedicated to corporate responsibility and putting our values into action. We believe that this engagement with our communities is an important aspect of our company culture and brings long-term value to our stockholders, while making the world a better place.
Similar to how physical agreements were mailed for signature in paper envelopes historically, we refer to an Envelope as a digital container used to send one or more documents for signature or approval to one or more recipients. Our customers have the flexibility to put a large number of documents in an Envelope.
Similar to the physical envelopes historically used to mail paper documents, an Envelope is a digital container used to send one or more documents for signature or approval to one or more recipients. Our customers have the flexibility to put a large number of documents in an Envelope.
Customer Success helps onboard customers by designing, integrating, training, and deploying solutions that meet their needs. Our solutions engineers and technical experts can also design tailored solutions to help customers improve workflow and automate business processes.
Customer Success & Customer Support We believe that our Customer Success and Customer Support efforts are critical to retaining and expanding our customer base. Customer Success helps onboard customers by designing, integrating, training, and deploying solutions that meet their needs. Our solutions engineers and technical experts can also design tailored solutions to help customers improve workflow and automate business processes.
We believe customers benefit from working with us in many ways, including: • Doing business faster. By replacing manual, paper-driven processes with automated digital workflows, DocuSign can substantially reduce the time and labor necessary to complete agreements. In fiscal 2024, 76% of all transactions using eSignature were completed in less than 24 hours and 41% within 15 minutes.
Additionally, we believe customers benefit from these core value propositions: • Doing business faster. By replacing manual, paper-driven processes with automated digital workflows, Docusign can substantially reduce the time and labor necessary to complete agreements. In fiscal 2025, 76% of all transactions using eSignature were completed in less than 24 hours and 40% within 15 minutes.
We operate with integrity, empathy, and respect; • Customer Focus: We are customer-centric, everything we do begins and ends with creating seamless experiences that drive customer value; • Simplicity: We aspire to delight our customers and eliminate complexity.
We have six core values: • Trust: We are honest, ethical, and transparent with each other, our customers, and our partners. We operate with integrity, empathy, and respect; • Customer Focus: We are customer-centric, everything we do begins and ends with creating seamless experiences that drive customer value; • Simplicity: We aspire to delight our customers and eliminate complexity.
We are easy to work with and eliminate friction; • Innovation: We foster a culture of creativity, experimentation, and continuous improvement as we pioneer the way the world agrees; • Unity: We are inclusive and share common values.
We are easy to work with and eliminate friction; • Innovation: We foster a culture of creativity, experimentation, and continuous improvement as we pioneer the way the world agrees; Docusign, Inc. | 2025 Form 10-K | 9 • Unity: We are a global team but share common values.
Research and Development Since inception, we have invested in research and development (“R&D”) to innovate our product offerings, including the world’s leading electronic signature solution. Our product and engineering team is responsible for the design, development, testing and certification of our products.
Research and Development Since inception, we have invested in research and development (“R&D”) to innovate our product offerings, including the world’s leading electronic signature solution. Our product and engineering team is responsible for the design, development, testing and certification of our products. Our Customers As of January 31, 2025, we had a global base of nearly 1.7 million customers.
Additionally, we match funds given by our employees to qualifying non-profits. Our Competition Our primary global competitor for eSignature is currently Adobe, which offers an electronic signature solution known as Adobe Acrobat Sign as well as other global software companies that have or may elect to include an electronic signature capability in their products.
Our Competition Docusign, Inc. | 2025 Form 10-K | 10 Our primary global competitor for eSignature is currently Adobe, which offers an electronic signature solution known as Adobe Acrobat Sign as well as other global software companies that have or may elect to include an electronic signature capability in their products.
We also protect details about our processes, products, and strategies as trade secrets, keeping confidential the information that we believe provides us with a competitive advantage.
The software that we embed within our products, as well as software that we distribute, also is entitled to copyright and other IP protection. We also protect details about our processes, products, and strategies as trade secrets, keeping confidential the information that we believe provides us with a competitive advantage.
Our operations are based on stringent global industry security standards and we maintain compliance with ISO27K, PCI, and SSAE 18 standards. For example, our eSignature and CLM products are FedRAMP-authorized, which means they operate in an environment that meets 325 National Institute of Standards and Technology (“NIST”) Special Publication 800-53 (“NIST 800-53) security and privacy controls.
For example, our eSignature and CLM products are FedRAMP-authorized, which means they operate in an environment that meets 325 National Institute of Standards and Technology (“NIST”) Special Publication 800-53 (NIST 800-53) security and privacy controls.
Our industry-specific DocuSign offerings include: • Real Estate: Rooms for Real Estate provides a way for real estate brokers, agents and customers to manage the entire real estate transaction digitally.
Industry-specific Docusign offerings include: Real Estate for eSignature, which allows brokers, agents and customers to manage the entire real estate transaction digitally; U.S.
DocuSign, Inc.| 2024 Form 10-K | 6 Our Products DocuSign enables businesses to address each aspect of the agreement process with our product offerings, which are tailored for each step in the agreement lifecycle and, in some cases, for particular market segments, industries or geographic regions.
Our Products Docusign enables businesses to address each aspect of the agreement process with our product offerings, which are tailored for each step in the agreement lifecycle and, in some cases, for particular market segments, industries or geographic regions. We focus on meeting customer needs by providing them a variety of products and solutions to address their needs.
We also encourage our employees to take action in their own communities by volunteering and are proud to support their efforts by providing up to 24 hours of paid time off a year for volunteering. Our employees have volunteered thousands of hours collectively, including at organizations promoting healthier forests, echoing our company-wide commitment to environmental savings.
We are proud to support their efforts by providing up to 24 hours of paid time off a year for volunteering. To date, our employees have volunteered more than 122,000 hours collectively, including at organizations promoting healthier forests, echoing our company-wide commitment to environmental programs. Additionally, we match funds given by our employees to qualifying nonprofits.
We debate and commit to executing decisions with agility and speed, working together in service of our shared mission; • Sustainability: We use technology and drive awareness that can make the world healthier and more sustainable. In addition, our mission is to redefine how the world comes together and agrees.
We debate and commit to executing decisions with agility and speed, working together in service of our shared mission; • Sustainability: We use technology and drive awareness that can make the world healthier and more sustainable. We are committed to delivering against these values for our employees, customers and the communities in which we live and work.
We intend to invest further in collaborating with these partners, especially those that are creating DocuSign specific practices. ▪ Independent Software Vendors (“ISVs”) : We partner with a host of leading ISVs—including our strategic partners above as well as vertical oriented partners to help bring the power of DocuSign to customers around the world. ▪ Distributors and resellers : As part of our evolving go-to-market strategy, we have distribution partnerships with global industry leaders like Ingram Micro enabling us to reach tens of thousands of resellers.
We intend to invest further in collaborating with these partners, especially those that are creating Docusign specific practices. ▪ ISVs : We partner with a host of leading ISVs—including our strategic partners above as well as vertical oriented partners to help bring the power of Docusign to customers around the world.
We are committed to delivering against these values for our employees, customers and the communities in which we live and work. We have several initiatives and strategies in place that reflect this commitment to our core values and to our employees. We are a global organization with an increasingly international footprint.
We have several initiatives and strategies in place that reflect this commitment to our core values and to our employees. We are a global organization with an increasingly international footprint. As we continue to grow in new markets, we anticipate continuing to recruit in new geographies.
We focus on innovation in global security and privacy management, high availability, enterprise-class manageability, extensible identity proofing, digital transaction processing and integration into companies' systems and workflows. This infrastructure supports over one billion people and 1.5 million customers, including some of the world’s largest companies, and underpins our product offerings.
Our Technology, Infrastructure and Operations Our technology and product efforts are focused on improving and enhancing the features, functionality, performance, availability and security of our product offerings. We focus on innovation in global security and privacy management, high availability, enterprise-class manageability, extensible identity proofing, digital transaction processing and integration into companies' systems and workflows.
We value and embrace ideas, encouraging innovation and creativity at every level, while staying true to our mission and core values to drive positive change in everything we do. We offer a number of resources to eligible employees to help engage and develop our employees including career development coursework, frameworks and education assistance.
Talent and Career Development We empower our people to constantly learn, develop, and contribute to their full potential. We value and embrace ideas, encouraging innovation and creativity at every level, while staying true to our mission and core values to drive positive change in everything we do.
With DocuSign IMPACT, we are committed to harnessing the power of DocuSign's people, products, and profits to make a difference in the global communities where our employees and customers live and work. In 2018, we committed to donating at least $30 million in cash or stock to DocuSign IMPACT over the next 10 years.
With Docusign.org, we are committed to harnessing the power of Docusign's people, products, and profits to make a difference in the global communities where our employees and customers live and work. This work is brought to life through our Docusign Foundation, Docusign Impact and Docusign for Nonprofit programs.
We had approximately 67% of our employees based in the U.S. and the remainder in international locations. None of our employees is represented by a labor union with respect to his or her employment with us. We have not experienced any work stoppages.
As of January 31, 2025, we had 6,838 employees, of which approximately 63% were based in the U.S. and the remainder in international locations. None of our U.S. employees are represented by a labor union with respect to their employment with us.
Our flagship eSignature product is designed as an always-on, geographically redundant and distributed cloud solution that runs in SSAE 18 audited data centers in the U.S. and EU. Recognizing that our customers often depend on DocuSign for their day-to-day operations, we have provided best-in-class availability, with over 99.9% eSignature availability to our customers and users over the past 12 months.
Our flagship eSignature product is designed as an always-on, geographically redundant and distributed cloud solution that primarily runs in SSAE 18 audited data centers in the U.S. and EU.
Federal, State and Local Government customers: For federal civilian agency customers, DocuSign maintains a Federal Risk and Authorization Management Program (“FedRAMP”) Impact Level Moderate environment for eSignature and CLM commercial products, running within dedicated data centers and system boundaries that offer heightened security in the storage, transmission and encryption of data. For U.S.
Federal, State and Local Government through a Federal Risk and Authorization Management Program (“FedRAMP”) Impact Level Moderate environment for eSignature and CLM products, and dedicated data centers and system boundaries that offer heightened security; and Health and Life Sciences with eSignature modules enabling compliance with the U.S. Food and Drug Administration’s 21 CFR Part 11 regulations. • Reduced risk.
In addition to developing patents based on our own R&D efforts, we may purchase or license patents from third parties. The software that we embed within our products, as well as software that we distribute, also is entitled to copyright and other IP protection.
As we expand our product offerings into new areas, we also seek to extend our patent coverage to such products. In addition to developing patents based on our own R&D efforts, we may purchase or license patents from third parties.
We actively seek to protect our global IP rights and to deter unauthorized use of our IP and other assets. We have obtained patents in the U.S. and other countries. As we expand our product offerings into new areas, we also seek to extend our patent coverage to such products.
This global strategy ensures that our products and services are protected and competitive in major international markets. Our IP portfolio includes patents, copyrights, trade secrets, trademarks, and other rights. We actively seek to protect our global IP rights and to deter unauthorized use of our IP and other assets. We have obtained patents in the U.S. and other countries.
These programs create qualified sales opportunities and raise awareness of our leadership position in the global electronic signature and agreement-technology spaces. In addition to account-based marketing aimed directly at our high-value customers and industry-specific marketing by our industry vertical teams, we also deploy a range of other marketing strategies and tactics across the globe.
Marketing To support the sales team in reaching our broad range of potential customers, our integrated marketing programs address the specific needs of our different market segments. These programs create qualified sales opportunities and raise awareness of our leadership position in the global electronic signature and agreement-technology spaces.
DocuSign is recognized as a company where employees can develop their careers. During fiscal 2024, we were recognized as one of Newsweek’s Greatest Workplaces for Women in America 2023, as well as one of the Most Trustworthy Companies in America 2023.
We offer a number of resources to eligible employees to help engage and develop our employees including career development coursework, frameworks and education assistance. Docusign is recognized as a company where employees can develop their careers. During fiscal 2025, we were recognized as the #1 Most Trustworthy software and telecommunications Company in America 2024.
DocuSign, Inc.| 2024 Form 10-K | 9 Human Capital Management At DocuSign, we foster an inclusive culture that celebrates and harnesses the strength of diversity, recognizing that every individual brings unique perspectives and experiences to the table. Our values are reflected in six pillars: • Trust: We are honest, ethical, and transparent with each other, our customers, and our partners.
Human Capital Management At Docusign, we foster a culture that celebrates and harnesses the strength of our people, recognizing that every individual brings unique perspectives and experiences to the table. Our mission is to redefine how the world comes together and agrees.
We believe that we generally compete favorably on the basis of the factors listed above. Intellectual Property We own and develop significant intellectual property (“IP”) and related IP rights around the world that support our products, services, R&D, and other activities and assets. Our IP portfolio includes patents, copyrights, trade secrets, trademarks, and other rights.
We believe that we generally compete favorably on the basis of the factors listed above. Intellectual Property We own and develop significant intellectual property (“IP”) and related IP rights globally, with a focus on key markets such as the United States, European Union, and Asia-Pacific.
We believe in promoting a culture of giving back and community support throughout our organization. As a company, we ensure that thousands of charitable organizations have the opportunity to use our products for free or at a discount every year.
To date, we have mobilized $22 million in employee donations and company match, supporting approximately 9,500 organizations. Through our Docusign for Nonprofits program, we aim to empower organizations with the agreement platform needed to achieve their missions. As a company, we ensure that thousands of charitable organizations have the opportunity to use our products at a discount every year.
Our Customers As of January 31, 2024, we had over 1.5 million paying customers globally, serving the needs of some of the largest enterprises and governmental organizations down to sole proprietors and individual end users. No single customer accounted for more than 10% of our revenues in fiscal 2024.
These customers span the entire business spectrum, from Fortune 500 enterprises and government institutions to innovative startups and individual end users. No single customer accounted for more than 10% of our revenues in fiscal 2025.
Our digital sales engine provides direct access to account plans with functionality to suit the needs of small businesses, sole proprietors, and individuals. Marketing To support the sales team in reaching our broad range of potential customers, our integrated marketing programs address the specific needs of our different market segments.
Our digital e-commerce sales engine provides direct access to account plans with functionality to suit the needs of small businesses, sole proprietors, and individuals. For the year ended January 31, 2025, digital sales accounted for 14% of our total revenue. We anticipate this contribution will increase over time.
Our company operates co-location data centers in several locations and we also leverage public cloud infrastructure for an increasing number of services. Companies can also integrate DocuSign into their systems and workflows using one of more than 900 active partner integrations.
We operate co-location data centers in several locations and we also leverage public cloud infrastructure for an increasing number of services, as we continue to migrate our North American and European production services from our data center hosting facilities to Microsoft Azure Cloud, a third-party cloud provider.
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ITEM 1. BUSINESS Overview DocuSign offers products that address agreement workflows and digital transformation as part of its agreement management platform, enabling agreements to be signed electronically on a wide variety of devices, from virtually anywhere in the world, securely.
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ITEM 1. BUSINESS Overview Docusign solutions bring agreements to life, accelerating and simplifying the process of doing business.
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DocuSign’s core product offerings, including the world’s leading electronic signature product , allow organizations to do business faster with less risk and at a lower cost, while providing a better experience for customers. DocuSign also offers contract lifecycle management software that automates pre- and post-signature workflows.
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Docusign’s core offerings — our intelligent agreement management (“IAM”) platform, the world’s leading eSignature solution, and contract lifecycle management (“CLM”) solution — allow organizations to boost productivity, accelerate contract review cycles, and transform agreement data into insights and actions, while providing a better customer experience.
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This includes automatically generating an agreement from data in other systems, supporting negotiation workflows, verifying identities, enabling remote online notarization, collecting payment after signatures, and using artificial intelligence (“AI”) to analyze a collection of agreements for risks and opportunities.
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Docusign’s IAM platform automates agreement workflows, uncovers actionable insights, and leverages AI capabilities, enabling organizations to create, commit, and manage agreements, from virtually anywhere in the world, securely. As of January 31, 2025, nearly 1.7 million customers and more than a billion users worldwide utilize Docusign to accelerate and simplify the process of doing business.
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At the core of every business is a series of agreements and every agreement involves a workflow that guides how we create, commit, and manage agreements. However, traditional agreement processes are slow, expensive and error-prone as they involve many manual steps, disconnected systems, and paper signing.
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We offer subscriptions to our products to businesses at all scales, from global enterprises down to very small businesses (“VSBs”). We offer more than 1,000 active partner integrations with the applications that many of our customers already use so that they can create, commit, and manage agreements directly within these applications.
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Our value proposition is simple to understand: eliminate the paper-based processes, automate agreement workflows, and connect to the applications and systems where work gets done. DocuSign has over 900 active partner integrations, so businesses can easily integrate mission-critical business processes with agreement workflows.
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We have a diverse customer base spanning across virtually all industries and around the world with no significant customer concentration. No single customer accounted for more than 10% of total revenue in any of the periods presented. We focused initially on selling our products to commercial businesses and VSBs and later expanded our focus to target enterprise customers.
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This allows organizations to reduce turnaround times and costs, largely eliminate errors, and deliver a streamlined customer experience. As of January 31, 2024, over 1.5 million customers and more than a billion users in over 180 countries use our products and solutions to accelerate and simplify the process of doing business.
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As of January 31, 2025, we had a total of nearly 1.7 million customers, including over 260,000 enterprise and commercial customers, compared to over 1.5 million customers and approximately 242,000 enterprise and commercial customers as of January 31, 2024.
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We offer subscriptions to our products, which include editions with varying functionality for different customers’ needs, as well as products and features specific to particular geographies or industries. We also focus on customer adoption, success and expansion. This helps us deliver continued value and creates opportunities for increased usage.
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We define a customer as a separate and distinct buying entity, such as a company, an educational or government institution, or a distinct business unit of a large company that has an active contract to access our products.
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Our customer base is broad and diverse ranging from the largest global enterprises to very small businesses (“VSBs”) and nonprofits, across virtually all industries globally. The world’s leading brands trust DocuSign, including global leaders in energy, industrials, consumer goods, and multiple federal and state government agencies.
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The number of our customers with greater than $300,000 in annualized contract value was 1,131 as of January 31, 2025, compared to 1,060 as of January 31, 2024. Each of our customer types has a different purchasing pattern.
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Within a given organization, our technology is adopted across many business functions and for many use cases including: generating contracts for sales, signing employment offers for human resources, and analyzing commercial agreements for legal, among many others.
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VSBs typically become customers by quickly utilizing our digital and self-serve channels and generate smaller average contract values, while commercial and enterprise customers typically involve longer sales cycles, larger contract values, and greater expansion opportunities for us.
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The global reach and broad applicability of eSignature across business functions, combined with our offering of end-to-end contract lifecycle management applications represents an addressable market of approximately $50 billion, according to our estimates. To capitalize on this opportunity, our sales and marketing strategy focuses on attracting new businesses, as well as expanding our use cases within existing customers.
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We generate substantially all our revenue from sales of subscriptions, which accounted for 97% of our revenue in each of the years ended January 31, 2025 and 2024. Our subscription fees are primarily comprised of fees from customers using our products and access to customer support.
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We rely on our direct sales force and partnerships to sell to enterprises and commercial businesses. We also rely on a digital self-service channel to attract new customers in a more cost-effective manner, in particular those customers in segments or markets that may not be currently or easily serviced by our direct sales or partner efforts.
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Subscriptions generally range from one to three years, and substantially all our multi-year customers pay in annual installments, one year in advance. We also generate revenue from professional and other non-subscription services, which consist primarily of fees associated with providing new customers with deployment and integration services. Other revenue includes amounts derived from sales of on-premises solutions.
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As a result of our product-led-growth initiatives, we expect the portion of business that comes from our digital self-service channel to continue to increase. The Benefits of Using DocuSign DocuSign leverages our core strength in eSignature to deliver easier, smarter and more trusted agreements.
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Professional services and other revenue accounted for the remainder of total revenue in each of the years ended January 31, 2025 and 2024. Historically, we offered access to most of our products on a subscription basis with prices based on the functionality and the quantity of Envelopes required by our customers.
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We help organizations connect and automate agreement workflows with our industry leading product offerings that span the entire agreement lifecycle to enhance the customer experience while enabling the digital transformation of agreements. In addition to what we do, we believe we are differentiated by how we do it: • Simple to use.
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For several use cases, such as buying a home, multiple Envelopes are used over the course of the process. To drive customer reach and adoption, we also offer certain limited-time or feature-constrained versions of our eSignature solution for free.
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A key reason for our customer loyalty is our products’ ease of use. Our eSignature product allows users to send and sign an agreement from practically anywhere to any device, delivering greater efficiency and faster time to value for our customers. We are widely known for our ease of use and customer satisfaction.
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In the second quarter of fiscal 2025, we began offering our IAM platform on a user-based subscription basis in specific customer segments and geographies, through our direct sales channel. Our IAM subscription offerings have multiple pricing tiers as well as specialized packages for specific user personas, end markets, and departments.
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For example, as of January 2024, our eSignature app had more than 700,000 ratings with an average score of 4.9 out of 5 stars on Apple's App Store. • Developer-friendly. Our extensive application programming interfaces (“APIs”) enable our products to be quickly embedded into or connected with an organization’s own apps, systems and processes.
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While IAM platform subscriptions include our core products and solutions, including eSignature, we expect standalone eSignature to continue to represent the majority of our revenue for the foreseeable future as we continue to roll out IAM across additional segments and geographies.
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Our platform has more than DocuSign, Inc.| 2024 Form 10-K | 4 900 active partner integrations with business systems where work gets done. In the case of eSignature, this has led to the majority of transactions being driven through our APIs today.
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Docusign, Inc. | 2025 Form 10-K | 4 Our Growth and Investment Strategy We believe that our market opportunity is large, and we plan to invest to support long-term growth based on the three pillars of our long-term strategy: Accelerating Product Innovation The first pillar is to accelerate product innovation through research and development investments, helping our IAM platform address our customers’ agreement management needs comprehensively.
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By integrating with the other systems our customers use to do business—as opposed to simply being a standalone app—we promote greater usage and engagement with our products. • Vertical offerings. We offer enhanced solutions tailored to particular industries, such as financial services, government, life sciences, and real estate.
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We aim to deliver category-leading value in the agreement management market while evolving into a platform company. ◦ IAM: In April 2024, we announced the launch of the IAM platform at our annual Momentum customer conference. We rapidly innovated the platform from ideation to launch, leveraging customer feedback.
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In some cases, these may be variants of a product like eSignature, such as our eSignature Life Sciences Modules for assisting with compliance with U.S. Food and Drug Administration regulations. In other cases, it may be a distinct product for an industry, such as Rooms for Real Estate, which includes task management, templates, and workflow for real estate transactions.
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As a platform, IAM includes our industry-leading eSignature product as a core capability.
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Finally, it may include a combination of additional capabilities and authorizations such as FedRAMP Moderate, which enables us to support various use cases within federal government agencies. • Globally adopted. Our expertise in electronic signature and other agreement technologies is truly global. This is key, given that different regions have different laws, standards and cultural norms.
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Other capabilities include Navigator, our AI-powered agreement repository that helps customers manage and identify insights from their agreements, and Maestro, our no-code workflow builder that helps customers accelerate agreement processes. ◦ Developer Ecosystem: Part of our evolution into a platform company requires supporting a dynamic community of developers and partners to create new solutions that extend the capabilities of our IAM platform.
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We assist multiple parties in different jurisdictions to complete agreements and other documents in a legally valid manner. For example, in Europe, we have offerings tailored for the European Union’s (“EU”) electronic Identification, Authentication and Trust Services (“eIDAS”) regulations, as well as for verifying European eIDs. • Highly auditable.
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In November 2024, we hosted Docusign Discover, our first-ever developer-focused conference, and launched Docusign for Developers, giving our partners tools to build apps powered by the IAM platform.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese risks include, but are not limited to, the following: Business and Industry Risks • Any decrease in adoption of our eSignature product, without a corresponding increase in our other products. • Any inability to attract new customers and retain and expand sales to existing customers. • Our inability to compete in an evolving and highly competitive market. • Our systems and security measures being compromised or subject to data breaches, cyberattacks, or other malicious activity. • Any real or perceived improper use of, disclosure of, or access to sensitive customer data. • Our products and solutions not evolving to meet the needs of our customers or failing to achieve market acceptance. • Any inability to manage our growth effectively. • An over-estimation of the size of our total addressable market. • Any interruption or delay in performance from our technical operations infrastructure, co-located data centers and third-party cloud providers. • Any loss of highly skilled personnel, including our management team or other key employees, or inability to attract, integrate, and retain such employees necessary to support our business. • Our inability to maintain successful relationships with our strategic partners or to establish and maintain relationships with partners that provide complementary technology. • Any inability to effectively develop and expand our marketing and sales capabilities.
Biggest changeThese risks include, but are not limited to, the following: Business and Industry Risks • Any decrease in adoption or sales of our eSignature product, without corresponding increases in our other solutions in our IAM platform. • Any inability to attract new customers and retain and expand sales to existing customers. • Our IAM platform failing to achieve market acceptance or to meet our customers’ evolving needs. • Our inability to compete in an evolving and highly competitive market. • Our systems and security measures being compromised or subject to data breaches, cyberattacks, or other malicious activity, and any harm to our business or reputation caused by malicious actors attempting to exploit our technology, platform or brand to defraud others. • Any real or perceived improper use of, disclosure of, or access to sensitive customer data. • An over-estimation of our market opportunity. • Any interruption or delay in performance from our technical infrastructure, including third-party cloud providers. • The implementation of AI in our business, and the legal, regulatory, reputational and business risks relating to its use. • Any loss of highly skilled personnel, including our management team or other key employees, or inability to attract, integrate, and retain such employees necessary to support our business. • Our inability to maintain successful relationships with our strategic partners or to establish and maintain relationships with partners that provide complementary technology. • Any inability to effectively develop and expand our marketing and sales capabilities.
We also cannot be sure that our existing general liability insurance coverage, our cybersecurity coverage, and coverage for errors or omissions will continue to be available on acceptable terms or will be available in sufficient amounts to cover one or more large claims, or that insurers will not deny coverage as to any future claim.
We also cannot be sure that our existing general liability insurance coverage, cybersecurity coverage, and coverage for errors or omissions will continue to be available on acceptable terms or will be available in sufficient amounts to cover one or more large claims, or that insurers will not deny coverage as to any future claim.
The U.S., other jurisdictions or governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made or could make unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules and regulations have historically been interpreted and applied.
The U.S., other jurisdictions or governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made or could make unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules or regulations have historically been interpreted and applied.
Our products and solutions are subject to U.S. export controls, including the Export Administration Regulations and economic sanctions administered by the Office of Foreign Assets Control, and we incorporate encryption technology into certain of our products and solutions.
Our products and solutions are subject to U.S. export controls, including the Export Administration Regulations and economic sanctions administered by the Office of Foreign Assets Control, and we incorporate encryption technology into certain products and solutions.
Our current international operations and future initiatives involve a variety of risks, including: ▪ changes in a specific country’s or region’s political or economic conditions, including the pace of the digital transformation of business in that country or region; ▪ the need to adapt and localize our products for specific countries, including providing customer support in different languages; ▪ greater difficulty collecting accounts receivable and longer payment cycles; ▪ potential changes in trade relations arising from U.S. policy initiatives; ▪ unexpected changes in laws and regulatory requirements, including but not limited to, taxes or trade laws; DocuSign, Inc.| 2024 Form 10-K | 25 ▪ more stringent regulations relating to privacy and data security and the unauthorized use of, or access to, commercial and personal information, particularly in Europe; ▪ differing labor regulations, especially in Europe, where labor laws are generally more advantageous to employees as compared to those in the U.S., including deemed hourly wage and overtime regulations in these locations; ▪ challenges inherent in efficiently managing an increased number of employees; ▪ difficulties in managing a business in new markets with diverse cultures, languages, and customs, as well as legal, alternative dispute and regulatory systems; ▪ increased travel, real estate, infrastructure and legal compliance costs associated with international operations; ▪ currency exchange rate fluctuations; ▪ limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our operations in other countries; ▪ laws and business practices favoring local competitors or general preferences for local vendors; ▪ limited or insufficient intellectual property protection or difficulties enforcing our intellectual property; ▪ regional or global conflicts, including sanctions or other laws and regulations prohibiting or limiting operations in certain jurisdictions; ▪ political instability or terrorist activities; ▪ exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S.
Our current international operations and future initiatives involve a variety of risks, including: ▪ changes in a specific country’s or region’s political or economic conditions, including the pace of the digital transformation of business in that country or region; ▪ the need to adapt and localize our products for specific countries, including providing customer support in different languages; ▪ greater difficulty collecting accounts receivable and longer payment cycles; ▪ potential changes in trade relations arising from U.S. policy initiatives; ▪ unexpected changes in laws and regulatory requirements, including but not limited to, taxes or trade laws; ▪ more stringent regulations relating to privacy and data security and the unauthorized use of, or access to, commercial and personal information, particularly in Europe; ▪ differing labor regulations, especially in Europe, where labor laws are generally more advantageous to employees as compared to those in the U.S., including deemed hourly wage and overtime regulations in these locations; ▪ challenges inherent in efficiently managing an increased number of employees; ▪ difficulties in managing a business in new markets with diverse cultures, languages, and customs, as well as legal, alternative dispute and regulatory systems; ▪ increased travel, real estate, infrastructure and legal compliance costs associated with international operations; ▪ currency exchange rate fluctuations; ▪ limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our operations in other countries; ▪ laws and business practices favoring local competitors or general preferences for local vendors; ▪ limited or insufficient intellectual property protection or difficulties enforcing our intellectual property; ▪ regional or global conflicts, including sanctions or other laws and regulations prohibiting or limiting operations in certain jurisdictions; Docusign, Inc. | 2025 Form 10-K | 25 ▪ political instability or terrorist activities; ▪ exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S.
We are also certified as a Privacy Rights Processor under the Asia-Pacific Economic Cooperation. A breach of the GDPR, UK GDPR or other such data protection regulations, could result in regulatory investigations, reputational damage, fines and sanctions, orders to cease or change our processing of our data, enforcement notices, or assessment notices (for a compulsory audit).
We are also certified as a Privacy Rights Processor under the Asia-Pacific Economic Cooperation. A breach of the GDPR, or other such data protection regulations, could result in regulatory investigations, reputational damage, fines and sanctions, orders to cease or change our processing of our data, enforcement notices, or assessment notices (for a compulsory audit).
Department of Health and Human Services Office for Civil Rights (the “OCR”), the California Privacy Protection Agency, and other various state, local and foreign agencies and other authorities, such as each U.S. state’s attorney general. Our data handling also is subject to contractual obligations and industry standards.
Department of Health and Human Services Office for Civil Rights (the “OCR”), the California Privacy Protection Agency, and other various federal, state, local and foreign agencies and other authorities, such as each U.S. state’s attorney general. Our data handling also is subject to contractual obligations and industry standards.
Our handling of data is thus subject to a variety of laws and regulations around the world, including regulation by various government agencies, such as the respective Data Protection Authorities of the United Kingdom and other EU member states who enforce the General Data Protection Regulation, the U.S. Federal Trade Commission (the “FTC”), the U.S.
Our handling of data is thus subject to a variety of laws and regulations around the world, including regulation by various government agencies, such as the respective data protection authorities of the United Kingdom and EU member states who enforce the General Data Protection Regulation, the U.S. Federal Trade Commission (the “FTC”), the U.S.
Additionally, while we currently employ a hybrid model where employees have the flexibility to work from home, changes to our workplace arrangements could impact our ability to maintain our corporate culture or productivity, increase attrition or limit our ability to attract employees if individuals prefer to work full time at home or in the office.
Additionally, while we currently employ a hybrid model where most employees have the flexibility to work from home, changes to our workplace arrangements could impact our ability to maintain our corporate culture or productivity, increase attrition or limit our ability to attract employees if individuals prefer to work full time at home or in the office.
As new or existing competitors introduce new competitive products or reduce their prices, we may be unable to attract new customers or retain existing customers based on our historical pricing. As we expand internationally, we must also determine the appropriate price to enable us to compete effectively in non-U.S. markets.
Additionally, as new or existing competitors introduce new competitive products or reduce their prices, we may be unable to attract new customers or retain existing customers based on our historical pricing. As we expand internationally, we must also determine the appropriate price to enable us to compete effectively in non-U.S. markets.
Foreign governments also regulate the import and export of certain encryption and other technology, including import and export licensing requirements, and have enacted, and may in the future enact, sanctions and laws that could limit our ability to distribute our products and solutions or could limit our end-customers’ ability to implement our products and solutions in those countries.
Foreign governments also regulate the import and export of certain encryption and other technology, including import and export licensing requirements, and have enacted, and may in the future enact, sanctions and export control laws that could limit our ability to distribute our products and solutions or could limit our end-customers’ ability to implement our products and solutions in those countries.
Natural catastrophic events and man-made problems such as power disruptions, computer viruses, data security breaches, regional or global conflicts, and terrorism may disrupt our business. We rely heavily on our network infrastructure and information technology systems, including our security-related or ERP systems, for our business operations.
Natural catastrophic events and man-made problems such as power disruptions, computer viruses, data security breaches, regional or global conflicts, and terrorism may disrupt our business. We rely heavily on our network infrastructure and information technology systems, including our security-related systems, for our business operations.
Our operations involve the storage and transmission of customer data, personal data and other sensitive information, and our corporate environment contains important company data and/or business records, employee data and data from partner, vendor or other relationships, as well as a wide variety of our own internal company, partner and employee information.
Our operations involve the storage and transmission of customer data, personal data and other sensitive or confidential information, and our corporate environment contains important company data and/or business records, employee data and data from partner, vendor or other relationships, as well as a wide variety of our own internal company, partner and employee information.
The market price of our common stock may be highly volatile and may fluctuate or decline substantially as a result of a variety of factors, some of which are beyond our control or are related in complex ways, including: ▪ actual or anticipated fluctuations in our financial condition and operating results; ▪ customer demand for our solutions and the pace of the digital transformation of business; ▪ changes in senior management or key personnel; ▪ general economic, regulatory and market conditions, including inflation and interest rate fluctuations; ▪ variance in our financial performance from expectations of securities analysts; ▪ issuance of research reports by securities analysts, including publishing unfavorable reports; ▪ changes in the prices of subscriptions to our products and solutions; ▪ changes in our projected operating and financial results; ▪ changes in laws or regulations applicable to our products and solutions; ▪ announcements by us or our competitors of significant business developments, acquisitions or new offerings; ▪ rumors and market speculation made by external parties that involve us or other companies in our industry; ▪ our involvement in any litigation; ▪ future sales of our common stock or other securities by us or our stockholders; ▪ the consummation, and the anticipated benefits, of our stock repurchase program; ▪ the trading volume of our common stock; ▪ changes in the anticipated future size and growth rate of our market; ▪ changes in the political climate in the U.S.; and ▪ terrorist attacks, natural disasters and the effects of climate change, regional and global conflicts, sanctions, laws and regulations that prohibit or limit operations in certain jurisdictions, public health crises or other such events impacting countries where we have operations.
The market price of our common stock may be highly volatile and may fluctuate or decline substantially as a result of a variety of factors, some of which are beyond our control or are related in complex ways, including: ▪ actual or anticipated fluctuations in our financial condition and operating results; ▪ customer demand for our solutions and the pace of the digital transformation of business; ▪ changes in senior management or key personnel; ▪ general economic, regulatory and market conditions, including inflation and interest rate fluctuations; ▪ variance in our financial performance from expectations of securities analysts; ▪ issuance of research reports by securities analysts, including publishing unfavorable reports; ▪ certain assumptions or perceptions made by our customers or industry and securities analysts related to our IAM platform; ▪ changes in the prices of subscriptions to our products and solutions; ▪ changes in our projected operating and financial results; ▪ changes in laws or regulations applicable to our products and solutions; ▪ announcements by us or our competitors of significant business developments, acquisitions or new offerings; ▪ rumors and market speculation made by external parties that involve us or other companies in our industry; ▪ our involvement in any litigation; ▪ future sales of our common stock or other securities by us or our stockholders; ▪ the consummation, and the anticipated benefits, of our stock repurchase program; ▪ the trading volume of our common stock; ▪ changes in the anticipated future size and growth rate of our market; ▪ changes in the political climate in the U.S.; and ▪ terrorist attacks, natural disasters and the effects of climate change, regional and global conflicts, sanctions, laws and regulations that prohibit or limit operations in certain jurisdictions, public health crises or other such events impacting countries where we have operations.
We currently use AI-powered tools and services as part of operating our business, and also incorporate AI features and applications into our products and solutions and are making further investments in expanding AI capabilities in our products and solutions.
We use AI-powered tools and services as part of operating our business, and also incorporate AI features and applications into our products and solutions and are making further investments in expanding AI capabilities in our products and solutions.
The revenue growth and potential profitability of our business depend on demand for our products and solutions. Current or future economic and global market uncertainties or downturns could adversely affect our business and operating results.
The revenue growth and profitability of our business depend on demand for our products and solutions. Current or future economic and global market uncertainties or downturns could adversely affect our business and operating results.
For example, we have made, and intend to continue making, significant investments in developing products that incorporate AI, and while we believe that such new products will drive future growth of our business, the development of such new features involves significant risks and costs, and there is no guarantee that any such offerings will ultimately be successful.
For example, we have made, and intend to continue making, significant investments in our platform and developing products that incorporate AI, and while we believe that these investments will drive future growth of our business, the development of such new features involves significant risks and costs, and there is no guarantee that any such offerings will ultimately be successful.
While we take precautions to prevent our products and solutions from being exported in violation of these laws, including obtaining authorizations for our encryption products, implementing IP address blocking and screenings against U.S. government and international lists of restricted and prohibited persons, we cannot guarantee that the precautions we take will prevent violations of export control and sanctions laws.
While we take precautions to prevent our products and solutions from being exported in violation of these laws, including obtaining export authorizations, implementing IP address blocking and screenings against U.S. government and international lists of restricted and prohibited persons, we cannot guarantee that the precautions we take will prevent violations of export control and sanctions laws.
Further, we could be forced to expend significant financial and operational resources in response to a security breach, including repairing system damage, increasing security protection costs, investigating and remediating any information security vulnerabilities, complying with data breach notification obligations and applicable laws, and defending against and resolving legal and regulatory claims, all of which could divert resources and the attention of our management and key personnel away from our business operations and materially and adversely affect our business, financial condition, and operating results.
Further, we could be forced to expend significant financial and operational resources in response to a cyberattack or security incident or breach, including repairing system damage, increasing security protection costs, investigating and remediating any information security vulnerabilities, complying with data breach notification obligations and applicable laws, and defending against and resolving legal and regulatory claims, all of which could divert resources and the attention of our management and key personnel away from our business operations and materially and adversely affect our business, financial condition, and operating results.
Additionally, AI technology may involve significant technical complexity, which will require specialized expertise and may increase compensation-related expenses. Competition for specialized personnel in the AI industry is intense, and failing to attract, integrate, or retain such specialized expertise in AI could adversely affect our business and results of operations.
Additionally, the significant technical complexity of AI technology will require specialized expertise and may increase compensation-related expenses. Competition for specialized personnel in the AI industry is intense, and failing to attract, integrate, or retain such specialized expertise in AI could adversely affect our business and results of operations.
We are subject to various evolving laws and regulations governing our use of our business data. For more information on these laws and regulations, see the risk factor “ We are subject to laws and regulations affecting our business, including those related to e-signature, marketing, advertising, privacy, data protection and information security.
We are subject to various evolving laws and regulations governing our use of our business data. For more information on these laws and regulations, see the risk factors “ We are subject to laws and regulations affecting our business, including those related to e-signature, marketing, advertising, privacy, data protection and information security.
In addition, as of January 31, 2024, we had available borrowing capacity of $500.0 million under our credit facility. We cannot be certain when or if our operations will generate sufficient cash to fund our ongoing operations or the growth of our business.
In addition, as of January 31, 2025, we had available borrowing capacity of $500.0 million under our credit facility. We cannot be certain when or if our operations will generate sufficient cash to fund our ongoing operations or the growth of our business.
In addition, noncompliance with anti-corruption, anti-bribery, or anti-money laundering laws could subject us to whistleblower complaints, investigations, sanctions, settlements, prosecution, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, suspension and/or debarment from contracting with certain persons, the loss of export privileges, reputational harm, adverse media coverage and other collateral consequences.
In addition, noncompliance with anti-corruption, anti-bribery, or anti-money laundering laws could subject us to whistleblower complaints, investigations, sanctions, settlements, prosecution, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, suspension and/or debarment from contracting with certain persons, the loss of export privileges, reputational har m, adverse media coverage and other collateral consequences.
Our agreements with some customers and other third parties include indemnification provisions under which we agree to indemnify them for losses suffered or incurred as a result of claims of intellectual property infringement, data protection, damages caused by us to property or persons, or other liabilities relating to or arising from our offerings, solutions or other contractual obligations.
Our agreements with some customers and other third parties include indemnification provisions under which we agree to indemnify them for losses suffered or incurred as a result of claims of intellectual property infringement, data protection, violations, data breaches or cyberattacks, damages caused by us to property or persons, or other liabilities relating to or arising from our offerings, solutions or other contractual obligations.
Such penalties, which may include fines up to the greater of €20 million (£17.5 million) or 4% of global turnover, are in addition to any civil litigation claims by customers and data subjects.
Such penalties, which under GDPR may include fines up to the greater of €20 million (£17.5 million) or 4% of global turnover, are in addition to any civil litigation claims by customers and data subjects.
Security breaches may result in increased costs for such insurance as well. One or more large, successful claims against us in excess of our available insurance coverage, or changes in our insurance policies, including premium increases or large deductible or coinsurance requirements, could have an adverse effect on our business, operating results and financial condition.
Cyberattacks or security incidents may result in increased costs for such insurance as well. One or more large, successful claims against us in excess of our available insurance coverage, or changes in our insurance policies, including premium increases or large deductible or coinsurance requirements, could have an adverse effect on our business, operating results and financial condition.
The implementation and transition to any new critical system, such as the ERP system we implemented in 2023, may be disruptive to our business if they do not work as planned or if we experience issues related to such implementation or transition, which could have a material adverse effect on our operations and result in compromised internal reporting and processes.
The implementation and transition to any new critical system may be disruptive to our business if they do not work as planned or if we experience issues related to such implementation or transition, which could have a material adverse effect on our operations and result in compromised internal reporting and processes.
If our security measures, or the security measures of our partners, service providers, or customers, are compromised, our reputation could be damaged, our ability to attract and retain customers could be adversely affected, we could be subject to negative publicity, increased costs to remedy any problems and otherwise respond to any incident, monetary and other losses for us or our customers, identity theft for our customers, the inability to expand our business, additional scrutiny, restrictions, fines or penalties from regulatory or governmental authorities, loss of customers and customer confidence in our services, ongoing regulatory oversight, assessments and audits, exposure to civil litigation, and/or a breach of our contracts with third parties, all of which could expose us to significant liability and harm our business, financial condition, and operating results.
If our security measures, or the security measures of our partners, service providers, or customers, are compromised, our reputation could be damaged, our ability to attract and retain customers could be adversely affected, we could be Docusign, Inc. | 2025 Form 10-K | 16 subject to negative publicity, increased costs to remedy any problems and otherwise respond to any incident, monetary and other losses for us or our customers, identity theft for our customers, the inability to expand our business, additional scrutiny, restrictions, fines or penalties from regulatory or governmental authorities, loss of customers and customer confidence in our services, ongoing regulatory oversight, assessments and audits, exposure to civil litigation, and/or a breach of our contracts with third parties, all of which could expose us to significant liability and harm our business, financial condition, and operating results.
For example, the SEC recently adopted cybersecurity risk management and disclosure rules, which require mandatory disclosure of information pertaining to cybersecurity incidents and cybersecurity risk management, strategy and governance.
For example, the SEC has adopted cybersecurity risk management and disclosure rules, which require mandatory disclosure of information pertaining to cybersecurity incidents and cybersecurity risk management, strategy and governance.
If the release of these or other new and enhanced products, solutions or functionalities do not meet customer needs or if our customers do not accept them, our business, operating results and financial condition would be harmed.
If the release of these or other new and enhanced products, solutions or functionalities as part of our platform do not meet customer needs or if our customers do not accept them, our business, operating results and financial condition would be harmed.
Financial Risks, including Taxation • Any fluctuations in our financial results or failure to meet expectations of securities analysts or investors. • Our long and unpredictable sales cycles, which often require considerable time and expense. • The delay in reflecting downturns or upturns in sales contracts in our operating results due to recognition of subscription revenue. • Any failure to forecast our revenue accurately, or failure to match our expenditures with corresponding revenue. • Any inability to achieve or sustain profitability in the future. • Any operational challenges in connection with our current or future international operations. • A lack of additional capital or the availability to use it on reasonable terms to support business growth and objectives. • Any limits on business flexibility and access to capital due to substantial indebtedness. • Any limits on our ability to use our net operating loss carryforwards to offset future taxable income.
Financial Risks, including Taxation • Any fluctuations in our financial results or failure to meet expectations of securities analysts or investors. • Our long and unpredictable sales cycles, which often require considerable time and expense. • The delay in reflecting downturns or upturns in sales contracts in our operating results due to recognition of subscription revenue. • Any failure to forecast our revenue accurately, or failure to match our expenditures with corresponding revenue. • Any operational challenges in connection with our current or future international operations. • A lack of additional capital or the availability to use it on reasonable terms to support business growth and objectives. • Any limits on our ability to use our net operating loss carryforwards to offset future taxable income.
As a result, when we introduce new or enhanced products and solutions, they must achieve high levels of market acceptance to justify the amount of our investment in developing or acquiring them and bringing them to market.
When we introduce new or enhanced products and solutions, they must achieve high levels of market acceptance to justify the amount of our investment in developing or acquiring them and bringing them to market.
As a result of our presence in Europe and the United Kingdom (“UK”) and our products and services being offered in the EU and the UK, we are subject to the GDPR, UK GDPR, the UK Data Protection Act 2018, and other similar regional European data protection regulations, all of which impose stringent data protection and cybersecurity requirements, and could increase the risk of non-compliance and the costs of providing our services in a compliant manner.
As a result of our presence in Europe and the United Kingdom (“UK”) and our products and services being offered in the EU and the UK, we are subject to the EU GDPR and other similar regional European data privacy and protection regulations (collectively the “GDPR”), all of which impose stringent data protection and cybersecurity requirements, and could increase the risk of non-compliance and the costs of providing our services in a compliant manner.
For example, California has enacted the California Consumer Privacy Act (the “CCPA”), as amended by the California Privacy Rights Act (the “CPRA”), that subjects businesses to new regulations promulgated through a recently created enforcement agency called the California Privacy Protection Agency.
For example, California has enacted the California Consumer Privacy Act (as amended, the “CCPA”), that subjects businesses to new regulations promulgated through a recently created enforcement agency called the California Privacy Protection Agency.
If our products, solutions and functionalities do not evolve to meet the needs of our customers or fail to achieve sufficient market acceptance, our financial results and competitive position will suffer.
If our IAM platform, products and solutions do not evolve to meet the needs of our customers or fail to achieve sufficient market acceptance, our financial results and competitive position will suffer.
We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under DocuSign, Inc.| 2024 Form 10-K | 27 the circumstances, as provided in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our operating results may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our operating results to fall below the expectations of securities analysts and investors, resulting in a decline in the trading price of our common stock.
We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our operating results may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our operating results to fall below the expectations of securities analysts and investors, resulting in a decline in the trading price of our common stock.
If our management team or independent registered public accounting firm were to furnish an adverse report, or if it is determined that we have a material weakness or significant deficiency in our internal control over financial reporting, investors could lose confidence in the accuracy and completeness of our financial reports, the market price of our common stock could DocuSign, Inc.| 2024 Form 10-K | 33 decline, and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities or shareholder litigation.
If our management team or independent registered public accounting firm were to furnish an adverse report, or if it is determined that we have a material weakness or significant deficiency in our internal control over financial reporting, investors could lose confidence in the accuracy and completeness of our financial reports, the market price of our common stock could decline, and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities or shareholder litigation.
Existing laws and regulations may be interpreted, or new laws and regulations regarding AI may be adopted and interpreted, in ways which could negatively affect the way we use AI in our products.
Existing laws and regulations may be interpreted, or new laws and regulations regarding AI have been and may in the future be adopted and interpreted, in ways which could negatively affect the way we use AI in our products.
Additionally, while we believe our exposure from the recent conflicts in Ukraine and the Middle East is limited, we could experience unanticipated disruptions to our business as a result of current or future regional and global conflicts, including DocuSign, Inc.| 2024 Form 10-K | 37 sanctions or other laws and regulations prohibiting or limiting operations in certain jurisdictions, increased risks of potential cyberattacks, related impacts to our customers, or micro- or macro-economic effects on the global economy.
Additionally, while we believe our exposure from the recent conflicts in Ukraine and the Middle East is limited, we could experience unanticipated disruptions to our business as a result of current or future regional and global conflicts, including sanctions or other laws and regulations prohibiting or limiting operations in certain jurisdictions, increased risks of potential cyberattacks, related impacts to our customers, or micro- or macro-economic effects on the global economy.
No assurance can be given that these agreements will be effective in controlling access to and distribution of our products and proprietary information. Further, these agreements do not prevent our competitors or partners from independently developing technologies that are substantially equivalent or superior to our products and solutions.
No assurance can be given that these agreements will be effective in controlling access to and distribution of our products and proprietary information or prevent infringement, violation, or misappropriation of our intellectual property. Further, these agreements do not prevent our competitors or partners from independently developing technologies that are substantially equivalent or superior to our products and solutions.
Additionally, any failure or perceived failure by us to comply with laws, regulations, policies, legal or contractual obligations, industry standards, or regulatory guidance relating to privacy or data security, may result in governmental investigations and enforcement actions, litigation, fines and penalties or adverse publicity, and could cause our customers and partners to lose trust in us, which could have an adverse effect on our reputation and business.
Docusign, Inc. | 2025 Form 10-K | 17 Additionally, any failure or perceived failure by us to comply with laws, regulations, policies, legal or contractual obligations, industry standards, or regulatory guidance relating to privacy or data security, may result in governmental investigations and enforcement actions, litigation, fines and penalties or adverse publicity, and could cause our customers and partners to lose trust in us, which could have an adverse effect on our reputation and business.
Although we continue to add to our suite of products and solutions for automating the agreement process, we expect that we will be substantially dependent on our eSignature product to generate revenue for the foreseeable future.
Although we continue to add to our suite of other products and solutions in our IAM platform for automating the agreement process, we expect that we will be substantially dependent on our eSignature product to generate revenue for the foreseeable future.
If we fail to perform DocuSign, Inc.| 2024 Form 10-K | 22 timely maintenance or if customers are otherwise dissatisfied with the frequency and/or duration of our maintenance services and related system outages, our existing customers could elect to not renew their subscriptions, delay or withhold payment to us, or cause us to issue credits, make refunds or pay penalties, and potential customers may not adopt our products and solutions and our brand and reputation could be harmed.
If we fail to perform timely maintenance or if customers are otherwise dissatisfied with the frequency and/or duration of our maintenance services and related system outages, our existing customers could elect to not renew their subscriptions, delay or withhold payment to us, or cause us to issue credits, make refunds or pay penalties, and potential customers may not adopt our products and solutions and our brand and reputation could be harmed.
Complying with laws and regulations, in particular those related to privacy and data protection, could also result in additional costs and liabilities to us or inhibit sales of our software. ” If we are not able to comply with these laws or regulations or if we become liable under these evolving laws or regulations, we could be directly harmed, and we may be forced to implement new measures to reduce our exposure to this liability.
Our actual or perceived failure to comply with laws or regulations could harm our business.” and “Complying with laws and regulations, in particular those related to privacy and data protection, could also result in additional costs and liabilities to us or inhibit sales of our software. ” If we are not able to comply with these laws or regulations or if we become liable under these evolving laws or regulations, we could be directly harmed, and we may be forced to implement new measures to reduce our exposure to this liability.
In addition, our customer agreements generally include a warranty that the proper use of DocuSign by a customer in accordance with the agreement and applicable law will be sufficient to meet the definition of an “electronic signature” as defined in the Electronic Signatures in Global and National Commerce Act (“ESIGN Act”) and eIDAS.
In addition, our customer agreements generally include a warranty that the proper use of Docusign by a customer in accordance with Docusign, Inc. | 2025 Form 10-K | 31 the agreement and applicable law will be sufficient to meet the definition of an “electronic signature” as defined in the Electronic Signatures in Global and National Commerce Act (“ESIGN Act”) and eIDAS.
New products, solutions or enhancements to our existing products and solutions could also fail to attain sufficient market acceptance for many reasons, including: ▪ failure to predict market demand for particular features or functions, or to timely meet demand; ▪ defects, errors or failures in our products and solutions; ▪ negative publicity about their performance or effectiveness; ▪ changes in applicable legal or regulatory requirements, or increased legal or regulatory scrutiny, adversely affecting our products and solutions; ▪ delays in releasing our products and solutions to the market; ▪ negative customer perception of our sales-directed strategies, including the pricing of new products or enhancements; and ▪ introduction or anticipated introduction of competing products by our competitors.
Our platform, products, solutions or enhancements to our existing products and solutions could also fail to attain sufficient market acceptance for many reasons, including: ▪ failure to predict market demand for particular features or functions, or to timely meet demand; ▪ defects, errors or failures in our platform, products and solutions; ▪ negative publicity about their performance or effectiveness; ▪ changes in applicable legal or regulatory requirements, or increased legal or regulatory scrutiny, adversely affecting our products and solutions; ▪ delays in releasing our products and solutions to the market; ▪ negative customer perception of our IAM platform or new products and solutions; ▪ inability to effectively execute our go-to-market and sales-directed strategies for our IAM platform, including the implementation of additional pricing models for products or enhancements; and ▪ introduction or anticipated introduction of competing products by our competitors.
While we have security measures in place designed to protect our production and development environment and other systems, maintain the integrity of customer, company, partner and employee information, and prevent data loss, misappropriation and other security breaches and incidents, we have faced security incidents in the past that did not have a material impact on our operations.
While we have security measures in place designed to protect our production and development environments and other systems, maintain the integrity of customer, company, partner and employee information, and prevent data loss, misappropriation and other security breaches and incidents, we are a frequent target of cyberattacks and have faced security incidents in the past that did not have a material impact on our operations.
DocuSign, Inc.| 2024 Form 10-K | 31 The development and use of AI features and applications present various intellectual property, data privacy, security and reliability risks that may impact our business.
Docusign, Inc. | 2025 Form 10-K | 18 The development and use of AI features and applications present various intellectual property, data privacy, security and reliability risks that may impact our business.
Business and Industry Risks We derive a majority of our revenue from our eSignature product, and slower or declining adoption of our eSignature product, without a corresponding increase in the use of our other products and solutions, could cause our operating results to suffer.
Business and Industry Risks We derive a majority of our revenue from our eSignature product, and slower or declining adoption or sales of our eSignature product, without corresponding increases in the use of our other products and solutions in our IAM platform, could cause our operating results to suffer.
We are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results. Our sales contracts are primarily denominated in U.S. dollars, and therefore substantially all of our revenue is not subject to foreign currency risk.
We are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results. Our sales contracts are primarily denominated in U.S. dollars, and therefore a substantial portion of our revenue is not subject to foreign currency risk.
In addition to the other risks described herein, factors that may affect our operating results or cause our financial results to fluctuate include the following: ▪ general economic, market and industry conditions, including resulting from regional or global conflicts and as a result of inflation, volatile interest rates, actual or perceived instability in the global banking sector and increased debt and equity market volatility; ▪ fluctuations in demand for, or pricing of, our products and solutions, including due to the effects of global macro-economic conditions, and differing levels of demand for our products as our customers’ priorities, resources, financial conditions and economic outlook change; ▪ our ability to attract new customers; ▪ our ability to renew our subscriptions with, and expand sales of our products and solutions to, our existing customers; ▪ timing of revenue recognition; DocuSign, Inc.| 2024 Form 10-K | 23 ▪ customer delays in purchasing decisions in anticipation of new products or product enhancements by us or our competitors; ▪ changes in customers’ budgets and in the timing of their budget cycles and purchasing decisions, including cost-cutting measures or other effects of macro-economic conditions; ▪ the timing and success of new product and service introductions by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation or new entrants among competitors, customers, or strategic partners ; ▪ our ability to control costs, including our operating expenses, and related impact to our operating margin; ▪ the timing of costs related to our go-to-market strategy including expansion of our sales capacity and marketing; ▪ potential accelerations of prepaid expenses and deferred costs; ▪ the amount and timing of non-cash expenses, including stock-based compensation, impairments and other non-cash charges; ▪ the amount and timing of costs associated with recruiting, training and integrating new employees, and retaining existing employees; ▪ the amount and timing of costs associated with our restructuring plans; ▪ the time and costs related to litigation, including securities litigation and litigation and claims involving our former CEO; ▪ issues relating to acquisitions and partnerships with third parties; ▪ the impact of new accounting pronouncements; ▪ changes in laws and regulations that affect our business; ▪ significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our products and solutions; and ▪ awareness of our brand on a global basis.
In addition to the other risks described herein, factors that may affect our operating results or cause our financial results to fluctuate include the following: ▪ general economic, market and industry conditions, including as a result of inflation, changes in interest rates or foreign exchange rates, increased debt and equity market volatility, tariffs and trade policy changes, geopolitical conflict or public health crises; ▪ fluctuations in demand for, or pricing of, our products and solutions, including due to the effects of global macro-economic conditions, and differing levels of demand for our products as our customers’ priorities, resources, financial conditions and economic outlook change; Docusign, Inc. | 2025 Form 10-K | 23 ▪ our ability to attract new customers; ▪ our ability to renew our subscriptions with, and expand sales of our products and solutions to, our existing customers; ▪ timing of revenue recognition; ▪ customer delays in purchasing decisions in anticipation of new products or product enhancements by us or our competitors; ▪ changes in customers’ budgets and in the timing of their budget cycles and purchasing decisions, including cost-cutting measures or other effects of macro-economic conditions; ▪ the timing and success of new product and service introductions by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation or new entrants among competitors, customers, or strategic partners ; ▪ our ability to control costs, including our operating expenses, and related impact to our operating margin; ▪ the timing of costs related to our go-to-market strategy including expansion of our sales capacity and marketing; ▪ potential accelerations of prepaid expenses and deferred costs; ▪ the amount and timing of non-cash expenses, including stock-based compensation, impairments and other non-cash charges; ▪ the amount and timing of costs associated with recruiting, training and integrating new employees, and retaining existing employees; ▪ the amount and timing of costs associated with restructuring plans; ▪ the time and costs related to litigation, including securities litigation; ▪ issues relating to acquisitions and partnerships with third parties; ▪ the impact of new accounting pronouncements; ▪ changes in laws and regulations that affect our business, including trade policy changes; ▪ significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our products and solutions; and ▪ awareness of our brand on a global basis.
For example, it has been, and may continue to be, difficult for us to forecast our operating results due to recent macro-economic events, including interest rate hikes and rising rates of inflation and concerns about a potential economic downturn.
For example, it has been, and may continue to be, difficult for us to forecast our operating results due to recent macro-economic events, including interest rate volatility and inflation and concerns about a potential economic downturn.
We may require additional capital to support business growth and objectives, and this capital might not be available to us on reasonable terms, if at all, and may result in stockholder dilution. DocuSign, Inc.| 2024 Form 10-K | 26 We fund our operations through payments by our customers for use of our product offerings and related services.
We may require additional capital to support business growth and objectives, and this capital might not be available to us on reasonable terms, if at all, and may result in stockholder dilution. We fund our operations through payments by our customers for use of our product offerings and related services.
If we inappropriately use or incorporate open source software subject to certain types of open source licenses that challenge the proprietary nature of our software products, we may be required to re-engineer our products, discontinue the sale of our products and solutions or take other remedial actions.
If we inappropriately use or incorporate open source software subject to certain types of open source licenses that challenge the proprietary nature of our software products, we may be required to re-engineer our products, discontinue the sale of our products and solutions or take other remedial actions that may divert resources away from our development efforts.
Although we normally contractually limit our liability with respect to such obligations, we may still incur substantial liability related to them and we may be required to cease use of certain functions of our products and solutions as a result of any such claims.
Although we normally contractually limit our liability with respect to such obligations, such limitations may not be enforceable in all jurisdictions, and we may still incur substantial liability related to them and we may be required to cease use of certain functions of our products and solutions as a result of any such claims.
If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes.
If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes.
Any warranty or DocuSign, Inc.| 2024 Form 10-K | 32 indemnification claim brought by our customers could result in damage to our reputation and harm our business and operating results. Changes in tax laws, rulings and interpretations may subject us to potential adverse tax consequences, which could negatively affect our financial position and results of operations.
Any warranty or indemnification claim brought by our customers could result in damage to our reputation and harm our business and operating results. Changes in tax laws, rulings and interpretations may subject us to potential adverse tax consequences, which could negatively affect our financial position and results of operations.
Our ability to increase our customer base and achieve broader market acceptance of our products and solutions depends to a significant extent on our ability to expand our marketing and sales operations. We continue to make investments in our sales force and strategic partnerships, including expansion and training, both domestically and internationally.
Our ability to increase our customer base and achieve broader market acceptance of our products and solutions depends to a significant extent on our ability to expand our marketing and sales operations. We continue to make Docusign, Inc. | 2025 Form 10-K | 21 investments in our sales force and strategic partnerships, including expansion and training, both domestically and internationally.
While we implement bug fixes and upgrades as part of our regularly scheduled system maintenance, we may not be able to reasonably anticipate and correct defects or errors before implementing our products and solutions. Consequently, we or our customers may discover defects or errors after our products and solutions have been employed.
While we implement Docusign, Inc. | 2025 Form 10-K | 22 bug fixes and upgrades as part of our regularly scheduled system maintenance, we may not be able to reasonably anticipate and correct defects or errors before implementing our products and solutions. Consequently, we or our customers may discover defects or errors after our products and solutions have been employed.
In particular, companies in the software industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. We have from time to time been subject to intellectual property claims and disputes and may be subject to such claims in the future.
In particular, companies in the software industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. We have from time to time been Docusign, Inc. | 2025 Form 10-K | 29 subject to intellectual property claims and disputes and may be subject to such claims in the future.
Our customers need to be able to access our products at any time, without interruption or degradation of performance. In some cases, third-party cloud providers run their own platforms that we access, and we are, therefore, vulnerable to their service interruptions.
We currently serve our customers from third-party data center hosting facilities and cloud service providers. Our customers need to be able to access our products at any time, without interruption or degradation of performance. In some cases, third-party cloud providers run their own platforms that we access, and we are, therefore, vulnerable to their service interruptions.
If we lose one or more of our senior management or other key employees and are unable to find adequate replacements, or if we fail to attract, integrate, retain and motivate members of our senior management team and key employees or otherwise fail to retain a significant portion of our workforce, our business could be harmed.
If we lose one or more of our senior management or other key employees and are unable to find adequate replacements, or if we fail to attract, integrate, Docusign, Inc. | 2025 Form 10-K | 19 retain and motivate members of our senior management team and key employees or otherwise fail to retain a significant portion of our workforce, our business could be harmed.
We have customers in a wide variety of industries, including real estate, financial services, insurance, manufacturing, and healthcare and life sciences. We intend to continue to expand our sales efforts internationally, where many countries may have less familiarity with and acceptance of e-signature products.
Our products and solutions address a market that is evolving and highly competitive. We have customers in a wide variety of industries, including real estate, financial services, insurance, manufacturing, and healthcare and life sciences. We intend to continue to expand our sales efforts internationally, where many countries may have less familiarity with and acceptance of e-signature products.
The continued use in our business and incorporation of AI-powered features and applications into our products and solutions may subject us to new and evolving regulatory scrutiny, litigation, social or ethical concerns, or other risks that could harm our business, reputation, brand, and our results of operations.
The continued use in our business and incorporation of AI-powered features and applications into our products and solutions may subject us to new and evolving regulatory scrutiny, litigation, social or ethical concerns, unforeseen operational failures, potential for biased or incorrect outputs, or other risks that could harm our business, reputation, brand, and our results of operations.
Legal and Regulatory Risks We are subject to laws and regulations affecting our business, including those related to e-signature, marketing, advertising, privacy, data protection and information security. Our actual or perceived failure to comply with laws or regulations could harm our business.
Docusign, Inc. | 2025 Form 10-K | 27 Legal and Regulatory Risks We are subject to laws and regulations affecting our business, including those related to e-signature, marketing, advertising, privacy, data protection and information security. Our actual or perceived failure to comply with laws or regulations could harm our business.
On March 18, 2020, however, the Delaware Supreme Court reversed the decision of the Delaware Chancery Court and held that such provisions are facially valid. In light of that recent decision, we announced that we may in the future enforce our Federal Forum Provision.
On March 18, 2020, however, the Delaware Supreme Court reversed the decision of the Delaware Chancery Court and held that such provisions are facially valid. In light of that recent decision, we announced that we may in the future enforce our Federal Docusign, Inc. | 2025 Form 10-K | 35 Forum Provision.
Our amended and restated certificate of incorporation, however, provides that the U.S. federal district courts will be the exclusive forum for DocuSign, Inc.| 2024 Form 10-K | 36 resolving any complaint asserting a cause of action arising under the Securities Act.
Our amended and restated certificate of incorporation, however, provides that the U.S. federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act.
As a result, our operating results could suffer due to: ▪ any decline in demand for our eSignature product; ▪ the failure of our eSignature product to maintain market acceptance; ▪ the market for electronic signatures failing to grow, or growing more slowly than we expect; ▪ new products and technologies from our competitors that replace or represent an improvement over our eSignature product; ▪ new technological innovations or standards that our eSignature product does not address; ▪ changes in regulations; ▪ sensitivity to our current or future pricing; ▪ our inability to release enhanced versions of our eSignature product on a timely basis; and ▪ macro- and micro-economic factors, including inflation, volatile interest rates, increased debt and equity market volatility, actual or perceived instability in the global banking sector, and the impact of regional or global conflicts or other public health crises.
As a result, our operating results could suffer due to: ▪ any decline in demand for our eSignature product; ▪ the failure of our eSignature product to maintain market acceptance; ▪ the market for electronic signatures failing to grow, or growing more slowly than we expect; ▪ new products and technologies from our competitors that replace or represent an improvement over our eSignature product; ▪ new technological innovations or standards that our eSignature product does not address; ▪ changes in regulations; ▪ sensitivity to our current or future pricing; ▪ our inability to release enhanced versions of our eSignature product on a timely basis; and ▪ macro- and micro-economic factors, including inflation, changes in interest rates or foreign exchange rates, increased debt and equity market volatility, tariffs and trade policy changes, geopolitical conflict or public health crises.
Our systems and security measures have been, and may in the future be, compromised or subject to data breaches, cyberattacks, or other malicious activity, which could result in customers reducing or stopping their use of our products, our reputation being harmed, and significant liabilities and adverse effects on our operating results and financial condition.
Our systems and security measures have been, and may in the future be, compromised or subject to data breaches, cyberattacks, or other malicious activity, and third parties have attempted and may continue to attempt to exploit our platform or brand to defraud others, which could result in customers reducing or stopping their use of our products, our reputation being harmed, and significant liabilities and adverse effects on our operating results and financial condition.
In order to maintain and improve the effectiveness of such controls, we have expended, and anticipate that we will continue to expend, significant resources. For example, since our IPO, we have hired additional accounting and financial staff with appropriate public company experience and technical accounting knowledge to assist in our compliance efforts.
In order to maintain and improve the effectiveness of such controls, we have expended, and anticipate that we will continue to expend, significant resources, including on accounting and financial staff with appropriate public company experience and technical accounting knowledge to assist in our compliance efforts.
Failure to establish and maintain relationships with partners that can provide complementary technology offerings and software integrations could limit our ability to grow our business. DocuSign, Inc.| 2024 Form 10-K | 20 Our products and solutions seamlessly integrate with hundreds of other software applications, including Google, Microsoft, Oracle, Salesforce, SAP, and ServiceNow.
Failure to establish and maintain relationships with partners that can provide complementary technology offerings and software integrations could limit our ability to grow our business. Our products and solutions seamlessly integrate with hundreds of other software applications, including Google, Microsoft, Workday, Salesforce, SAP, and ServiceNow.
In addition, acquisitions of our partners by our competitors could result in a decrease in the number of our current and potential customers, as our partners may no longer facilitate the adoption of our products and solutions by potential customers.
In addition, acquisitions of our partners by our competitors could result in a decrease in the number of our current and potential customers, as our partners may no longer facilitate the adoption of our products and solutions by Docusign, Inc. | 2025 Form 10-K | 20 potential customers.
We expect that we may need to change our pricing or pricing structures from time to time, including in connection with the launch of new or enhanced offerings for automating the agreement process or in response to competitive pressures.
We expect that we may need to change our pricing or pricing structures from time to time, including in connection with the launch of our IAM platform and new or enhanced offerings or in response to competitive pressures.
DocuSign, Inc.| 2024 Form 10-K | 21 Different pricing structures apply to our DocuSign product offerings. For DocuSign eSignature, we price our subscriptions based on the functionality required by our customers and the quantity of Envelopes provisioned.
Different pricing structures apply to our Docusign product offerings. For eSignature, we price our subscriptions based on the functionality required by our customers and the quantity of Envelopes required by our customers.
Our renewal and expansion rates may decline or fluctuate as a result of a number of factors, including customer spending levels, customer dissatisfaction, decreases in the number of users with our customers, changes in the type and size of our customers, pricing, competitive conditions, customer attrition and general economic and global market conditions, including as a result of inflation, volatile interest rates, DocuSign, Inc.| 2024 Form 10-K | 14 actual or perceived instability in the global banking sector, increased debt and equity market volatility and the impact of regional or global conflicts or other public health crises.
Our renewal and expansion rates may decline or fluctuate as a result of a number of factors, including customer spending levels, customer dissatisfaction, decreases in the number of users with our customers, changes in the type and size of our customers, pricing, competitive conditions, customer Docusign, Inc. | 2025 Form 10-K | 14 attrition and general economic and global market conditions, including as a result of inflation, changes in interest rates, increased debt and equity market volatility, tariffs and trade policy changes, geopolitical conflicts or public health crises.
Legal and Regulatory Risks • Any actual or perceived failure to comply with laws and regulations affecting our business. • Legal proceedings against us by third parties for various claims, including any current or future legal proceedings. • Any failure to adequately protect our proprietary rights, including intellectual property rights. • The implementation of AI in our business and challenges with properly governing its use.
Legal and Regulatory Risks • Any actual or perceived failure to comply with laws and regulations affecting our business. • Legal proceedings against us by third parties for various claims, including any current or future legal proceedings. • Any failure to adequately protect our proprietary rights, including intellectual property rights.
Additional factors that may influence the length and variability of our sales cycle include: ▪ the effectiveness of our sales force; ▪ the discretionary nature of purchasing and budget cycles and decisions; ▪ the obstacles placed by customers’ procurement process; ▪ economic conditions, including due to inflation, volatile interest rates, a potential U.S. government shutdown, increased debt and equity market volatility, and other factors impacting customer budgets; ▪ the customer’s integration complexity; ▪ the customer’s familiarity with e-signature and agreement automation processes; ▪ the complexity of contracts with certain large business customers, including customers in the public sector or other highly regulated industries; ▪ customer evaluation of competing products during the purchasing process; ▪ the competitive market for our products and services; and ▪ evolving customer demands.
Additional factors that may influence the length and variability of our sales cycle include: ▪ the effectiveness of our sales force; ▪ the discretionary nature of purchasing and budget cycles and decisions; ▪ the obstacles placed by customers’ procurement process; ▪ economic conditions, including due to inflation, changes in interest rates, government shutdowns or reductions in the government workforce, increased debt and equity market volatility, geopolitical conflict, public health crises and other factors impacting customer budgets; ▪ the customer’s integration complexity; ▪ the customer’s familiarity with e-signature and agreement automation processes; ▪ the complexity of contracts and regulatory requirements for certain large business customers, including customers in the public sector or other highly regulated industries; ▪ customer evaluation of competing products during the purchasing process; ▪ the competitive market for our products and services; and Docusign, Inc. | 2025 Form 10-K | 24 ▪ evolving customer demands.
Negative conditions in the general economy both in the U.S. and abroad, including conditions resulting from inflation, changes in interest rates, actual or perceived instability in the global banking sector, gross domestic product growth, financial and credit market fluctuations, political turmoil, natural catastrophes and the effects of climate change, public health crises, regional and global conflicts and terrorist attacks in the U.S., Europe, the Asia Pacific region or elsewhere, could cause a decrease in business investments, including spending on information technology, and negatively affect the growth of our business.
Negative conditions in the general economy both in the U.S. and abroad, including conditions resulting from inflation, changes in interest rates or foreign exchange rates, tariffs and trade policy changes, gross domestic product growth, financial and credit market fluctuations, geopolitical conflict, natural catastrophes and the effects of climate change, public health crises, and terrorist attacks in the U.S., Europe, the Asia Pacific region or elsewhere, could cause a decrease in business investments, including spending on information technology, and negatively affect the growth of our business.
Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights.
Furthermore, our efforts to enforce our intellectual property rights may be Docusign, Inc. | 2025 Form 10-K | 30 met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights.
We may choose to significantly invest in the development and maintenance of proprietary datasets and training models, and development of appropriate protections, safeguards, and policies for handling the processing of data with our AI features and applications, which may be costly, subject us to legal liability, and negatively impact our business, financial condition, and results of operations.
We may choose to significantly invest in the development and maintenance of proprietary datasets and training models and the development of appropriate protections, safeguards, and policies for handling the processing of data, including transparency of customer data extraction and usage in training models, with our AI features and applications, which may be costly and subject us to legal liability.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWhile everyone at our company plays a part in managing these risks, oversight responsibility is shared by our board of directors, our Audit Committee, and management. Accordingly, our management team provides regular cybersecurity updates to our board of directors and DocuSign, Inc.| 2024 Form 10-K | 39 regular updates on cyber risk management to the Audit Committee.
Biggest changeWhile everyone at our company plays a part in managing these risks, oversight responsibility is shared by our board of directors, our Audit Committee, and management.
We also maintain information security risk insurance coverage. We have recently also established a Security Governance Council (“Council”) that provides strategic guidance for the protection of our information, technology, and physical assets, including the definition of security risks and the prioritization of the implementation of associated controls.
Docusign, Inc. | 2025 Form 10-K | 38 We have recently also established a Security Governance Council (“Council”) that provides strategic guidance for the protection of our information, technology, and physical assets, including the definition of security risks and the prioritization of the implementation of associated controls.
In general, we seek to address cybersecurity risks through a comprehensive, cross-functional approach that is focused on preserving the confidentiality, integrity, and availability of the information that we collect and store by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.
Our approach is focused on preserving the confidentiality, integrity, and availability of the information that we collect and store by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur through shared processes.
Members of executive leadership are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described herein, including the operation of our incident response plan.
Our CISO also holds a bachelor’s degree in computer science and maintains Certified Information Systems Security Professional certification. Members of executive leadership are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described herein, including the operation of our incident response plan.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program is guided by industry standards developed by the NIST, the International Organization for Standardization (“ISO”), and other relevant organizations.
Our cybersecurity risk management program is guided by industry standards developed by the National Institute of Standards and Technology (“NIST”), the International Organization for Standardization (“ISO”), and other relevant organizations. Our cybersecurity risk management program is integrated into our overall enterprise risk management program and utilizes common reporting channels and governance processes that apply across other risk areas.
Our cybersecurity risk management program is integrated into our overall enterprise risk management program and utilizes common reporting channels and governance processes that apply across other risk areas.
Removed
Our CISO also holds a bachelor’s degree in computer science and maintains Certified Information Systems Security Professional (“CISSP”) certification.
Added
In general, we seek to address cybersecurity risks through a comprehensive, cross-functional approach by engaging teams across the business. We expect these teams to operate pursuant to our Standard Operating Procedures.
Added
To facilitate coordinated supervision of cybersecurity matters, our management team provides regular cybersecurity updates to our board of directors and regular updates on cyber risk management, which include development regarding our cybersecurity program, broader cybersecurity trends, evolving industry standards, the threat environment and other topics, to the Audit Committee.
Added
Together with management, our Audit Committee and board of directors consider this information in their review of our cybersecurity risks and response to data breaches. We also maintain information security risk insurance coverage.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. We have received, and may in the future continue to receive claims from third parties asserting, among other things, infringement of their intellectual property rights.
Biggest changeITEM 3. LEGAL PROCEEDINGS We are subject to legal proceedings and claims from time to time in the ordinary course of business. We have received, and may in the future continue to receive claims from third parties asserting, among other things, infringement of their intellectual property rights.
The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. DocuSign, Inc.
The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Removed
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.
Added
For more information on legal proceedings, refer to the section captioned ‘Claims and Litigation’ in Note 10 to our consolidated financial statements in this Annual Report on Form 10-K. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. Docusign, Inc. | 2025 Form 10-K | 39 PART II - OTHER INFORMATION
Removed
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.
Removed
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.
Removed
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.
Removed
DocuSign, Inc.| 2024 Form 10-K | 40 Five 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.
Removed
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.
Removed
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; and on March 7, 2024 in the Delaware Court of Chancery, captioned Roy v. Alhadeff, et al., Case No. C.A. 2024-0223-JTL. Each case is allegedly brought on the Company’s behalf.
Removed
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.
Removed
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.
Removed
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.
Removed
By court order dated July 19, 2022, the 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.
Removed
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.
Removed
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.
Removed
The Delaware Court of Chancery issued an order on September 30, 2022 staying the action in light of the securities class action and no response to the complaint will be due unless and until the stay is lifted. We anticipate seeking a stay of the newly filed Delaware suit (Roy) on similar terms.
Removed
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.
Removed
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.
Removed
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.
Removed
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. DocuSign has opposed this motion, which remains pending before the Delaware Court of Chancery. In addition, on January 26, 2023, Mr.
Removed
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.
Removed
Wilderotter, including defamation, withholding promised compensation and breach of contract; and seeks unspecified damages and other relief. The arbitration hearing for this case took place from March 11-15, 2024, and a final order from the arbitrator is expected on or before June 30, 2024. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II - OTHER INFORMATION

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+2 added−1 removed3 unchanged
Biggest changePurchases of Equity Securities by the Issuer and Affiliated Purchasers In March 2022, our board of directors authorized and approved a stock repurchase program of up to $200.0 million of our outstanding common stock.
Biggest changePurchases of Equity Securities by the Issuer and Affiliated Purchasers Period Total Number of Shares Purchased (1) Average Price Paid Per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) November 1 - November 30 — — — $769,641 December 1 - December 31 1,073,551 $95.21 1,073,551 $667,425 January 1 - January 31 659,779 $90.20 659,779 $607,916 Total 1,733,330 1,733,330 $607,916 (1) In March 2022, our board of directors authorized and approved a stock repurchase program of up to $200.0 million of our outstanding common stock.
In September 2023, our board of directors authorized an increase to our existing stock repurchase program for an additional amount of up to $300.0 million of our outstanding common stock.
Subsequently, in September 2023, our board of directors authorized an increase to our existing stock repurchase program for an additional amount of up to $300.0 million of our outstanding common stock.
Securities Authorized for Issuance under Equity Compensation Plans The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2024 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after January 31, 2024.
Securities Authorized for Issuance under Equity Compensation Plans The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2025 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after January 31, 2025.
The graph assumes $100 was invested on January 31, 2019, in our common stock and in each of the S&P 500 Index and the S&P 500 Information Technology Index. Data for the S&P 500 Index and the S&P 500 Information Technology Index assume reinvestment of dividends.
The graph assumes $100 was invested on January 31, 2020, in our common stock and in each of the S&P 500 Index and the S&P 500 Information Technology Index. Data for the S&P 500 Index and the S&P 500 Information Technology Index assume reinvestment of dividends.
The graph below compares the cumulative total stockholder return on our common stock with the cumulative total return on the S&P 500 Index and the S&P 500 Information Technology Index for the five years ended January 31, 2024.
The graph below compares the cumulative total stockholder return on our common stock with the cumulative total return on the S&P 500 Index and the S&P 500 Information Technology Index for the five years ended January 31, 2025.
The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock. DocuSign, Inc.| 2024 Form 10-K | 42 Recent Sales of Unregistered Equity Securities None. Use of Proceeds None.
The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock. Docusign, Inc. | 2025 Form 10-K | 40 Recent Sales of Unregistered Equity Securities None. Use of Proceeds None.
The actual number of stockholders is greater than the number of holders of record and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. Dividend Policy DocuSign, Inc.| 2024 Form 10-K | 41 We have never declared or paid any cash dividend on our common stock.
The actual number of stockholders is greater than the number of holders of record and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. Dividend Policy We have never declared or paid any cash dividend on our common stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK Market Price of our Common Stock Our common stock is traded on The Nasdaq Global Select Market under the symbol DOCU. Holders of our Common Stock As of February 29, 2024, there were 84 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK Market Price of our Common Stock Our common stock is traded on The Nasdaq Global Select Market under the symbol DOCU. Holders of our Common Stock As of February 28, 2025, there were 67 holders of record of our common stock.
The program has no expiration date and will continue until otherwise suspended, terminated, or modified at any time for any reason by our board of directors. No repurchases occurred under the program during the three months ended January 31, 2024.
The program has no expiration date and will continue until otherwise suspended, terminated, or modified at any time for any reason by our board of directors. See Note 1 1 of this Annual Report on Form 10-K for additional information related to stock repurchases.
Removed
As of January 31, 2024, the approximate dollar value of shares that may yet be purchased under the stock repurchase program was $291.5 million. See Note 1 0 of this Annual Report on Form 10-K for additional information related to stock repurchases. ITEM 6. Reserved
Added
Most recently, 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.
Added
(2) Average price paid includes costs associated with the repurchases, excluding the 1% excise tax as a result of the Inflation Reduction Act (“IRA”). ITEM 6. Reserved Docusign, Inc. | 2025 Form 10-K | 41

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

57 edited+33 added−29 removed55 unchanged
Biggest changeDocuSign, Inc.| 2024 Form 10-K | 55 Reconciliation of gross profit (loss) and gross margin: Year Ended January 31, (in thousands) 2024 2023 2022 GAAP gross profit $ 2,189,261 $ 1,979,827 $ 1,640,762 Add: Stock-based compensation 79,996 72,674 58,499 Add: Amortization of acquisition-related intangibles 8,857 9,613 11,670 Add: Employer payroll tax on employee stock transactions 2,262 2,184 7,524 Add: Lease-related impairment and lease-related charges 721 1,090 — Non-GAAP gross profit $ 2,281,097 $ 2,065,388 $ 1,718,455 GAAP gross margin 79 % 79 % 78 % Non-GAAP adjustments 4 % 3 % 4 % Non-GAAP gross margin 83 % 82 % 82 % GAAP subscription gross profit $ 2,226,803 $ 2,016,100 $ 1,693,611 Add: Stock-based compensation 51,660 46,916 31,152 Add: Amortization of acquisition-related intangibles 8,857 9,613 11,670 Add: Employer payroll tax on employee stock transactions 1,464 1,393 3,703 Add: Lease-related impairment and lease-related charges 505 447 — Non-GAAP subscription gross profit $ 2,289,289 $ 2,074,469 $ 1,740,136 GAAP subscription gross margin 83 % 83 % 83 % Non-GAAP adjustments 2 % 2 % 2 % Non-GAAP subscription gross margin 85 % 85 % 85 % GAAP professional services and other gross loss $ (37,542) $ (36,273) $ (52,849) Add: Stock-based compensation 28,336 25,758 27,347 Add: Employer payroll tax on employee stock transactions 798 791 3,821 Add: Lease-related impairment and lease-related charges 216 643 — Non-GAAP professional services and other gross loss $ (8,192) $ (9,081) $ (21,681) GAAP professional services and other gross margin (50) % (49) % (76) % Non-GAAP adjustments 39 % 37 % 45 % Non-GAAP professional services and other gross margin (11) % (12) % (31) % Reconciliation of income (loss) from operations and operating margin: Year Ended January 31, (in thousands) 2024 2023 2022 GAAP income (loss) from operations $ 31,634 $ (88,031) $ (61,884) Add: Stock-based compensation 611,835 533,100 408,542 Add: Amortization of acquisition-related intangibles 19,375 20,706 24,770 Add: Employer payroll tax on employee stock transactions 13,682 12,921 42,192 Add: Restructuring and other related charges 30,381 28,335 — Add: Lease-related impairment and lease-related charges 4,460 7,181 5,099 Add: Executive transition costs — 2,634 — Add: Acquisition-related expenses — — 387 Non-GAAP income from operations $ 711,367 $ 516,846 $ 419,106 GAAP operating margin 1 % (3) % (3) % Non-GAAP adjustments 25 % 24 % 23 % Non-GAAP operating margin 26 % 21 % 20 % DocuSign, Inc.| 2024 Form 10-K | 56 Reconciliation of net income (loss): Year Ended January 31, (in thousands, except per share data) 2024 2023 2022 GAAP net income (loss) $ 73,980 $ (97,454) $ (69,976) Add: Stock-based compensation 611,835 533,100 408,542 Add: Amortization of acquisition-related intangibles 19,375 20,706 24,770 Add: Employer payroll tax on employee stock transactions 13,682 12,921 42,192 Add: Amortization of debt discount and issuance costs 5,175 4,970 5,098 Add: Fair value adjustments to strategic investments 22 3,689 (5,270) Add: Restructuring and other related charges 30,381 28,335 — Add: Lease-related impairment and lease-related charges 4,460 7,181 5,099 Add: Executive transition costs — 2,634 — Add: Acquisition-related expenses — — 387 Add: Income Tax effect of non-GAAP adjustments (1) (136,023) (97,158) — Non-GAAP net income $ 622,887 $ 418,924 $ 410,842 (1) Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.
Biggest changeDocusign, Inc. | 2025 Form 10-K | 54 Reconciliation of gross profit (loss) and gross margin: Year Ended January 31, (in thousands) 2025 2024 2023 GAAP gross profit $ 2,355,080 $ 2,189,261 $ 1,979,827 Add: Stock-based compensation 76,987 79,996 72,674 Add: Amortization of acquisition-related intangibles 12,267 8,857 9,613 Add: Employer payroll tax on employee stock transactions 3,909 2,262 2,184 Add: Lease-related impairment and lease-related charges — 721 1,090 Non-GAAP gross profit $ 2,448,243 $ 2,281,097 $ 2,065,388 GAAP gross margin 79.1 % 79.3 % 78.7 % Non-GAAP adjustments 3.1 % 3.3 % 3.4 % Non-GAAP gross margin 82.2 % 82.6 % 82.1 % GAAP subscription gross profit $ 2,368,864 $ 2,226,803 $ 2,016,100 Add: Stock-based compensation 58,348 51,660 46,916 Add: Amortization of acquisition-related intangibles 12,267 8,857 9,613 Add: Employer payroll tax on employee stock transactions 2,882 1,464 1,393 Add: Lease-related impairment and lease-related charges — 505 447 Non-GAAP subscription gross profit $ 2,442,361 $ 2,289,289 $ 2,074,469 GAAP subscription gross margin 81.6 % 82.9 % 82.6 % Non-GAAP adjustments 2.6 % 2.3 % 2.3 % Non-GAAP subscription gross margin 84.2 % 85.2 % 84.9 % GAAP professional services and other gross loss $ (13,784) $ (37,542) $ (36,273) Add: Stock-based compensation 18,639 28,336 25,758 Add: Employer payroll tax on employee stock transactions 1,027 798 791 Add: Lease-related impairment and lease-related charges — 216 643 Non-GAAP professional services and other gross income (loss) $ 5,882 $ (8,192) $ (9,081) GAAP professional services and other gross margin (18.3) % (49.9) % (49.2) % Non-GAAP adjustments 26.1 % 39.0 % 36.9 % Non-GAAP professional services and other gross margin 7.8 % (10.9) % (12.3) % Docusign, Inc. | 2025 Form 10-K | 55 Reconciliation of income (loss) from operations and operating margin: Year Ended January 31, (in thousands) 2025 2024 2023 GAAP income (loss) from operations $ 199,928 $ 31,634 $ (88,031) Add: Stock-based compensation 605,499 611,835 533,100 Add: Amortization of acquisition-related intangibles 24,717 19,375 20,706 Add: Employer payroll tax on employee stock transactions 21,793 13,682 12,921 Add: Acquisition-related expenses 4,340 — — Add: Restructuring and other related charges 29,721 30,381 28,335 Add: Lease-related impairment and lease-related charges — 4,460 7,181 Add: Executive transition costs — — 2,634 Non-GAAP income from operations $ 885,998 $ 711,367 $ 516,846 GAAP operating margin 6.7 % 1.1 % (3.5) % Non-GAAP adjustments 23.1 % 24.7 % 24.0 % Non-GAAP operating margin 29.8 % 25.8 % 20.5 % Reconciliation of net income (loss): Year Ended January 31, (in thousands) 2025 2024 2023 GAAP net income (loss) $ 1,067,885 $ 73,980 $ (97,454) Add: Stock-based compensation 605,499 611,835 533,100 Add: Amortization of acquisition-related intangibles 24,717 19,375 20,706 Add: Employer payroll tax on employee stock transactions 21,793 13,682 12,921 Add: Acquisition-related expenses 4,340 — — Add: Restructuring and other related charges 29,721 30,381 28,335 Add: Amortization of debt discount and issuance costs — 5,175 4,970 Add: Fair value adjustments to strategic investments — 22 3,689 Add: Lease-related impairment and lease-related charges — 4,460 7,181 Add: Executive transition costs — — 2,634 Add: Income tax and other tax adjustments (1,006,746) (136,023) (97,158) Non-GAAP net income $ 747,209 $ 622,887 $ 418,924 Computation of free cash flow: Year Ended January 31, (in thousands) 2025 2024 2023 Net cash provided by operating activities $ 1,017,272 $ 979,526 $ 506,759 Less: Purchases of property and equipment (96,988) (92,391) (77,654) Non-GAAP free cash flow $ 920,284 $ 887,135 $ 429,105 Net cash provided by (used in) investing activities $ (312,876) $ 44,612 $ (191,197) Net cash used in financing activities $ (838,791) $ (946,039) $ (98,256) Docusign, Inc. | 2025 Form 10-K | 56 Computation of billings: Year Ended January 31, (in thousands) 2025 2024 2023 Revenue $ 2,976,739 $ 2,761,882 $ 2,515,915 Add: Contract liabilities and refund liability, end of period 1,479,266 1,343,792 1,191,269 Less: Contract liabilities and refund liability, beginning of period (1,343,792) (1,191,269) (1,049,106) Add: Contract assets and unbilled accounts receivable, beginning of period 20,189 16,615 18,273 Less: Contract assets and unbilled accounts receivable, end of period (17,825) (20,189) (16,615) Add: Contract assets and unbilled accounts receivable contributed by acquisitions 53 — — Less: Contract liabilities and refund liability contributed by acquisitions (5,071) — — Non-GAAP billings $ 3,109,559 $ 2,910,831 $ 2,659,736 Docusign, Inc. | 2025 Form 10-K | 57
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin and non-GAAP net income : We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, amortization of debt discount and issuance costs, acquisition-related expenses, fair value adjustments to strategic investments, executive transition costs, lease-related impairment and lease-related charges, restructuring and other related charges and, as applicable, other special items.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin and non-GAAP net income : We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, amortization of debt discount and issuance costs, acquisition-related expenses, fair value adjustments to strategic investments, executive transition costs, lease-related impairment and lease-related charges, restructuring and other related charges, as these costs are not reflective of ongoing operations, and, as applicable, other special items.
Cash Flows from Financing Activities For the year ended January 31, 2024, cash used in financing activities of $946.0 million was primarily driven by the maturity of the Notes, stock repurchase program, and payments related to our equity plans. We fully repaid the 2023 Notes and 2024 Notes during fiscal 2024 for $727.0 million.
For the year ended January 31, 2024, net cash used in financing activities of $946.0 million was primarily driven by the maturity of the Notes, our stock repurchase program, and payments related to our equity plans. We fully repaid the 2023 Notes and 2024 Notes during fiscal 2024 for $727.0 million.
DocuSign, Inc.| 2024 Form 10-K | 53 We recognize compensation expense net of forfeitures that are estimated at the time of grant based on historical experience and our expectations regarding future pre-vesting termination behavior of employees and revise in subsequent periods if actual forfeitures differ from those estimates.
We recognize compensation expense net of forfeitures that are estimated at the time of grant based on historical experience and our expectations regarding future pre-vesting termination behavior of employees and revise in Docusign, Inc. | 2025 Form 10-K | 52 subsequent periods if actual forfeitures differ from those estimates.
DocuSign, Inc.| 2024 Form 10-K | 45 Components of Results of Operations Revenue We derive revenue primarily from the sale of subscriptions and, to a lesser extent, professional services. Subscription Revenue Subscription revenue consists of fees for the use of our software platform and our technical infrastructure and access to customer support, which includes phone or email support.
Docusign, Inc. | 2025 Form 10-K | 44 Components of Results of Operations Revenue We derive revenue primarily from the sale of subscriptions and, to a lesser extent, professional services. Subscription Revenue Subscription revenue consists of fees for the use of our software platform and our technical infrastructure and access to customer support, which includes phone or email support.
The number of our customers with greater than $300,000 in annualized contract value was 1,060 customers as of January 31, 2024 compared to 1,080 customers as of January 31, 2023. Each of our customer types has a different purchasing pattern.
The number of our customers with greater than $300,000 in annualized contract value was 1,131 customers as of January 31, 2025 compared to 1,060 customers as of January 31, 2024. Each of our customer types has a different purchasing pattern.
Therefore, a substantial source of our cash is from such invoices, which are included on our consolidated balance sheets in contract liabilities until revenue is recognized and in accounts receivable until cash is collected. Accordingly, collections from our customers have a material impact on our cash flows from operating activities.
We typically invoice our customers annually in advance. Therefore, a substantial source of our cash is from such invoices, which are included on our consolidated balance sheets in contract liabilities until revenue is recognized and in accounts receivable until cash is collected. Accordingly, collections from our customers have a material impact on our cash flows from operating activities.
Refer to Not e 7 , Not e 8 and Note 9 to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K for more information. We do not have any special purpose entities and we do not engage in off-balance sheet financing arrangements.
Refer to Note 9 and Note 10 to the Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report on Form 10-K. We do not have any special purpose entities and we do not engage in off-balance sheet financing arrangements.
DocuSign, Inc.| 2024 Form 10-K | 54 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.
Docusign, Inc. | 2025 Form 10-K | 53 Non-GAAP Financial Measures and Other Key Metrics To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance.
DocuSign, Inc.| 2024 Form 10-K | 46 Operating Expenses Our operating expenses consist of sales and marketing, research and development, general and administrative, and restructuring and other related charges.
Docusign, Inc. | 2025 Form 10-K | 45 Operating Expenses Our operating expenses consist of sales and marketing, research and development, general and administrative, and restructuring and other related charges.
We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2023 and fiscal 2024, we have determined the projected non-GAAP tax rate to be 20%.
We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For each of the years ended January 31, 2025, 2024 and 2023, we have determined the projected non-GAAP tax rate to be 20%.
We refer to total customers as all enterprises, commercial businesses and VSBs. We believe that our ability to increase the number of customers using our products, particularly the number of enterprise and commercial customers, is an indicator of our market penetration, the growth of our business and our potential future business opportunities.
We believe that our ability to increase the number of customers using our products, particularly the number of enterprise and commercial customers, is an indicator of our market penetration, the growth of our business and our potential future business opportunities.
Our primary sources of cash provided by operating activities were billings and the related cash collections in addition to interest income due to favorable interest rates. Our primary uses of cash include the payment of employee salaries and benefits, including the payment of termination benefits under the 2024 Restructuring plan, in addition to vendor payments.
Our primary sources of cash provided by operating activities were billings and the related cash collections in addition to interest income. Our primary uses of cash include the payment of employee salaries and benefits, including the payment of termination benefits under the restructuring plan authorized in fiscal 2025 (the “2025 Restructuring Plan”), in addition to vendor payments.
Changes to the estimates we make from time to time may have a significant impact on our stock-based compensation expense and could materially impact our results of operations.
Our assumptions may differ from those used in prior periods. Changes to the estimates we make from time to time may have a significant impact on our stock-based compensation expense and could materially impact our results of operations.
Key Factors Affecting Our Performance We believe that our future performance will depend on many factors, including the following: Investing for Growth We believe that our market opportunity is large, and we plan to invest to support further growth.
Key Factors Affecting Our Performance We believe that our future performance will depend on many factors, including the following: Investing for Growth We believe that our market opportunity is large, and we plan to invest to support long-term growth. We have three growth pillars in our long-term strategy.
We believe that our sources of liquidity, including our cash, cash equivalents and investments, and expected future operating cash flows, and borrowing capacity available to us from our credit facility, are adequate to meet the potential cash commitments for the foreseeable future, including upcoming maturities in the next 12 months related to our lease obligations.
We believe that our sources of liquidity, including our cash, cash equivalents and investments, and expected future operating cash flows, and borrowing capacity available to us from our credit facility, are adequate to meet our potential cash commitments as well as meet our working capital and capital expenditure needs for the foreseeable future, including upcoming maturities of our contractual obligations over the next 12 months.
Research and Development Year Ended January 31, 2024 vs 2023 (in thousands) 2024 2023 Research and development $ 539,488 $ 480,584 12 % Percentage of revenue 20 % 19 % Research and development expenses increased $58.9 million, or 12%, in the year ended January 31, 2024, primarily due to investments in our workforce and product innovation.
Research and Development Year Ended January 31, 2025 vs 2024 (in thousands) 2025 2024 Research and development $ 588,455 $ 539,488 9 % Percentage of revenue 20 % 20 % Research and development expenses increased $49.0 million, or 9%, in the year ended January 31, 2025, primarily due to investments in our workforce and product innovation.
The weight given to the evidence is commensurate with the extent to which it can be objectively verified. In recognizing tax benefits from uncertain tax positions, we assess whether it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.
In recognizing tax benefits from uncertain tax positions, we assess whether it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.
We have a diverse customer base spanning across virtually all industries and around the world with no significant customer concentration. No single customer accounted for more than 10% of total revenue in any of the years presented. We focused initially on selling our products to commercial businesses and VSBs and later expanded our focus to target enterprise customers.
No single customer accounted for more than 10% of total revenue in any of the years presented. We focused initially on selling our products to commercial businesses and VSBs and later expanded our focus to target enterprise customers.
Interest Expense Interest expense consists primarily of contractual interest expense and amortization of debt issuance costs on our Convertible Senior Notes due 2023 and our Convertible Senior Notes due 2024 (collectively, the “Notes”).
Interest Expense In fiscal 2023 and 2024, interest expense consisted primarily of contractual interest expense and amortization of debt issuance costs on our Convertible Senior Notes due 2023 (the “2023 Notes”) and our Convertible Senior Notes due 2024 (the “2024 Notes”). The 2023 Notes and the 2024 Notes (collectively, the “Notes”) were extinguished during fiscal 2024.
As of January 31, 2024, we had a total of over 1.5 million customers, including approximately 242,000 enterprise and commercial customers, compared to over 1.3 million customers and approximately 211,000 enterprise and commercial customers as of January 31, 2023. We define enterprise customers as companies generally included in the Global 2000.
We had a total of over 1.5 million customers and approximately 242,000 customers served by our direct sales force as of January 31, 2024. We define enterprise customers as companies generally included in the Global 2000.
The critical accounting estimates, assumptions and judgments that we believe to have the most significant impact on our consolidated financial statements are revenue recognition, deferred contract acquisition costs, stock-based compensation, income taxes and loss contingencies. Revenue Recognition We recognize revenue from contracts with customers using the five-step method described in Note 1 to the consolidated financial statements.
Our actual results could differ from these estimates. The critical accounting estimates, assumptions and judgments that we believe to have the most significant impact on our consolidated financial statements are revenue recognition, deferred contract acquisition costs, stock-based compensation, income taxes and loss contingencies.
The fair value of RSUs is determined by the fair value of our underlying common stock. From time to time, we grant RSUs that also include performance-based or market-based conditions. For RSUs granted with a market condition, we use a Monte Carlo option-pricing model to determine the fair value of the RSUs.
From time to time, we grant RSUs that also include performance-based or market-based conditions. The fair value of RSUs, including those granted with a performance condition, is estimated on the date of grant based on the fair value of our underlying common stock.
DocuSign, Inc.| 2024 Form 10-K | 48 Cost of Revenue and Gross Margin Year Ended January 31, 2024 vs 2023 (in thousands) 2024 2023 Cost of revenue: Subscription $ 459,905 $ 426,077 8 % Professional services and other 112,716 110,011 2 % Total cost of revenue $ 572,621 $ 536,088 7 % Gross margin: Subscription 83 % 83 % — pts Professional services and other (50) % (49) % (1) pts Total gross margin 79 % 79 % — pts Cost of subscription revenue increased $33.8 million, or 8%, in the year ended January 31, 2024, primarily driven by higher costs to support our growing customer base.
Docusign, Inc. | 2025 Form 10-K | 47 Cost of Revenue and Gross Margin Year Ended January 31, 2025 vs 2024 (in thousands) 2025 2024 Cost of revenue: Subscription $ 532,445 $ 459,905 16 % Professional services and other 89,214 112,716 (21) % Total cost of revenue $ 621,659 $ 572,621 9 % Gross margin: Subscription 82 % 83 % (1) pts Professional services and other (18) % (50) % 32 pts Total gross margin 79 % 79 % — pts Cost of subscription revenue increased $72.5 million, or 16%, in the year ended January 31, 2025, primarily driven by higher costs to support our growing customer base.
DocuSign, Inc.| 2024 Form 10-K | 47 Discussion of Results of Operations The following table summarizes our historical consolidated statements of operations data: Year Ended January 31, (in thousands) 2024 As % of Revenue 2023 As % of Revenue Revenue: Subscription $ 2,686,708 97 % $ 2,442,177 97 % Professional services and other 75,174 3 73,738 3 Total revenue 2,761,882 100 2,515,915 100 Cost of revenue: Subscription 459,905 17 426,077 17 Professional services and other 112,716 4 110,011 4 Total cost of revenue 572,621 21 536,088 21 Gross profit 2,189,261 79 1,979,827 79 Operating expenses: Sales and marketing 1,168,137 42 1,242,711 49 Research and development 539,488 20 480,584 19 General and administrative 419,621 15 316,228 13 Restructuring and other related charges 30,381 1 28,335 1 Total operating expenses 2,157,627 78 2,067,858 82 Income (loss) from operations 31,634 1 (88,031) (3) Interest expense (6,844) — (6,389) (1) Interest income and other income, net 68,889 2 4,539 — Income (loss) before provision for income taxes 93,679 3 (89,881) (4) Provision for income taxes 19,699 — 7,573 — Net income (loss) $ 73,980 3 % $ (97,454) (4) % For a comparison of our results of operations for the fiscal years ended January 31, 2023 and 2022, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed with the SEC on March 27, 2023.
Docusign, Inc. | 2025 Form 10-K | 46 Discussion of Results of Operations The following table summarizes our historical consolidated statements of operations data: Year Ended January 31, (in thousands) 2025 As % of Revenue 2024 As % of Revenue Revenue: Subscription $ 2,901,309 97 % $ 2,686,708 97 % Professional services and other 75,430 3 75,174 3 Total revenue 2,976,739 100 2,761,882 100 Cost of revenue: Subscription 532,445 18 459,905 17 Professional services and other 89,214 3 112,716 4 Total cost of revenue 621,659 21 572,621 21 Gross profit 2,355,080 79 2,189,261 79 Operating expenses: Sales and marketing 1,160,993 39 1,168,137 42 Research and development 588,455 20 539,488 20 General and administrative 375,983 12 419,621 15 Restructuring and other related charges 29,721 1 30,381 1 Total operating expenses 2,155,152 72 2,157,627 78 Income from operations 199,928 7 31,634 1 Interest expense (1,550) — (6,844) — Interest income and other income, net 49,563 1 68,889 2 Income before provision for (benefit from) income taxes 247,941 8 93,679 3 Provision for (benefit from) income taxes (819,944) (28) 19,699 — Net income $ 1,067,885 36 % $ 73,980 3 % For a comparison of our results of operations for the fiscal years ended January 31, 2024 and 2023, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended January 31, 2024, filed with the SEC on March 21, 2024.
DocuSign, Inc.| 2024 Form 10-K | 51 Cash Flows The following table summarizes our cash flows for the periods indicated: Year Ended January 31, (in thousands) 2024 2023 Net cash provided by (used in): Operating activities $ 979,526 $ 506,759 Investing activities 44,612 (191,197) Financing activities (946,039) (98,256) Effect of foreign exchange on cash, cash equivalents and restricted cash 199 (3,784) Net change in cash, cash equivalents and restricted cash $ 78,298 $ 213,522 Cash Flows from Operating Activities Cash provided by operating activities was $979.5 million for the year ended January 31, 2024.
Docusign, Inc. | 2025 Form 10-K | 50 Cash Flows The following table summarizes our cash flows for the periods indicated: Year Ended January 31, (in thousands) 2025 2024 Net cash provided by (used in): Operating activities $ 1,017,272 $ 979,526 Investing activities (312,876) 44,612 Financing activities (838,791) (946,039) Effect of foreign exchange on cash, cash equivalents and restricted cash (7,550) 199 Net change in cash, cash equivalents and restricted cash $ (141,945) $ 78,298 Cash Flows from Operating Activities Cash provided by operating activities was $1.0 billion for the year ended January 31, 2025.
We define commercial customers to include both mid-market companies, which includes companies outside the Global 2000 that have greater than 250 employees, and medium-sized businesses (“SMBs”) which are companies with between 10 and 249 employees, in each case excluding any enterprise customers. We define VSBs as companies with fewer than 10 employees.
We define mid-market customers as companies outside the Global 2000 that have more than 250 employees, and define SMBs as companies with between 10 and 249 employees, in each case excluding any enterprise customers. We define very small businesses (“VSBs”) as companies with fewer than 10 employees.
For the year ended January 31, 2023, cash used in financing activities of $98.3 million was primarily driven by $63.0 million used to repurchase 1.1 million shares of common stock at an average of $55.52 per share through our stock repurchase program which commenced in fiscal 2023, and $35.2 million payments for tax withholding on share settlements, net of proceeds associated with our equity plans.
Cash Flows from Financing Activities For the year ended January 31, 2025, net cash used in financing activities of $838.8 million was primarily driven by $683.5 million to repurchase 11.0 million shares of common stock through our stock repurchase program and $155.3 million payments for tax withholding on share settlements, net of proceeds associated with our equity plans.
Revenue Year Ended January 31, 2024 vs 2023 (in thousands) 2024 As % of Revenue 2023 As % of Revenue Revenue: Subscription $ 2,686,708 97 % $ 2,442,177 97 % 10 % Professional services and other 75,174 3 73,738 3 2 % Total revenue $ 2,761,882 100 % $ 2,515,915 100 % 10 % Subscription revenue increased $244.5 million, or 10%, in the year ended January 31, 2024.
Revenue Year Ended January 31, 2025 vs 2024 (in thousands) 2025 As % of Revenue 2024 As % of Revenue Revenue: Subscription $ 2,901,309 97 % $ 2,686,708 97 % 8 % Professional services and other 75,430 3 75,174 3 — % Total revenue $ 2,976,739 100 % $ 2,761,882 100 % 8 % Subscription revenue increased $214.6 million, or 8%, in the year ended January 31, 2025.
We continue to invest in a variety of customer programs and initiatives, which, along with expanded customer use cases, have helped increase our subscription revenue over time.
The increase was due to the expansion of revenue from existing customers, primarily within our commercial and enterprise segments and the addition of new customers, primarily from our digital channel. We continue to invest in a variety of customer programs and initiatives, which, along with expanded customer use cases, have helped increase our subscription revenue over time.
Other Income and Expense Year Ended January 31, 2024 vs 2023 (in thousands) 2024 2023 Interest expense $ (6,844) $ (6,389) 7 % Percentage of revenue — % (1) % Interest income and other income, net $ 68,889 $ 4,539 1,418 % Percentage of revenue 2 % — % Interest income and other income, net increased by $64.4 million in the year ended January 31, 2024.
Other Income and Expense Year Ended January 31, 2025 vs 2024 (in thousands) 2025 2024 Interest expense $ (1,550) $ (6,844) (77) % Percentage of revenue — % — % Interest income and other income, net $ 49,563 $ 68,889 (28) % Percentage of revenue 1 % 2 % Interest income and other income, net decreased by $19.3 million in the year ended January 31, 2025.
Other revenue includes amounts derived from sales of on-premises solutions. Professional services and other revenue accounted for the remainder of total revenue in each of the years ended January 31, 2024, 2023 and 2022.
We also generate revenue from professional and other non-subscription services, which consists primarily of fees associated with providing new customers with deployment and integration services. Other revenue includes amounts derived from sales of on-premises solutions. Professional services and other revenue accounted for the remainder of total revenue in each of the years ended January 31, 2025, 2024 and 2023.
The fair value of stock options and ESPP purchase rights are determined by the Black-Scholes option pricing model. For RSUs with a performance condition, we assess the probability that such performance conditions will be met or achieved every reporting period.
For RSUs with a performance condition, we assess the probability that such performance conditions will be met or achieved every reporting period. For RSUs granted with a market condition, we use a Monte Carlo option-pricing model to determine the fair value of the RSUs.
At contract inception we evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation.
Revenue Recognition We recognize revenue from contracts with customers using the five-step method described in Note 1 to the consolidated financial statements. At contract inception, we evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation.
For the year ended January 31, 2023, cash used in investing activities of $191.2 million was primarily driven by $109.8 million net purchases of marketable securities and $77.7 million purchases of property and equipment as we continued to invest in data center build outs to support our growing operations and capitalized software development projects.
For the year ended January 31, 2024, net cash provided by investing activities of $44.6 million was primarily driven by $137.6 million net maturities of marketable securities. These inflows were partially offset by purchases of property and equipment of $92.4 million as we continued to support operations at our data centers and invest in capitalized software development projects.
Obligations and Commitments Our principal contractual obligations and commitments consist of operating leases, as well as noncancelable contractual commitments that primarily relate to cloud infrastructure support and sales and marketing activities .
If we are unable to raise additional capital when desired, our business, operating results and financial condition would be adversely affected. Our principal contractual obligations and commitments consist of obligations under operating leases, as well as noncancelable contractual commitments that primarily relate to cloud infrastructure support and sales and marketing activities.
We anticipate continuing to invest in customer success through our professional services offerings as we believe it plays an important role in accelerating our customers’ adoption of our products, which helps drive customer retention and expansion. We offer subscriptions to our products to businesses at all scales, from global enterprise down to local, VSBs.
We anticipate continuing to invest in customer success through our professional services offerings as we believe it plays an important role in accelerating our customers’ adoption of our products, which helps drive customer retention and expansion. One pillar of our long-term strategy is to evolve our GTM channels from the historically direct sales-driven approach.
Financial Results for the Year Ended January 31, 2024 (in thousands) Year Ended January 31, 2024 Total revenue $ 2,761,882 Total costs and expenses 2,730,248 Total stock-based compensation expense 616,847 Income from operations 31,634 Net income 73,980 Cash provided by operating activities 979,526 Capital expenditures (92,391) Cash, cash equivalents, restricted cash and investments were $1.2 billion as of January 31, 2024.
Docusign, Inc. | 2025 Form 10-K | 42 Financial Results for the Year Ended January 31, 2025 (in thousands) Year Ended January 31, 2025 Total revenue $ 2,976,739 Total costs and expenses 2,776,811 Total stock-based compensation expense 610,335 Income from operations 199,928 Net income 1,067,885 Cash provided by operating activities 1,017,272 Capital expenditures (96,988) Cash, cash equivalents, restricted cash and investments were $1.1 billion as of January 31, 2025.
The increase was partially offset by purchases of property and equipment of $92.4 million as we continue to support operations at our data centers and invest in capitalized software development projects.
Additionally, net purchases of marketable securities were $70.9 million, and purchases of property and equipment were $97.0 million as we continued to support operations at our data centers and invest in capitalized software development projects.
DocuSign, Inc.| 2024 Form 10-K | 49 General and Administrative Year Ended January 31, 2024 vs 2023 (in thousands) 2024 2023 General and administrative $ 419,621 $ 316,228 33 % Percentage of revenue 15 % 13 % General and administrative expenses increased $103.4 million, or 33%, in the year ended January 31, 2024, primarily due to investments in workforce and information technology.
Docusign, Inc. | 2025 Form 10-K | 48 General and Administrative Year Ended January 31, 2025 vs 2024 (in thousands) 2025 2024 General and administrative $ 375,983 $ 419,621 (10) % Percentage of revenue 12 % 15 % General and administrative expenses decreased $43.6 million, or 10%, in the year ended January 31, 2025.
Cash Flows from Investing Activities For the year ended January 31, 2024, cash provided by investing activities of $44.6 million was primarily driven by $137.6 million net maturities of marketable securities.
Cash Flows from Investing Activities For the year ended January 31, 2025, net cash used in investing activities of $312.9 million was primarily driven by the acquisition of Lexion, which totaled $143.6 million, net of acquired cash.
The evaluation of recoverability of the deferred tax assets requires that we weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized.
In making this assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all the deferred tax assets will not be realized.
To the extent our actual forfeiture rate is different from our estimate, stock-based compensation expense is adjusted accordingly. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year.
We record adjustments identified, if any, subsequent to the end of the measurement period in our consolidated statement of operations. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year.
DocuSign, Inc.| 2024 Form 10-K | 52 Critical Accounting Policies and Estimates W e prepare our financial statements in accordance with generally accepted accounting principles (“GAAP”). Preparing these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis.
Preparing these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances.
We have an omnichannel go-to-market approach that consists of direct sales, partners to sell to our customers, and digital self-serve. We offer more than 900 active partner integrations with the applications that many of our customers already use so that they can create, commit, and manage agreements directly within these applications.
We offer more than 1,000 active partner integrations with the applications that many of our customers already use so that they can create, commit, and manage agreements directly within these applications. We have a diverse customer base spanning across virtually all industries and around the world with no significant customer concentration.
We generate substantially all our revenue from sales of subscriptions, which accounted for 97% of our revenue in each of the years ended January 31, 2024, 2023 and 2022. Our subscription fees include the use of our products and access to customer support.
As of January 31, 2025 , nearly 1.7 million customers and more than a billion users worldwide utilize Docusign to accelerate and simplify the process of doing business. We generate substantially all our revenue from sales of subscriptions, which accounted for 97% of our revenue in each of the years ended January 31, 2025, 2024 and 2023.
We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. Accordingly, the need to establish such allowance is assessed periodically by considering matters such as future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations.
In making this assessment, we weigh both positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations, to determine whether it is more likely than not that a deferred tax asset will be realized.
Sales and Marketing Year Ended January 31, 2024 vs 2023 (in thousands) 2024 2023 Sales and marketing $ 1,168,137 $ 1,242,711 (6) % Percentage of revenue 42 % 49 % Sales and marketing expenses decreased $74.6 million, or 6%, in the year ended January 31, 2024, primarily driven by savings on personnel costs from the restructuring plans implemented during the third quarter of fiscal 2023 and the first quarter of fiscal 2024 as well as shifts in the allocation of resources for our go-to-market initiatives.
Sales and Marketing Year Ended January 31, 2025 vs 2024 (in thousands) 2025 2024 Sales and marketing $ 1,160,993 $ 1,168,137 (1) % Percentage of revenue 39 % 42 % Sales and marketing expenses decreased $7.1 million, or 1%, in the year ended January 31, 2025, primarily due to a decrease in marketing and advertising costs due to shifts in line with our go-to-market strategy.
We also used $145.5 million to repurchase 3.1 million shares of common stock at an average of $47.57 per share through our stock repurchase program.
We also used $145.5 million to repurchase 3.1 million shares of common stock through our stock repurchase program. In addition, we made $97.2 million payments for tax withholding on share settlements, net of proceeds associated with our equity plans.
Judgment is required to estimate the expected life of the stock awards, the volatility of the underlying common stock, forfeiture rates and probability of achievement of performance conditions. Our assumptions may differ from those used in prior periods.
The fair value of stock options and ESPP purchase rights is estimated on the date of grant using a Black-Scholes option pricing model. Judgment is required to estimate the expected life of the stock awards, the volatility of the underlying common stock, forfeiture rates and probability of achievement of performance conditions.
We believe there is significant expansion opportunity with our customers following their initial adoption of our software platform. Increasing International Revenue Our international revenue represented 26%, 25% and 23% of our total revenue in each of the years ended January 31, 2024, 2023, and 2022.
Docusign, Inc. | 2025 Form 10-K | 43 Increasing International Revenue Our international revenue represented 28%, 26% and 25% of our total revenue in each of the years ended January 31, 2025, 2024, and 2023.
Increases primarily consisted of: • $55.6 million in stock-based compensation expense driven by charges due to executive new hire grants and transitions and annual merit increases; • $27.8 million in personnel costs driven by annual salary increases to align with the increasing cost of labor; and • $11.4 million due to higher information technology costs.
Increases primarily consisted of: • $23.6 million in personnel costs due to higher headcount, including the Lexion acquisition; and • $20.0 million in stock-based compensation expense due to annual merit increases, and higher headcount, offset partially by lower executive costs.
Subscriptions generally range from one to three years, and substantially all our multi-year customers pay in annual installments, one year in advance. DocuSign, Inc.| 2024 Form 10-K | 43 We also generate revenue from professional and other non-subscription services, which consists primarily of fees associated with providing new customers deployment and integration services.
Our subscription fees include the use of our products and access to customer support. Subscriptions generally range from one to three years, and substantially all our multi-year customers pay in annual installments, one year in advance.
Increases primarily consisted of: • $13.3 million in operating costs to support our platform and revenue growth, including increases in hosting costs as well as processing and authentication costs; • $7.1 million due to higher information technology costs; and • $6.9 million in depreciation on our capitalized software projects.
Increases primarily consisted of: • $42.1 million in information technology costs, including a $33.8 million increase in hosting costs as we transition from co-located data centers to public cloud infrastructure to support future growth; • $18.0 million in personnel costs and $6.7 million in stock-based compensation expense due to higher headcount; and • $7.9 million in depreciation and amortization of our capitalized software projects and technology acquired in the Lexion acquisition.
As of January 31, 2024, we had $1.0 billion in cash and cash equivalents and short-term investments. We also had $122.0 million in long-term investments that provide additional capital resources. We finance our operations primarily through payments by our customers for use of our product offerings and related services and through debt financing.
Docusign, Inc. | 2025 Form 10-K | 49 Liquidity and Capital Resources Our principal sources of liquidity were cash, cash equivalents and investments as well as cash generated from operations. As of January 31, 2025, we had $963.5 million in cash and cash equivalents and short-term investments. We also had $134.1 million in long-term investments that provide additional capital resources.
There were no outstanding borrowings under the credit facility as of January 31, 2024. In September 2018, we issued and sold $575.0 million in aggregate principal amount of 0.5% Convertible Senior Notes due 2023 (the “2023 Notes”).
As of January 31, 2025, there were no outstanding borrowings under the credit facility, and we were in compliance with related covenants.
In addition, we made $97.2 million payments for tax withholding on share settlements, net of proceeds associated with our equity plans.These cash outflows were partially offset by $23.7 million received in connection with the settlement of our Capped Calls in relation to our 2023 Notes.
These cash outflows were partially offset by $23.7 million received in connection with the settlement of capped call transactions in relation to our 2023 Notes. Docusign, Inc. | 2025 Form 10-K | 51 Critical Accounting Policies and Estimates W e prepare our financial statements in accordance with U.S. GAAP.
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Executive Overview of Fiscal 2024 Results Overview DocuSign offers products that address agreement workflows and digital transformation as part of its agreement management platform, enabling agreements to be signed electronically on a wide variety of devices, from virtually anywhere in the world, securely.
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Executive Overview of Fiscal 2025 Results Overview Docusign solutions bring agreements to life, accelerating and simplifying the process of doing business .
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DocuSign’s core product offerings, including the world’s leading electronic signature product, allow organizations to do business faster with less risk and at a lower cost, while providing a better experience for customers. As a result, over 1.5 million customers and more than a billion users worldwide utilize our platform to accelerate and simplify the process of doing business.
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Docusign’s core offerings — our IAM platform, the world’s leading eSignature solution, and CLM solution — allow organizations to boost productivity, accelerate contract review cycles, and transform agreement data into insights and actions, while providing a better customer experience.
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We generally offer access to our products on a subscription basis with prices based on the functionality our customers require and the quantity of Envelopes provisioned. Similar to the physical envelopes historically used to mail paper documents, an Envelope is a digital container used to send one or more documents for signature or approval to one or more recipients.
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For example, Docusign’s innovative IAM platform automates agreement workflows, uncovers actionable insights, and leverages AI capabilities, which enables organizations to create, commit to, and manage agreements, from virtually anywhere in the world, securely.
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Our customers have the flexibility to put a large number of documents in an Envelope. For a number of use cases, such as buying a home, multiple Envelopes are used over the course of the process. To drive customer reach and adoption, we also offer for free certain limited-time or feature-constrained versions of our platform.
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We are currently investing in three routes to market, including direct sales, partner-assisted sales, and digital self-service purchasing. We expect that Docusign’s IAM platform will increasingly be offered across all three channels. We offer subscriptions to our products to businesses at all scales, from global enterprise down to local VSBs.
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This includes optimizing our go-to-market efforts to focus on attractive growth opportunities and investing in research and development to drive product innovation and meet customer needs at scale. We also continue to assess and evaluate strategic acquisitions and investments.
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The first is to accelerate product innovation through research and development investments for our IAM platform. We aim to deliver category-leading value in the agreement management market while evolving into a platform company. This includes supporting a community of developers, builders, and partners to create new solutions that extend the capabilities of our IAM platform.
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As we focus on infrastructure and technology that best serve our customers across industries, we will prioritize initiatives that accelerate our product capabilities and expand our product solutions. We believe these collective activities will help us retain and expand within our current customers’ organizations and attract new customers.
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The second growth pillar is to strengthen our omnichannel go-to-market by refining our direct sales, partner, and digital e-commerce and self-service channels to better address customer needs. By optimizing these routes with a more efficient cost structure, we aim to target growth opportunities and expand our reach in the market.
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DocuSign, Inc.| 2024 Form 10-K | 44 Growing Customer Base We are highly focused on continuing to acquire new customers to support our long-term growth. We have invested, and expect to continue to invest in our go-to-market efforts involving an omnichannel approach that consists of direct sales, partner-assisted sales and digital self-service purchasing.
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Finally, our third growth pillar is to enhance operational and financial efficiency to scale effectively and sustainably. This includes prioritizing the infrastructure and technology investments that best serve our diverse customer base, as well as generating incremental revenue and growth with a lower cost profile.
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Retaining and Expanding Contracts with Existing Enterprise and Commercial Customers Many of our customers have increased spend with us as they have expanded their use of our offerings in both existing and new use cases across their front or back office operations.
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Additionally, we continue to evaluate strategic acquisitions and partnerships that align with our growth objectives and expand our product offerings. We believe these combined efforts will strengthen our ability to retain and grow within our existing customer base, while also attracting new customers.
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Our enterprise and commercial customers may start with just one use case and gradually implement additional use cases across their organization once they see the benefits of our products. Several of our largest enterprise customers have deployed our software platform for hundreds of use cases across their organizations.
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Growing Customer Base As of January 31, 2025, we had a total of nearly 1.7 million customers, including over 260,000 small and medium-sized businesses (“SMBs”), mid-market companies, and large enterprise customers served by our direct sales force.
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Provision for Income Taxes Our provision for income taxes consists primarily of income taxes in certain foreign jurisdictions where we conduct business and U.S. income taxes from a tax law change related to mandatory capitalization of research and development expenses for tax years starting January 1, 2022.
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VSBs are our most numerous group of customers, and we typically serve them through digital and self-service resources outside of our direct sales channels. We refer to total customers as all enterprises, mid-market, SMBs, and VSBs.
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We have a valuation allowance against our U.S. consolidated group and certain foreign deferred tax assets and will release the valuation allowance when there is sufficient positive evidence to support a conclusion that it is more likely than not the deferred tax assets will be realized.
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In fiscal 2025, interest expense consisted primarily of commitment fees on the undrawn balance of our revolving credit facility and the amortization of the associated issuance costs.
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Depending on our operating results in the future, we may release the valuation allowance associated with the U.S. deferred tax assets within the next year. The timing and amount of the valuation allowance release could vary based on our assessment of all available evidence.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeOur market risk exposure is primarily the result of fluctuations in foreign currency exchange and interest rates. Interest Rate Risk As of January 31, 2024, we had cash, cash equivalents and investments totaling $1.2 billion, which consisted primarily of bank deposits, money market funds, commercial paper, corporate notes and bonds and U.S. Treasury and government agency securities.
Biggest changeOur market risk exposure is primarily the result of fluctuations in foreign currency exchange and interest rates. Interest Rate Risk As of January 31, 2025, we had cash, cash equivalents and investments totaling $1.1 billion, which consisted primarily of bank deposits, money market funds, commercial paper, corporate notes and bonds and U.S. government agency securities.
We do not believe that an immediate 10% increase or decrease in the relative value of the U.S. dollar to other currencies would have a material effect on our operating results. DocuSign, Inc.| 2024 Form 10-K | 58
We do not believe that an immediate 10% increase or decrease in the relative value of the U.S. dollar to other currencies would have a material effect on our operating results. Docusign, Inc. | 2025 Form 10-K | 58
Additionally, our revolving credit facility, which is undrawn as of January 31, 2024, can be borrowed based on floating interest rate indexes, thus exposing us to potential interest rate fluctuations should we decide to access the facility.
Additionally, our revolving credit facility, which is undrawn as of January 31, 2025, can be borrowed based on floating interest rate indexes, thus exposing us to potential interest rate fluctuations should we decide to access the facility.
Interest-earning instruments carry a degree of interest rate risk. Our investment portfolio is composed of highly rated securities and limits the amount of credit exposure to any one issuer. A hypothetical 100 basis point increase in interest rates would result in an approximate $2.6 million decrease of the fair value of our investment portfolio as of January 31, 2024.
Interest-earning instruments carry a degree of interest rate risk. Our investment portfolio is composed of highly rated securities and limits the amount of credit exposure to any one issuer. A hypothetical 100 basis point increase in interest rates would result in an approximate $2.9 million decrease of the fair value of our investment portfolio as of January 31, 2025.
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We had no exposure to changes in interest rates from the Notes as of January 31, 2024 since the Notes were extinguished during fiscal 2024.

Other DOCU 10-K year-over-year comparisons