DOCUSIGN, INC. Earnings Per Share Disclosure
| Year Ended January 31, | |||||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2023 | ||||||||||||||
| Numerator: | |||||||||||||||||
| Net income (loss) attributable to common stockholders, basic | $ | 1,067,885 | $ | 73,980 | $ | (97,454) | |||||||||||
| Add: Interest expense on convertible senior notes | — | 425 | — | ||||||||||||||
| Net income (loss) attributable to common stockholders, diluted | $ | 1,067,885 | $ | 74,405 | $ | (97,454) | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted-average common shares outstanding, basic | 204,329 | 204,070 | 200,903 | ||||||||||||||
| Effect of dilutive securities | 6,010 | 4,880 | — | ||||||||||||||
| Weighted-average common shares outstanding, diluted | 210,339 | 208,950 | 200,903 | ||||||||||||||
| Net income (loss) per share attributable to common stockholders: | |||||||||||||||||
| Basic | $ | 5.23 | $ | 0.36 | $ | (0.49) | |||||||||||
| Diluted | $ | 5.08 | $ | 0.36 | $ | (0.49) | |||||||||||
| January 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| RSUs | 1,048 | 6,430 | 15,129 | ||||||||||||||
| Stock options | — | — | 2,228 | ||||||||||||||
| ESPP | — | — | 516 | ||||||||||||||
| Convertible senior notes | — | — | 2,161 | ||||||||||||||
| Total antidilutive securities | 1,048 | 6,430 | 20,034 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.