DOCUSIGN, INC.DOCU

DOCUSIGN, INC. Revenue Disclosure

10-KFiled Mar 18, 20262 min read
Revenue
Subscription revenue is recognized over time and accounted for approximately 98%, 97% and 97% of our revenue for the years ended January 31, 2026, 2025 and 2024.

Performance Obligations

As of January 31, 2026, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.4 billion. We expect to recognize 57% of the transaction price allocated to remaining performance obligations within the 12 months following January 31, 2026 in our consolidated statement of operations and comprehensive income.

Contract Balances

Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $10.8 million and $13.8 million as of January 31, 2026 and 2025. The change in contract assets reflects the difference in timing between our satisfaction of remaining performance obligations and our contractual right to bill our customers.

Contract liabilities consist of deferred revenue and payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. For the years ended January 31, 2026, 2025 and 2024, we recognized revenue of $1.4 billion, $1.3 billion and $1.2 billion that was included in the corresponding contract liability balance at the beginning of the periods presented.

We receive payments from customers based upon contractual billing schedules. We record accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days.
Deferred Contract Acquisition and Fulfillment Costs
The following table represents a rollforward of our deferred contract acquisition and fulfillment costs:
Year Ended January 31,
(in thousands)20262025
Deferred Contract Acquisition Costs
Beginning balance$467,201 $409,658 
Additions to deferred contract acquisition costs225,531 261,088 
Amortization of deferred contract acquisition costs(227,193)(197,832)
Cumulative translation adjustment9,089 (5,713)
Ending balance$474,628 $467,201 
Deferred Contract Fulfillment Costs
Beginning balance$23,657 $22,525 
Additions to deferred contract fulfillment costs46,013 41,078 
Amortization of deferred contract fulfillment costs(43,874)(39,385)
Cumulative translation adjustment2,137 (561)
Ending balance$27,933 $23,657 

Historical Timeline

Fiscal YearFiled
2026Mar 18, 2026Showing above
2025Mar 18, 2025
2024Mar 21, 2024
2023Mar 27, 2023
2022Mar 25, 2022
2021Mar 31, 2021
2020Mar 27, 2020
2019Mar 26, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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