DocuSign (DOCU) risk factors, FY2025 10-K

Business and Industry Risks

1. 01We 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
2. 02If we are unable to attract new customers and retain and expand sales to existing customers, our revenue growth will be adversely affected
3. 03Docusign, Inc. | 2025 Form 10-K | 14
4. 04If 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
5. 05The market in which we participate is evolving and highly competitive, which may negatively affect our ability to add new customers, retain existing customers and grow our business
6. 06Docusign, Inc. | 2025 Form 10-K | 15
7. 07Docusign, Inc. | 2025 Form 10-K | 16
8. 08We obtain and process a large amount of sensitive customer data. Any actual or perceived improper use of, disclosure of, or access to such data could harm our reputation, as well as have an adverse effect on our business
9. 09Docusign, Inc. | 2025 Form 10-K | 17
10. 10If we have overestimated our market opportunity, our future growth rate may be limited
11. 11We use AI in our business, and challenges with properly governing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations
12. 12Docusign, Inc. | 2025 Form 10-K | 18
13. 13We rely on the performance of highly skilled personnel, including our management and other key employees, and failing to attract, integrate, or retain such employees could harm our business
14. 14retain 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
15. 15Our sales to government entities and highly regulated organizations are subject to a number of challenges and risks
16. 16If we are unable to maintain successful relationships with our partners, our business, operating results and financial condition could be harmed
17. 17Docusign, Inc. | 2025 Form 10-K | 20
18. 18Failure to establish and maintain relationships with partners that can provide complementary technology offerings and software integrations could limit our ability to grow our business
19. 19We have in the past, and may in the future, engage in acquisition and investment activities, which could divert the attention of management, disrupt our business, dilute stockholder value and adversely affect our operating results and financial condition
20. 20Moreover, to pay for an acquisition or investment, we would have to use cash, incur debt and/or issue equity securities, each of which may affect our financial condition or the value of our common stock and (in the case of equity financing) could result in dilution to our stockholders
21. 21Failure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our products and solutions
22. 22Docusign, Inc. | 2025 Form 10-K | 21
23. 23We may need to reduce or change our pricing model to remain competitive
24. 24We may not be able to scale our business quickly enough to meet the growing needs of our customers and if we are not able to grow efficiently, our operating results could be harmed
25. 25If our products and solutions fail to perform properly and if we fail to develop enhancements to resolve any defect or other problems, we could lose customers or become subject to service performance or warranty claims and our market share could decline
26. 26Docusign, Inc. | 2025 Form 10-K | 22
27. 27If we fail to promote or maintain our brand, our ability to expand our customer base will be impaired and our financial condition may suffer
28. 28If we fail to offer high-quality support, our business and reputation could suffer
29. 29We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors, the price of our common stock could decline
30. 30Docusign, Inc. | 2025 Form 10-K | 23
31. 31Our sales cycle with enterprise and commercial customers can be long and unpredictable, and our sales efforts require considerable time and expense
32. 32Because we recognize revenue from subscriptions over the term of the relevant contract, downturns or upturns in sales contracts are not immediately reflected in full in our operating results
33. 33If we fail to forecast our revenue accurately, or if we fail to match our expenditures with corresponding revenue, our operating results could be adversely affected
34. 34Our current operations are international in scope and we plan further geographic expansion, creating a variety of operational challenges
35. 35Docusign, Inc. | 2025 Form 10-K | 25
36. 36Our credit facility provides our lenders with a first-priority lien against substantially all of our assets, and contains financial covenants and other restrictions on our actions, which could limit our operational flexibility and otherwise adversely affect our financial condition
37. 37We 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
38. 38Docusign, Inc. | 2025 Form 10-K | 26
39. 39As of January 31, 2025, we had accumulated net operating loss carryforwards and research tax credits in our federal, state and foreign jurisdictions with varying expiration dates
40. 40If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected
41. 41We are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results
42. 42We could be required to collect additional sales taxes or be subject to other tax liabilities that may increase the costs our clients would have to pay for our offering and adversely affect our operating results

Legal and Regulatory Risks

1. 43We 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
2. 44Complying with laws and regulations related to privacy and data protection could result in additional costs and liabilities to us or inhibit sales of our software
3. 45Docusign, Inc. | 2025 Form 10-K | 29
4. 46For more information on our pending legal proceedings, see Item 3. Legal Proceedings of this Form 10-K
5. 47We could incur substantial costs in protecting or defending our proprietary rights, and any failure to adequately protect our rights could impair our competitive position and we may lose valuable assets, experience reduced revenue and incur costly litigation to protect our rights
6. 48Docusign, Inc. | 2025 Form 10-K | 30
7. 49Many of our customers deploy our products and solutions globally, and our products and solutions must comply with certain legal and regulatory requirements in varying countries. If our products and solutions fail to meet these requirements, we could incur significant liabilities and our financial condition may suffer
8. 50We use open source software in our products, which could subject us to litigation or other actions
9. 51Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, data protection and other losses
10. 52Docusign, Inc. | 2025 Form 10-K | 31
11. 53Changes 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
12. 54The requirements of being a public company, including developing and maintaining proper and effective disclosure controls and procedures and internal control over financial reporting, may strain our resources and divert management’s attention away from other business concerns
13. 55Docusign, Inc. | 2025 Form 10-K | 32
14. 56We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls
15. 57We are subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and non-compliance with such laws can subject us to criminal and/or civil liability and harm our business

Risks Related to our Common Stock

1. 58Our stock price may be volatile, and the value of our common stock may decline
2. 59Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock
3. 60Docusign, Inc. | 2025 Form 10-K | 35

General Risks

1. 61Unfavorable conditions in our industry or the global economy or reductions in information technology spending could limit our ability to grow our business and negatively affect our operating results
2. 62Natural 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