27 unchanged sentences
• Any limits on our ability to use our net operating loss carryforwards to offset future taxable income.
−Removed: • A lack of sufficient cash to service our debt.
Legal and Regulatory Risks
2 unchanged sentences
• Any failure to adequately protect our proprietary rights, including intellectual property rights.
+Added: • The implementation of AI in our business and challenges with properly governing its use.
Risks Related to our Common Stock
• Any volatility in the market price of our common stock.
−Removed: • Any future sales of our common stock in the public market may cause our common stock price to decline.
• Securities analysts publishing unfavorable or inaccurate research about us, or not publishing research.
6 unchanged sentences
Business and Industry Risks
−Removed: We derive a majority of our revenue from our DocuSign eSignature product, and slower or declining adoption of our DocuSign eSignature product, without a corresponding increase in the use of our other products and solutions, could cause our operating results to suffer.
−Removed: Sales of subscriptions to our DocuSign eSignature product account for substantially all of our subscription revenue and are the source of substantially all of our professional services revenue.
−Removed: 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 DocuSign eSignature product to generate revenue for the foreseeable future.
+Added: 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.
+Added: Sales of subscriptions to our eSignature product account for substantially all of our subscription revenue and are the source of substantially all of our professional services revenue.
+Added: 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.
As a result, our operating results could suffer due to:
−Removed: ▪ any decline in demand for our DocuSign eSignature product;
−Removed: ▪ the failure of our DocuSign eSignature product to maintain market acceptance;
+Added: ▪ any decline in demand for our eSignature product;
+Added: ▪ 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;
−Removed: ▪ new products and technologies from our competitors that replace or represent an improvement over our DocuSign eSignature product;
−Removed: ▪ new technological innovations or standards that our DocuSign eSignature product does not address;
+Added: ▪ new products and technologies from our competitors that replace or represent an improvement over our eSignature product;
+Added: ▪ new technological innovations or standards that our eSignature product does not address;
▪ changes in regulations;
▪ sensitivity to our current or future pricing;
−Removed: ▪ our inability to release enhanced versions of our DocuSign eSignature product on a timely basis;
−Removed: ▪ macro- and micro-economic factors, including inflation, rising interest rates, increased debt and equity market volatility and the impact of regional or global conflicts or other public health crises, including the COVID-19 pandemic.
−Removed: If we experience a material decline in sales of subscriptions to our DocuSign eSignature product, without a corresponding increase in subscriptions to our other products and solutions, our revenue and operating results would be harmed.
+Added: ▪ our inability to release enhanced versions of our eSignature product on a timely basis;
+Added: ▪ 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.
+Added: We have experienced, and may continue to experience, declines and fluctuations in the demand for our eSignature product due to a number of factors, including changing patterns of customer adoption and retention, shifts in customer spending levels, a highly competitive market, and general economic and global market conditions.
+Added: We will need to maintain or increase sales of subscriptions to our eSignature product, in addition to increasing the usage and adoption of our other product offerings, in order to support our growth and operating objectives.
+Added: If customer adoption and expansion of our eSignature product falls below our expectations, our business, financial condition, and operating results would be adversely affected.
If we are unable to attract new customers and retain and expand sales to existing customers, our revenue growth will be adversely affected.
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Our customers have no obligation to renew their subscriptions and we cannot guarantee that our customers will renew their subscriptions with us for a similar or greater contract period or on the same or more favorable terms.
−Removed: 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, rising interest rates, increased debt and equity market volatility and the impact of the COVID-19 pandemic.
−Removed: If our customers do not renew their subscriptions for our products and solutions or if they reduce their subscription amounts at the time of renewal, our revenue will decline, and our business will suffer.
+Added: 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
+Added: 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.
+Added: If our customers do not renew their subscriptions for our products and solutions or if they reduce their subscription amounts at the time of renewal, our revenue will decline, and our business will suffer.
The 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.
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We also face competition from a select number of vendors that focus on specific industries, geographies or product areas such as contract lifecycle management and advanced contract analytics.
−Removed: As we attempt to sell access to our products and solutions to new customers with existing products and solutions (or cross-sell additional products and solutions to existing customers), we must convince them that our products and solutions are superior to the solutions that their organizations have used in the past.
+Added: As we attempt to sell our products and solutions to new and existing customers, we must convince them that our products and solutions are superior to the solutions that their organizations have used in the past.
Many of our competitors have longer operating histories than us, significantly greater financial, technical, marketing and other resources, stronger brand and customer recognition, larger intellectual property portfolios and broader global distribution.
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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.
−Removed: Our employees, service providers and third parties work more frequently on a remote or hybrid arrangement basis, which may involve relying on less secure systems and may increase the risk of cybersecurity related incidents.
−Removed: We cannot guarantee these private work environments and electronic connections to our work environment have the same robust security measures deployed in our physical offices.
+Added: Our employees, service providers and third parties often work on a remote or hybrid arrangement basis, which may involve relying on less secure systems and may increase the risk of cybersecurity related incidents.
+Added: We cannot guarantee these private work environments and electronic connections to our work environment have the same robust security measures as those deployed in our physical offices.
We also rely on third-party and public-cloud infrastructure, and we depend in part on third-party security measures to protect against unauthorized access, cyberattacks and the mishandling of customer data.
Our ability to monitor our third-party service providers’ data security is limited and any breach of our providers’ security measures may result in unauthorized access to, or misuse, loss or destruction of, our and our customers’ data.
−Removed: While we have security measures in place designed to protect our production, development 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.
+Added: 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.
In these cases, upon detection, we took prompt action to prevent any additional unauthorized access, put further security controls in place and worked with law enforcement agencies.
−Removed: These efforts may not completely eliminate potential risks from such incidents, however.
−Removed: While these attempts had no impact on our operations, products or services, there can be no assurance that there will be no impact from these or similar incidents in the future.
+Added: These efforts may not completely eliminate potential risks from such incidents.
+Added: Furthermore, there can be no assurance that there will be no impact to our operations from these or similar incidents in the future.
Despite our prevention and response efforts, any security incident or breach, even if immaterial and properly addressed, could result in negative publicity, loss of customers, damage to our reputation and could impair our sales and harm our business.
+Added: DocuSign, Inc.| 2024 Form 10-K | 15
Like other organizations providing valuable technology and services, we are subject to increasing cyberattacks from malicious third parties using a wide variety of tactics.
The frequency and sophistication of such threats continues to increase and often becomes further heightened in connection with geopolitical tensions.
−Removed: In addition, we face increased
−Removed: DocuSign, Inc.| 2023 Form 10-K | 15
−Removed: risk to maintain the performance, reliability, security and availability of our products and technical infrastructure to the satisfaction of our customers.
−Removed: Advances in technology and the increasing sophistication of attackers have led to more frequent and effective cyberattacks, including advanced persistent threats by state-sponsored actors, cyberattacks relying on complex social engineering or “phishing” tactics, ransomware attacks and other methods including credential stuffing and account takeover attacks, denial or degradation of service attacks, malicious code (e.g., viruses and worms), ransomware, and many other techniques that may lead to the loss, theft or misuse of personal, corporate or financial information, fraudulent payments and identity theft.
−Removed: If bad actors gain improper access to our systems or databases or those of our partners and other third parties who have access to our data, they may be able to steal, publish, delete, copy, unlawfully or fraudulently use or modify data, including personal information and/or blackmail us to pay a ransom.
−Removed: If our security measures, or the security measures of our service providers, partners 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.
−Removed: Despite significant efforts to create security barriers to such threats, it is virtually impossible for us, our service providers, our partners and our customers to entirely mitigate these risks.
+Added: In addition, we face increased risk to maintain the performance, reliability, security and availability of our products and technical infrastructure to the satisfaction of our customers.
+Added: Advances in technology and the increasing sophistication of attackers have led to more frequent and effective cyberattacks, including advanced persistent threats by state-sponsored actors, cyberattacks relying on complex social engineering or “phishing” tactics, ransomware attacks and other methods including credential stuffing and account takeover attacks, denial or degradation of service attacks, malicious code (e.g., viruses and worms), and many other techniques that may lead to the loss, theft or misuse of personal, corporate or financial information, fraudulent payments and identity theft.
+Added: If bad actors gain improper access to our systems or databases or those of our partners, service providers, and other third parties who have access to our data, they may be able to steal, publish, delete, copy, unlawfully or fraudulently use or modify data, including personal information and/or blackmail us to pay a ransom.
+Added: 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.
+Added: Despite significant efforts to identify vulnerabilities and create security barriers to such threats, it is virtually impossible for us, our service providers, our partners and our customers to entirely mitigate these risks.
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.
+Added: In July 2023, the Securities and Exchange Commission (the “SEC”) also adopted a new cybersecurity rule (effective in December 2023) requiring companies subject to SEC reporting requirements to formally report material cyber security incidents, where failure to report may result in the SEC imposing injunctions, fines and other penalties.
Additionally, there can be no assurance that any limitations of liability provisions in our contracts would be enforceable or adequate in the event of a security breach or would otherwise protect us from any such liabilities or damages with respect to any particular claim.
−Removed: We also cannot be sure that our existing general liability insurance 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.
+Added: 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.
Security breaches may result in increased costs for such insurance as well.
1 unchanged sentence
We obtain and process a large amount of sensitive customer data.
−Removed: Any real 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.
+Added: 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.
We receive, store and process personal information and other data from and about our customers, employees, partners and service providers.
In addition, customers use our products and solutions to obtain and store personal information, health information (including protected health information) and personal financial information.
−Removed: Our handling of data is thus subject to a variety of laws and regulations, including regulation by various government agencies, such as the U.S.
+Added: 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.
−Removed: Department of Health and Human Services Office for Civil Rights (the “OCR”), and various state, local and foreign agencies and other authorities.
+Added: 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.
+Added: state’s attorney general.
Our data handling also is subject to contractual obligations and industry standards.
−Removed: We have internal and publicly posted policies regarding our collection, processing, use, disclosure, deletion and security of information.
+Added: We have internal and publicly posted policies, notices, and other related documentation regarding our collection, data categorization or identification, processing, use, disclosure, deletion and security of information.
Although we endeavor to comply with our policies and documentation, we may at times fail to do so or be accused of having failed to do so.
−Removed: The publication of our privacy policies and other documentation that provide commitments about data privacy and security can subject us to potential actions if they are found to be non-compliant, deceptive, unfair, or otherwise misrepresent our actual practices, which could materially and adversely affect our business, financial condition and results of operations.
−Removed: We are subject to laws and regulations governing our use of our business data.
+Added: The publication of our privacy notices and other related documentation that provide commitments about data privacy and security can subject us to potential actions if they are found to be non-compliant, deceptive, unfair, or otherwise
+Added: DocuSign, Inc.| 2024 Form 10-K | 16
+Added: misrepresent our actual practices, which could materially and adversely affect our business, financial condition and results of operations.
+Added: 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.
1 unchanged sentence
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.
−Removed: ” If we are not able to comply with these laws or regulations or if we become liable under these evolving laws
−Removed: DocuSign, Inc.| 2023 Form 10-K | 16
−Removed: or regulations, we could be directly harmed, and we may be forced to implement new measures to reduce our exposure to this liability.
+Added: ” 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.
This may require us to expend substantial resources or to discontinue certain solutions, which would negatively affect our business, operating results and financial condition.
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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.
−Removed: New products, solutions or enhancements to our existing products and solutions could fail to attain sufficient market acceptance for many reasons, including:
+Added: 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;
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▪ delays in releasing our products and solutions to the market;
−Removed: ▪ negative customer perception of our sales-directed strategies;
+Added: ▪ negative customer perception of our sales-directed strategies, including the pricing of new products or enhancements;
▪ introduction or anticipated introduction of competing products by our competitors.
−Removed: If the release of our 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.
+Added: 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.
+Added: 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.
The adverse effect on our financial results may be particularly acute because of the significant research, development, marketing, sales and other expenses we will have incurred.
−Removed: Our recent rapid growth may not be indicative of our future growth, and, if we continue to grow rapidly, we may not be able to manage our growth effectively.
+Added: Our prior rapid growth may not be indicative of our future growth.
Our revenue grew from $2.5 billion in the fiscal year ended January 31, 2023 to $2.8 billion in the fiscal year ended January 31, 2024.
−Removed: We expect that, in the future, as our revenue increases, our revenue growth rate will decline as the scale of our business increases.
+Added: We expect that, in the future, as our revenue increases, our revenue growth rate could decline as the scale of our business increases.
+Added: DocuSign, Inc.| 2024 Form 10-K | 17
While we experienced an increase in paying customers and revenue in the past, in part due to macro-economic conditions, including the pandemic, there is no assurance that we will experience a continued increase in paying customers or that new or existing customers will utilize our products at similar levels as businesses continue to return to more normalized, hybrid or in-person work environments.
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▪ attract new customers, increase our existing customers’ use of our products and solutions and provide our customers with excellent customer support;
−Removed: DocuSign, Inc.| 2023 Form 10-K | 17
−Removed: ▪ expand our DocuSign product offerings for our customers;
+Added: ▪ expand our product offerings for our customers, including our ability to successfully implement such product offerings and ensure successful adoption of new or enhanced product offerings by our customers;
▪ effectively implement our sales strategies, including the expansion of self-serve capabilities;
1 unchanged sentence
▪ mitigate and effectively manage the increased pace of the digital transformation of business and the costs of monitoring and complying with evolving governmental mandates;
−Removed: ▪ hire, retain, train, and integrate our employee base including our sales force, research and development teams and key employees;
+Added: ▪ hire, retain, train, and integrate our employee base including our sales force, customer success, research and development teams and key employees;
▪ successfully identify and develop, acquire or invest in businesses, products or technologies that we believe could complement or expand our products and solutions;
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We depend on co-located data centers and third-party cloud providers, as well as our own technical operations infrastructure, to provide our products and solutions to our customers in a timely manner.
−Removed: Interruptions or delays in performance of our products and solutions could result in customer dissatisfaction, damage to our reputation, loss of customers, limited growth and reduction in revenue.
−Removed: We currently serve our customers from third-party data center hosting facilities.
+Added: Interruptions or
+Added: DocuSign, Inc.| 2024 Form 10-K | 18
+Added: delays in performance of our products and solutions could result in customer dissatisfaction, damage to our reputation, loss of customers, limited growth and reduction in revenue.
+Added: 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.
−Removed: As a result, we depend, in part, on our data center providers’ ability to protect these facilities against damage or interruption, including from natural disasters, regional or global conflicts, power or telecommunications failures, criminal acts and similar events.
−Removed: In the event that our data center arrangements are terminated, or if there are any lapses of service or damage to a data center, we could experience lengthy interruptions in our service as well as delays and additional expenses in arranging new facilities and services.
+Added: As a result, we depend, in part, on our providers’ ability to protect our service supply chain against damage or interruption, including from natural disasters, regional or global conflicts, power or telecommunications failures, criminal acts and similar events.
+Added: In the event that our data center and service arrangements are terminated, or if there are any lapses of service or damage to a data center, we could experience lengthy interruptions in our service as well as delays and additional expenses in arranging new facilities and services.
Even with current and planned disaster recovery arrangements, our disaster recovery planning may not account for all eventualities and our business could be harmed.
−Removed: In addition to third-party data centers and cloud providers, we also rely on our own technical operations infrastructure to support and serve our rapidly growing customer base.
−Removed: We must maintain sufficient excess capacity in our operations
−Removed: DocuSign, Inc.| 2023 Form 10-K | 18
−Removed: infrastructure to ensure that our products and solutions are accessible within an acceptable load time.
+Added: In addition to third-party data centers and cloud service providers, we also rely on our own technical operations infrastructure to support and serve our increasing customer base.
+Added: We must maintain sufficient excess capacity in our operations infrastructure to ensure that our products and solutions are accessible within an acceptable load time.
Design and mechanical errors, spikes in usage volume and failure to follow system protocols and procedures could cause our systems to fail, resulting in interruptions in our products and solutions.
−Removed: Any interruptions or delays in our service, whether or not caused by our products, whether as a result of third-party error, our own error, natural disasters and the effects of climate change, operational disruptions related to labor shortages or public health crises, including the COVID-19 pandemic, or security breaches, whether accidental or willful, could harm our relationships with customers and cause our revenue to decrease and/or our expenses to increase.
+Added: Any interruptions or delays in our service, whether or not caused by our products, whether as a result of third-party error, our own error, natural disasters and the effects of climate change, operational disruptions related to labor shortages, public health crises, or security breaches, whether accidental or willful, could harm our relationships with customers and cause our revenue to decrease and/or our expenses to increase.
Also, in the event of damage or interruption, our insurance policies may not adequately compensate us for any losses that we may incur.
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In the last 12 months, there have been significant changes to our senior leadership team.
−Removed: For example, in June 2022, Dan Springer, our President and Chief Executive Officer resigned from the Company, and in October 2022, Allan Thygesen was appointed as our new President and Chief Executive Officer.
−Removed: In March 2023, we announced that Cynthia Gaylor, our Chief Financial Officer, gave notice of her intention to resign effective June 15, 2023, following a transition period.
−Removed: There have been several other transitions in our senior leadership team in recent months.
+Added: For example, in June 2023, Cynthia Gaylor, our Chief Financial Officer, resigned from the Company and Blake Grayson was appointed as our new Chief Financial Officer, and in January 2024, Inhi Cho Suh, our President, Product and Engineering, departed the Company.
These changes and any future significant leadership changes or senior management transitions involve inherent risk.
−Removed: Any failure to find a timely and suitable replacement and ensure an effective transition, including the effective onboarding, assimilation, and retention of our management team and key employees, could hinder our strategic planning, business execution and future performance.
In addition, executive leadership transition periods can be disruptive and may result in a loss of personnel with deep institutional or technical knowledge, or result in changes to business strategy or objectives, and may negatively impact our operations and relationships with employees and customers due to increased or unanticipated expenses, operational inefficiencies, uncertainty regarding changes in strategy, decreased employee morale and productivity, and increased turnover.
6 unchanged sentences
Additionally, in February 2023, in an effort to support our growth, scale and profitability objectives, we authorized an additional restructuring plan, which included a restructuring and reduction of the current workforce by approximately 10%.
−Removed: We expect that the execution of this restructuring plan will be substantially complete by the end of the second quarter of fiscal 2024.
+Added: The execution of this restructuring plan was substantially completed at the end of the second quarter of fiscal 2024.
+Added: Further, in February 2024 , in an effort to strengthen and support our financial and operational efficiency while continuing to invest in product and related initiatives, we authorized an additional restructuring plan, which included a restructuring and reduction of the current workforce by approximately 6%.
+Added: We expect this restructuring plan to be completed during
+Added: DocuSign, Inc.| 2024 Form 10-K | 19
+Added: the first and second quarters of fiscal 2025.
These restructuring plans could negatively impact our ability to attract, integrate, retain and motivate key employees.
We also are dependent on the continued service of our existing software engineers because of the complexity of our products and solutions.
−Removed: In particular, we compete with many other companies for software developers with high levels of experience and skilled sales and operations professionals in an increasingly tight U.S.
+Added: In particular, we compete with many other companies for software developers with high levels of experience and skilled sales and operations professionals in a tight U.S.
labor market.
5 unchanged sentences
To remain competitive, we may experience increased compensation-related expenses.
−Removed: DocuSign, Inc.| 2023 Form 10-K | 19
Our sales to government entities and highly regulated organizations are subject to a number of challenges and risks.
3 unchanged sentences
state and federal governmental agencies.
−Removed: Selling to such entities can be highly competitive, expensive and time-consuming, often requiring significant upfront time and expense without any assurance that these efforts will generate a sale.
+Added: Selling to such entities can be highly competitive, expensive and time-consuming, often requiring significant upfront time and expense to meet unique compliance requirements, some of which may be statutory or regulatory, without any assurance that these efforts will generate a sale.
These longer sale cycles make the timing of future revenue from these entities difficult to predict.
−Removed: Further, government certification requirements may change, restricting our ability to sell into the government sector until we have met those revised requirements.
−Removed: Government demand and payment for our offerings are affected by public sector budgetary cycles and funding authorizations, and funding reductions or delays, including as a result of macro-economic factors, including inflation, rising interest rates, regional or global conflicts and public health crises, may adversely affect public sector demand for our products and solutions.
+Added: Further, government compliance requirements may change, restricting our ability to sell into the government sector until we have met those revised requirements.
+Added: Failure to meet government contract compliance obligations can create the risk of statutory penalties as well as standard breach of contract risk.
+Added: Government demand and payment for our offerings are affected by public sector budgetary cycles and funding authorizations, and funding reductions or delays, including as a result of macro-economic factors, including inflation, volatile interest rates, a potential U.S.
+Added: government shutdown, actual or perceived instability in the global banking sector, regional or global conflicts and public health crises, may adversely affect public sector demand for our products and solutions.
In addition, both government agencies and entities in highly regulated industries may demand shorter subscription periods or other contract terms that differ from our standard arrangements, including terms that can lead those customers to obtain broader rights in our offerings than would be standard.
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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.
−Removed: Our products and solutions seamlessly integrate with hundreds of other software applications, including Salesforce, Google and Microsoft.
+Added: DocuSign, Inc.| 2024 Form 10-K | 20
+Added: Our products and solutions seamlessly integrate with hundreds of other software applications, including Google, Microsoft, Oracle, Salesforce, SAP, and ServiceNow.
Our growth strategy includes expanding the use of our products and solutions through complementary technology offerings and software integrations, such as third-party APIs.
7 unchanged sentences
As part of our business strategy, we continually evaluate opportunities to acquire or invest in businesses, products or technologies that we believe could complement or expand our products and solutions, enhance our technical capabilities or otherwise offer growth opportunities.
−Removed: For example, in May 2020, we acquired Seal Software Group Ltd., a
−Removed: DocuSign, Inc.| 2023 Form 10-K | 20
−Removed: provider of contract analytics software, and in July 2020 we acquired Liveoak Technologies, Inc., a provider of a secure agreement-collaboration and identity verification platform.
+Added: For example, in May 2020, we acquired Seal Software Group Ltd., a provider of contract analytics software, and in July 2020 we acquired Liveoak Technologies, Inc., a provider of a secure agreement-collaboration and identity verification platform.
In the future, we may be unable to identify suitable acquisition candidates and, even if we do, we may not be able to complete desired acquisitions on favorable terms, if at all.
20 unchanged sentences
We may need to reduce or change our pricing model to remain competitive.
+Added: DocuSign, Inc.| 2024 Form 10-K | 21
Different pricing structures apply to our DocuSign product offerings.
7 unchanged sentences
As use of our products and solutions grows and as customers use them for more types of transactions, we will need to devote additional resources to improving our application architecture, integrating with third-party systems and maintaining or scaling our technology infrastructure and performance.
−Removed: In addition, we will need to appropriately scale
−Removed: DocuSign, Inc.| 2023 Form 10-K | 21
−Removed: our internal business systems and our services organization, including customer support and professional services, to serve our growing customer base.
+Added: In addition, we will need to appropriately scale our internal business systems and our services organization, including customer support and professional services, to serve our growing customer base.
Any failure of or delay in these efforts could cause impaired system performance and reduced customer satisfaction.
5 unchanged sentences
These efforts may be costly and could adversely affect our financial results.
−Removed: For example, we recently launched a new enterprise resource planning, or ERP system, which is designed to accurately maintain our financial records, enhance the flow of financial information, improve data management, and provide timely information to our management team.
+Added: For example, in fiscal 2023, we launched a new enterprise resource planning (“ERP”) system, which is designed to accurately maintain our financial records, enhance the flow of financial information, improve data management, and provide timely information to our management team.
ERP system implementations are complex projects that require significant investment of capital and human resources, the reengineering of many business processes and the attention of many employees who would otherwise be focused on other aspects of our business.
−Removed: While we have implemented our new ERP system, we may experience difficulties as part of this transition, which could disrupt our operations, the management of our finances and the reporting of our financial results.
−Removed: Our failure to improve our systems and processes or complete such system implementations or enhancements on a timely basis, or their failure to operate in the intended manner, could harm our business, financial condition, and operating results.
+Added: Our failure to improve our systems and processes or their failure to operate in the intended manner, could harm our business, financial condition, and operating results.
Additionally, if the ERP system does not operate as intended, the effectiveness of our internal control over financial reporting could be adversely affected.
Additionally, from time to time, we realign our resources and talent to implement stage-appropriate business strategies, which could include furloughs, layoffs and reductions in force.
−Removed: For example, in September 2022, in response to changing economic conditions and in an effort to support our growth, scale and profitability objectives, reduce our operational costs and improve our organizational efficiency, we authorized a restructuring plan, which included a restructuring and reduction of the current workforce by approximately 9%.
−Removed: The execution of this restructuring plan was substantially completed at the end of fiscal 2023.
−Removed: Additionally, in February 2023, in an effort to support our growth, scale and profitability objectives, we authorized an additional restructuring plan which included a restructuring and reduction of the current workforce by approximately 10%, primarily in our sales organization.
−Removed: We expect that the execution of this additional restructuring plan will be substantially completed by the end of the second quarter of fiscal 2024.
−Removed: If there are unforeseen expenses associated with such realignments in our business strategies, and we incur unanticipated charges or liabilities, then we may not be able to effectively realize the expected cost savings or other benefits of such actions.
+Added: For more information on reductions in force, see the risk factor above “ We 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.” If there are unforeseen expenses associated with such realignments in our business strategies, and we incur unanticipated charges or liabilities, then we may not be able to effectively realize the expected cost savings or other benefits of such actions.
Failure to manage any growth or any scaling back of our operations could have an adverse effect on our business, operating results, and financial condition.
3 unchanged sentences
We have from time to time found defects in our products and solutions and may discover additional defects in the future that could result in data unavailability or unauthorized access or other harm to, or loss or corruption of, our customers’ data.
−Removed: While we implement bug fixes and upgrades as part of our regularly scheduled system maintenance, we may not be able to detect and correct defects or errors before implementing our products and solutions.
+Added: 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.
−Removed: 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.
+Added: If we fail to perform
+Added: DocuSign, Inc.| 2024 Form 10-K | 22
+Added: 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.
In addition, the occurrence of any material defects, errors, disruptions in service or other performance problems with our software could result in warranty or other legal claims against us and diversion of our resources.
The costs incurred in addressing and correcting any material defects or errors in our software and expanding our infrastructure and architecture in order to accommodate increased demand for our products and solutions may be substantial and could adversely affect our operating results.
−Removed: DocuSign, Inc.| 2023 Form 10-K | 22
If we fail to promote or maintain our brand, our ability to expand our customer base will be impaired and our financial condition may suffer.
17 unchanged sentences
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:
−Removed: ▪ general economic, market and industry conditions, including resulting from regional or global conflicts and as a result of inflation, rising interest rates and increased debt and equity market volatility;
+Added: ▪ 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;
2 unchanged sentences
▪ timing of revenue recognition;
+Added: 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;
3 unchanged sentences
▪ the timing of costs related to our go-to-market strategy including expansion of our sales capacity and marketing;
−Removed: DocuSign, Inc.| 2023 Form 10-K | 23
▪ potential accelerations of prepaid expenses and deferred costs;
21 unchanged sentences
▪ the obstacles placed by customers’ procurement process;
−Removed: ▪ economic conditions, including inflation, rising interest rates and increased debt and equity market volatility, and other factors impacting customer budgets;
+Added: ▪ economic conditions, including due to inflation, volatile interest rates, a potential U.S.
+Added: government shutdown, increased debt and equity market volatility, and other factors impacting customer budgets;
▪ the customer’s integration complexity;
5 unchanged sentences
Because 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.
+Added: DocuSign, Inc.| 2024 Form 10-K | 24
We recognize revenue over the term of each of our contracts, which are typically one year in length but may be up to three years or longer.
3 unchanged sentences
If 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.
−Removed: DocuSign, Inc.| 2023 Form 10-K | 24
You should not rely on the revenue growth of any prior quarterly or annual period as an indication of our future performance.
4 unchanged sentences
If we do not address these risks successfully, our operating results could differ materially from our estimates and forecasts or the expectations of investors, causing our business to suffer and our stock price to decline.
−Removed: We have a history of operating losses and may not achieve or sustain profitability in the future.
−Removed: We began operations in 2003 and have experienced net losses since inception.
−Removed: We generated a net loss of $97.5 million, $70.0 million, and $243.3 million in the years ended January 31, 2023, 2022, and 2021, and as of January 31, 2023, we had an accumulated deficit of $1.6 billion.
−Removed: We will need to generate and sustain increased revenue levels in future periods to become profitable and, even if we do, we may not be able to maintain or increase our level of profitability.
−Removed: We intend to continue to incur significant expenses to support growth, further develop and enhance our products and solutions, expand our infrastructure and technology, increase our sales headcount and marketing activities, and grow our international operations and customer base.
+Added: We have historically experienced operating losses and may not achieve or sustain profitability in the future.
+Added: We began operations in 2003 and, until recently, we have historically experienced net losses.
+Added: We generated net income of $74.0 million in the year ended January 31, 2024 and a net loss of $97.5 million and $70.0 million in the years ended January 31, 2023 and 2022, respectively.
+Added: As of January 31, 2024, we had an accumulated deficit of $1.7 billion.
+Added: We will need to continue to generate and sustain increased revenue levels in future periods to become or remain profitable and, even in periods in which we generate net income, we may not be able to maintain or increase our level of profitability.
+Added: We intend to continue to incur significant expenses to support growth, further develop and enhance our products and solutions, expand our infrastructure and technology, incentivize and enable our sales organization and marketing activities, and grow our international operations and customer base.
Our efforts to grow our business may be costlier than we expect, and we may not be able to increase our revenue enough to offset our increased operating expenses.
We may incur significant losses in the future for a number of reasons, including the other risks described in this “Risk Factors” section, and unforeseen expenses, difficulties, complications and delays and other unknown events.
−Removed: If we are unable to achieve and sustain profitability, the value of our business and common stock may significantly decrease.
+Added: If we are unable to achieve or sustain profitability in the future, the value of our business and common stock may significantly decrease.
Our current operations are international in scope and we plan further geographic expansion, creating a variety of operational challenges.
12 unchanged sentences
▪ unexpected changes in laws and regulatory requirements, including but not limited to, taxes or trade laws;
+Added: 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;
8 unchanged sentences
▪ regional or global conflicts, including sanctions or other laws and regulations prohibiting or limiting operations in certain jurisdictions;
−Removed: DocuSign, Inc.| 2023 Form 10-K | 25
▪ political instability or terrorist activities;
6 unchanged sentences
▪ adverse tax burdens and foreign exchange controls that could make it difficult to repatriate earnings and cash;
−Removed: ▪ exposure to regional or global public health issues, such as the COVID-19 pandemic, and to travel restrictions and other measures undertaken by governments in response to such issues.
+Added: ▪ exposure to regional or global public health issues, and to travel restrictions and other measures undertaken by governments in response to such issues.
Our limited experience in operating our business internationally increases the risk that any potential future expansion efforts that we undertake may not be successful.
15 unchanged sentences
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.
+Added: 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.
−Removed: In addition, as of January 31, 2023, we had outstanding $37.1 million aggregate principal amount of the 2023 Notes, $690.0 million aggregate principal amount of the 2024 Notes (the 2023 Notes together with the 2024 Notes, the “Notes”) and available borrowing capacity of $500.0 million under our credit facility.
+Added: 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.
2 unchanged sentences
This estimate does not reflect the possibility that we may not be able to access a material portion of our existing cash, cash equivalents and investments due to market conditions.
−Removed: For example, on March 10, 2023, the Federal Deposit Insurance Corporation (“FDIC”) was appointed receiver of Silicon Valley Bank (“SVB”), and SVB’s parent company subsequently filed for Chapter 11 protection.
−Removed: Our cash and cash equivalents are distributed across several l arge financial institutions, and our exposure to SVB was immaterial.
−Removed: However, if other banks and financial institutions wind down and liquidate, enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our
−Removed: DocuSign, Inc.| 2023 Form 10-K | 26
−Removed: existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on our business and financial condition.
+Added: For example, if banks or financial institutions wind down and liquidate, enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on our business and financial condition.
We also intend to continue to make investments to support our business and, in the future, we may require additional funds.
4 unchanged sentences
If adequate funds are not available on acceptable terms when we require it, we may be unable to invest in future growth opportunities, which could harm our business, operating results and financial condition.
−Removed: We have incurred substantial indebtedness that may decrease our business flexibility, access to capital and/or increase our borrowing costs, and we may still incur substantially more debt, which may adversely affect our operations and financial results.
−Removed: As of January 31, 2023, we had $37.1 million principal amount of indebtedness outstanding under our 2023 Notes, $690.0 million principal amount of indebtedness outstanding under our 2024 Notes and available borrowing capacity of $500.0 million under our credit facility.
−Removed: Our indebtedness may:
+Added: We have in the past incurred substantial indebtedness and may in the future incur substantial indebtedness that may decrease our business flexibility, access to capital and/or increase our borrowing costs, which may adversely affect our operations and financial results.
+Added: As of January 31, 2024, we had available borrowing capacity of $500.0 million under our credit facility.
+Added: If we decide to borrow a portion or the full amount under our credit facility, such indebtedness may:
▪ limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions or other general business purposes;
3 unchanged sentences
▪ place us at a competitive disadvantage compared to our less leveraged competitors;
−Removed: ▪ increase our vulnerability to the impact of adverse economic and industry conditions, including inflation and rising interest rates;
−Removed: ▪ require us to consume a portion of our liquidity to settle the Notes in the next 12 months.
+Added: ▪ increase our vulnerability to the impact of adverse economic and industry conditions, including inflation and volatile interest rates, and actual or perceived instability in the global banking sector.
Our ability to use our net operating loss carryforwards to offset future taxable income may be subject to certain limitations.
5 unchanged sentences
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.
−Removed: 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.
+Added: We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under
+Added: DocuSign, Inc.| 2024 Form 10-K | 27
+Added: 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 are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results.
3 unchanged sentences
dollar could increase the real cost of our offerings to our customers outside of the U.S., which could adversely affect our operating results.
−Removed: In addition, an increasing
−Removed: DocuSign, Inc.| 2023 Form 10-K | 27
−Removed: portion of our operating revenues and operating expenses are earned or incurred outside of the U.S., and an increasing portion of our assets is held outside of the U.S.
+Added: In addition, an increasing portion of our operating revenues and operating expenses is earned or incurred outside of the U.S., and an increasing portion of our assets is held outside of the U.S.
These operating revenues, expenses and assets are denominated in foreign currencies and are subject to fluctuations due to changes in foreign currency exchange rates.
−Removed: If we are not able to successfully hedge against the risks associated with currency fluctuations, our operating results could be adversely affected.
−Removed: Additionally, global events as well as geopolitical developments, including regional conflicts in Europe, fluctuating commodity prices, trade tariff developments and inflation have caused, and may in the future cause, global economic uncertainty and uncertainty about the interest rate environment, which could amplify the volatility of currency fluctuations.
+Added: If we are not able to successfully manage, or to implement strategies to manage, against the risks associated with currency fluctuations, our operating results could be adversely affected.
+Added: Additionally, global events as well as geopolitical developments, including regional conflicts in Europe and the Middle East, fluctuating commodity prices, trade tariff developments and inflation have caused, and may in the future cause, global economic uncertainty and uncertainty about the interest rate environment, which could amplify the volatility of currency fluctuations.
We have not engaged in the hedging of foreign currency transactions to date, so we may not be able to effectively offset the adverse financial impacts that may result from unfavorable movements in foreign currency exchange rates, which could adversely affect our operating results.
We 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.
−Removed: A successful assertion by one or more states requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial tax liabilities, including taxes on past sales, as well as penalties and interest.
−Removed: Any imposition by state governments or local governments of sales tax collection obligations on out-of-state sellers could also create additional administrative burdens for us, put us at a competitive disadvantage if they do not impose similar obligations on our competitors and decrease our future sales, which could have a material adverse impact on our business and operating results.
−Removed: Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow or cash on hand to pay our debt, to settle conversions of the Notes in cash or to repurchase the Notes upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the Notes.
−Removed: Our ability to make scheduled payments of the principal of, to pay interest on or to refinance our indebtedness, including the amounts payable under the Notes, any borrowings including under our credit facility or other future indebtedness, depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control.
−Removed: Our business may not continue to generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures.
−Removed: If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive.
−Removed: Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such time.
−Removed: Any new or refinanced debt may be subject to substantially higher interest rates, which could adversely affect our financial condition and impact our business.
−Removed: We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.
−Removed: Subject to certain conditions, holders of the Notes may require us to repurchase for cash all or a portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid regular or special interest, if any.
−Removed: In addition, if a make-whole fundamental change (as defined in the respective indentures for the Notes) occurs prior to the respective maturity dates of the Notes, we will in some cases be required to increase the conversion rate for a holder that elects to convert its Notes in connection with such make-whole fundamental change.
−Removed: Upon a conversion of the Notes, unless we elect to deliver solely shares of our common stock to settle such conversion (other than paying cash in lieu of delivering any fractional share), we will be required to make cash payments in respect of the Notes being converted.
−Removed: However, we may not have enough available cash or be able to obtain financing at the time we are required to make repurchases of Notes surrendered therefor or pay cash with respect to Notes being converted.
−Removed: As of January 31, 2023, both sets of our Notes will mature in the next 12 months, which could require us to consume a significant portion of our liquidity or raise additional financing in adverse capital markets conditions.
−Removed: In addition, our credit facility prohibits us from making any cash payments on the conversion or repurchase of the Notes if an event of default exists under the credit facility or if, after giving effect to such conversion or repurchase (and any additional indebtedness incurred in connection with such conversion or a repurchase), we would not be in compliance with our financial covenants under the credit facility.
−Removed: Further, our ability to repurchase or to pay cash upon conversion of the Notes may be limited by law, regulatory authority or agreements governing our future indebtedness.
−Removed: Our failure to repurchase the Notes at a time when the repurchase is required by the indenture governing the Notes or to pay cash upon conversion of the Notes as required by the indenture would constitute a default under the indenture.
−Removed: A default under the indenture or the fundamental change itself could also lead to a default under agreements governing our future indebtedness.
−Removed: If the payment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and repurchase the Notes or to pay cash upon conversion of the Notes.
−Removed: DocuSign, Inc.| 2023 Form 10-K | 28
+Added: A successful assertion by one or more states or foreign jurisdictions requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial tax liabilities, including taxes on past sales, as well as penalties and interest.
+Added: Any imposition by state or local governments or other jurisdictions of sales tax collection obligations on out-of-state or -jurisdiction sellers could also create additional administrative burdens for us, put us at a competitive disadvantage if they do not impose similar obligations on our competitors and decrease our future sales, which could have a material adverse impact on our business and operating results.
Legal and Regulatory Risks
1 unchanged sentence
Our actual or perceived failure to comply with laws or regulations could harm our business.
−Removed: 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.
federal government and various state and foreign governments have adopted or proposed limitations on the collection, distribution, use and storage of data relating to individuals and businesses, including the use of contact information and other data for marketing, advertising and other communications with individuals and businesses.
5 unchanged sentences
▪ The Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, the Gramm-Leach-Bliley Act, and state laws relating to privacy and data security.
−Removed: ▪ Additionally, the FTC and many state attorney generals are interpreting federal and state consumer protection laws as imposing standards for the online collection, use, dissemination, and security of data.
−Removed: For example, California has enacted the California Consumer Privacy Act (the “CCPA”), most recently amended by the California Privacy Rights Act (the “CPRA”) as of January 1, 2023, with enforcement beginning on July 1, 2023, subject to regulations promulgated through a newly created enforcement agency called the California Privacy Protection Agency.
+Added: ▪ Additionally, the FTC and many U.S.
+Added: state attorney generals are interpreting federal and state consumer protection laws as imposing standards for the online collection, use, dissemination, and security of personal information.
+Added: 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.
+Added: DocuSign, Inc.| 2024 Form 10-K | 28
Other states have passed comparable legislation, and some may pass similar legislation with potentially greater penalties, and more rigorous compliance requirements relevant to our business.
2 unchanged sentences
We may function as a HIPAA business associate for certain of our customers and, as such, are subject to applicable privacy and data security requirements.
−Removed: Failure to comply with HIPAA can result in significant civil monetary penalties and, in certain circumstances, criminal penalties and fines.
+Added: Failure to comply with applicable HIPAA requirements can result in significant civil monetary penalties and, in certain circumstances, criminal penalties and fines.
+Added: Additionally, we are subject to various other laws and regulations affecting our business.
+Added: 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.
+Added: In March 2024, the SEC also adopted amendments that will require us to disclose certain climate-related information in our annual reports beginning with our annual report covering fiscal year ended January 31, 2026.
+Added: Additionally, California recently adopted the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act, each of which mandate certain climate-related public disclosure requirements.
+Added: We expect that new laws, regulations and industry standards will continue to be proposed and enacted relating to privacy, data protection, marketing, advertising, electronic signatures, consumer communications and information security in the U.S., the EU and other jurisdictions, and we cannot determine the impact such future laws, regulations and standards may have on our business.
+Added: Future laws, regulations, standards and other obligations or any changed interpretation of existing laws or regulations could impair our ability to develop and market new functionality and maintain and grow our customer base and increase revenue.
+Added: For example, changes in the regulatory landscape relating to new and evolving technologies, such as generative AI, and future restrictions on the collection, use, sharing or disclosure of data, or additional requirements for the express or implied consent of our customers, partners or end consumers for the use and disclosure of such information could require us to incur additional costs or modify our products and solutions, possibly in a material manner, and could limit our ability to develop new functionality.
+Added: Any actual or perceived failure to comply with these or other laws or regulations could harm our business, and result in legal liability, regulatory action, or brand and reputational harm.
+Added: Complying 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.
Internationally, many countries have established their own data privacy and security legal framework with which we, our customers and partners may need to comply.
−Removed: For example, in Europe, the General Data Protection Regulation (the “GDPR”) contains robust obligations on data controllers and processors and fulsome documentation requirements for data protection compliance programs by companies.
+Added: For example, in Europe, the General Data Protection Regulation (the “GDPR”) has been enacted as national legislation for respective member states and contains robust obligations on data controllers and processors and fulsome documentation requirements for data protection compliance programs by companies.
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.
+Added: 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).
−Removed: Such penalties are in addition to any civil litigation claims by customers and data subjects.
+Added: 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.
We may also face civil claims including representative actions and other class action-type litigation (where individuals have suffered harm), potentially amounting to significant compensation or damages liabilities, as well as associated costs, diversion of internal resources, and reputational harm.
−Removed: The GDPR in particular imposes strict rules on the transfer of personal data out of the EU to a “third country,” including the U.S.
−Removed: These obligations may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other requirements or our practices.
−Removed: Legal developments in Europe also create complexity and uncertainty regarding transfers of personal data from the EU and the UK to the U.S.
−Removed: Notable recent developments include the invalidation of the EU-U.S.
−Removed: Privacy Shield Framework (“Privacy Shield”) on July 16, 2020, under which personal data could be transferred from the European Economic Area (“EEA”) to U.S.
−Removed: entities who had self-certified under the Privacy Shield scheme prior to invalidation.
−Removed: To safeguard data transfers from the EEA to other jurisdictions, including the U.S., we currently utilize respective Binding Corporate Rules and Standard Contractual Clauses as the approved data transfer mechanisms by the EU Commission for corresponding
+Added: Additionally, both the GDPR and UK GDPR impose strict rules on the transfer of personal data out of the EU and the UK to a “third country,” or a country whose laws do not ensure an adequate level of data protection safeguards (such as the U.S.).
+Added: These obligations may evolve, be interpreted or applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other requirements or our practices.
+Added: For example, in June 2023, the European Commission adopted an adequacy decision (“UK Adequacy Decision”) which facilitates personal data sharing from the European Economic Area (“EEA”) to the UK without the need for additional data protection safeguards.
+Added: The UK Adequacy Decision includes a “sunset clause”, rendering the decision valid for four years, after which it will be reviewed by the European Commission and renewed only if the European Commission considers that the UK continues to ensure an adequate level of data protection.
+Added: The European Commission also stated that it would intervene at any point within the four years if the UK deviates from the level of protection presently in place.
+Added: If this adequacy decision is reversed by the European Commission, it would require that companies implement protection measures such as the approved Standard Contractual Clauses for data transfers between the EU and the UK.
DocuSign, Inc.| 2024 Form 10-K | 29
−Removed: applicable data transfer activity.
−Removed: The EU Commission has also published revised Standard Contractual Clauses for data transfers from the EEA:
−Removed: the revised Standard Contractual Clauses must be used for relevant new data transfers since September 27, 2021;
−Removed: existing Standard Contractual Clauses arrangements were required to be migrated to the revised Standard Contractual Clauses by December 27, 2022.
−Removed: We expect that new laws, regulations and industry standards will continue to be proposed and enacted relating to privacy, data protection, marketing, advertising, electronic signatures, consumer communications and information security in the U.S., the EU and other jurisdictions, and we cannot determine the impact such future laws, regulations and standards may have on our business.
−Removed: Future laws, regulations, standards and other obligations or any changed interpretation of existing laws or regulations could impair our ability to develop and market new functionality and maintain and grow our customer base and increase revenue.
−Removed: Future restrictions on the collection, use, sharing or disclosure of data or additional requirements for the express or implied consent of our customers, partners or end consumers for the use and disclosure of such information could require us to incur additional costs or modify our products and solutions, possibly in a material manner, and could limit our ability to develop new functionality.
+Added: Legal developments in Europe continue to evolve, creating complexity and uncertainty regarding transfers of personal data from the EU and the UK to the U.S.
+Added: On June 4, 2021, the European Commission finalized new versions of the Standard Contractual Clauses, with the Implementing Decision now in effect.
+Added: The UK Information Commissioner’s Office of the Data Protection Authority published the UK version of the Standard Contractual Clauses, and by March 2024, we will be required to use and honor these clauses for transfers of UK residents’ personal data to a foreign country that does not have adequate data protection.
+Added: On July 10, 2023, the European Commission adopted an adequacy decision for the EU-U.S.
+Added: Data Privacy Framework (a new cooperative effort between U.S.
+Added: and European officials to overcome the security issues raised by the EU-U.S.
+Added: Privacy Shield regarding personal transfers from the EU to the U.S.).
+Added: In October 2023, the UK ICO adopted the UK-U.S.
+Added: data bridge to allow self-certifying companies to effect personal data transfers from the UK to the U.S.
+Added: without additional safeguards.
+Added: This new Data Privacy Framework could be subject to legal challenge in front of the Court of Justice of the European Union, which had previously invalidated the Privacy Shield.
+Added: We currently utilize respective Binding Corporate Rules and Standard Contractual Clauses as the approved data transfer mechanisms by the EU Commission for corresponding applicable data transfer activity.
+Added: While we do not anticipate any immediate changes in our current operations, we will continue to monitor these legal developments.
We have been and may in the future be subject to legal proceedings and litigation for a variety of claims, including labor and employment issues, intellectual property disputes, securities law violations, derivative litigation and other matters, which may be costly and may subject us to significant liability and increased costs of doing business.
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Moreover, policing unauthorized use of our technologies, trade secrets and intellectual property may be difficult, expensive and time-consuming, particularly in foreign countries where the laws may not be as protective of intellectual property rights as those in the U.S.
−Removed: and where mechanisms for enforcement of intellectual property rights may be weak.
+Added: and where mechanisms for enforcement of intellectual property rights may be less effective.
If we fail to adequately protect our intellectual property and proprietary rights, our business, operating results and financial condition could be adversely affected.
+Added: Many 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.
+Added: If our products and solutions fail to meet these requirements, we could incur significant liabilities and our financial condition may suffer.
+Added: Many customers use our products and solutions globally to comply with safe harbors and other legislation in the countries in which they transact business.
+Added: For example, some of our customers rely on government authorizations we maintain, such as FedRAMP in the U.S, or certifications such as our qualification as a Trust Service Provider under eIDAS in the EU to help satisfy their own legal and regulatory compliance requirements.
+Added: If a court or regulatory body determines that our products and solutions are inadequate to meet these requirements, documents executed through our products and solutions could, in some instances, be rendered unenforceable, resulting in potential loss of customers, liability under customer contracts, and brand and reputational damage.
+Added: We 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.
+Added: 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.
+Added: AI technologies can be complex and are presently rapidly evolving, and while we believe that product features powered by next generation AI technologies, such as generative AI, will help drive the future growth of our business, there is no guarantee that such new product features will ultimately be successful, and our competitors and other third parties may incorporate AI into their products more quickly or more successfully than us, all of which could impair our ability to compete effectively and may adversely affect our results of operations.
+Added: This use of AI in our products and solutions may present new and evolving challenges, including reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.
+Added: DocuSign, Inc.| 2024 Form 10-K | 31
+Added: The development and use of AI features and applications present various intellectual property, data privacy, security and reliability risks that may impact our business.
+Added: 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.
+Added: 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.
+Added: For example, the European Parliament, the European Commission and Council reached a political agreement on December 8, 2023, regarding the EU Artificial Intelligence Act that, once finalized and entered into force, would prohibit certain AI applications and systems with unacceptable risk and impose additional requirements on the use of other high-risk or limited-risk AI applications or systems.
+Added: Intellectual property ownership issues, licensing and privacy rights surrounding AI technologies are evolving and have not been fully addressed by U.S.
+Added: federal or state courts or foreign jurisdictions, which may expose us to claims of intellectual property infringement or misappropriation or privacy rights violations, or result in inquiries by government bodies or agencies.
+Added: For example, the U.S.
+Added: Federal Trade Commission initiated multiple AI-related inquiries in 2023 and 2024 and sent requests to technology companies, including DocuSign, seeking additional information about their AI usage and policies.
+Added: The rapid evolution of AI technologies will require significant resources in research and development in order to develop, test and maintain our platform and products to minimize any potential harmful impact on our business, financial condition, and results of operations.
+Added: 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.
+Added: For example, if the content, analyses, or recommendations arising from our AI product offerings are, or are alleged to be, inaccurate, deficient, offensive, or biased, or if they have a perceived or actual negative impact on human rights, privacy rights, employment, or in other social contexts, we may experience brand and reputational harm or legal liability, and our business, financial condition, and results of operations may be adversely affected.
+Added: Additionally, AI technology may involve significant technical complexity, which will require specialized expertise and may increase compensation-related expenses.
+Added: 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 use open source software in our products, which could subject us to litigation or other actions.
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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.
+Added: 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.
+Added: Any warranty or
DocuSign, Inc.| 2024 Form 10-K | 32
−Removed: 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.
−Removed: Any warranty or indemnification claim brought by our customers could result in damage to our reputation and harm our business and operating results.
−Removed: Many 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.
−Removed: If our products and solutions fail to meet these requirements, we could incur significant liabilities and our financial condition may suffer.
−Removed: Many customers use our products and solutions globally to comply with safe harbors and other legislation in the countries in which they transact business.
−Removed: For example, some of our customers rely on our certifications under the FedRAMP in the U.S.
−Removed: and eIDAS in the EU to help satisfy their own legal and regulatory compliance requirements.
−Removed: If a court or regulatory body determines that our products and solutions are inadequate to meet these requirements, documents executed through our products and solutions could, in some instances, be rendered unenforceable, resulting in potential loss of customers, liability under customer contracts, and brand and reputational damage.
+Added: 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.
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and numerous other jurisdictions throughout the world, and the tax regimes we are subject to or operate under, including income and non-income taxes, are unsettled and may be subject to significant change.
−Removed: Changes in tax laws (including provisions of the recently enacted federal tax legislation titled the Inflation Reduction Act (the “IRA”)), certain Organization for Economic Co-operation and Development (“OECD”) proposals, regulations, or rulings, changes in interpretations of existing laws and regulations, or changes in accounting principles could negatively and materially affect our financial position and results of operations.
+Added: 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.
Additionally, our corporate structure and associated transfer pricing policies contemplate future growth into international markets, and consider the functions, risks and assets of the various entities involved in the intercompany transactions.
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In addition, the authorities in these jurisdictions could review our tax returns and impose additional tax, interest and penalties, and the authorities could claim that various withholding requirements apply to us or to our subsidiaries or assert that benefits of tax treaties are not available to us or our subsidiaries which could have a material impact on us and the results of our operations.
−Removed: Further, in August 2022, President Biden signed into law the IRA, which includes a 15% corporate alternative minimum tax for companies with modified GAAP net income in excess of $1 billion, a 1% excise tax on certain stock repurchases.
−Removed: We are not currently subject to the corporate alternative minimum tax, and do not currently expect the IRA provisions to have a material impact on our results of operations.
−Removed: Such changes, however, could result in an increase in the effective tax rate applicable to all or a portion of our income, which would negatively affect our financial results.
The 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.
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Our management and other personnel devote a substantial amount of time to compliance with these requirements and such compliance has increased, and will continue to increase, our legal, accounting and financial costs.
−Removed: DocuSign, Inc.| 2023 Form 10-K | 32
The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting.
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Despite significant investment, our current controls and any new controls that we develop may become inadequate because of changes in business conditions.
−Removed: For example, because we have acquired companies in the past and may continue to do so in the future, we need to effectively expend resources to integrate the controls of these acquired entities with ours.
−Removed: Further, weaknesses in our disclosure controls and internal control over financial reporting may be discovered in the future.
Any failure to implement and maintain effective internal control over financial reporting could adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that are required to be included in the periodic reports that we file with the SEC.
−Removed: 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.
+Added: 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
+Added: DocuSign, Inc.| 2024 Form 10-K | 33
+Added: decline, and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities or shareholder litigation.
In addition, as we continue to scale and improve our operations, including our internal systems and processes, we currently utilize, and in the future may seek to implement, a variety of critical systems, such as billing, human resource, financial reporting and accounting systems.
−Removed: The implementation and transition to any new critical system, such as our new ERP 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.
+Added: 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.
Moreover, since most of our employees (including those critical to maintaining an effective system of disclosure controls and internal control over financial reporting) are working and are expected to continue to work for the near term, in either a fully remote or a hybrid environment, risks that we have not contemplated may arise and result in our failure to maintain effective disclosure controls or internal control over financial reporting.
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Furthermore, our activities are subject to U.S.
−Removed: economic sanctions laws and regulations that prohibit the shipment of certain products and services without the required export authorizations, including to countries, governments and persons targeted by U.S.
+Added: economic sanctions laws and regulations that prohibit the shipment or distribution of certain products and services without the required export authorizations, including to countries, governments and persons targeted by U.S.
embargoes or sanctions.
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however, no assurance can be given that our strategic partners will comply with such requirements.
−Removed: DocuSign, Inc.| 2023 Form 10-K | 33
−Removed: Foreign governments also regulate the import and export of certain encryption and other technology, including import and export licensing requirements, and have enacted 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.
+Added: 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.
Changes in our products and solutions or future changes in export and import regulations may create delays in the introduction of our products and solutions in international markets, prevent our end-customers with international operations from deploying our products and solutions globally or, in some cases, prevent the export or import of our products and solutions to certain countries, governments or persons altogether.
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Bribery Act, and other anti-bribery and anti-money laundering laws in the countries in which we conduct activities.
−Removed: As we increase our international sales and business and sales to the public sector, we may engage with business partners and third-party intermediaries to market our products and solutions and to obtain necessary permits, licenses, and other regulatory approvals.
+Added: As we increase our international sales and business and sales to the public sector internationally, we may engage with business partners and third-party intermediaries to market our products and solutions and to obtain necessary permits,
+Added: DocuSign, Inc.| 2024 Form 10-K | 34
+Added: licenses, and other regulatory approvals.
In addition, we or our third-party intermediaries may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities.
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▪ announcements by us or our competitors of significant business developments, acquisitions or new offerings;
+Added: ▪ 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;
−Removed: DocuSign, Inc.| 2023 Form 10-K | 34
▪ the consummation, and the anticipated benefits, of our stock repurchase program;
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▪ changes in the political climate in the U.S.;
−Removed: ▪ 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 (such as the COVID-19 pandemic) or other such events impacting countries where we have operations.
+Added: ▪ 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.
In addition, broad market and industry fluctuations, as well as general economic, political, regulatory and market conditions, may negatively impact the market price of our common stock.
In the past, companies that have experienced volatility in the market price of their securities have been subject to securities class action litigation.
−Removed: We have been subject to and may be in the future subject to this type of litigation in the future, which could result in substantial costs and divert our management’s attention.
−Removed: Future sales of our common stock in the public market could cause the market price of our common stock to decline.
−Removed: Sales of a substantial number of shares of our common stock in the public market, or the perception that these sales might occur, could depress the market price of our common stock and could impair our ability to raise capital through the sale of additional equity securities.
−Removed: We also provide eligible employees with the opportunity to purchase shares of our common stock at a discounted price per share through our ESPP and pursuant to our 2018 Plan, our management is authorized to grant stock options, restricted stock units (“RSUs”) and other equity awards to our employees, directors and consultants.
−Removed: We are unable to predict the effect that such sales may have on the prevailing market price of our common stock.
−Removed: In addition, we filed a registration statement to register shares reserved for future issuance under our equity compensation plans.
−Removed: As a result, the shares issued upon exercise of outstanding stock options or upon settlement of outstanding RSU awards will be available for immediate resale in the U.S.
−Removed: in the open market.
−Removed: Future sales of shares of our common stock may make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.
−Removed: These sales also could cause the trading price of our common stock to decline and make it more difficult for you to sell shares of our common stock.
+Added: We have been subject to, and may in the future be, subject to this type of litigation, which could result in substantial costs, divert our management’s attention from our business and adversely affect our business.
If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, our stock price and trading volume could decline.
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We do not have any control over these analysts.
−Removed: If the number of analysts that cover us declines or if analysts do not publish research or reports about our business, delay publishing reports about our business or publish negative reports about our business, regardless of accuracy, our stock price and trading volume could decline.
+Added: If the number of analysts that cover us declines or if analysts do not publish research or reports about our business, delay publishing reports
+Added: DocuSign, Inc.| 2024 Form 10-K | 35
+Added: about our business or publish negative reports about our business, regardless of accuracy, our stock price and trading volume could decline.
Regardless of accuracy, unfavorable interpretations of our financial information and other public disclosures could have a negative impact on our stock price.
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▪ establish an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to our board of directors;
−Removed: DocuSign, Inc.| 2023 Form 10-K | 35
▪ establish that our board of directors is divided into three classes, with each class serving three-year staggered terms;
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Our amended and restated certificate of incorporation, however, provides that the U.S.
−Removed: federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act.
+Added: federal district courts will be the exclusive forum for
+Added: DocuSign, Inc.| 2024 Form 10-K | 36
+Added: resolving any complaint asserting a cause of action arising under the Securities Act.
In December 2018, the Delaware Chancery Court issued an opinion invalidating provisions similar to ours limiting to U.S.
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General Risks
−Removed: DocuSign, Inc.| 2023 Form 10-K | 36
Unfavorable 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.
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Negative conditions in the general economy both in the U.S.
−Removed: and abroad, including conditions resulting from inflation, changes in interest rates, 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.
+Added: 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.
In addition, unfavorable conditions in certain industry sectors could impact customers or partners disproportionately, which could also impact the demand for our products.
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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.
−Removed: We rely heavily on our network infrastructure and information technology systems, including our ERP system, for our business operations.
+Added: We rely heavily on our network infrastructure and information technology systems, including our security-related or ERP systems, for our business operations.
A disruption or failure of these systems in the event of online attack, earthquake, fire, terrorist attack, public health crisis, power loss, telecommunications failure or other similar catastrophic event, including as a result of the effects of climate change, could cause system interruptions, delays in accessing our service, reputational harm and loss of critical data or could prevent us from providing our products and solutions to our customers.
A catastrophic event that results in the destruction or disruption of our data centers, or our network infrastructure or information technology systems, including any errors, defects or failures in third-party hardware, could affect our ability to conduct normal business operations and adversely affect our operating results.
−Removed: Additionally, while we believe our exposure from the recent conflict in Ukraine 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.
+Added: 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
−Removed: UNRESOLVED STAFF COMMENTS
+Added: 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.
+Added: DocuSign, Inc.| 2024 Form 10-K | 38
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.