DocuSign Irish unit incurs €1.8m restructuring costs as losses mount

In fiscal 2024, DocuSign globally recorded an increase of 10% in revenues over the prior year.

The Irish arm of DocuSign has incurred costs of €1.8m arising from three rounds of job cuts across last year, 2023, and 2022.

That is according to new accounts for the Dublin-registered DocuSign International EMEA Ltd which show that the electronic signature software company recorded pre-tax losses of €44.65m in the 12 months to the end of January 2022.

The company recorded the 150% increase in pre-tax losses from €17.88m to €44.65m.

The company’s European Middle East and Africa (EMEA) HQ only set up here in 2015 and the losses were recorded as the firm’s revenues increased by 43% from €75.29m to €107.09m.

However, the company's staff costs rose at an even quicker rate as the business expanded its workforce at breakneck speed in fiscal 2022, with numbers employed rising from 296 from 618 to 914.

This resulted in staff costs rising from €64m to €103.94m, that included €22.46m in share-based expenses.

Pay to directors increased from €2.58m to €3.09m and a note stated that during the year one director exercised group options and the gain on the exercise of the options totalled €3.17m.

Escalating costs

In a bid to cut back on the escalating costs, the directors state that the company announced restructuring, involving job reductions in September 2022, February 2023, and February 2024.

The directors state that the total costs incurred by the company for severance pay, pay in lieu of notice, payroll taxes, professional fees, and other benefits in these three funds of restructuring amounted to €1.85m.

The directors state that the effect of covid-19 on the Docusign group of companies has been positive.

As more people shifted towards remote working, there was an increase in the revenue and billings related to DocuSign products. 

Shareholder funds at the end of January 2022 totalled €34.2m, made up of accumulated losses of €88.9m offset by €72.89m in a share premium reserve and €50.23m in a capital contribution.

Cash funds declined from €11.5m to €5.7m.

The loss in fiscal 2022 takes account of non-cash depreciation costs of €2.69m, non-cash amortisation costs of €7.28m, and rent and other expenses of €4.94m.

Globally, today DocuSign has a market capitalisation of $19.64bn. In fiscal 2024, DocuSign globally recorded revenues of $2.8bn, an increase of 10% over the prior year.