DOCUSIGN, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

Reconciliation of gross profit and gross margin:

Three Months Ended January 31,

Year Ended January 31,

(in thousands)

2020

2019

2020

2019

GAAP gross profit

$

206,820

$

147,039

$

730,737

$

508,548

Add: Stock-based compensation

7,777

5,654

28,585

42,040

Add: Amortization of acquisition-related intangibles

1,348

1,778

5,704

6,081

Add: Employer payroll tax on employee stock transactions

668

1,949

2,577

1,949

Add: Acquisition-related expenses

—

—

—

108

Non-GAAP gross profit

$

216,613

$

156,420

$

767,603

$

558,726

GAAP gross margin

75

%

74

%

75

%

73

%

Non-GAAP adjustments

4

%

4

%

4

%

7

%

Non-GAAP gross margin

79

%

78

%

79

%

80

%

GAAP subscription gross profit

$

209,960

$

154,012

$

754,532

$

545,893

Add: Stock-based compensation

3,951

2,241

12,882

16,182

Add: Amortization of acquisition-related intangibles

1,348

1,778

5,704

6,081

Add: Employer payroll tax on employee stock transactions

285

830

1,054

830

Non-GAAP subscription gross profit

$

215,544

$

158,861

$

774,172

$

568,986

GAAP subscription gross margin

81

%

82

%

82

%

82

%

Non-GAAP adjustments

3

%

3

%

2

%

4

%

Non-GAAP subscription gross margin

84

%

85

%

84

%

86

%

GAAP professional services and other gross loss

$

(3,140)

$

(6,973)

$

(23,795)

$

(37,345)

Add: Stock-based compensation

3,826

3,413

15,703

25,858

Add: Acquisition-related expenses

—

—

—

108

Add: Employer payroll tax on employee stock transactions

383

1,119

1,523

1,119

Non-GAAP professional services and other gross profit (loss)

$

1,069

$

(2,441)

$

(6,569)

$

(10,260)

GAAP professional services and other gross margin

(19)

%

(57)

%

(43)

%

(100)

%

Non-GAAP adjustments

25

%

37

%

31

%

73

%

Non-GAAP professional services and other gross margin

6

%

(20)

%

(12)

%

(27)

%