DOCU · Forward model · Professional services and other · Bear case
What has to happen in Professional services and other
Model as of
This page changes Professional services and other inside the complete DOCU model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.
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Professional services and other
Deployment and integration fees charged to new customers: 2.3% of revenue, and shrinking for two years - $75.2 million in fiscal 2024, $75.4 million in fiscal 2025, $68.9 million in fiscal 2026 - as Docusign pushed implementation toward partners and self-service. The April 2026 quarter broke the run with $19.0 million against $17.5 million, the first year-over-year increase since October 2024, plausibly because an IAM deployment needs more hand-holding than an e-signature rollout. It is too small to move the valuation and too clearly disclosed to fold into the subscription line.
Latest: $18M (2032Q1E)
| Period | Value |
|---|---|
| 2024Q1 | $22M |
| 2024Q2 | $18M |
| 2024Q3 | $18M |
| 2024Q4 | $17M |
| 2025Q1 | $18M |
| 2025Q2 | $19M |
| 2025Q3 | $20M |
| 2025Q4 | $18M |
| 2026Q1 | $17M |
| 2026Q2 | $16M |
| 2026Q3 | $17M |
| 2026Q4 | $18M |
| 2027Q1 | $19M |
| 2027Q2E | $19M |
| 2027Q3E | $19M |
| 2027Q4E | $19M |
| 2028Q1E | $19M |
| 2028Q2E | $19M |
| 2028Q3E | $19M |
| 2028Q4E | $19M |
| 2029Q1E | $19M |
| 2029Q2E | $19M |
| 2029Q3E | $19M |
| 2029Q4E | $19M |
| 2030Q1E | $19M |
| 2030Q2E | $19M |
| 2030Q3E | $19M |
| 2030Q4E | $18M |
| 2031Q1E | $18M |
| 2031Q2E | $18M |
| 2031Q3E | $18M |
| 2031Q4E | $18M |
| 2032Q1E | $18M |
Assumptions & reasoning
- Sourced exactly like the subscription line: twelve quarters from the Professional services and other line of each release income statement, the thirteenth from the fiscal 2027 Q1 10-Q revenue note. The two verticals sum to Docusign's reported total revenue in all thirteen quarters with no residual, which is why neither line carries an estimated flag.
- No seasonal factors. The same centred four-quarter moving-average test that found a clear shape in subscriptions found none here: the worst window-to-window spread is 8.51%, larger than the whole 4.98% signal, so the apparent shape is noise on a $16-22 million line. That is a finding, not a gap.
- Applying the subscription line's margin to this vertical is knowingly wrong in fact and nearly harmless in effect. At 2.3% of revenue, moving this line's margin from 52.6% to zero changes consolidated free cash flow by about 1.2%. The alternative - inventing a services-specific margin Docusign has never disclosed - would be worse. The honest caveat is that cost of professional services revenue was $20.5 million against $17.9 million of revenue in the January 2026 quarter, so on a fully-loaded gross basis this line loses money.