That is according to new accounts, which show that pre-tax losses at the Dublin-registered Docusign International EMEA Ltd increased from €44.65m to €127.5m in the 12 months to the end of January 2023.
Revenues at the electronic signature software company – which has its global headquarters in San Francisco – decreased by 5pc from €107m to €102.6m.
Numbers employed decreased by 72 from 914 to 842, while staff costs increased from €103.94m to €128.36m.
Losses surged at the firm in fiscal year 2023, as its operating expenses increased by 50pc from €152.69m to €229.1m.
The directors said the loss for the financial year was primarily a result of the company “changing from a cost-plus entity to a hybrid cost-plus/full risk distributor model”.
On February 1, 2023, it signed a non-exclusive licence agreement with Docusign Inc granting the company rights to sell Docusign Inc-owned products.
The note said that while the company did not begin to sell products to third-party customers until September 1, 2022, in anticipation of selling products directly to customers, “the company invested heavily in sales, marketing and customer service in the earlier part of the financial year”.
DocuSign International EMEA Ltd began to absorb the costs of other Europe, Middle East and Africa (EMEA) entities supporting sales, marketing and customer service in the EMEA region at a mark-up. Also contributing to the loss for the financial year was the share-based compensation expense of €31.19m.
The directors said the non-cash amortisation of the Right to Use IP from Seal Software Ltd for the 2023 financial year amounting to €7.28m, which “also contributed to the noted loss”.
On post-balance sheet events, the directors said the company announced restructuring involving reductions in workforce in February 2023 and February 2024.
The total costs incurred for severance pay, pay in lieu of notice, payroll taxes, professional fees and other employee benefits in these two rounds of restructuring amounted to €1.35m.
The company’s balance sheet was strengthened during the year with a capital injection of €109.2m, while its share-based payment reserve increased from €72m to €104.08m.
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