Slide 1: Q2 F2019 Financial Review
Q2 F2019 Financial Review 1
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by DocuSign, Inc. (“DocuSign”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or DocuSign or any officer,
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to the financials presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP financial measures. We use the following non-GAAP financial information to evaluate our ongoing operations and for i
Slide 4: Strong growth across the board
Strong growth across the board (1) Billings(2) Revenue Enterprise & commercial Web & mobile 32% 33% $167 $172 14% $126 $130 14% 86% 86% Q2F18 Q2F19 Q2F18 Q2F19 (1) For the fiscal second quarters ended July 31, 2017 and 2018. $ in millions. (2) Total revenues plus the change in contract liabilities a
Slide 5: Strong revenue visibility
Strong revenue visibility Revenue contribution(1) Average contract length(2) Subscription Professional services & other ≤12 months >12 months 6% 5% By contracts Dollar weighted 13% 37% 94% 95% 13 19 months months Q2F18 Q2F19 87% 63% (1) For he fiscal first quarters ended July 31, 2017 and 2018. (2)
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 28% 404K 429K 36% 49K 335K 36K 354K 315K Q2F18 Q2F19 Q2F18 Q2F19 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally included in t
Slide 7: Achieving increased leverage
Achieving increased leverage (1) Non-GAAP gross margin(2) Headcount(3) Non-GAAP Opex(2) Subscription gross margin Total gross margin Domestic International $26 $22 2,579 87% 18% 16% 25% R&D 2,074 $86 23% $65 85% 81% 52% 52% 75% S&M 77% $19 79% $14 11% 12% G&A Q2F18 Q2F19 Q2F18 Q2F19 Q2F18 Q2F19 (1)
Slide 8: Improving profitability and cash flows
(1) Improving profitability and cash flows Non-GAAP operating margin Cash flow OCF Margin FCF Margin 14% 3% 11% 10% 6% (2%) Q2F18 Q2F19 Q2F18 Q2F18 Q2F19 Q2F19 (1) Please see Appendix slides for non-GAAP reconciliation. 8
Slide 9: Q3 F2019 Guidance
Q3 F2019 Guidance(1) Q3 Fiscal 2019 Total Revenue $172M - $175M Billings $169M - $179M Non-GAAP gross margin 78% - 81% Non-GAAP Sales and marketing 50% - 52% Non-GAAP Research and development 17% - 19% Non-GAAP General and administrative 11% - 13% Other expense <$500K Provision for income taxes ~$75
Slide 10: FY 2019 Guidance
FY 2019 Guidance Fiscal 2019 Total Revenue $683M - $688M Billings $732M - $752M Non-GAAP gross margin 78% - 81% Non-GAAP Sales and marketing 50% - 52% Non-GAAP Research and development 17% - 19% Non-GAAP General and administrative 11% - 13% Other expense <$2M Provision for income taxes ~$3M Non-GAAP
Slide 11: Appendix
Appendix 11
Slide 12: GAAP to non-GAAP and free cash flow reconciliation
GAAP to non-GAAP and free cash flow reconciliation Gross Profit (in $K) Quarter Ended July 31, 2017 2018 GAAP Gross Profit 97,085 130,683 Add: Stock-based Compensation in Cost of Revenue 485 4,410 Add: Amortization of Intangibles in Cost of Revenue 1,691 1,003 Non-GAAP Gross Profit 99,261 136,096 GA
Slide 13: GAAP to non-GAAP and free cash flow reconciliation
GAAP to non-GAAP and free cash flow reconciliation Adjusted Operating Gain / (Loss) (in $K) Quarter Ended July 31, 2017 2018 GAAP Operating Loss (13,781) (37,720) Add: Stock-based Compensation in Cost of Revenue 485 4,410 Add: Amortization of Intangibles in Cost of Revenue 1,691 1,003 Add: Stock-bas
Slide 14: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Sales & Marketing (in $K) Quarter Ended July 31, 2017 2018 GAAP Sales & Marketing 68,943 103,779 Less: Stock-based Compensation in Sales & Marketing (2,883) (16,791) Less: Amortization of Intangibles in Sales & Marketing (665) (765) Non-GAAP Sales & Marketing 65,395 8