Slide 1: Transforming the foundation of doing business
Transforming the foundation of doing business
Slide 2: Safe harbor and Use of Non-GAAP measures
Safe harbor and Use of Non-GAAP measures This presentation includes expressed and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “est
Slide 3: DocuSign at a glance
DocuSign at a glance Pioneer & leader of Rapid revenue growth(2) System of Agreement e-signature category & improving profitability Revenue FCF margin (1) 400K+ customers 44% CAGR $381 $519 Prepare Manage Sign $250 Significant market opportunity 7% Act (3) $25B (13%) TAM (38%) FY16 FY17 FY18 (1) As
Slide 4: DocuSign is transforming the foundation of doing business
DocuSign is transforming the foundation of doing business Agreement of today Agreement of the future Paper / Disconnected / Manual / Unintelligent Digital / Connected / Self-Executing / Smart 4
Slide 5: Business runs on agreements and they are everywhere
Business runs on agreements and they are everywhere Sales Marketing Services Human Finance Sales Order Processing Event Registration Account Change Resources Invoice Processing Customer Account Customer Communication Service/Work Orders Offer Letters Expense Processing Provisioning Approvals Terms C
Slide 6: Every company has a system of agreement, it just has not been modernized
Every company has a system of agreement, it just has not been modernized Prepare Sign The Act Manage physical signature was much to blame Mail it Create it Print it Act on it Store it Scan it Fax it Manually Manually Manually Difficulty preparing and routing and signing entering info finding and col
Slide 7: Today, we DocuSign
DocuSign unlocked the Today, we DocuSign signing bottleneck, opening up the rest of the agreement process to automation Prepare Sign Act Manage 7
Slide 8: Behind those important signing moments is a very complex e-signature workflow
Behind those important signing moments is a very complex e-signature workflow Prepare Sign Document Recipients/Roles Tag Route/Workflow Deliver/Certify Identify Sign Act Manage Document Collect Data Record Store Trigger/Act Manage 8
Slide 9: DocuSign's robust technology platform
DocuSign’s robust technology platform Web & Prepare Sign mobile apps 100s of millions of users(1) #1 most downloaded Document Recipients/Roles Tag Route/Workflow Deliver/Certify Identify mobile app in U.S.(2) Sign Act Manage API ~60% of transactions today(1) 300+ pre-built Document Collect Data Reco
Slide 10: Significant and under-penetrated market opportunity
Significant and under-penetrated market opportunity Enterprise Commercial VSBs Number of Companies by Size, Industry and Geography(1) Average Contract Value (ACV) per Company by Size and Industry(2) $25B (3) TAM (1) Estimated using the total number of companies in DocuSign’s immediate core markets g
Slide 11: Embedded in widely used business applications
Embedded in widely used business applications CRM HCM ERP 11
Slide 12: Significant benefits for customers
Significant benefits for customers Experience Cost Speed Improved Reduced cost of Accelerated customer doing business transactions and employee and business experience processes NPS of 63 $36 83% 50% (1) average incremental value completed completed generated per transaction <24 hours(3) <15 minutes
Slide 13: Winning strategy with customers large and small
Winning strategy with customers large and small DocuSign Target market market definition Sales channel Growth drivers Companies generally included in the Why We Win Global 2000 Land & Enterprise Direct Expand Globally adopted Model & Partner and auditable Mid-Market Expansion ≥250 employees Model 99
Slide 14: Trusted by customers across verticals
Trusted by customers across verticals 10 of the top 15 7 of the top 10 18 of the top 20 global financial global technology global pharmaceutical services companies companies companies Financial Healthcare & Business Telco Services Technology Life Sciences Services Real Estate Education Government No
Slide 15: Customer success across industries
Customer success across industries Customer Service Drives ROI Mobile Workforce Use Case Use Case Use Case Manual in-store process Lengthy and complex process Field salesforce constrained across global enterprise by paper and manual process With DocuSign(1) With DocuSign(1) With DocuSign(1) Simplifi
Slide 16: Globally positioned to succeed
Globally positioned to succeed Offices Data Centers 3rd Party Data Centers Canada London Dublin Seattle Paris Warrenville Europe U.S. New York San Francisco Tokyo (Global HQ) Tel Aviv Singapore 13 offices worldwide 2,270 employees (24% international)(1) Proprietary data centers in U.S. & Europe São
Slide 17: Leveraged growth strategies
Leveraged growth strategies Extend Pre & Post Agreement Introduce AI Modern API Usage System of Pre-built Integrations Prepare Agreement Platform Expand Use Cases Manage Sign Functions Verticals Global Network Effect Act Land #1 e-signature All Sizes of Customers Solution Paper $25B TAM Drive global
Slide 18: From e-signature to platform for modern systems of agreement
From e-signature to platform for modern systems of Prepare agreement Manage Sign Act 18
Slide 19: Annual Financial Review (F16-F18)
Annual Financial Review (F16-F18) 19
Slide 20: Financial highlights
Financial highlights Rapid Recurring Customer Demonstrated growth subscription base with operating at scale model with continued leverage strong expansion revenue in spend visibility 20
Slide 21: Strong growth across the board
Strong growth across the board (1) Billings(2) Revenue Contract liabilities(3) Enterprise & commercial Web & mobile $519 $278 44% $599 44% 46% CAGR CAGR 14% CAGR $381 $432 $190 15% $250 86% $290 $130 16% 85% 84% FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 (1) For the periods ending January 31, 2016
Slide 22: Capacity-based subscription model
Capacity-based subscription model Pricing by functionality & Envelopes(1) Wide range of customers & deal sizes # of Envelopes provisioned Product editions Business Enterprise Single-user Multi-user Platform Pro Pro Enterprise Basic Business Payments Advanced All products e-signature fields Automatio
Slide 23: Strong revenue visibility
Strong revenue visibility Revenue contribution(1) Average contract length(2) Subscription Professional services & other ≤12 months >12 months 9% 9% 7% By contracts Dollar weighted 11% 38% 91% 93% 91% 13 20 months months FY16 FY17 FY18 89% 62% (1) For the periods ending January 31, 2016, 2017 and 201
Slide 24: Land and expand model
Land and expand model Land Drive Expand Adoption Into New of Initial Use Cases Use Case Typically start with Help customer drive Drive new use cases an initial use case in further adoption throughout the a department within of use case within organization the organization organization 24
Slide 25: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 373K 42K 289K 47% 60% 30K CAGR CAGR 214K 23K 18K 147K 12K 96K 54K 4K FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 (1) Comprised of customers who were not acquired through our self-service channel. 25
Slide 26: Demonstrated expansion within cohorts
Demonstrated expansion within cohorts Cohort analysis Customers with >$300K in ACV(3) 203 5.3x 115% Top 100 Customers Net Retention Life-to-Date Rate(2) Purchase Multiple as of January 2018(1) ~7x 30 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY18 (1) For our top 100 customers as measured by ACV for the yea
Slide 27: Rapid international expansion
Rapid international expansion Revenue by geography(1) Global growth investments International e-signature 17% Products eHanko Standards-Based Signatures (SBS) SAP Deutsche Partnerships Ingram Telekom Telstra Brazil UK Presence Singapore Japan Australia France Domestic 83% (1) Fiscal Year 2018. (2) I
Slide 28: 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 $88 $79 2,270 $54 84% 24% 1,973 22% 21% R&D 17% 22% 81% 81% $265 1,537 76% $226 79% 24% 78% $157 63% 59% 76% 76% S&M 51% 73% $68 $52 $52 21% G&A
Slide 29: Improving profitability and cash flows
Improving profitability and cash flows (1) Non-GAAP operating margin Cash flow OCF Margin FCF Margin 11% 7% (2%) (1%) (13%) (18%) (27%) (32%) (38%) FY16 FY17 FY18 FY16 FY17 FY18 (1) Please see Slides 33 and 34 for non-GAAP reconciliation. 29
Slide 30: Investment highlights
Investment highlights Market $25B Large & Driving Proven leadership market growing growth, management as world’s opportunity customer scale and team #1 base with profitability e-signature strong solution expansion opportunities 30
Slide 31: Appendix
Appendix 31
Slide 32: GAAP to non-GAAP and free cash flow reconciliation
GAAP to non-GAAP and free cash flow reconciliation Gross Profit (in $K) Year Ended January 31 2016 2017 2018 GAAP Gross Profit 176,626 278,982 400,231 Add: Stock-based Compensation in Cost of Revenue 2,371 2,211 1,887 Add: Amortization of Intangibles in Cost of Revenue 4,030 6,940 6,793 Non-GAAP Gro
Slide 33: GAAP to non-GAAP and free cash flow reconciliation
GAAP to non-GAAP and free cash flow reconciliation Adjusted Operating Gain / (Loss) (in $K) Year Ended January 31 2016 2017 2018 GAAP Operating Loss (119,304) (115,817) (51,653) Add: Stock-based Compensation in Cost of Revenue 2,371 2,211 1,887 Add: Amortization of Intangibles in Cost of Revenue 4,0
Slide 34: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Sales & Marketing (in $K) Year Ended January 31 2016 2017 2018 GAAP Sales & Marketing 170,006 240,787 277,930 Less: Stock-based Compensation in Sales & Marketing (10,617) (11,187) (9,386) Less: Amortization of Intangibles in Sales & Marketing (1,965) (3,385) (3,250) N