Slide 1: Q2 Fiscal Year 2023 Financial Review
Q2 Fiscal Year 2023 Financial Review 1 | DocuSign DocuSign PUBLIC PUBLIC
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently a
Slide 3: Non-GAAP Financial Measures and Other Key Metrics
Non-GAAP Financial Measures and Other Key Metrics To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP f
Slide 4: How Customers Buy from Us
How Customers Buy from Us Prepaid Model Dollar Weighted Average Contract Product Functionality Capacity-Based Model Length1 36% >12 months Pricing by Functionality Volume Capacity Multiple levels of product functionality Pre-Set # of Envelopes Provisioned eSignature Envelopes 18 months Single-user M
Slide 5: Revenue Growth As We Scale
Revenue Growth As We Scale Total Revenue1 Subscription Revenue1 Revenue Contribution2 39% 49% 45% 50% 22% 38% 50% 47% 52% 23% 3% Subscription Professional Services & Other 97% 13% Web & Mobile (Digital) Ent & commercial (Direct) 87% Y/Y Growth (1) Fiscal years ended January 31 and fiscal quarters en
Slide 6: Billings and Revenue Growth
Billings and Revenue Growth 1 Billings2 Revenue (1) For the fiscal quarter ended July 31, 2022, and the four fiscal quarters prior. $ in millions. (2) Billings = total revenues plus the change in contract liabilities and refund liability less contract assets and unbilled accounts receivable in a giv
Slide 7: Large and Expanding Customer Base
Large and Expanding Customer Base 1 Total Customers Enterprise & Commercial Customers2 40% 50% CAGR CAGR (1) For the fiscal years ended January 31 and fiscal quarter ended July 31, 2022 (2) Comprised of customers who were not acquired through our self-service channel. 7 | DocuSign PUBLIC
Slide 8: Cohort and Large Customer Increase
Cohort and Large Customer Increase Cohort analysis Customers with >$300K in ACV2 110% Net Retention 44% Rate as of July 31, 20221 CAGR (1) Compares the annual recurring revenue, or ARR, for active subscription contracts from Direct customers at two period end dates. To calculate our dollar-based net
Slide 9: 110% Net Dollar Retention
Customer Demand Drives Growth at Scale 110% Net Dollar 1 Retention (1) Compares the annual recurring revenue, or ARR, for active subscription contracts from Direct customers at two period end dates. To calculate our dollar-based net retention rate at the end of the base year (e.g., July 31, 2022), w
Slide 10: Investing In International Growth
Investing In International Growth 35% y/y Int’l Revenue Growth (Q2 FY23)1 Digital - 180+ Countries Direct - Focus 8 25% of Total Revenue (Q2 FY23)1 (1) For the fiscal quarter ended July 31, 2022 compared to same period a year ago. Market Prioritization & Investment Tier 1: Market Leader Tier 2: Seed
Slide 11: Maintaining Leverage While Investing In Growth
Maintaining Leverage While Investing In Growth Headcount 2 Non-GAAP Gross Margin1 Subscription Gross Margin Total Gross Margin (1) For the fiscal years ended January 31, 2021 and 2022 and the fiscal quarters ended July 31, 2021 and 2022. Margins are as % of revenue. Please see Appendix for GAAP to n
Slide 12: Operating Leverage
Operating Leverage Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 49% 44% 41% 40% 41% 14% 14% 13% 13% 14% 11% 9% 8% 9% 9% Margin as % of total revenue (1) For the fiscal years ended January 31, 2020, 2021, and 2022 and the fiscal quarters ended July 31, 2021, and 2022. $ in millions. Margins are as % of
Slide 13: Operating Leverage and Cash Flow
Operating Leverage and Cash Flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow 5% 12% 20% 19% 18% 12% 20% 24% 35% 19% 4% 15% 21% 32% 17% Margin as % of total revenue (1) For the fiscal years ended January 31, 2020, 2021, and 2022 and the fiscal quarters ended July 31, 2021, and 2022
Slide 14: Q3 FY2023 Guidance
Q3 FY2023 Guidance Q3 Fiscal 2023 Total revenue $624 - $628 Subscription revenue $609 - $613 Billings $584 - $594 Non-GAAP gross margin 79% - 81% Non-GAAP operating margin 16% - 18% Non-GAAP diluted weighted-average shares o/s 205M - 210M 14 | DocuSign PUBLIC
Slide 15: FY2023 Guidance
FY2023 Guidance Fiscal 2023 Total revenue $2,470 - $2,482 Subscription revenue $2,405 - $2,417 Billings $2,550 - $2,570 Non-GAAP gross margin 79% - 81% Non-GAAP operating margin 16% - 18% Non-GAAP diluted weighted-average shares o/s 205M - 210M 15 | DocuSign PUBLIC
Slide 16: Appendix
Appendix 16 | DocuSign PUBLIC
Slide 17: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation Gross Profit (in $K) Quarter Ended July 31, Six Months Ended July 31, 2022 2021 2022 2021 GAAP Gross Profit 485,480 398,064 941,756 761,900 Add: Stock-based Compensation in Cost of Revenue 19,472 13,985 35,167 25,537 Add: Amortization of Acquisition-relat
Slide 18: GAAP to Non-GAAP Operating Gain / (Loss) and Free Cash Flow Reconciliation
GAAP to Non-GAAP Operating Gain / (Loss) and Free Cash Flow Reconciliation Adjusted Operating Gain / (Loss) (in $K) Quarter Ended July 31, Six Months Ended July 31, 2022 2021 2022 2021 GAAP Operating Loss (41,090) (22,611) (60,316) (33,348) Add: Stock-based Compensation in Cost of Revenue 19,472 13,
Slide 19: GAAP to Non-GAAP Operating Expenses Reconciliation
GAAP to Non-GAAP Operating Expenses Reconciliation Sales & Marketing (in $K) Quarter Ended July 31, Six Months Ended July 31, 2022 2021 2022 2021 GAAP Sales & Marketing 323,582 262,372 624,279 501,491 Less: Stock-based Compensation in Sales & Marketing (61,218) (46,921) (108,649) (85,057) Less: Amor
Slide 20: Computation of Billings
Computation of Billings Computation of Billings (in $K) Quarter Ended July 31, Six Months Ended January 31 2022 2021 2022 2021 Revenue 622,184 511,844 1,210,876 980,923 Add: Contract Liabilities and Refund Liability, End of Period 1,094,939 939,826 1,094,939 939,826 Less: Contract Liabilities and Re