Slide 1: Transforming the foundation of doing business
Transforming the foundation of doing business Fall 2021 DocuSign PUBLIC 1 | DocuSign PUBLIC
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “m
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: DocuSign at a Glance
DocuSign at a Glance Market Leadership Large Market Opportunity Strong Growth & Performance 2 Q2 FY 2022 ~$50B TAM $512M Revenue (22% Int’l) 50% Y/Y growth World’s #1 eSignature Solution $595M Billings 47% Y/Y growth Customer Base 19% 1.05M 1 Operating Margin (Non-GAAP) Broader Agreement Cloud Acros
Slide 5: Agreements are the foundation of doing business
Agreements are the foundation of doing business 5 | DocuSign PUBLIC
Slide 6: But agreement processes are manual and disconnected
But agreement processes are manual and disconnected Result: Wasted time, needless costs, more errors, greater risk 6 | DocuSign PUBLIC
Slide 7: DocuSign eSignature was the trigger to transformation
DocuSign eSignature was the trigger to transformation Faster 44% completed in < 15 minutes; 80% in < 1 day1 (2) Easier Send and sign anytime, from practically anywhere Cost-Effective Automate manual processes Risk-Reducing Standardize processes, generate audit trails Delight Customers NPS of 722 Com
Slide 8: The Next Must-Have Cloud Platform
The Next Must-Have Cloud Platform Front office Back office Marketing Sales Service HR ERP IT/Ops Clouds Clouds Clouds Clouds Clouds Clouds Business Processes Agreement Processes Agreement Cloud
Slide 9: Agreement Cloud
Agreement Cloud Prepare Sign Act Manage Gen & Negotiate eSignature LEADER CLM LEADER Insight LEADER Analyzer NEW Identify Payments Monitor Guided Forms Notary NEW Integrations Industry Solutions Salesforce | Microsoft | Google | SAP | Workday | Hundreds more Financial Services | Life Sciences | Gove
Slide 10: Market Leader with Massive and Expanding TAM
Market Leader with Massive and Expanding TAM Prepare Sign Act World’s #1 eSignature Manage ~$50B+ TAM 1 $25B ~$25B 1 1 = (1) DocuSign estimate combining commissioned third-party research with internal customer count, pricing and spending data.
Slide 11: Building on innovation and expanding opportunity
Building on innovation and expanding opportunity ~$50B 3 Announced Notary TAM Seal Introduced Acquisition Analyzer Liveoak Agreement Cloud Acquisition Introduced SpringCM Acquisition (CLM) Introduced Negotiate ~$1.5B FY21 revenue 2 Introduced IPO Gen SMART AGREEMENT CLOUD Launched Deepen Automation
Slide 12: Key Products
Key Products eSignature World’s #1 way to send and sign CLM documents electronically Contract lifecycle management Insight / Analyzer Notary AI-based search, analysis, and Remote online notarization via risk-scoring of agreements videoconference 12 | DocuSign PUBLIC
Slide 13: Offer best way to agree to anything, anywhere
Offer best way to agree to anything, anywhere Identify Click Notary LEADER LEADER LEADER NEW World’s #1 way to send Contract Lifecycle AI-based agreement Electronic and remote and sign electronically Management analytics and search notarization Most capabilities + larger Based on SpringCM Based on S
Slide 14: DocuSign CLM
DocuSign CLM Automate the contract lifecycle Generate agreements, facilitate negotiation, track redlines, and ensure version control Connect and track business processes across contributors, reviewers, approvers and more Centralize agreements in a secure, searchable repository 14 | DocuSign PUBLIC
Slide 15: DocuSign Insight
DocuSign Insight Understand what’s in your contracts Find, filter and analyze all your existing agreements with purpose- built contract analytics Compare AI-extracted clauses and terms across agreements Search agreements by concept, not just keyword 15 | DocuSign PUBLIC
Slide 16: DocuSign Analyzer
DocuSign Analyzer Negotiate contracts with the power of AI Automated clause and term analysis for incoming agreements Risk scoring of contract content to guide faster action Direct access to your library of pre-approved clauses Integrates with DocuSign CLM to automatically route work based on clause
Slide 17: DocuSign Notary
DocuSign Notary Electronic notarization from virtually anywhere Secure videoconferencing with notary-specific tools and workflow Multi-state compliance Support for customer-supplied notaries Robust audit trail 17 | DocuSign PUBLIC
Slide 18: Across All Verticals
Across All Verticals Trusted by the World’s Leading Brands 18 | DocuSign PUBLIC
Slide 19: Why DocuSign continues to win
Why DocuSign continues to win Comprehensive Innovative Trusted 1.05M customers and Most applications Track record of “firsts” 12+ applications span the entire eSignature pioneer, with 750+ hundreds of millions agreement process product innovations delivered of signers1 The global standard in eSignat
Slide 20: Anyone, Anywhere GTM
Anyone, Anywhere GTM Direct Digital Partner Land | Expand | Extend Lead | Try | Buy | Upgrade Reseller | Software Vendor | Systems Integrator Web-Based / Self-Service Channel Hundreds of Millions Signers
Slide 21: GTM Customer Engagement Model
Discover New GTM Optimize Use Case(s) Opportunities Customer Drive Adoption Drive new use cases throughout Deploy Expand into broader Expand existing the organization Agreement Cloud Engagement Typically start with initial eSignature eSignature volumes & use case(s) (CLM, Analytics) Expansion use ca
Slide 22: Multi-Channel Experience throughout the Customer Journey
Multi-Channel Experience throughout the Customer Journey Extend Accelerate our customers’ path to the Agreement Cloud Expand From eSignature to Agreement Cloud Direct Partner integrations customer Digital From single customer department to ELA From digital Signers to direct Across all GTM teams Payi
Slide 23: Robust Partner Delivery Model
Resellers Robust Partner Delivery Model Software Vendors Systems Integrators
Slide 24: Financial Review
Financial Review 24 | DocuSign PUBLIC
Slide 25: How customers buy from us
How customers buy from us Prepaid Model Dollar Weighted Average Contract Product Functionality Capacity-Based Model Length1 35% >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 26: Strong and consistent revenue growth at scale
Strong and consistent revenue growth at scale Total Revenue1 Subscription Revenue1 Revenue Contribution2 50% 49% $1,453 4% Subscription $1,381 Professional Services & Other 52% $974 50% $918 96% $701 47% 45% $664 39% $512 38% $493 12% 37% Web & Mobile $342 $324 (Digital) 35% Ent & commercial (Direct
Slide 27: Strong growth in billings and revenue
Strong growth in billings and revenue 1 Billings2 Revenue Billings Rolling 4-Q Y/Y Enterprise & commercial Web & mobile Rolling 4-Q Y/Y $512 $600 120% 120% $595 $500 $469 $550 12% 110% $431 110% $535 $450 12% $500 $527 100% $383 12% 100% $450 $400 90% $342 90% $440 $350 13% $400 $406 12% $350 80% $3
Slide 28: Large and growing customer base
Large and growing customer base 1 2 Total Customers Enterprise & Commercial Customers 1.05M 148K 892K 125K 42% CAGR 53% 589K CAGR 75K 477K 373K 56K 43K 54K 4K FY13 FY18 FY19 FY20 FY21 Q2 FY22 FY13 FY18 FY19 FY20 FY21 Q2 FY22 (1) For the fiscal years ended January 31 and the fiscal quarter ended July
Slide 29: Cohort and large customer expansion
Cohort and large customer expansion 2 Cohort analysis Customers with >$300K in ACV 124% 714 599 Net Retention Rate as of July 31, 20211 45% CAGR 30 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q2 FY22 FY13 FY19 FY20 FY21 Q2 FY22 (1) Compares the ACV for subscription contracts from a set of enterpris
Slide 30: 124% Net Dollar Retention
Strength in customer demand driving growth at scale 125% 123% 125% 124% 124% Net 122% Dollar Retention1 120% 120% 119% 117% 117% 115% 113% 110% Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 (1) Compares the ACV for subscription contracts from a set of enterprise and commerc
Slide 31: Investing in International Growth
Investing in International Growth 71% Y/Y Int’l Revenue Growth (Q2 FY22)1 Digital - 180+ Countries Direct - Focus 8 22% of Total Revenue (Q2 FY22)1 (1) For the fiscal quarter ended July 31, 2021 compared to same period a year ago. Market Prioritization & Investment Tier 1: Market Leader Tier 2: Seed
Slide 32: Achieving increased leverage
Achieving increased leverage Headcount 2 Non-GAAP gross margin1 6,551 Subscription Gross Margin Total Gross Margin 5,008 85% 84% 84% 82% 83% 79% 79% 78% FY20 FY21 Q2 FY21 Q2 FY22 FY20 FY21 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 (1) For the fiscal years ended January 31, 2020, 2021 and the fiscal quarters e
Slide 33: Achieving increased leverage
Achieving increased leverage Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 50% 49% 44% 45% 40% 16% 14% 14% 14% 13% 12% 11% 9% 9% 9% $639 $700 $250 $200 $600 $180 $198 $200 $160 $477 $500 $66 $46 $206 $131 $140 $400 $139 $150 $120 $352 $47 $104 $154 $109 $32 $100 $300 $100 $82 $80 $200 $60 $50 $40 $100 $
Slide 34: Improving profitability and cash flow
Improving profitability and cash flow Non-GAAP Operating Operating Cash Flow Free Cash Flow 2 Income1 2% 5% 12% 10% 19% 11% 12% 20% 35% 35% 7% 4% 15% 29% 32% $300 $297 $181 $250 $178 $215 $200 $162 $100 $118 $150 $100 $116 $100 $47 $76 $34 $46 $44 $50 $15 $0 FY19 FY20 FY21 Q2 FY21 Q2 FY22 FY19 FY20
Slide 35: Appendix
Appendix 35 | DocuSign PUBLIC
Slide 36: 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, 2021 2020 2021 2020 GAAP Gross Profit 398,064 251,594 761,900 474,579 Add: Stock-based Compensation in Cost of Revenue 13,985 10,239 25,537 18,228 Add: Amortization of Acquisition-relat
Slide 37: 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, 2021 2020 2021 2020 GAAP Operating Loss (22,611) (58,635) (33,348) (100,488) Add: Stock-based Compensation in Cost of Revenue 13,985 10
Slide 38: 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, 2021 2020 2021 2020 GAAP Sales & Marketing 262,372 194,992 501,491 366,785 Less: Stock-based Compensation in Sales & Marketing (46,921) (32,305) (85,057) (56,970) Less: Amort
Slide 39: Computation of billings
Computation of billings Computation of Billings (in $K) Quarter Ended July 31, Six Months Ended July 31, 2021 2020 2021 2020 Revenue 511,844 342,209 980,923 639,226 Add: Contract Liabilities and Refund Liability, End of Period 939,826 638,790 939,826 638,790 Less: Contract Liabilities and Refund Lia