Slide 1: Q3 Fiscal Year 2021 Financial Review
Q3 Fiscal Year 2021 Financial Review 1 | DocuSign DocuSign PUBLIC 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: Strong growth in billings and revenue
Strong growth in billings and revenue (1) Billings(2) Revenue Enterprise & commercial Web & mobile 63% $440 $383 53% 13% $250 $269 13% 87% 87% Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 (1) For the quarters ended October 31, 2019 and 2020. $ in millions. Percentages are a % of revenue. (2) Total revenues plus
Slide 5: Strong revenue visibility
Strong revenue visibility Revenue contribution(1) Average contract length(2) Subscription Professional services & other ≤12 months >12 months 5% 4% Dollar weighted 31% 95% 96% 17 months 69% Q3 FY20 Q3 FY21 (1) For the quarters ended October 31, 2019 and 2020. (2) Rolling 4-quarter average Q3 FY20 th
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 46% 822K 64% 113K 562K 69K Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally included in the Glo
Slide 7: Cohort and large customer expansion
Cohort and large customer expansion (2) Cohort analysis Customers with >$300K in ACV 542 122% Net Retention Rate as of October 31, 2020(1) 45% CAGR 30 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Q3 FY21 FY13 FY18 FY19 FY20 Q3 FY21 (1) Compares the ACV for subscription contracts from a set of enterprise
Slide 8: Achieving increased leverage
Achieving increased leverage Non-GAAP gross margin(1) Headcount(2) Non-GAAP opex(1) Subscription gross margin Total gross margin Domestic International $53 5,364 $36 15% 14% 84% 84% 28% R&D 3,723 $165 $120 26% 43% S&M 48% 79% 79% 72% $35 74% $24 9% 9% G&A Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 F
Slide 9: Improving profitability and cash flow
Improving profitability and cash flow (1) Non-GAAP Cash flow operating income (2) OCF FCF $57 $49 $38 15% 13% $17 10% 7% (1%) ($2) (6%) 7% ($14) Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 (1) For the quarters ended October 31, 2019 and 2020. $ in millions. Percentages are a % of revenue. (2) Please see Appendi
Slide 10: Q4 FY2021 guidance
Q4 FY2021 guidance Q4 Fiscal 2021 Total revenue $404M - $408M Subscription revenue $384M - $388M Billings $512M - $522M Non-GAAP Gross margin 78% - 80% Non-GAAP Sales and marketing 42% - 44% Non-GAAP Research and development 14% - 16% Non-GAAP General and administrative 9% - 11% Non-GAAP Interest an
Slide 11: FY2021 guidance
FY2021 guidance Fiscal 2021 Total revenue $1,426M - $1,430M Subscription revenue $1,355M - $1,359M Billings $1,700M - $1,710M Non-GAAP Gross margin 78% - 80% Non-GAAP Sales and marketing 44% - 46% Non-GAAP Research and development 13% - 15% Non-GAAP General and administrative 9% - 11% Non-GAAP Inter
Slide 12: Appendix
Appendix 12 | DocuSign PUBLIC
Slide 13: GAAP to non-GAAP gross profit reconciliation
GAAP to non-GAAP gross profit reconciliation Gross Profit (in $K) Quarter Ended October 31, 2020 2019 GAAP Gross Profit 285,092 187,538 Add: Stock-based Compensation in Cost of Revenue 11,782 7,150 Add: Amortization of Acquisition-related Intangibles in Cost of Revenue 3,376 1,348 Add: Employer Payr
Slide 14: 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 October 31, 2020 2019 GAAP Operating Loss (48,470) (43,997) Add: Stock-based Compensation in Cost of Revenue 11,782 7,150 Add: Amortization of Intangibles in Cost of Reve
Slide 15: GAAP to non-GAAP operating expenses reconciliation
GAAP to non-GAAP operating expenses reconciliation Sales & Marketing (in $K) Quarter Ended October 31, 2020 2019 GAAP Sales & Marketing 209,944 149,231 Less: Stock-based Compensation in Sales & Marketing (36,881) (24,649) Less: Amortization of Acquisition-related Intangibles in Sales & Marketing (3,
Slide 16: Computation of billings
Computation of billings Computation of Billings (in $K) Quarter Ended October 31, 2020 2019 Revenue 382,923 249,502 Add: Contract Liabilities and Refund Liability, End of Period 702,691 435,898 Less: Contract Liabilities and Refund Liability, Beginning of Period (638,790) (412,953) Add: Contract Ass