Slide 1: Q1 F2019 Financial Review
Q1 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 Contract liabilities(3) Enterprise & commercial Web & mobile $156 33% 37% 14% 43% $291 $169 $113 $278 $127 15% $203 86% 85% 85% Q1F18 Q1F19 Q1F18 Q1F19 Q1F18 Q1F19 (1) For the fiscal first quarters ended April 30, 2018 and 2017. $ in millions. (
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 12% 37% 94% 95% 13 19 months months Q1F18 Q1F19 88% 63% (1) For he fiscal first quarters ended April 30, 2017 and 2018. (2)
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 404K 44K 404K 315K 354K 33K 315K Q1F18 Q1F19 Q1F18 Q1F19 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally included in the Globa
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 2,376 $21 $24 86% 2,053 24% 15% 19% R&D 84% 26% $78 $61 80% 54% 50% 76% S&M 78% 74% $19 $14 12% 13% G&A Q1F18 Q1F19 Q1F18 Q1F19 Q1F18 Q11F9 (1)
Slide 8: Improving profitability and cash flows
Improving profitability and cash flows (1) Non-GAAP operating margin Cash flow OCF Margin FCF Margin 10% 6% 3% (1%) (7%) (7%) Q1F18 Q1F19 Q1F18 Q1F18 Q1F19 Q1F19 (1) Please see Appendix slides for non-GAAP reconciliation. 8
Slide 9: Q2 F2019 Guidance
Q2 F2019 Guidance Q2 Fiscal 2019 Total Revenue $157M - $160M Billings $160M - $170M Non-GAAP gross margin 78% - 81% Non-GAAP Sales and marketing 49% - 51% Non-GAAP Research and development 16% - 18% Non-GAAP General and administrative 10% - 12% Other expense >$500K Provision for income taxes ~$750K
Slide 10: FY 2019 Guidance
FY 2019 Guidance Q2 Fiscal 2019 Total Revenue $652M - $658M Billings $680M - $700M Non-GAAP gross margin 78% - 81% Non-GAAP Sales and marketing 49% - 51% Non-GAAP Research and development 16% - 18% Non-GAAP General and administrative 10% - 12% Other expense >$2M Provision for income taxes ~$3M Non-G
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 April 30, 2017 2018 GAAP Gross Profit 86,374 97,514 Add: Stock-based Compensation in Cost of Revenue 473 26,000 Add: Amortization of Intangibles in Cost of Revenue 1,697 1,668 Non-GAAP Gross Profit 88,544 125,182 G
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 April 30, 2017 2018 GAAP Operating Loss (19,264) (267,558) Add: Stock-based Compensation in Cost of Revenue 473 26,000 Add: Amortization of Intangibles in Cost of Revenue 1,697 1,668 Add: Stock-
Slide 14: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Sales & Marketing (in $K) Quarter Ended April 30, 2017 2018 GAAP Sales & Marketing 64,691 191,085 Less: Stock-based Compensation in Sales & Marketing (2,705) (112,481) Less: Amortization of Intangibles in Sales & Marketing (840) (765) Non-GAAP Sales & Marketing 61,146