Slide 1: Q2 Fiscal Year 2021 Financial Review
Q2 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 61% $406 45% $342 12% $236 $252 13% 88% 87% Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 (1) For the quarters ended July 31, 2019 and 2020. $ in millions. Percentages are a % of revenue. (2) Total revenues plus the
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 17% 31% 94% 95% 14 17 months months 83% 69% Q2 FY20 Q2 FY21 (1) For the quarters ended July 31, 2019 and 2020. (2) Rolling
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 39% 749K 55% 99K 537K 64K Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally included in the Glob
Slide 7: 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 $47 $35 5,008 15% 14% 84% R&D 28% 83% 3,489 $154 $120 26% 51% 45% S&M 75% 72% 78% 78% 74% $32 $30 9% G&A 13% Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20
Slide 8: Improving profitability and cash flow
Improving profitability and cash flow (1) Non-GAAP Cash flow operating income (2) OCF FCF $118 $100 2% 35% 29% $34 $26 10% $12 11% (0%) 5% ($1) Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 (1) For the quarters ended July 31, 2019 and 2020. $ in millions. Percentages are a % of revenue. (2) Please see Appendix fo
Slide 9: Q3 FY2021 guidance
Q3 FY2021 guidance Q3 Fiscal 2021 Total revenue $358M - $362M Subscription revenue $343M - $347M Billings $380M - $390M Non-GAAP Gross margin 78% - 80% Non-GAAP Sales and marketing 46% - 48% Non-GAAP Research and development 14% - 16% Non-GAAP General and administrative 9% - 11% Non-GAAP Interest an
Slide 10: FY2021 guidance
FY2021 guidance Fiscal 2021 Total revenue $1,384M - $1,388M Subscription revenue $1,315M - $1,319M Billings $1,623M - $1,643M Non-GAAP Gross margin 78% - 80% Non-GAAP Sales and marketing 45% - 47% Non-GAAP Research and development 14% - 16% Non-GAAP General and administrative 9% - 11% Non-GAAP Inter
Slide 11: Appendix
Appendix 11 | DocuSign PUBLIC
Slide 12: GAAP to non-GAAP gross profit reconciliation
GAAP to non-GAAP gross profit reconciliation Gross Profit (in $K) Quarter Ended July 31, 2020 2019 GAAP Gross Profit 251,594 174,436 Add: Stock-based Compensation in Cost of Revenue 10,239 7,936 Add: Amortization of Acquisition-related Intangibles in Cost of Revenue 3,132 1,381 Add: Employer Payroll
Slide 13: 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, 2020 2019 GAAP Operating Loss (58,635) (64,722) Add: Stock-based Compensation in Cost of Revenue 10,239 7,936 Add: Amortization of Intangibles in Cost of Revenue
Slide 14: GAAP to non-GAAP operating expenses reconciliation
GAAP to non-GAAP operating expenses reconciliation Sales & Marketing (in $K) Quarter Ended July 31, 2020 2019 GAAP Sales & Marketing 194,992 150,886 Less: Stock-based Compensation in Sales & Marketing (32,305) (25,942) Less: Amortization of Acquisition-related Intangibles in Sales & Marketing (4,284
Slide 15: Computation of billings
Computation of billings Computation of Billings (in $K) Quarter Ended July 31, 2020 2019 Revenue 342,209 235,612 Add: Contract Liabilities and Refund Liability, End of Period 638,790 412,953 Less: Contract Liabilities and Refund Liability, Beginning of Period (568,544) (395,254) Add: Contract Assets