Slide 1: Q2 Fiscal Year 2022 Financial Review
Q2 Fiscal Year 2022 Financial Review 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: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: Q3 FY2022 Guidance
Q3 FY2022 Guidance Q3 Fiscal 2022 Total revenue $526M - $532M Subscription revenue $505M - $511M Billings $585M - $597M Non-GAAP Gross margin 79% - 81% Non-GAAP Operating margin 17% - 19% Non-GAAP diluted weighted-average shares o/s 205M - 210M 14 | DocuSign PUBLIC
Slide 15: FY2022 Guidance
FY2022 Guidance Fiscal 2022 Total revenue $2,078M - $2,088M Subscription revenue $1,995M - $2,005M Billings $2,409M - $2,429M Non-GAAP Gross margin 79% - 81% Non-GAAP Operating margin 16% - 18% Provision for income taxes $6M - $9M Non-GAAP diluted weighted-average shares o/s 205M - 210M 15 | DocuSig
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, 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 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, 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 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, 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 20: 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