Slide 1: Smarter, Easier, Trusted Agreements
Smarter, Easier, Trusted Agreements Q4 FY24 DocuSign Public 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risk and uncertainties. All statements contained in
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 fina
Slide 4: At a glance
At a glance Market leadership Large market opportunity2 Q4 FY243 performance $712M Total Revenue (27% Int’l) 8% Y/Y growth World’s #1 e-Signature solution ~$50B TAM $833M Billings 13% Y/Y growth Customer base Broader DocuSign opportunity 1 (before and after signing) 25% 1.51M Operating Margin (Non-G
Slide 5: Agreements are the foundation of doing business
Agreements are the foundation of doing business Sales HR Offer Letters Sales Contracts Background Checks NDAs Company Policies SOWs Service Field Service Procurement Change Orders Vendor Contracts Work Agreements Purchase Orders Termination Letters Marketing Vendor Agreements Sponsor Agreements Influ
Slide 6: But agreement processes are manual & disconnected
But agreement processes are manual & disconnected Business Process Agreement Process CRM Lead to Error-prone Cash AGREEMENT ERP GAP Disconnected Procure to Pay ERP Design Time-consuming to Operate HCM Hire to Manual Retire Not-sustainable DocuSign Public 6
Slide 7: True transformation of the agreement process means going beyond the signature
True transformation of the agreement process means going beyond the signature AGREEMENT PROCESS Agreement ID Verification Review & Signature Automated Secure Analytics Generation Negotiation Workflows Repository DocuSign Public 7
Slide 8: DocuSign unlocks the data that lives in agreements
Sales Agreement Obligations SLAs DocuSign unlocks the Important Terms data that lives Products in agreements Contract Risk Status DocuSign Public 8
Slide 9: Redefining how the world comes together and agrees
Smarter Personalized document generation Dynamic agreement Intelligent analytics and insights Redefining how (2) the world comes Easier together and Send and sign anytime, from practically anywhere Faster time to value, efficiency agrees Extend with integrations and customization Trusted Highest level
Slide 10: Industry Leading Portfolio Lineup Across the Agreement Process
Industry Leading Portfolio Lineup Across the Agreement Process eSignature eSignature add-ons CLM The world’s #1 way Enhanced options for any Top Rated Contract Lifecycle to sign electronically agreement scenario Management, for workflows before & after the signature Add-ons include support for identi
Slide 11: Market leader with large untapped opportunity
Market leader with large untapped opportunity eSign Addons + CLM TAM¹ $25B $50B Sign $25B 11 (1) DocuSign estimate combining commissioned third-party research with internal customer count, pricing and spending data DocuSign Public 11
Slide 12: Across all verticals
Across all verticals The world’s leading brands trust DocuSign DocuSign Public 12
Slide 13: Why DocuSign continues to win
Why DocuSign continues to win / Comprehensive / Innovative / Trusted / Simple Most Applications Category Leader 1.51M Customers Faster 15+ applications span the e-signature pioneer, with and more than a billion users1. 41% completed in < 15 minutes; entire agreement process 750+ product innovations
Slide 14: Investing in international growth
Investing in international growth 19% Y/Y Int’l Revenue Growth (Q4FY24)1 27% of Total Revenue (Q4FY24)1 Digital - 180+ (1) For the fiscal quarter ended January 31, 2024 compared to same period a year ago. Countries Direct - Focus 8 Market Prioritization & Investment Tier 1: Market Leader Tier 2: Seed
Slide 15: Omni-channel experience throughout the customer journey
Omni-channel experience throughout the customer journey Extend Expand From eSignature to Direct Partner Agreement Process integrations customer Digital From single customer department to ELA From digital Signers to direct Across all GTM teams Paying web customer Accelerate value realization Receivin
Slide 16: How customers buy from us
How customers buy from us Prepaid Model Dollar Weighted Average Contract Length1 39% Multi-Factor Subscription Model >12 month duration Add-on Volume Capacity Pre-Set # of Envelopes Seat Based Contract per user Functionality Multiple levels of add-on functionality 19 months 61% ≤12 month duration (1
Slide 17: DocuSign partner ecosystem
DocuSign partner ecosystem Comprehensive network of cloud, service, and reseller partners ISVs (and 350+ more) Systems Integrators 500+ certified professionals across 10+ global & regional SIs Resellers 140+ resellers extend our reach, helping customers agree in 40+ countries DocuSign Public 17
Slide 18: Financial Review
Financial Review DocuSign Public 18
Slide 19: Total Revenue growth
Total Revenue growth Y/Y Growth 14% 12% 11% 9% 8% Revenue Contribution1 Direct v. Digital ($m) 87% Web & Mobile (Digital) Ent, Commercial & SMB (Direct) 13% (1) Fiscal quarter ended January 31, 2024. DocuSign Public 19
Slide 20: Subscription Revenue growth
Subscription Revenue growth Revenue Contribution1 Y/Y Growth 14% 12% 11% 9% 8% Subscription v. Pro Serve and Other 98% ($m) Subscription Professional Services & Other 2% (1) Fiscal quarter ended January 31, 2024. DocuSign Public 20
Slide 21: Billings growth
Billings1 growth Y/Y growth 10% 10% 10% 5% 13% Rolling 4-Q Y/Y growth2 13% 11% 12% 9% 9% ($m) (1) Billings = total revenues plus the change in contract liabilities and refund liability less contract assets and unbilled accounts receivable in a given period. Please see Appendix for non-GAAP reconcili
Slide 22: Maintaining healthy margins
Maintaining healthy margins Non-GAAP Gross Margin1 Headcount 2 Subscription Gross Margin Total Gross Margin (1) Margins are as % of total revenue. Please see Appendix for GAAP to non-GAAP reconciliation. (2) As of January 31, 2023 and 2024. DocuSign Public 22
Slide 23: Operating Expenses as a % of revenue
Operating Expenses as a % of revenue Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 37% 35% 35% 34% 34% 13% 12% 13% 12% 13% 9% 10% 10% 10% 10% Margin as % of total revenue (1) in millions. Margins are as % of total revenue. Please see Appendix slides for non-GAAP reconciliation. DocuSign Public 23
Slide 24: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow1 24% 27% 25% 27% 25% 21% 35% 31% 38% 38% 17% 32% 27% 34% 35% Margin as % of total revenue (1) in millions. Margins are as % of total revenue. (2) FCF calculated as Operating Cash Flow less CapEx. Please se
Slide 25: Q1 FY25 Guidance
Q1 FY25 Guidance (in $ millions, except percentages) Q1 FY25 Total revenue $704 - $708 Subscription revenue $686 - $690 Billings $685 - $695 Non-GAAP gross margin 81.0% - 82.0% Non-GAAP operating margin 27.0% - 28.0% Non-GAAP diluted weighted-average shares o/s 208 - 213 DocuSign Public 25
Slide 26: FY25 Guidance
FY25 Guidance (in $ millions, except percentages) FY25 Total revenue $2,915 - $2,927 Subscription revenue $2,843 - $2,855 Billings $2,970 - $3,024 Non-GAAP gross margin 81.0% - 82.0% Non-GAAP operating margin 26.5% - 28.0% Non-GAAP diluted weighted-average shares o/s 208 - 213 DocuSign Public 26
Slide 27: Appendix
Appendix DocuSign Public 27
Slide 28: Financial & Operational Metrics
Financial & Operational Metrics Financial Metrics (in $ M) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Revenue $660 $661 $688 $700 $712 % Y/Y Change 14% 12% 11% 9% 8% Subscription Revenue $644 $639 $669 $682 $696 % Y/Y Change 14% 12% 11% 9% 8% International Revenue $165 $168 $180 $185 $196 % Y/Y Change 19% 1
Slide 29: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation Gross Profit (in $ thousands) Quarter Ended January 31, Year Ended January 31, 2024 2023 2024 2023 GAAP gross profit 564,479 522,150 2,189,261 1,979,827 Add: Stock-based compensation 20,494 19,075 79,996 72,674 Add: Amortization of acquisition-related intang
Slide 30: GAAP to Non-GAAP Operating Income (Loss) and Free Cash Flow Reconciliation
GAAP to Non-GAAP Operating Income (Loss) and Free Cash Flow Reconciliation Operating Income (Loss) (in $ thousands) Quarter Ended January 31, Year Ended January 31, 2024 2023 2024 2023 GAAP income (loss) from operations 9,935 (284) 31,634 (88,031) Add: Stock-based compensation 161,000 145,923 611,83
Slide 31: GAAP to Non-GAAP Operating Expenses Reconciliation
GAAP to Non-GAAP Operating Expenses Reconciliation Sales & Marketing (in $ thousands) Quarter Ended January 31, Year Ended January 31, 2024 2023 2024 2023 GAAP sales and marketing 300,221 304,649 1,168,137 1,242,711 Less: Stock-based compensation (53,251) (55,760) (203,855) (222,334) Less: Amortizat
Slide 32: Computation of Billings
Computation of Billings Computation of Billings (in $ thousands) Quarter Ended January 31, Year Ended January 31, 2024 2023 2024 2023 Revenue 712,386 659,576 2,761,882 2,515,915 Add: Contract liabilities and refund liability, end of period 1,343,792 1,191,269 1,343,792 1,191,269 Less: Contract liabi
Slide 33: DocuSign Public
DocuSign Confidential 33 DocuSign Public