Slide 1: Smarter, Easier Agreements
DRAFT - CONFIDENTIAL Smarter, Easier Agreements Q3 Fiscal Year 2023 1 | DocuSign PUBLIC
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, that are based on our management's beliefs and assumptions and on information currently a
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: At a Glance
At a Glance 2 Q3 FY23 3 Performance Large Market Opportunity Market Leadership $645M ~$50B TAM Revenue (24% Int’l) 18% Y/Y growth World’s #1 e-Signature Solution $659M Billings 17% Y/Y growth Customer Base 1 23% 1.32M Broader DocuSign Operating Margin (Non-GAAP) Across all industries, segments, and
Slide 5: Agreements are the Foundation of Doing Business
Agreements are the Foundation of Doing Business Marketing Sales Service Rebate Agreements Influencer Agreements Customer NDAs Field Services Front Sponsorship Agreements Customer Contracts Sales Order Processing Service / Work Orders Change Orders Office Promotion Agreements Customer Account Terms of
Slide 6: But Agreement Processes are Manual & Disconnected
But Agreement Processes are Manual & Disconnected BUSINESS PROCESS AGREEMENT PROCESS CRM AGREEMENT GAP Error-Prone Lead to Cash ERP Disconnected Procure to Pay ERP Design Time-Consuming to Operate HCM Hire to Manual Retire Not-sustainable 6 | DocuSign PUBLIC
Slide 7: True Transformation of Your Agreement Process Means Going Beyond the Signature
True Transformation of Your Agreement Process Means Going Beyond the Signature Agreement Process Pre-Signature Post-Signature Signature Agreement ID Downstream Approvals Repository Analytics Generation Verification Workflows 7 | DocuSign PUBLIC
Slide 8: DocuSign eSignature is the Trigger to Transformation
DocuSign eSignature is the Faster Trigger to Transformation 44% completed in < 15 minutes; 79% in < 1 day1 (2) Easier Send and sign anytime, from practically anywhere Cost-Effective Automate manual processes Risk-Reducing Standardize processes, generate audit trails Delight Customers NPS of 702 Comp
Slide 9: Ecosystem Platform
APPLI CATI O N S eSignature eSignature Add-Ons CLM The world’s #1 way Enhanced options for any Contract lifecycle to sign electronically agreement scenario management, for workflows before and after the signature Editions range from personal to enterprise use Add-ons include support for identity veri
Slide 10: Market Leader with Massive & Expanding TAM
Market Leader with Massive & Expanding TAM Sign World’s #1 e-Signature eSign Addons + CLM ~$50B+ TAM1 $25B1 $25B1 Current Market Penetration (1) DocuSign estimate combining commissioned third-party research with internal customer count, pricing and spending data. 10 10 | DocuSign PUBLIC
Slide 11: Building on Innovation and Expanding Opportunity
Building on Innovation and Expanding Opportunity acquisition (Smart Contracts) ~$50B 3 acquisition TAM (Notary) acquisition $2.1B (AI Analytics) FY22 revenue 2 acquisition 2018 IPO (CLM) ~$0.5B AGREEMENT LTM EXPANSION revenue1 Broaden automation to cover end-to-end agreement processes eSignature Lea
Slide 12: Across All Verticals
Across All Verticals The World’s Leading Brands Trust DocuSign 12 | DocuSign PUBLIC
Slide 13: Why DocuSign Continues to Win
Why DocuSign Continues to Win / Comprehensive / Innovative / Trusted / Simple M O ST APPLI CATI O N S CATEGORY LEADER 1 . 32 M C U S T O M E R S N E T P R O M O T E R S C O R E 7 02 15+ applications span the entire e-signature pioneer, with 750+ and more than a billion users1. The global Delighting
Slide 14: Multi-Channel Experience Throughout the Customer Journey
Multi-Channel Experience Throughout the Customer Journey Extend Expand From eSignature to Agreement Process Direct Partner integrations customer Digital From single customer department to ELA From digital Signers to direct Across all GTM teams Paying web customer Accelerate value realization Receivi
Slide 15: 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 15 | DocuSign PUBLIC
Slide 16: Financial Review
Financial Review 16 | DocuSign PUBLIC
Slide 17: How Customers Buy from Us
How Customers Buy from Us Prepaid Model Dollar Weighted Average Contract Product Functionality Capacity-Based Model Length1 36% >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 18: Revenue Growth As We Scale
Revenue Growth As We Scale Total Revenue1 Subscription Revenue1 Revenue Contribution2 39% 49% 45% 42% 18% 38% 50% 47% 44% 18% 3% Subscription Professional Services & Other 97% 13% Web & Mobile (Digital) Ent, Commercial & SMB (Direct) 87% Y/Y Growth (1) Fiscal years ended January 31 and fiscal quarter
Slide 19: Billings and Revenue Growth
Billings and Revenue Growth 1 Billings2 Revenue (1) For the fiscal quarter ended October 31, 2022, and the four fiscal quarters prior. $ in millions. (2) Billings = total revenues plus the change in contract liabilities and refund liability less contract assets and unbilled accounts receivable in a gi
Slide 20: Large and Expanding Customer Base
Large and Expanding Customer Base 1 Total Customers Enterprise & Commercial Customers2 50% 39% CAGR CAGR (1) For the fiscal years ended January 31 and fiscal quarter ended October 31, 2022. (2) Comprised of customers who were not acquired through our self-service channel. 20 | DocuSign PUBLIC
Slide 21: Cohort and Large Customer Increase
Cohort and Large Customer Increase Cohort analysis Customers with >$300K in ACV2 108% Net Retention 44% Rate as of October 31, 20221 CAGR (1) Compares the annual recurring revenue, or ARR, for active subscription contracts from Direct customers at two period end dates. To calculate our dollar-based
Slide 22: Dollar Net Retention
Customer Demand Drives Growth at Scale 108% Dollar Net Retention 1 (1) Compares the annual recurring revenue, or ARR, for active subscription contracts from Direct customers at two period end dates. To calculate our dollar-based net retention rate at the end of the base year (e.g., October 31, 2022)
Slide 23: Investing In International Growth
Investing In International Growth 23% y/y Int’l Revenue Growth (Q3 FY23)1 Digital - 180+ Countries Direct - Focus 8 24% of Total Revenue (Q3 FY23)1 (1) For the fiscal quarter ended October 31, 2022 compared to same period a year ago. Market Prioritization & Investment Tier 1: Market Leader Tier 2: Se
Slide 24: Maintaining Leverage While Investing In Growth
Maintaining Leverage While Investing In Growth Headcount 2 Non-GAAP Gross Margin1 Subscription Gross Margin Total Gross Margin (1) For the fiscal years ended January 31, 2021 and 2022 and the fiscal quarters ended October 31, 2021 and 2022. Margins are as % of revenue. Please see Appendix for GAAP to
Slide 25: Operating Leverage
Operating Leverage Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 49% 44% 41% 40% 39% 14% 14% 13% 13% 12% 11% 9% 8% 7% 9% Margin as % of total revenue (1) For the fiscal years ended October 31, 2020, 2021, and 2022 and the fiscal quarters ended October 31, 2021, and 2022. $ in millions. Margins are as % of
Slide 26: Operating Leverage and Cash Flow
Operating Leverage and Cash Flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow1 5% 12% 20% 22% 23% 12% 20% 24% 19% 8% 4% 15% 21% 17% 6% Margin as % of total revenue (1) For the fiscal years ended January 31, 2020, 2021, and 2022 and the fiscal quarters ended October 31, 2021, and 2022
Slide 27: Q4 FY2023 Guidance
Q4 FY2023 Guidance Q4 Fiscal 2023 Total revenue 637 - 641 Subscription revenue 624 - 628 Billings 705 - 715 Non-GAAP gross margin 82% - 83% Non-GAAP operating margin 20% - 22% Non-GAAP diluted weighted-average shares o/s 205 - 210 27 | DocuSign PUBLIC
Slide 28: FY2023 Guidance
FY2023 Guidance Fiscal 2023 Total revenue 2,493 - 2,497 Subscription revenue 2,423 - 2,427 Billings 2,626 - 2,636 Non-GAAP gross margin 81% - 82% Non-GAAP operating margin 18% - 20% Non-GAAP diluted weighted-average shares o/s 205 - 210 28 | DocuSign PUBLIC
Slide 29: Appendix
Appendix 29 | DocuSign PUBLIC
Slide 30: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation Gross Profit (in $K) Quarter Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 GAAP Gross Profit 515,921 429,488 1,457,677 1,191,388 Add: Stock-based Compensation in Cost of Revenue 18,432 15,365 53,599 40,902 Add: Amortization of Acquisiti
Slide 31: 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, Nine Months Ended October 31, 2022 2021 2022 2021 GAAP Operating Loss (27,431) (3,358) (87,747) (36,706) Add: Stock-based Compensation 135,247 109,440 387,176
Slide 32: GAAP to Non-GAAP Operating Expenses Reconciliation
GAAP to Non-GAAP Operating Expenses Reconciliation Sales & Marketing (in $K) Quarter Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 GAAP Sales & Marketing 313,783 275,619 938,062 777,100 Less: Stock-based Compensation in Sales & Marketing (57,925) (49,663) (166,574) (134,720) Le
Slide 33: Computation of Billings
Computation of Billings Computation of Billings (in $K) Quarter Ended October 31, Nine Months Ended October 31 2022 2021 2022 2021 Revenue 645,463 545,463 1,856,339 1,526,385 Add: Contract Liabilities and Refund Liability, End of Period 1,113,131 961,243 1,113,131 961,243 Less: Contract Liabilities
Slide 34: DRAFT - CONFIDENTIAL
DRAFT - CONFIDENTIAL Base Corporate Deck Template Creative Services DocuSign Confidential DocuSign Confidential