Slide 1: Smarter, Easier, Trusted Agreements
Smarter, Easier, Trusted Agreements Q4 & Full Year Fiscal 2023 DocuSign Public
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities our ability to maintain, protect and enhance our brand; the sufficiency of our cash, cash equivalents and Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 19
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 FY233 performance FY233 performance $660M $2.5B Revenue (25% Int’l) Revenue (25% Int’l) ~$50B 14% Y/Y growth 19% Y/Y growth TAM World’s #1 e-Signature solution $739M $2.7B Billings Billings Broader DocuSign 10% Y/Y growth 13% Y/Y growth Cust
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
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 Agreement ID Verification Review & Signature Automated Secure Analytics Generation Negotiation Workflows Repository 7 DocuSign Public
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
Slide 9: Redefining how the world comes together and agrees
Smarter Personalized document generation Dynamic agreement Redefining how Intelligent analytics and insights (2) the world comes Easier together and Send and sign anytime, from practically anywhere agrees Faster time to value, efficiency Extend with integrations and customization Trusted Highest level
Slide 10: Ecosystem Platform
eSignature eSignature add-ons CLM The world’s #1 way Enhanced options for any Contract management, for workflows to sign electronically agreement scenario before & after the signature Add-ons include support for identity verification, Gen, CLM Essentials, CLM and CLM+ Editions range from personal to e
Slide 11: Market leader with large untapped opportunity
Market leader with large untapped opportunity ~$50B+ TAM1 Sign eSign Addons World’s #1 e-Signature + CLM $25B1 $25B1 (1) DocuSign estimate combining commissioned third-party research with internal customer count, pricing and spending data. DocuSign Public
Slide 12: Building on innovation and expanding opportunity
Building on innovation and expanding opportunity ~$50B 3 acquisition (Smart Contracts) TAM acquisition (Notary) $2.5B acquisition FY23 revenue 2 (AI Analytics) 2018 IPO acquisition (CLM) ~$0.5B AGREEMENT LTM EXPANSION revenue1 Broaden automation to cover end-to-end agreement processes eSignature Lea
Slide 13: Across all verticals
Across all verticals The world’s leading brands trust DocuSign DocuSign Public
Slide 14: Why DocuSign continues to win
Why DocuSign continues to win / Comprehensive / Innovative / Trusted / Simple Most Applications Category Leader 1.36M Customers Faster 15+ applications span the e-signature pioneer, with and more than a billion users1. 43% completed in < 15 minutes; entire agreement process 750+ product innovations
Slide 15: Investing in international growth
Investing in international growth 19% y/y Int’l Revenue Growth (Q4 FY23)1 25% of Total Revenue (Q4 FY23)1 Digital - 180+ (1) For the fiscal quarter ended January 31, 2023 compared to same period a year ago. Countries Market Prioritization & Investment Direct - Focus 8 Tier 1: Market Leader Tier 2: Se
Slide 16: Multi-channel experience throughout the customer journey
Multi-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 Receivi
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
Slide 18: Financial Review
Financial Review DocuSign Public
Slide 19: How customers buy from us
How customers buy from us Prepaid Model Dollar Weighted Capacity-Based Average Contract Product Functionality Subscription Model Length1 36% >12 months Pricing by Functionality Volume Capacity Multiple levels of product functionality Pre-Set # of Envelopes Provisioned eSignature Envelopes 18 months
Slide 20: Revenue growth as we scale
Revenue growth as we scale Total Revenue1 Subscription Revenue1 Revenue Contribution2 98% 49% 45% 19% 35% 14% 50% 47% 20% 37% 14% Subscription Professional Services & Other 2% 87% Web & Mobile (Digital) Ent, Commercial & SMB (Direct) Y/Y Growth 13% (1) Fiscal years ended January 31 and fiscal quarter
Slide 21: Billings growth
Billings growth 56% 37% 13% 25% 10% Y/Y Growth (1) For the fiscal quarter ended January 31, 2023, 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 giv
Slide 22: Large and expanding customer base
Large and expanding customer base 1 Total customers Enterprise & Commercial customers2 49% 38% CAGR CAGR (1) For the fiscal years ended January 31 and fiscal quarter ended January 31, 2023. (2) Comprised of customers who were not acquired through our self-service channel. DocuSign Public
Slide 23: Cohort and large customer increase
Cohort and large customer increase Cohort analysis Customers with >$300K in ACV2 107% 44% Net Retention CAGR Rate as of Jan 31, 20231 (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
Slide 24: Dollar Net Retention
Expansion rates are moderating at scale 107% 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., January 31, 2023
Slide 25: Maintaining leverage while investing in growth
Maintaining leverage while investing in growth Non-GAAP Gross Margin1 Headcount 2 Subscription Gross Margin Total Gross Margin (1) For the fiscal years ended January 31, 2022 and 2023 and the fiscal quarters ended January 31, 2022 and 2023. Margins are as % of revenue. Please see Appendix for GAAP to
Slide 26: Operating leverage
Operating leverage Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 44% 41% 40% 42% 37% 14% 13% 13% 13% 13% 9% 8% 9% 8% 9% Margin as % of total revenue (1) For the fiscal years ended January 31, 2021, 2022 and 2023 and the fiscal quarters ended January 31, 2022, and 2023. $ in millions. Margins are as % of r
Slide 27: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow1 12% 20% 21% 18% 24% 20% 24% 20% 15% 21% 15% 21% 17% 12% 17% Margin as % of total revenue (1) For the fiscal years ended January 31, 2021, 2022, and 2023 and the fiscal quarters ended January 31, 2022, and 2
Slide 28: Q1 FY2024 Guidance
Q1 FY2024 Guidance (in millions, except percentages) Q1 Fiscal 2024 Total revenue $639 - $643 Subscription revenue $625 - $629 Billings $615 - $625 Non-GAAP gross margin 81% - 82% Non-GAAP operating margin 21% - 22% Non-GAAP diluted weighted-average shares o/s 207 - 212 DocuSign Public
Slide 29: FY2024 Guidance
FY2024 Guidance (in millions, except percentages) Fiscal 2024 Total revenue $2,695 - $2,707 Subscription revenue $2,633 - $2,645 Billings $2,705 - $2,725 Non-GAAP gross margin 81% - 82% Non-GAAP operating margin 21% - 23% Non-GAAP diluted weighted-average shares o/s 207 - 212 DocuSign Public
Slide 30: Appendix
Appendix DocuSign Public
Slide 31: 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, 2023 2022 2023 2022 GAAP Gross Profit 522,150 449,374 1,979,827 1,640,762 Add: Stock-based Compensation in Cost of Revenue 19,075 17,596 72,674 58,499 Add: Amortization of Acquisiti
Slide 32: 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 thousands) Quarter Ended January 31, Year Ended January 31, 2023 2022 2023 2022 GAAP Operating Income (Loss) (284) (25,178) (88,031) (61,884) Add: Stock-based Compensation 145,923 118,007
Slide 33: 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, 2023 2022 2023 2022 GAAP Sales & Marketing 304,649 299,417 1,242,711 1,076,527 Less: Stock-based Compensation in Sales & Marketing (55,760) (52,040) (222,334) (186,759
Slide 34: Computation of Billings
Computation of Billings Computation of Billings (in thousands) Quarter Ended January 31, Year Ended January 31, 2023 2022 2023 2022 Revenue 659,576 580,828 2,515,915 2,107,213 Add: Contract Liabilities and Refund Liability, End of Period 1,191,269 1,049,106 1,191,269 1,049,106 Less: Contract Liabili
Slide 35: DocuSign Public
DocuSign Confidential DocuSign Public