Slide 1: Smarter, Easier, Trusted Agreements
Smarter, Easier, Trusted Agreements Q2 Fiscal 2024 DocuSign Public 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities the sufficiency of our cash, cash equivalents and capital resources to satisfy our liquidity needs; limitations Act of 1933, as amended, and Section 21E of the Securities Exchange Act
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 Q2 FY243 performance $688M Revenue (26% Int’l) 11% Y/Y growth World’s #1 e-Signature solution ~$50B TAM $711M Billings 10% Y/Y growth Customer base Broader DocuSign opportunity 1 (before and after signing) 25% 1.44M Operating Margin (Non-GAAP)
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 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: 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 combinina commissioned third-party research with internal customer count, pricing and spending data 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 1.44M Customers Faster 15+ applications span the e-signature pioneer, with and more than a billion users1. 43% completed in < 15 minutes; Global leader in e-signature across 180+ 78% in <
Slide 14: Investing in international growth
Investing in international growth 17% y/y Int’l Revenue Growth (Q2 FY24)1 26% of Total Revenue (Q2 FY24)1 Digital - 180+ (1) For the fiscal quarter ended July 31, 2023 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: 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 16
Slide 17: Financial Review
Financial Review DocuSign Public 17
Slide 18: How customers buy from us
How customers buy from us Prepaid Model Dollar Weighted Average Contract Length1 36% 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 18 months 64% ≤12 month duration (1
Slide 19: Total Revenue growth
Total Revenue growth Y/Y Growth 22% 18% 14% 12% 11% Revenue Contribution1 Direct v. Digital ($m) 87% Web & Mobile (Digital) Ent, Commercial & SMB (Direct) 13% (1) Fiscal quarter ended July 31, 2023. DocuSign Public 19
Slide 20: Subscription Revenue growth
Subscription Revenue growth Revenue Contribution1 Y/Y Growth 23% 18% 14% 12% 11% Subscription v. Pro Serve and Other 97% ($m) Subscription Professional Services & Other 3% (1) Fiscal quarter ended July 31, 2023. DocuSign Public 20
Slide 21: Billings growth
Billings1 growth Rolling 4-Q Y/Y growth2 19% 17% 13% 11% 12% ($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 reconciliation. (2) Rolling 4- quarte
Slide 22: Large and expanding customer base
Large and expanding customer base 1 Total customers Enterprise & Commercial customers1 (1) Comprised of customers who were not acquired through our self-service channel. DocuSign Public 22
Slide 23: Cohort and large customer base
Cohort and large customer base Cohort analysis Customers with >$300K in ACV1 (1) ACV = Annualized Contract Value DocuSign Public 23
Slide 24: Dollar Net Retention
Expansion rates are moderating at scale 102% 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., July 31, 2023),
Slide 25: Expenses as a % of revenue
Expenses as a % of revenue Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 41% 39% 37% 35% 35% 14% 12% 13% 12% 13% 9% 9% 9% 10% 10% Margin as % of total revenue (1) $ in millions. Margins are as % of revenue. Please see Appendix slides for non-GAAP reconciliation. DocuSign Public 25
Slide 26: 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) Margins are as % of revenue. Please see Appendix for GAAP to non-GAAP reconciliation. (2) As of July 31, 2022 and 2023. DocuSign Public 26
Slide 27: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow1 18% 23% 24% 27% 25% 19% 8% 21% 35% 31% 17% 6% 17% 32% 27% Margin as % of total revenue (1) $ in millions. Margins are as % of revenue. (2) FCF calculated as Operating Cash Flow CapEx. Please see Appendix
Slide 28: Q3 FY2024 Guidance
Q3 FY2024 Guidance (in millions, except percentages) Q3 Fiscal 2024 Total revenue $687 – $691 Subscription revenue $669 - $673 Billings $668 - $678 Non-GAAP gross margin $81% - 82% Non-GAAP operating margin 22% - 23% Non-GAAP diluted weighted-average shares o/s 207 - 212 DocuSign Public 28
Slide 29: FY2024 Guidance
FY2024 Guidance (in millions, except percentages) Fiscal 2024 Total revenue $2,725 - $2,737 Subscription revenue $2,649 - $2,661 Billings $2,804 - $2,824 Non-GAAP gross margin 81% - 82% Non-GAAP operating margin 23% - 24% Non-GAAP diluted weighted-average shares o/s 207 - 212 DocuSign Public 29
Slide 30: Appendix
Appendix DocuSign Public 30
Slide 31: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation Gross Profit (in thousands) Quarter Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 GAAP Gross Profit 542,105 485,480 1,067,006 941,756 Add: Stock-based Compensation in Cost of Revenue 20,367 19,472 38,454 35,167 Add: Amortization of Acquisition
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 July 31, Six Months Ended July 31, 2023 2022 2023 2022 GAAP Operating Income (Loss) 6,612 (41,090) 1,961 (60,316) Add: Stock-based compensation 151,673 141,207 291
Slide 33: GAAP to Non-GAAP Operating Expenses Reconciliation
GAAP to Non-GAAP Operating Expenses Reconciliation Sales & Marketing (in thousands) Quarter Ended July 31,, Six Months Ended July 31, 2023 2022 2023 2022 GAAP Sales & Marketing 294,838 323,582 575,443 624,279 Less: Stock-based Compensation in Sales & Marketing (51,563) (61,218) (96,889) (108,649) Le
Slide 34: Computation of Billings
Computation of Billings Computation of Billings (in thousands) Quarter Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Revenue 687,687 622,184 1,349,075 1,210,876 Add: Contract Liabilities and Refund Liability, End of Period 1,233,894 1,094,939 1,233,894 1,094,939 Less: Contract Liabili
Slide 35: DocuSign Public
DocuSign Confidential 35 DocuSign Public