Slide 1: Smarter, Easier, Trusted Agreements
Smarter, Easier, Trusted Agreements Q1 Fiscal 2024 DocuSign Public
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 Q1 FY243 performance $661M Revenue (25% Int’l) 12% Y/Y growth World’s #1 e-Signature solution ~$50B TAM $675M Billings 10% Y/Y growth Customer base Broader DocuSign opportunity (before and after signing) 27% 1.40M 1 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
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: 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
Slide 12: Across all verticals
Across all verticals The world’s leading brands trust DocuSign DocuSign Public
Slide 13: Why DocuSign continues to win
Why DocuSign continues to win / Comprehensive / Innovative / Trusted / Simple Most Applications Category Leader 1.40M 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 (Q1 FY24)1 25% of Total Revenue (Q1 FY24)1 Digital - 180+ (1) For the fiscal quarter ended April 30, 2023 compared to same period a year ago. Countries Market Prioritization & Investment Direct - Focus 8 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
Slide 17: Financial Review
Financial Review DocuSign Public
Slide 18: 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 19: Revenue growth as we scale
Revenue growth as we scale Total Revenue1 Subscription Revenue1 Revenue Contribution2 97% 49% 45% 19% 25% 12% 50% 47% 20% 26% 12% Subscription Professional Services & Other 3% 87% Web & Mobile (Digital) Ent, Commercial & SMB (Direct) Y/Y Growth 13% (1) Fiscal years ended January 31 and fiscal quarter
Slide 20: Billings growth
Billings growth 56% 37% 13% 16% 10% Y/Y Growth (1) For the fiscal quarter ended April 30, 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 given
Slide 21: Large and expanding customer base
Large and expanding customer base 1 Total customers Enterprise & Commercial customers2 (1) For the fiscal years ended January 31 and fiscal quarter ended April 30, 2023. (2) Comprised of customers who were not acquired through our self-service channel. DocuSign Public
Slide 22: Cohort and large customer
Cohort and large customer Cohort analysis Customers with >$300K in ACV2 105% Net Retention Rate as of Apr 30, 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 retention rate at
Slide 23: Dollar Net Retention
Expansion rates are moderating at scale 105% 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., April 30, 2023),
Slide 24: 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 April 30, 2022 and 2023. Margins are as % of revenue. Please see Appendix for GAAP to no
Slide 25: Operating leverage
Operating leverage Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 44% 41% 40% 42% 35% 14% 13% 13% 13% 12% 9% 8% 9% 8% 10% Margin as % of total revenue (1) For the fiscal years ended January 31, 2021, 2022 and 2023 and the fiscal quarters ended April 30, 2022, and 2023. $ in millions. Margins are as % of re
Slide 26: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow1 12% 20% 21% 17% 27% 20% 24% 20% 33% 35% 15% 21% 17% 30% 32% Margin as % of total revenue (1) For the fiscal years ended January 31, 2021, 2022, and 2023 and the fiscal quarters ended April 30, 2022, and 202
Slide 27: Q2 FY2024 Guidance
Q2 FY2024 Guidance (in millions, except percentages) Q2 Fiscal 2024 Total revenue $675 - $679 Subscription revenue $658 - $662 Billings $646 - $656 Non-GAAP gross margin 81% - 82% Non-GAAP operating margin 24% - 25% Non-GAAP diluted weighted-average shares o/s 207 - 212 DocuSign Public
Slide 28: FY2024 Guidance
FY2024 Guidance (in millions, except percentages) Fiscal 2024 Total revenue $2,713 - $2,725 Subscription revenue $2,640 - $2,652 Billings $2,737 - $2,757 Non-GAAP gross margin 81% - 82% Non-GAAP operating margin 22% - 24% Non-GAAP diluted weighted-average shares o/s 207 - 212 DocuSign Public
Slide 29: Appendix
Appendix DocuSign Public
Slide 30: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation Gross Profit (in thousands) Quarter Ended April 30, 2023 2022 GAAP Gross Profit 524,901 456,276 Add: Stock-based Compensation in Cost of Revenue 18,087 15,695 Add: Amortization of Acquisition-related Intangibles in Cost of Revenue 2,403 2,403 Add: Employer P
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 thousands) Quarter Ended April 30, 2023 2022 GAAP Operating Income (Loss) (4,651) (19,226) Add: Stock-based compensation 139,752 110,723 Add: Amortization of acquisition-related intangible
Slide 32: GAAP to Non-GAAP Operating Expenses Reconciliation
GAAP to Non-GAAP Operating Expenses Reconciliation Sales & Marketing (in thousands) Quarter Ended April 30, 2023 2022 GAAP Sales & Marketing 280,605 300,697 Less: Stock-based Compensation in Sales & Marketing (45,326) (47,431) Less: Amortization of Acquisition-related Intangibles in Sales & Marketin
Slide 33: Computation of Billings
Computation of Billings Computation of Billings (in thousands) Quarter Ended April 30, 2023 2022 Revenue 661,388 588,692 Add: Contract Liabilities and Refund Liability, End of Period 1,210,965 1,074,460 Less: Contract Liabilities and Refund Liability, Beginning of Period (1,191,269) (1,049,106) Add:
Slide 34: DocuSign Public
DocuSign Confidential DocuSign Public