Slide 1: Bringing Agreements to Life
Bringing Agreements to Life Q2 FY25
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act our ability to expand use cases within existing customers and vertical solutions; our ability to expand our 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 When evaluating the performance of our business and making operating plans, we do not consider these items GAAP, we use certain non-GAAP financial m
Slide 4: At a glance
At a glance Market leadership Large market opportunity2 Q2 FY253 performance $736M $725M $50B Total Revenue Billings World’s #1 e-Signature solution (28% Int’l) 2% Y/Y growth 7% Y/Y growth Customer base 1 TAM 1.60M 4 5 32% $198M Operating Margin Free Cash Flow (Non-GAAP) 27% FCF Margin Across all in
Slide 5: Agreements power business
Agreements power business Sales HR Sales Contracts Offer Letters NDAs Background Checks SOWs Company Policies Service Procurement Field Service Vendor Contracts Change Orders Purchase Orders Work Agreements Termination Letters Marketing Legal Vendor Agreements Amendments Sponsor Agreements Affidavits
Slide 6: The Agreement Trap destroys value for your business
The Agreement Trap destroys value for your business Sales Sales velocity slows, deals slip, and revenue is lost Procurement Value erodes as terms, SLAs, and obligations remain buried in flat files 18% Companies spend an Legal extra 18% of their time on Teams struggle to keep pace and lurking risks go
Slide 7: Our Solution
Our Solution Unleashing the value of agreement data to power every company 7
Slide 8: Create Commit Manage
Create Commit Manage agreements in accessible, to agreements & agreements seamlessly in collaborative, & more relationships on a trusted ways that connect to automated ways platform your other systems 8
Slide 9: Docusign IAM Platform
Docusign IAM Platform Transform the way you agree 9
Slide 10: Market leader with large untapped opportunity
Market leader with large untapped eSign Addons + CLM opportunity $25B $50B TAM¹ $25B eSign (1) Docusign estimate combining commissioned third-party research with internal customer count, pricing and spending data 10
Slide 11: Across all verticals
Across all verticals The world’s leading brands trust Docusign 11
Slide 12: Investing in international growth
Investing in international growth 15% Y/Y Int’l revenue growth Digital (Q2FY25)1 180+ Countries 28% of Total revenue Direct (Q2FY25)1 Focus 8 Market prioritization & investment Tier 1: Market leader Tier 2: Seed and grow Tier 3: Digital & emerging Primary market focus for Direct GTM investment High
Slide 13: Omni-channel experience throughout the customer journey
Omni-channel experience throughout the customer journey Extend Expand From eSignature to Direct Partner Agreement Process customer integrations From single Digital department customer to ELA From digital Signers to direct Across all GTM teams Paying web Accelerate value realization customer Drive RO
Slide 14: How customers buy from us
How customers buy from us Prepaid Model Multi-Factor Dollar Weighted Subscription Model Average Contract Length1 Volume Capacity Pre-Set # of Envelopes Seat Based Contract per user 60% ≤12 month duration 19 MONTHS 40% >12 month duration Add-on Functionality Multiple levels of add-on functionality (1
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
Slide 16: Financial Review
Financial Review ® docusign.
Slide 17: Total revenue growth
Total revenue growth Y/Y Growth 11% 9% 8% 7% 7% Revenue Contribution1 $700M $712M $710M $736M Direct v. Digital $688M 86% 14% Ent, Commercial Web & Mobile & SMB (Digital) (Direct) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 (1) Fiscal quarter ended July 31, 2024. 17
Slide 18: Subscription revenue growth
Subscription revenue growth Y/Y 11% 9% 8% 8% 7% Revenue Contribution1 Growth Subscription v. $696M $691M $717M Pro Serve and Other $682M $669M 97% 3% Subscription Professional Services & Other Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 (1) Fiscal quarter ended July 31, 2024. 18
Slide 19: Billings growth
1 Billings Y/Y Growth 10% 5% 13% 5% 2% growth Rolling 4-Q Y/Y growth 2 12% 9% 9% 8% 6% $833M $725M $711M $710M $692M Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 (1) Billings = total revenues plus the change in contract liabilities and refund liability less contract assets and unbilled accounts receivable in
Slide 20: Healthy operating efficiency
Healthy operating efficiency Non-GAAP gross margin1 Headcount2 SUBSCRIPTION GROSS MARGIN TOTAL GROSS MARGIN 6,748 85.6% 6,612 85.0% 84.9% 84.2% 84.2% 83.0% 82.5% 82.3% 82.0% 82.2% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q2FY25 (1) Margins are as % of total revenue
Slide 21: Operating expenses as a % of revenue
Operating expenses as a % of revenue Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 35% 34% 34% 33% 30% 13% 12% 13% 12% 13% 10% 10% 10% 9% 7% $238M $243M $235M $231M $224M $96M $89M $88M $92M $87M $68M $71M $70M $62M $52M Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24
Slide 22: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Income1 Operating Cash Flow1 Free Cash Flow2 % of total revenue 25% 27% 25% 28% 32% 31% 38% 38% 36% 30% 27% 34% 35% 33% 27% $271M $264M $255M $249M $237M $240M $220M $232M $202M $211M $198M $187M $184M $178M $170M Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25
Slide 23: Q3 FY25 guidance
Q3 FY25 guidance Q3 FY251 Total revenue $743M - $747M Subscription revenue $722M - $726M Billings $710M - $720M Non-GAAP gross margin 81.0% - 82.0% Non-GAAP operating margin 28.5% - 29.5% Non-GAAP diluted weighted- 206M - 211M average shares outstanding (1) Revenue, billings, and share count in mill
Slide 24: FY25 guidance
FY25 guidance FY251 Total revenue $2,940M - $2,952M Subscription revenue $2,864M - $2,876M Billings $2,990M - $3,030M Non-GAAP gross margin 81.0% - 82.0% Non-GAAP operating margin 29.0% - 29.5% Non-GAAP diluted weighted- 206M - 211M average shares outstanding (1) Revenue, billings, and share count i
Slide 25: Appendix
Appendix 25
Slide 26: Financial & operational metrics
Financial & operational metrics Financial Metrics (in $ M) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Revenue $688 $700 $712 $710 $736 % Y/Y Change 11% 9% 8% 7% 7% Subscription Revenue $669 $682 $696 $691 $717 % Y/Y Change 11% 9% 8% 8% 7% International Revenue $180 $185 $196 $197 $207 % Y/Y Change 17% 18% 1
Slide 27: GAAP to Non-GAAP gross profit
Three Months Ended July 31, Six Months Ended July 31, GAAP to Gross Profit (in $ thousands) GAAP gross profit 2024 580,562 2023 542,105 2024 1,140,756 2023 1,067,006 Non-GAAP Add: Stock-based compensation 20,591 20,367 39,474 38,454 Add: Amortization of acquisition-related intangibles 3,067 2,314 5,13
Slide 28: GAAP to Non-GAAP operating income and free cash flow reconciliation
Three Months Ended July 31, Six Months Ended July 31, GAAP to Operating Income (in $ thousands) GAAP income from operations 2024 57,801 2023 6,612 2024 80,429 2023 1,961 Non-GAAP Add: Stock-based compensation Add: Amortization of acquisition-related intangibles 164,448 6,180 151,673 4,944 302,324 10
Slide 29: GAAP to Non-GAAP operating expenses reconciliation
GAAP to Three Months Ended July 31, Six Months Ended July 31, Sales & Marketing (in $ thousands) 2024 2023 2024 2023 GAAP sales and marketing 287,464 294,838 569,108 575,443 Non-GAAP Less: Stock-based compensation (58,778) (51,563) (105,049) (96,889) Less: Amortization of acquisition-related intangi
Slide 30: Computation of billings
Computation of billings Three Months Ended July 31, Six Months Ended July 31, Computation of Billings (in $ thousands) 2024 2023 2024 2023 Revenue 736,027 687,687 1,445,667 1,349,075 Add: Contract liabilities and refund liability, end of period 1,334,461 1,233,894 1,334,461 1,233,894 Less: Contract
Slide 31: docusign.
my docusign.