Slide 1: Bringing Agreements to Life
Bringing Agreements to Life Q3 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 Q3 FY253 performance $755M $752M $50B Total Revenue Billings World’s #1 e-Signature solution (28% Int’l) 9% Y/Y growth 8% Y/Y growth Customer base 1 TAM 1.63M 4 5 30% $211M Operating Margin Free Cash Flow (Non-GAAP) 28% 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: Transform the way you agree
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: Investing in international growth
Investing in international growth 14% Y/Y Int’l revenue growth Digital (Q3FY25)1 180+ Countries 28% of Total revenue Direct (Q3FY25)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 12: 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 enterprise-wide From digital Signers to direct Across all GTM teams Paying web Accelerate value realization custo
Slide 13: 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 14: 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 14
Slide 15: Financial Review
Financial Review ® docusign.
Slide 16: Total revenue growth
Total revenue growth Y/Y Growth 9% 8% 7% 7% 8% Revenue Contribution1 Direct v. Digital 85% 15% Ent, Commercial Web & Mobile & SMB (Digital) (Direct) (1) Fiscal quarter ended October 31, 2024. 16
Slide 17: Subscription revenue growth
Subscription revenue growth Y/Y 9% 8% 8% 7% 8% Revenue Contribution1 Growth Subscription v. Pro Serve and Other 97% 3% Subscription Professional Services & Other (1) Fiscal quarter ended October 31, 2024. 17
Slide 18: Billings growth
1 Billings Y/Y Growth 5% 13% 5% 2% 9% growth Rolling 4-Q Y/Y growth 2 9% 9% 8% 6% 7% (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
Slide 19: Healthy operating efficiency
Healthy operating efficiency Non-GAAP gross margin1 Headcount2 SUBSCRIPTION GROSS MARGIN TOTAL GROSS MARGIN (1) Margins are as % of total revenue. Please see Appendix for GAAP to non-GAAP reconciliation. (2) As of October 31, 2023 and 2024. 19
Slide 20: Operating expenses as a % of revenue
Operating expenses as a % of revenue Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 34% 34% 33% 30% 31% 12% 13% 12% 13% 13% 10% 10% 9% 7% 9% (1) Please see Appendix slides for non-GAAP reconciliation. 20
Slide 21: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Income1 Operating Cash Flow1 Free Cash Flow2 % of total revenue 27% 25% 28% 32% 30% 38% 38% 36% 30% 31% 34% 35% 33% 27% 28% (1) Please see Appendix slides for non-GAAP reconciliation. (2) FCF calculated as Operating Cash Flow less CapEx. Please see
Slide 22: Q4 FY25 guidance
Q4 FY25 guidance Q4 FY25 Total revenue $758M - $762M Subscription revenue $741M - $745M Billings $870M - $880M Non-GAAP gross margin 81.0% - 82.0% Non-GAAP operating margin 27.5% - 28.5% Non-GAAP diluted weighted- 209M - 214M average shares outstanding 22
Slide 23: FY25 guidance
FY25 guidance FY25 Total revenue $2,959M - $2,963M Subscription revenue $2,885M - $2,889M Billings $3,056M - $3,066M Non-GAAP gross margin 81.9% - 82.1% Non-GAAP operating margin 29.5% - 29.7% Non-GAAP diluted weighted- 210M - 212M average shares outstanding 23
Slide 24: Appendix
Appendix 24
Slide 25: Financial & operational metrics
Financial & operational metrics Financial Metrics (in $ M) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Revenue $700 $712 $710 $736 $755 % Y/Y Change 9% 8% 7% 7% 8% Subscription Revenue $682 $696 $691 $717 $735 % Y/Y Change 9% 8% 8% 7% 8% International Revenue $185 $196 $197 $207 $212 % Y/Y Change 18% 19% 17%
Slide 26: GAAP to Non-GAAP gross profit
Three Months Ended October 31, Nine Months Ended October 31, GAAP to Gross Profit (in $ thousands) GAAP gross profit 2024 598,283 2023 557,776 2024 1,739,039 2023 1,624,782 Non-GAAP Add: Stock-based compensation 19,627 21,048 59,101 59,502 Add: Amortization of acquisition-related intangibles 3,566 2,0
Slide 27: GAAP to Non-GAAP operating income and free cash flow reconciliation
Three Months Ended October 31, Nine Months Ended October 31, GAAP to Operating Income (Loss) (in $ thousands) GAAP income from operations 2024 59,030 2023 19,738 2024 139,459 2023 21,699 Non-GAAP Add: Stock-based compensation Add: Amortization of acquisition-related intangibles 153,228 6,920 159,410
Slide 28: GAAP to Non-GAAP operating expenses reconciliation
GAAP to Three Months Ended October 31, Nine Months Ended October 31, Sales & Marketing (in $ thousands) 2024 2023 2024 2023 GAAP sales and marketing 290,597 292,473 859,705 867,916 Non-GAAP Less: Stock-based compensation (49,347) (53,715) (154,396) (150,604) Less: Amortization of acquisition-related
Slide 29: Computation of billings
Computation of billings Three Months Ended October 31, Nine Months Ended October 31, Computation of Billings (in $ thousands) 2024 2023 2024 2023 Revenue 754,820 700,421 2,200,487 2,049,496 Add: Contract liabilities and refund liability, end of period 1,332,828 1,228,174 1,332,828 1,228,174 Less: Co
Slide 30: docusign.
my docusign.