Slide 1: Q1 Fiscal Year 2023 Financial Review
Q1 Fiscal Year 2023 Financial Review 1 | DocuSign DocuSign PUBLIC PUBLIC
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently a
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 f
Slide 4: How Customers Buy from Us
How Customers Buy from Us Prepaid Model Dollar Weighted Average Contract Product Functionality Capacity-Based Model Length1 37% >12 months Pricing by Functionality Volume Capacity Multiple levels of product functionality Pre-Set # of Envelopes Provisioned eSignature Envelopes 18 months Single-user M
Slide 5: Revenue Growth at Scale
Revenue Growth at Scale Total Revenue1 Subscription Revenue1 Revenue Contribution2 39% 49% 45% 58% 25% 38% 50% 47% 61% 26% $ 2,107 3% Subscription $2,037 Professional Services & Other $ 1,453 $1,381 97% $ 974 $918 $ 589 $569 $ 469 $452 13% Web & Mobile (Digital) Ent & commercial (Direct) FY20 FY21 F
Slide 6: Continued Billings and Revenue Growth
Continued Billings and Revenue Growth 1 Billings2 Revenue Billings Rolling 4-Q Y/Y Enterprise & commercial Web & mobile Rolling 4-Q Y/Y $700 120% $600 $589 120% $650 $581 $670 110% $550 $545 13% 110% $600 $512 12% $614 $500 $550 $595 100% 12% 100% $565 $469 $450 $500 $527 90% 12% 12% 90% $450 $400 8
Slide 7: Large and Growing Customer Base
Large and Growing Customer Base 1 2 Total Customers Enterprise & Commercial Customers 1.24M 1.17M 190K 182K 170K 170K 892K 150K 40% 130K 51% 125K CAGR CAGR 110K 589K 90K 477K 75K 373K 70K 56K 50K 43K 30K 54K 4K 10K FY13 FY18 FY19 FY20 FY21 FY22 Q1 -10K FY13 FY18 FY19 FY20 FY21 FY22 Q1 FY23 FY23 (1)
Slide 8: Cohort and Large Customer Expansion
Cohort and Large Customer Expansion 2 Cohort analysis Customers with >$300K in ACV 114% 852 886 Net Retention Rate as of Apr 30, 20221 44% CAGR 599 437 310 30 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 FY13 FY19 FY20 FY21 FY22 Q1FY23 (1) Compares the ACV for subscription contracts from
Slide 9: 114% Net Dollar Retention
Customer Demand Continues to Drive Growth at Scale 125% 122% 123% 125% 124% 121% 114% Net 120% 119% 120% 119% Dollar 115% 114% Retention1 110% 105% 100% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 (1) Compares the ACV for subscription contracts from a set of enterprise an
Slide 10: Investing in International Growth
Investing in International Growth 43% y/y Int’l Revenue Growth (Q1 FY23)1 Digital - 180+ Countries Direct - Focus 8 25% of Total Revenue (Q1 FY23)1 (1) For the fiscal quarter ended April 30, 2022 compared to same period a year ago. Market Prioritization & Investment Tier 1: Market Leader Tier 2: See
Slide 11: Maintaining Leverage While Investing In Growth
Maintaining Leverage While Investing In Growth Headcount 2 Non-GAAP gross margin1 Subscription Gross Margin Total Gross Margin 7,642 6,080 85% 85% 84% 84% 82% 81% 81% 79% Q1 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q1 FY23 (1) For the fiscal years ended January 31, 2021 and 2022 and
Slide 12: Operating Leverage
Operating Leverage Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 49% 44% 41% 41% 42% 14% 14% 13% 13% 13% 11% 9% 8% 8% 8% $857 $274 $168 $639 $47 $248 $198 $78 $131 $477 $61 $104 $36 $191 $139 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 (1) For the fiscal
Slide 13: Operating Leverage and Cash Flow
Operating Leverage and Cash Flow Non-GAAP Operating Free Cash Flow2 Income1 Operating Cash Flow 5% 12% 20% 20% 17% 12% 20% 24% 29% 33% 4% 15% 21% 26% 30% $445 $419 $506 $175 $196 $102 $297 $215 $93 $123 $181 $136 $116 $47 $44 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY21 FY22 FY
Slide 14: Q2 FY2023 Guidance
Q2 FY2023 Guidance Q2 Fiscal 2023 Total revenue $600M - $604M Subscription revenue $583M - $587M Billings $599M - $609M Non-GAAP gross margin 79% - 81% Non-GAAP operating margin 16% - 18% Non-GAAP diluted weighted-average shares o/s 205M - 210M 14 | DocuSign PUBLIC
Slide 15: FY2023 Guidance
FY2023 Guidance Fiscal 2023 Total revenue $2,470M - $2,482M Subscription revenue $2,394M - $2,406M Billings $2,521M - $2,541M Non-GAAP gross margin 79% - 81% Non-GAAP operating margin 16% - 18% Provision for income taxes $7M - $11M Non-GAAP diluted weighted-average shares o/s 205M - 210M 15 | DocuSi
Slide 16: Appendix
Appendix 16 | DocuSign PUBLIC
Slide 17: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation Gross Profit (in $K) Quarter Ended April 30, Year Ended January 31, 2022 2021 2022 2021 GAAP Gross Profit 456,276 363,836 1,640,762 1,088,989 Add: Stock-based Compensation in Cost of Revenue 15,695 11,553 58,499 42,658 Add: Amortization of Acquisition-rel
Slide 18: 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 $K) Quarter Ended April 30, Year Ended January 31, 2022 2021 2022 2021 GAAP Operating Loss (19,226) (10,737) (61,884) (173,855) Add: Stock-based Compensation in Cost of Revenue 15,695 11,5
Slide 19: GAAP to Non-GAAP Operating Expenses Reconciliation
GAAP to Non-GAAP Operating Expenses Reconciliation Sales & Marketing (in $K) Quarter Ended April 30, Year Ended January 31, 2022 2021 2022 2021 GAAP Sales & Marketing 300,697 239,119 1,076,527 798,625 Less: Stock-based Compensation in Sales & Marketing (47,431) (38,135) (186,759) (131,041) Less: Amo
Slide 20: Computation of Billings
Computation of Billings Computation of Billings (in $K) Quarter Ended April 30, Year Ended January 31 2022 2021 2022 2021 Revenue 588,692 469,078 2,107,213 1,453,047 Add: Contract Liabilities and Refund Liability, End of Period 1,074,460 857,969 1,049,106 800,940 Less: Contract Liabilities and Refun