DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's first quarter fiscal 2020 earnings conference call. As a reminder, this call is being recorded. It won't be available for replay from the investor relations section of the website following the conference call. Also, if anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I'd like to turn the conference over to your host, Annie Leshin, head of investor relations. Thank you. You may begin.

Thank you, operator. Good afternoon, everyone. Welcome to DocuSign's first quarter fiscal 2020 earnings conference call. On the call today, we have DocuSign's CEO, Dan Springer, and CFO, Mike Sheridan. The press release announcing our first quarter results was issued earlier today and is posted on our investor relations website. Before we get started, I'd like to let everyone know that we will be participating in the 40th NASDAQ conference in London on June 13th. As other events come up, we'll make additional announcements. Now let me remind everyone that the statements made on this call include forward-looking statements that are based on assumptions we believe to be reasonable as of this date and on information currently available to management, including statements about expected financial metrics, customer growth and estimates, and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. Forward-looking statements involve known and unknown risks Thank you. Thank you. or the reason if actual results differ materially from those anticipated in forward-looking statements. I'd now like to turn the call over to Dan. Dan?

Thanks, Annie. Good afternoon, everyone, and thanks for joining our Q1 earnings call today. I'd like to start by highlighting some of the quarter's results and then go into announcements we made this quarter around our DocuSign Agreement Cloud suite of products. Let me start with financial results and a couple of key highlights. DocuSign began the year with solid top and bottom line results, marking our sixth consecutive quarter of positive non-GAAP earnings per share. First quarter revenue was $214 million, representing 37% growth year over year. We were again profitable on a non-GAAP basis with operating income of nearly $10 million, or 5% for the quarter. We also had an exceptionally strong quarter in terms of cash flow with $30 million of free cash flow. Two highlights stand out for me this quarter. The first is the announcement of the DocuSign Agreement Cloud, our expanding product portfolio that addresses not just signing, but the entire agreement process both before and after that signature. I will talk more about this shortly, but this broader scope and deeper offerings could significantly increase our TAM from the $25 billion e-signature TAM. The second highlight is the further rollout of specialized sales teams focused on new customer acquisition, while others will focus on the installed base. This is something we tested with great success last year and rolled out more broadly in North America this year. We are already seeing a net increase in new logos, as well as the expansion of use cases within our existing customers. Overall, we are confident and excited about the year ahead and the longer-term vision and opportunity for DocuSign. So today, I'd like to share some more detail on two areas, the demand we are seeing for DocuSign eSignature and the strategic opportunity that the DocuSign Agreement Cloud represents. Let's first talk about the demand. We continue to see strong growth and leadership in our core e-signature solution across all segments and geographies. Let me share some numbers with you to give context. Our customer count continues to increase, and as of the end of Q1, we have almost 508,000 paying customers around the world. That's up from 405,000 in Q1 of fiscal year 2019. We continue to see growth in our international markets. In markets like the UK, France, Germany, Brazil, Australia, and Japan, we are just beginning to tap the potential. And no matter where our customers are based, we believe there is significant opportunity to expand the use of eSignature into other departments. As has long been the case, once companies experience the speed, time, and simplicity benefits of DocuSign eSignature, they are keen to replicate those results elsewhere in the enterprise. A great example of this is one of our global consumer packaged goods customers that started with just a single eSignature use case in their human resources department. And just a few years later, they now have 100 use cases deployed or in development across multiple business units. We expect this pattern of use case expansion to continue driving revenue growth for the company for years to come. Now, let's talk about the DocuSign Agreement Cloud and our ability to automate and connect the entire agreement process. In March this year, we just announced the DocuSign Agreement Cloud, our expanding suite of more than a dozen products and over 350 integrations for digitally transforming How organizations prepare, sign, act on, and manage their agreements. The DocuSign Agreement Cloud includes our flagship e-signature product and several other DocuSign product offerings, as well as the recently acquired Spring CM offering for contract lifecycle management and the hundreds of integrations to other applications involved in the agreement process, such as those from Salesforce, Microsoft, Google, Oracle, and SAP. It also includes three new products that were announced after our last earnings call, so I'd like to take a moment to highlight them today. The first is DocuSign Gen. Designed for small to medium businesses, primarily in the Salesforce ecosystem, Gen enables sales reps and other users to automatically generate signature-ready contracts with just a few clicks. and do it directly from within Salesforce. This can result in faster deals, fewer errors, and greater productivity. The second new product is DocuSign Click. It allows organizations of any size to capture consent to standard agreement terms on websites, such as a privacy policy, with just a single click. These so-called no signature required agreements are a new opportunity for DocuSign to replace in-house or custom solutions, which are costly to maintain and often lack DocuSign's extensive auditability. The third new product is DocuSign Identify. It allows a company to automate the verification of government-issued IDs and European eIDs for transactions that require them. Opening a bank account would normally require the signer to physically present a photo ID. DocuSign ID verification allows this process to be digitized and automated, enabling signers to verify their identity on a mobile device or practically anywhere. So when you put all this together, we believe that the DocuSign Agreement Cloud defines an entirely new category of cloud software. One that complements the marketing, sales, HR, ERP, and other cloud categories that already exist, connecting them all into agreement processing. To give you a customer example, one of the world's largest companies is using several products in the DocuSign agreement cloud together. They're using DocuSign eSignature, Spring CM, DocuSign for Salesforce, and our integration with SAP. This system is now live in 43 countries, and over $70 billion worth of agreements flow through it annually. It's allowed the customer to cut the time it takes to get an agreement completed by about 80%, saving hundreds of millions of dollars as a result. We are seeing more and more examples like this all the time. With SIGN Agreement Cloud, we are excited to have the product suite that can fulfill them. So, to summarize. Overall, we posted a solid first quarter for fiscal 2020. Revenue growth, profitability, and customer account were all strong, and we are seeing benefits from the work done to optimize our go-to-market processes. We have confidence in the rest of the fiscal year, given that demand for our core e-signature offering remains strong, and customers are expressing early interest in our expanded product offer. We have positioned the DocuSign Agreement Cloud to be the next must-have cloud, providing us with an opportunity to deliver even more value to customers while significantly expanding our TANF. One other item I wanted to mention. You will see in our TANF queue some ongoing patent litigation with a company called Arpost in the Eastern District of Texas. This trial is currently scheduled for mid-July. Essentially, Arpost is claiming that we, and several other technology companies, including our competitors, are infringing on rPost patents covering certified email delivery. DocuSign believes that its services do not infringe because they operate differently from the rPost patents. Two federal judges have already held portions of the rPost patents to be invalid, and DocuSign has asked the court in Texas to follow the same reasoning. As a result, DocuSign believes it has a strong legal position and we are defending this litigation vigorously. Finally, I wanted to mention that we're hosting over 1,500 of our customers, partners and developers next week at our annual Momentum User Conference in San Francisco. We're really looking forward to sharing the DocuSign Agreement Cloud vision with the group and hearing more on how we can make them successful. With that, I'd like to hand it over to Mike to walk through our financials in greater detail. Mike?