DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's fourth quarter and fiscal 2020 earnings conference call. As a reminder, this conference is being recorded and will be available for replay from the investor relations section of the website following the call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I will now like to turn the call over to Ann Leshin, Head of Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome to DocuSign's fourth quarter fiscal 20 earnings conference call. On the call today, we have DocuSign's CEO, Dan Springer, and CFO, Mike Sheridan. The press release announcing our fourth quarter results was issued earlier today and is posted on our Investor Relations website. Now let me remind everyone that some of our statements on today's call are forward-looking. We believe our assumptions and expectations related to these forward-looking statements are reasonable, but they are subject to known and unknown risks and uncertainties that may cause our actual results or performance to be materially different. Please read and consider the risk factors in our filings with the SEC with the content of this call. Any forward-looking statements are based on our assumptions and expectations to date. and acceptance required by law, we assume no obligation to update these statements in light of future events or new information. During this call, we will present GAAP and non-GAAP financial measures. Non-GAAP financial measures exclude stock-based compensation expenses, amortization of acquired intangible assets, amortization of debt discount and issuance costs from our notes, and as applicable, other special items. In addition, we provide non-GAAP weighted average share count and information regarding free cash flows and billing. These non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results. We encourage you to consider all measures when analyzing our performance. For information regarding our non-GAAP financial information, the most directly comparable GAAP measures, and a quantitative reconciliation of those figures, please refer to today's press release, which can be found on our website at investor.docuSign.com. I'd now like to turn the call over to Dan. Dan?

Thanks, Annie. Good afternoon, everyone, and welcome to our fourth quarter and fiscal 20 earnings call. We have a lot to share with you today. We'll cover our performance for the quarter as well as the entire fiscal year. We'll talk in more detail about our recently announced intention to acquire SEAL software, and we'll look ahead to our focus areas for fiscal 21. But before we get to that, I wanted to take a moment and acknowledge the evolving situation with COVID-19, the disease caused by the coronavirus. Over the past few weeks, our team has been meeting daily to monitor the ongoing developments. We've taken several steps to ensure the safety and well-being of our employees and their families, as well as our customers and partners. Actions we've taken include transforming our annual North America Customer Conference, Momentum, into a virtual live streamed event held last week, and our decision to move our global workforce to an entirely remote environment as of the end of this week. We will continue to monitor the situation, and as we learn more, we'll update our plans accordingly. With that said, let's move on to our business performance over our second year as a public company. It was just 12 months ago that we introduced the DocuSign Agreement Cloud, our suite of applications and integrations that help organizations automate the entire agreement process. That is preparing, signing, acting on, and managing those agreements. We see agreements increasingly integrated with the cloud software suites like sales, service, marketing, HR, and finance. Our belief is that organizations will need an agreement cloud to act as a platform of record for agreements and agreement processes which will be connected to the other clouds. For example, Integrating with the HR system for offer letters or the CRM system for sales contracts. As we have said, we believe this represents the next big cloud opportunity. Over the past fiscal year, we have broadened our product and service offerings to cover every stage of the agreement process. And of the five new products that we shipped in fiscal 20, I'd especially like to call out DocuSign CLM. launched in November last year. This builds on our acquisition of Spring CM and was just named by Gartner as leader in the 2020 Magic Quadrant for Contract Lifecycle Management. We are very proud of this recognition. The positive impact of all this work can be seen in our financial results, a few of which I want to share with you now. For Q4, DocuSign's revenue grew 38% year-over-year to $275 million, and Billings grew by 40% year-over-year to $367 million. We were again profitable on a non-GAAP basis, and we continued to generate positive cash flow. Our total customer count climbed to approximately 589,000 worldwide, and our dollar net retention rate came in at 117%. For the full fiscal year, our revenue grew 39% to $974 million and our billings grew 38% to $1.1 billion. I am incredibly proud of the entire DocuSign team for this collective effort, but of course, we're not going to stop there. As we continue to define and grow the agreement cloud category, we know that contract analytics and artificial intelligence will play an increasingly important role. This technology can rapidly search large collections of agreements by legal concepts rather than just by keywords. It can automatically extract, analyze, and compare contract terms. and it can even identify areas of risk and business opportunity for our customers. So we couldn't be more excited to be acquiring the pioneer in this space, SEAL software. As many of you know, we formed a partnership with SEAL about two years ago where we began reselling its flagship offering as DocuSign Intelligent Insights. And we also made a strategic $15 million investment in the company in March of last year. Having seen Seals Technology and people at work with our customers, as well as in the broader marketplace, we wanted to bring them fully aboard into DocuSign. To give you a little more color, let me share a few customer examples. One large international information services company reduced the time they spent on legal reviews by 75%. And a global financial services company automated the analysis of more than 2.5 million contractual data points across its supplier agreements. And an aviation company was able to review more than 25,000 agreements in just a few business days, something that could have taken months if done in the traditional manual fashion. Once this acquisition closes, we will continue selling SEAL's flagship contract analytics product, will also be able to integrate SEALs technology across the entire agreement cloud. We'll start with CLM, given the immediate market opportunity for AI to enhance workflows there. And over time, we expect to apply SEALs AI technology across a broad range of our existing and new products. Now, these developments will complement and extend our other work in AI, some of which we showed at our Momentum Conference last week. For example, We demoed auto-tagging. It's a new feature in eSignature. It uses AI to automatically place the tags for signatures, dates, and other fields. Normally, this is something that needs to be done manually when preparing a document for signature. With auto-tagging, it can happen automatically and immediately, and it is a huge wow factor for our users. We also demoed a product under development called Agreement Analyzer. It uses SEAL's AI to analyze inbound agreements, identifying areas of risk and triggering actions based on the content of its various clauses. So, we believe this whole area of AI meets agreements is incredibly exciting. While nascent today, it represents a key greenfield opportunity for the future, as well as a deepening of our competitive moat. We will keep you updated once the seal acquisition closes in our second quarter. For the last part of my comments today, I want to look to the future and how we are thinking about scaling our business. Based on our fiscal 20 results, we are on the cusp of joining an elite group of SaaS companies that have crossed the $1 billion revenue threshold. This is a major milestone, but it's also just a stepping stone to the exciting future that lies ahead. Our first billion dollars was built largely on our leadership in eSignature. The next billion will continue the eSignature expansion, but also be boosted by substantially broader opportunities for the rest of the Agreement Cloud. To make that happen, and to ensure we operate at the intersection of the world's business and agreement processes, we'll focus on three key strategic priorities. One, continue executing on our Agreement Cloud vision and strategy. which fiscal 20 customer demand has shown is working well. Two, live and breathe customer success around the world in everything that we do. As part of that, we'll also continue to leverage our amazing partner network, both our 350 ISV partners and our growing SI partners that are building agreement cloud practices to drive our joint customer success. And three, will ensure DocuSign remains a top place to work so that we can attract and retain the talent that can drive our scale to the next level. And to that point, I wanted to share that we recently appointed Rob Giulio as our new Chief Marketing Officer and Eric Darwin as our Head of Corporate Development. Both will be reporting to our COO, Scott Ulrich. Rob comes to us from Adobe, where he helped to architect the growth strategy for the company's self-service cloud business, and oversaw significant international expansion. Eric joins us from LinkedIn where he led the corporate development team there. In addition, you may recall that we named Emily Heath as our Chief Trust and Security Officer in October of last year. Emily was formerly the CISO at United Airlines and we are already benefiting from her considerable experience. So, that's it for my section of today's call. I'm incredibly proud of the progress we made as a company in fiscal 20 and I'm excited about the agreement cloud's prospects to transform agreements and agreement processes around the world in fiscal 21 and beyond. So with that, I'd like to hand it over to Mike for a deeper look at our Q4 and our fiscal year financials.