DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's first quarter fiscal 2021 earnings conference call. As a reminder, this call 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 pass the call over to Anne Leshen, head of investor relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to DocuSign's first quarter fiscal year 21 earnings conference call. On the call today, we have DocuSign 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 William Blair 40th Annual Growth Stock Conference on June 10th. As other events come up, we will make additional announcements. 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. In particular, our expectations around the impact of COVID-19 in our business, financial condition, and results of operation are subject to change. Please read and consider the risk factors in our filings with the SEC together with the content of this call. Any forward-looking statements are based on our assumptions and expectations to date, and as except as required by law, we assume no obligation to update these statements in light of future events or new information. During this call, we'll 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 counts and information regarding free cash flow 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 again can be found at the Investor Relations website. Now I'd like to turn the call over to Dan. Dan?

Thanks, Annie. Good afternoon, everyone, and welcome to our first quarter fiscal 2021 earnings call. For today's call, I will share updates and context around three primary topics. First, the company's business performance and financial results for the quarter. Second, The ways that COVID-19 has led customers to accelerate their digital transformation initiatives for agreements. And third, our views on the future based on the best data we have today. Before I get to that, though, I want to acknowledge just how much life has changed since our last call. The COVID-19 pandemic has fundamentally shifted the global macroeconomic environment and impacted countless lives around the world. We've seen all manner of private, public, and nonprofit organizations step up to help. And I'd like to take this opportunity to personally thank all the first responders, healthcare workers, medical researchers, and local leaders who have made such a difference to the lives of so many. At DocuSign, we've done what we can to step up too, both in our initial response to the pandemic and as we all continue to adapt to this evolving impact. For safety reasons, in early March, we transitioned our more than 4,000 employees across 15 countries to a remote work environment. We offered $1,300 in assistance to employees for tools and services to help ease that transition. Then we offered additional programs and assistance to streamline the process even further. We also mobilized resources to handle a surge in urgent needs from our customers. In some cases, this meant directly supporting COVID-19 responses by government agencies, healthcare organizations, and those on the front line. In others, it meant helping organizations to keep their business processes running while their workforces transitioned to remote work. I'll give you specific examples later, but suffice it to say that over this time, we had a lot coming at us. To make this transition while maintaining the highest levels of platform availability, customer service, and remote onboarding all while facing unprecedented levels of customer demand is nothing short of exceptional. I'd like to salute the truly extraordinary efforts of the DocuSign team for their agility and commitment to our customer success. Now this collective effort is reflected in our Q1 results. Our billings grew 59% year over year to $342 million and revenue grew 39% to $297 million. This strong growth was driven by use case expansion across a broad cross-section of our installed base as well as adoption by new customers. We added more than 10,000 net new direct customers and almost 58,000 self-service customers, bringing our global total of paying customers to nearly 661,000. and our operating margins and cash flow remain strong, even as we made key investments to address this heightened demand. Much of the strong Q1 performance was driven by increased demand for e-signature from organizations that suddenly needed a way to sign and manage agreements from wherever they were. Typically, e-signature is the first step that many customers take on their broader digital transformation journey with us. From a financial point of view, we believe this surge in e-signature adoption bodes well for future agreement cloud expansion. Now, let me share some examples of how we've helped our customers respond to COVID-19 and keep their agreement processes up and running amid the pandemic. We work closely with a global pharmaceutical company to accelerate its e-signature expansion to hundreds of use cases across 80 different countries. This is a pattern that we saw many times over the quarter. A customer already had a plan to expand, and COVID-19 greatly accelerated it. We engaged a new public sector customer, a Department of Labor in one of the largest US states, to help transform its previously complex and lengthy process for handling emergency unemployment benefits. Supported by DocuSign eSignature, The department distributed over $500 million in benefits to more than 500,000 residents in less than one week. We enabled hundreds of U.S. national and regional financial institutions to accept applications for small business administration loans more efficiently. At one of those large banks, we were involved with over half a million loan applications. 75% of which were signed in less than 24 hours. We worked with a regional telecom provider using DocuSign Intelligent Insights, which is our contract analytics tool, to analyze potential pandemic-related risks in thousands of their supplier contracts. Finally, we helped a European telemedicine provider issue e-prescriptions and online sick leave certificates by using our video identification capability to confirm the patient's identities. These are just a few examples. You can find many more on our dedicated COVID-19 webpage. Let me speak briefly about where we see things going from here. While no one is 100% sure what the world will look like, it's clear that the ways of doing business are changing. Remote work is here to stay, and more. As a result, for organizations that hadn't already embraced DocuSign for eSignature, where they were only using us for a few select use cases, the pandemic has been a catalyst for the greater digital transformation of their end-to-end agreement processes. We always believed this transformation would happen, and that a unified platform for agreements would be needed. COVID-19, it's just happening faster. That said, even when the COVID-19 situation is behind us, we don't anticipate customers returning to paper or manual-based processes. Once they take their first digital transformation steps with us and they realize the time, cost and customer experience benefits, they rarely go back. So, in short, We expect the adoption of our core e-signature offering by new customers and the expansion of use cases by existing ones to continue. This also acts as the on-ramp for the adoption of other agreement cloud products, sometimes at the same time and sometimes as follow-ons. Of course, as Mike will tell you, we are not immune to the broader economic forces at play. Some businesses and industries will continue to contract. Some will continue to expand. Some of our customers may request payment deferral and accommodations, and some will require even more hands-on support and assistance. Even with these dynamics, our view of the business remains optimistic. We're off to a good start in the second quarter as digital transformation remains a high priority. We feel truly fortunate to have built solutions that can help customers carry on through this time of crisis. and to deliver even greater value as we transition to a world where work becomes more digital and more remote. In the meantime, we will continue to do whatever we can, wherever we can, to help our customers succeed. With that, I'd like to hand over to Mike to walk us through the financials in more detail, and I'll talk to you again when we get to the Q&A.