DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's second quarter fiscal year 22 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 brief 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 Annie Leschen, head of investor relations. Please go ahead.

Thank you, operator. Good afternoon, everyone. Welcome to DocuSign's second quarter fiscal year 22 earnings conference call. On the call today, we have DocuSign's CEO, Dan Springer, and CFO, Cynthia Gaylor. The press release announcing our second quarter results was issued earlier today and is posted on our investor relations website. Before we get started, I'd like everyone to know that we plan to participate virtually in a few upcoming events. These include Wolf's inaugural TMT conference on September 8th, Citi's 2021 Global Technology Conference on September 13th, Piper Sandler's Global Technology Conference on September 13th, and Jeffrey's Software Conference on September 14th. You can find more information about these events in the press releases section on our Investor Relations website. As other events come up, we'll 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 regarding the effects of the evolving COVID-19 pandemic on our business, including the potential effects of the pandemic on our customers' businesses and the pace of digital transformation, are based on our best estimates at this time and are therefore 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 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 will present GAAP and non-GAAP financial measures. Non-GAAP financial measures exclude stock-based compensation expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, amortization of debt discounts, and issuance costs from our notes, acquisition-related expenses, fair value adjustments to strategic investments, impairment of lease-related assets, and, as applicable, other special items. In addition, we provide non-GAAP weighted average share counts and information regarding free cash flows and billings. 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, again, on our website at investor.docutime.com. Now I'd like to turn the call over to Dan. Dan?

Thanks, Annie. Good afternoon, everyone, and welcome to our second quarter earnings call for fiscal 2022. Today, I'd like to focus my comments on three key areas, our strong Q2 results, how companies are increasingly digitizing their agreement processes, and how we're cementing DocuSign as a critical pillar of the anywhere economy. Jumping straight into our second quarter financials, DocuSign's strong performance continued as we delivered a balance of growth and profitability at scale. Revenue grew 50% year-over-year to $512 million, and billings grew 47% year-over-year to $595 million. Our international business continued its strong growth, up 71% year-over-year. We expanded our customer base beyond the $1 million mark including the addition of 13,000 new direct customers and some very significant CLM wins with large customers. Finally, we continue to see a strong expansion and upsell motion for e-signature and the broader agreement cloud suite, driving our dollar net retention of 124%. Overall, I am proud of how our team has continued to stay in front the evolving COVID business environment. We are helping organizations of all sizes leverage the power of the agreement cloud to digitize the foundation of doing business, the agreement process. Not only do customers see DocuSign as a vital part of their response to COVID, many have also seen a better way of doing business from anywhere, and we believe that will become their new normal. One of our customers, Stacey Johanson, who's the president of DownEast Insurance, told us that when COVID hit and they had to close their physical doors, DocuSign saved them. In her words, and I quote, if it weren't for the ability to get an electronic signature, we wouldn't have written half of the new business we did last year. Having succeeded beyond expectations by fully embracing digital tools, DownEast resolved to do business this way from here on. Another example, is one of Canada's largest automotive dealers. In response to COVID, the company adopted DocuSign e-signature and DocuSign payments to support remote sales and service. The program was so successful, it spawned a larger initiative to offer digital transactions across their entire dealer network. As one company executive put it, DocuSign has become part of facilitating a full breadth of remote experiences. These are just a few examples of what we're seeing again and again. Being able to do business and operate from anywhere is what people now expect. Plus, it saves time, money, and trees. To cement DocuSign's position as a critical pillar of the anywhere economy, we are executing on three core themes as a business. The first is to stay focused on customer success. We're helping our customers and partners to shift their perspective from reactive to proactive and enacting enterprise-wide programs to automate and digitize their end-to-end agreement processes. Let me highlight just a couple of examples. One of our largest U.S. state government customers saw a substantial increase in the thousands of employees accessing their systems remotely. We were able to scale our e-signature solutions to allow the HR and the administration teams to handle the increased load. In addition, the agency rolled out DocuSign CLM to simplify three complex workflows, resulting in 97% of all contracts being completed in significantly less time. And we're not only helping state agencies. Today, DocuSign serves the majority of the cabinet agencies in the U.S. federal sector. In the private sector, one of the world's largest media and entertainment companies, has been a long-standing DocuSign user and has digitized over 400 paper-based workflows with us, growing adoption by 100% year over year. Now, the company has deployed in multiple use cases and has seen a multi-million dollar return on their investment in the DocuSign Agreement Cloud. The second theme is giving our customers an Agreement Cloud platform they can grow into. That means offering the most comprehensive set of applications and integrations available for the agreement process. They can start with e-signature and then expand into other areas like contract lifecycle management and into specialized solutions in verticals like mortgage and life sciences. With every DocuSign Agreement Club release, we keep adding to our capabilities and differentiating our platform. Let me note some of our latest highlights. For eSignature, we debuted new ID verification capabilities that allow both automatic and manual identity review by senders. It's now also possible for an identity check to be done once and then remain valid until the envelope is complete, dramatically improving the experience for sender and signer alike. We've improved the embedding and management of our ClickWrap solution, and one of our largest retail customers recently completed more than 1 million transactions using DocuSign Click. We introduced a new integration and add-in for Splunk, bringing the security insights provided by DocuSign Monitor into one of the most popular enterprise monitoring tools. We continue to grow the number of notarized transactions completed on our platform. And today, DocuSign Notary supports remote online notaries in 18 U.S. states, with more coming in the future. Turning to CLM, two key areas stand out for me. The first is our continued build-out of buy-side CLM capabilities. We have released obligation management, which is huge, and a connector for our key partner, Ariba. This adds to other buy-side connectors shipped earlier this year. The second CLM highlight is our enhancement of AI-based search and reporting capabilities. within the offering we call CLM+. It features automatic contract term extraction and allows for searching of agreements, not only by keyword, but also by AI-driven concepts, such as renewal dates within the next 90 days. This saves a huge amount of time and manual effort. And then there's the trust and security enhancements to the DocuSign platform. we continue to bring enhanced security features to our product suite with solutions like DocuSign Monitor, which I mentioned earlier. We are also deepening our trust and security relationship with our customers. For example, we recently held a number of CISO summits, and we are collaborating closely across our customer base and trust and security topics where there's tremendous demand. Together, these advancements in our products move us closer to a unified platform of record for agreements and agreement processes. Finally, the third theme is our international business. This remains a highlight for us, as our teams outside the U.S. contributed more revenue in Q2 than in any other quarter to date. The key drivers for EMEA, LATAM, and APJ mirror those that we've seen here in the U.S. And by way of example, one of Europe's fastest-growing enterprise-focused startups, Salonis, saw a dramatic increase in the volume of contracts that needed to be generated, reviewed, and processed, a workflow that had been largely manual to date. But by implementing DocuSign CLM, the company addressed these inefficiencies, saving the legal team countless hours and delivering contracts 80% faster than before. Further expansion is already planned into the procurement and HR teams. In APJ, one of our largest financial services customers, the Commonwealth Bank of Australia, expanded its number of use cases and saw a substantial increase in transaction volumes. One team saw a 175% increase in documents processed through DocuSign, and another noted a 17-day faster time to revenue. The customer is now embarking on an automation project to further integrate and streamline the experience up and downstream. As these examples indicate, we're pleased with how our international business is accelerating, driven by the same factors of speed, cost efficiency, and user experience that have propelled us domestically. Okay, before I hand it over to Cynthia to walk through the financials, I want to mention another factor that has always been central to DocuSign, our environmental impact. Our e-signature solution alone has replaced billions of pieces of paper. along with significant amounts of the waste, water, carbon, and wood that are required to make and transport that paper. In addition, to help fight global warming, DocuSign is also committed to achieving carbon neutrality by 2022. As part of this effort, we have launched an ESG portion of our website and have organized a multifunctional team to coordinate our overall sustainability strategy. We will continue to help our customers realize their ESG goals while we work to be a positive example in the running of our own business. I'm incredibly pleased with DocuSign's performance in the second quarter. Our team has continued to deliver across the board and has done so with a real focus on customer and partner success. I look forward to talking to you in the Q&A shortly. For now, over to Cynthia.