DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's first quarter fiscal year 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. 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. 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 Roger Martin, Vice President of Finance. Please go ahead.

Thank you, operator. Good afternoon and welcome to the DocuSign Q1 2023 earnings call. I'm Roger Martin, DocuSign's VP of Finance. Joining me on the call today is DocuSign CEO Dan Springer and our CFO Cynthia Gaylor. The press release announcing our first 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. In particular, our expectations regarding the pace of digital transformation and factors affecting customer demand, including as a result of the pandemic, 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 contents 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 expenses, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, amortization of debt discount 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 flow 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-gap financial information, the most directly comparable gap measures, and a quantitative reconciliation of these figures, please refer to today's earnings press release, which can be found on our website at investor.docuSign.com. I'd now like to turn the call over to Dan Springer. Dan? Thanks, Roger.

Good afternoon, everyone, and thanks for joining our Q1 earnings call today. I want to begin by highlighting some of the quarter's results and then go into some important announcements we made around building a scaled organization and enhancing our DocuSign Agreement Cloud suite of products. DocuSign has begun the year delivering solid results. First quarter revenue was $589 million, representing 25% growth year-over-year. International revenue grew 43% year-over-year. making up 25% of total revenue versus 21% in Q1 of last year. Our billings grew 16% in the quarter, and we delivered dollar net retention of 114%, which is within our historical range. Lastly, we added nearly 67,000 new customers in Q1, an increase of 25% year over year, bringing our total to 1.24 million paying customers around the world. These results have required our team's unwavering commitment and flexibility as we are adapting our go-to-market strategy to the post-pandemic world. Our results also highlight our continued momentum in the digital transformation of agreement workflows for businesses across the globe. While we are experiencing many of the macro challenges that our peer companies are seeing, with inflationary concerns, a volatile workforce environment, and general global instability, We are ramping our execution and go-to-market capabilities, as well as strengthening our leadership team for the growth opportunities ahead. The dynamic macro environment only highlights the need for digital investments like DocuSign, and we will continue to partner with our customers to advance their digital transformation journeys. We're confident in our strategy and path to becoming a $5 billion revenue company. DocuSign continues to be the clear market leader in the electronic signature space, and we are excited about our progress in defining the broader agreement cloud category as well. Our dedication to innovation and our investments in attracting high-caliber talent position us to build upon our leading market share. Our plan to scale is well underway, and we are encouraged by the early traction we are seeing, so the level of growth in certain areas is lower than our prior expectations. Let me share some of the specifics with you. In Q1, we made further progress in strengthening the foundation for our next phase of growth, building for scale and tackling the go-to-market challenges we've seen in recent quarters as we transition from the height of the pandemic. Last quarter, I shared that we would be bringing in a world-class sales and success leader, and I'm very pleased to note that we made an important hire with Steve Schutt as our new president of Worldwide Field Operations. Also, as I mentioned last quarter, We onboarded a number of outstanding sales leaders in our North American commercial and SMB segments, who now have been in their seats for a quarter. Finally, we just hired a new North American enterprise team leader, rounding out our initiative to scale our go-to-market leadership. This seasoned team has hit the ground running, focused on recruiting, training, and enablement, and with a laser focus on driving DocuSign $5 billion in revenue and beyond. We also bolstered our team in other key areas. We just announced the appointments of In-Hee Cho-Soo from IBM, who will transition from being a DocuSight board member to becoming president of product and technology, where she will be instrumental in accelerating innovation within our agreement class. Jim Shaughnessy as chief legal officer, previously in that role at Workday. and Jennifer Christie as Chief People Officer, formerly the CHRO of Twitter. In light of these key hires and with the team we now have in place, we are focused on a second half growth plan that allows us to be successful despite some of the current macro headwinds and gives us a foundation for sustainable and predictable growth going into fiscal year 24. I want to now turn to some noteworthy product callouts. The big announcement in Q1 was our launch of CLM Essentials, a new addition to our expanding family of contract lifecycle management products. It's a streamlined CLM solution focused on faster time to value and is built specifically for growing organizations to centralize and automate the creating, negotiating, and secure storage of their contracts. Essentials also allows customers to easily accelerate contract work and the quote-to-cash process via deep integration with Salesforce. And as our customers' needs grow, there's a seamless upgrade path to our full CLM or CLM Plus products. The other big area of innovation last quarter was an e-signature, where we continue to release a steady pace of features to further simplify and secure signature workflows. Our latest ID verification feature enable signers to verify their identity via trusted financial institutions like Bank of America, Chase, and Wells Fargo. This is a great example of how we're continuing our steady pace of innovation where it counts and leading our category as the name in eSignature. And that lead is reflected in our customer metrics. For example, We grew our customers with a greater than $300,000 ACV by 32% from a year ago. As our successes during the quarter demonstrate, we continue to see both growth and leadership in eSignature, as well as progress across the rest of the agreement cloud suite. So whether the customers are Fortune 500 or digital SMBs, in our high-growth international markets like Germany or here in the U.S., We see the same land and expand opportunities. The lands tend to start with e-signature, but the expansions are quite varied. Let me share a couple of brief examples. One of the largest multinational payments corporations, who has been a customer for over a decade, has steadily and significantly expanded their use of e-signature over the last few quarters. Last quarter, the company deployed a new remote work request system with e-signature to their over 60,000 global employees. This is aligned with their flexible work-from-home policy, which predates the pandemic. Additionally, this customer recently opened new employee health clinics within each of their main US office locations, where they have turned to DocuSign for a streamlined process when using forms within the clinic operations. In Q1, we also saw the continued trend of deeper agreement cloud adoption, For example, one of the world's largest and most prestigious global consulting firms made the jump from being a long-time e-signature customer to implementing CLM Plus globally. With this move, they can now build and execute standardized end-to-end agreement processes, have centralized document repository with comprehensive metadata, and leverage our AI to identify risk levels in previously executed as well as in-flight agreements. So to summarize, we posted a solid first quarter for fiscal year 2023. We're beginning to see benefits from the optimizations we are making in our go-to-market motions post-pandemic and from our new scaled sales and success leadership. While we continue to invest in our employee base to capitalize on the considerable opportunities ahead, We are moderating the tempo of our hiring plans to appropriately balance growth and profitability. With a $50 billion TAM, we have confidence in our business, strategy, and importantly, the outstanding team we have in place. As we work to build momentum amidst macro headwinds, we're seeing a steady stream of wins and increased interest from our partner ecosystem to build deeper relationships. Just this week, we announced that we are expanding our global strategic partnership with Microsoft to accelerate what we call anywhere work and reinforce the DocuSign Agreement Cloud as a preferred solution within the Microsoft AppSource. We have a deep relationship with Microsoft. We've been a longstanding customer and a partner of DocuSign. We expect to continue to broaden these ties and deliver a number of new integrations and capabilities across Microsoft's business solutions, including Office, Dynamics, and the Power Platform applications. So we have a vast market, the industry-leading product portfolio, and a growing world-class team that is focused on driving both growth and margin expansion with discipline and operational excellence. Our plan to reignite enviable growth is underway and progressing. With these objectives plainly in sight, I'm as optimistic about the future as I've ever been. With that, I'd like to hand it over to Cynthia to walk through our results and outlook in greater detail. Cynthia?