DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's first quarter fiscal year 24 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 Heather Hardwood, head of investor relations. Please go ahead.

Thank you, operator. Good afternoon and welcome to the DocuSign Q1 fiscal year 2024 earnings call. I'm Heather Hardwood, DocuSign's head of investor relations. Joining me on the call today are DocuSign's CEO, Alan Teekeson, and our CFO, Cynthia Gaylor. The press release announcing our first fiscal year 2024 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 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. In addition, we provide non-GAAP weighted average share counts 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 earnings press release, which can be found on our website at investor.docuScience.com. I'd now like to turn the call over to Alan. Alan?

Thanks, Heather, and good afternoon, everyone. We're pleased to have delivered a solid start to the fiscal year, reporting financial metrics that exceeded our guidance. We announced new product innovations to enable smarter, easier, trusted agreement workflows. First, some highlights from this quarter's financial results. Q1 total revenue came in at $661 million, up 12% versus prior year. Q1 non-GAAP operating margin came in at a healthy 27%, driven by our continued focus on profitability and efficiency. We're pleased with the early traction we're making against our objectives. However, we do continue to operate in a challenging macro environment with cautious customer sentiment evident in moderating expansion rates. Last quarter, I shared our plans to accelerate our product release cycles in fiscal 2024. What you'll see is that our roadmap builds on DocuSign's strength as the world's leading e-signature company, while also moving us towards enabling the entire agreement journey with intelligent workflows. We're deepening these capabilities to deliver more strategic value to our customers. With that, let me touch on three new releases that shipped this quarter. First, as mentioned on the Q4 call, DocuSign web forms launched in April. In the first few weeks since launch, we're seeing strong traction for web forms across verticals, including financial services, real estate, healthcare, and life sciences, leveraging our differentiated approach to streamlining how agreements are generated. Web forms are simple and powerful for both senders and signers. They're easy to use, and customers benefit from the ability to more easily capture and leverage data from their agreements. penetrating and innovating in highly regulated markets. One example is our work in the healthcare vertical, which is undergoing dramatic digital transformation. We're proud that our e-signature product can now seamlessly connect to electronic health records in the U.S. market, including from Epic and Cerner, in accordance with industry standards. This will modernize the patient experience and improve efficiency for healthcare companies, while also deepening DocuSign's presence within the vertical. And finally, we introduced DocuSign ID Verification Premier, our tier of ID solutions which meet the highest levels of trust, security, and compliance. Our first offering within this tier is ID verification for EU-qualified e-signature. By combining verification of an ID with confirmation of the presence of the person on the ID, it fully replaces face-to-face verifications We look forward to leveraging this powerful offering as we expand our business in Europe. More broadly, our strategy is to partner closely with leading identity services companies to leverage, to integrate the best solutions into our platform. Looking ahead, I'd like to share our vision and thinking on generative AI. In brief, we believe AI unlocks the true potential of the intelligent agreement category. We already have a strong track record leveraging sophisticated AI models, having built and shipped solutions based on earlier generations of AI. Generative AI can transform all aspects of agreement workflow, and we are uniquely positioned to capitalize on this opportunity. As an early example, we recently introduced a new limited availability feature, agreement summarizations. This new feature, which is enabled by our integration with Microsoft's Azure OpenAI service and tuned with our own proprietary agreement model, uses AI to summarize and documents critical components, giving signers a clear grasp of the most relevant information within their agreement while respecting data security and privacy. Future launches will include search across customer agreement libraries, extractions from agreements, and propose language and edits based on customer, industry, and universal best practices. DocuSign is a trusted partner to leading companies across many industries. As a leader in agreement workflows, we can use AI to deliver important value to customers by leveraging the world's largest set of agreement data, our proprietary agreement models, and deep integrations with best-in-class third-party models. We're excited to showcase new products and enhancements on our Intelligent Agreement Roadmap, including significant AI-powered innovations at our User Conference Momentum. The event will kick off next week in Santa Clara with virtual and in-person events in eight cities around the globe over the next few months. Turning to our initiatives around our omnichannel go-to-market, we are continuing to drive and enhancing our AI capabilities. We were honored to be showcased in the main keynote at Microsoft's Build Conference as one of the first companies using Microsoft Azure OpenAI. This further underscores our growing relationship with Microsoft and the opportunities we're seeing to enhance our AI capabilities. During the quarter, we also joined the SAP Endorsed Apps Program. eSignature has been rigorously tested and validated by SAP to ensure that it seamlessly integrates SAP solutions and meets their high standards for quality and performance. We're pleased with the progress we're seeing across our partner ecosystem, which will continue to drive further adoption of our products globally. Last quarter, I shared how we are investing in product-led growth and self-serve capabilities in order to drive more go-to-market efficiency and deliver a better experience for our customers. This is one of our most important areas of investment as we evolve how DocuSign goes to market further integrate our digital, direct, and partner selling motions. Our digital business has stronger relative performance in Q1 as we launched a number of improvements on our website and within our product experience. These changes were designed to grow traffic, improve conversion rates, and drive monetization. And it's just the beginning. Whether it's a small business or a large enterprise, our vision is to make it easy for every type of customer buy and consume our products in any way they prefer. They'll serve through our direct sales teams or through a partner. Turning to our go-to-market execution in the first quarter, we're pleased with how our field team navigated the distractions in Q1 as we rebalanced our approach. However, we are seeing more moderate pipeline and cautious customer behavior, coupled with smaller deal sizes and lower volumes. We recognize it's a dynamic, competitive environment across multiple categories. We're confident in our premium positioning, especially in complex and high-value use cases. As we've stated, international expansion remains a largely untapped opportunity for us. We're making investments not only with market-specific product innovation like identity verification, but also in stronger local market presence to strengthen our footprint. We recently released funding to further invest in Germany and Japan And in Japan, note we just went live with our first CLM customer this past quarter. Further supporting our focus on international expansion, I'm pleased to share that Anna Mars, Group President of Global Commercial Services and Credit and Fraud Risk at American Express, has joined our Board of Directors and is a member of the Audit Committee. She's a fantastic operating executive with deep global experience and will be a great asset to the Board and the leadership team. Finally, I am thrilled with the key hires we've announced to round out our leadership team. Most notably, Blake Grayson will be joining as DocuSign's new CFO next week. Blake's considerable track record and experience in finance leadership roles category-leading public companies, including Amazon and the Trade Desk, make him a very strong addition to the DocuSign leadership team. I'd also like to take this opportunity to once again thank you, Cynthia, for her tremendous contributions to DocuSign as both a board member and as our CFO for the last four and a half years. I'm grateful for her partnership and strategic leadership as the company navigated immense change. In closing, we had a solid start to the year with strong financial results, continued traction on the key pillars of our strategic vision to transform agreement workflows and intelligence, and in rounding out our leadership team with high-caliber talent. We look forward to continuing to share progress as we execute against our initiatives this year. Now let me turn the call over to Cynthia to walk through our financial results and outlook.