DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's fourth quarter and full fiscal year 2024 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 DocuSign's Q4 and Fiscal Year 2024 earnings call. I'm Roger Martin, DocuSign's Vice President of Finance. Joining me on today's call are DocuSign CEO Alan Tegerson and CFO Blake Grayson. The press release announcing our fourth quarter and fiscal year 2024 results was issued earlier today and is posted on our investor relations website. Before we begin, 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 product innovation 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 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-GAAP financial information, the most directly comparable GAAP 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.docuSigns.com. I'd now like to turn the call over to Alan. Alan?

Thanks, Roger, and good afternoon, everyone. DocuSign's fourth quarter operating results reflect strong progress across the three pillars of our strategic vision, accelerating product innovation, improving the reach and effectiveness of our omnichannel go-to-market initiatives, and strengthening operating and financial efficiency. Before discussing the pillars, I'll briefly highlight Q4's strong business results. Q4 revenue was $712 million, up 8% year-over-year, while full-year revenue was $2.8 billion, up 10% year-over-year. Both outperformed our expectations. Our continued focus on efficiency while still investing for long-term growth drove significantly improved profitability. Q4 non-GAAP operating margin rose to 25%, up one point versus last year, while full-year non-GAAP operating margin improved by more than five points to 26% from 21% in fiscal 23. In addition, free cash flow more than doubled in fiscal 24 to nearly $900 million. Similar to Q3, we're encouraged by momentum across the business, from solid retention and improving usage with existing customers to strong new customer growth, Organizations large and small continue to invest in DocuSign's value proposition. Let's turn to our strategic pillars, starting with continued improvement in our omnichannel go-to-market initiatives. In Q4, we were encouraged by improving performance with customers managed by the direct sales force. We substantially increased the amount of business from customers signing and renewing multi-year, multi-million dollar contracts with DocuSign. including Fortune 500 global leaders in energy, industrials, consumer goods, insurance, and several federal and state government agencies. Our partner channel has been instrumental in driving large customer momentum. We continue to deepen relationships with strategic enterprise-focused organizations, including SAP, Microsoft, and Deloitte. These organizations are helping to accelerate our customers' digital transformation journeys. They also represent progress in building a vibrant partner ecosystem to extend DocuSign's reach into new markets and customer segments. To that end, we recently launched global participation in Microsoft Azure's Marketplace. We can now co-sell our entire suite of products to Microsoft's enterprise customers who control on their existing Azure commitments to purchase DocuSign licenses. We're encouraged to already have our first $1 million customer from that channel. These partners and many more help us accelerate our customers' digital transformation journeys. We also continue to deliver more efficient customer growth even as we scale. In fiscal 24, we invested to improve our digital and self-serve motions leading to sustained new customer acquisition growth. In Q4, we surpassed 1.5 million total customers across our digital and direct channels. Our breadth, scale, and customer affinity is unique in the broader SaaS landscape and speaks to the continued large opportunity in front of DocuSign. Across our digital, direct, and partner channels, international continues to be a strong underlying growth driver. In Q4, international revenue grew more than twice as fast as total revenue and now represents more than 27% of the business, up from 25% last year. The international opportunity remains substantial and is one of our key long-term growth drivers. Cresol, which is a financial cooperative in Brazil, recently adopted the new WhatsApp integration, adding WhatsApp signing to existing e-signature email usage has reduced delays, increased response times, and helped Crestle generate more revenue and broaden its reach. Much of Crestle's credit business is with farmers and the agriculture industry with limited rural connectivity. The DocuSign WhatsApp integration allows Crestle to bridge that connectivity gap and accelerate its credit process from days to hours. Let's turn to product innovation. Across all aspects of go-to-market, product investment is driving customer adoption. The WhatsApp integration I just mentioned led to significant envelope usage and recent customer wins in Latin America. Over 1,000 customers in UK and Europe have used and now benefit from stronger identity verification products like AI-enabled IDV Premier and our recently launched QES-compliant Identity Wallet. The recent free launch of our premium DocuSign Monitor created 1,500 new accounts just this quarter. First Financial Bank, a financial services company headquartered in Indiana, is using ID verification to increase the speed of consumer lending and home equity line of credit offerings. This improves security for bank staff, removes manual workflows for underwriters, and creates a stronger customer experience. First Financial is expanding ID verification to other use cases like credit cards, and online account openings. Looking ahead, as we exit at Q4, we have several hundred customers in beta in new platform services that will transform DocuSign into a more powerful solution. We'll have much more to share and we're excited to have you join us virtually to hear about our evolving platform at this year's Momentum Customer Conference in New York on April 11th. Product Momentum is clearly creating value for our customers. In fiscal 24, that momentum was validated by third parties like IDC, who named us the e-signature industry leader versus 17 other vendors in its annual worldwide assessment. Also, Gartner named DocuSign as a leader in its magic quadrant for contract lifecycle management for the fourth year running. To that end, DocuSign CLM customers continue to be at the front line of embracing a broader agreement management use case. In Q4, DocuSign CLM growth once again significantly outpaced overall revenue. This is a positive sign as we see CLM product demand as a precursor to the value we can create across all 1.5 million DocuSign customers. Today, DocuSign CLM helps users automate and manage complex workflows, and we see the future as taking those capabilities to a broader set of users than CLM reaches today. We're seeing strong adoption of our CLM product among enterprise customers. Just this quarter, a luxury automaker used our CLM to create an elegant sales experience to match its brand value proposition. A multi-billion dollar global manufacturer sped up its legal and supply chain operations with a company-wide implementation of DocuSign CLM and a global energy company accelerated its sales processes, and streamlined procurement with CLM. Our third strategic pillar is strengthening DocuSign's operating and financial efficiency. In February, we announced further cost management initiatives, including a reduction in force. This decision streamlined our business and focused investments on initiatives that provide the strongest foundation for long-term growth. Blake will share more details on the financial impact and its impact on improving profitability. In fiscal 2025, we will continue focusing on efficiency while investing to reinvigorate long-term growth. In conclusion, fiscal 24 was critical to strengthening DocuSign's foundation. We reaccelerated product innovation, invested in our leadership talent, and right-sized our organization. These are all critical steps to realize the multi-year journey to transform agreement management. And we're just getting started. The opportunity in front of DocuSign remains massive. Today's world runs on agreements, but agreement processes haven't changed in the last hundred years. Even with the evolution to digital documents, agreements and how we use their insights remain relics of antiquated paper-based systems. Sign a document stored as a flat file, preserved, but disconnected from the systems that run your operations. Our sole focus is transforming those systems for our 1.5 million existing customers to make agreements more valuable for enterprises and SMBs alike. As organizations transition to a digital world, customers turn to DocuSign as the world's most trusted agreement company. We are excited for Fiscal 25 and the continued impact we will have on our customers. Thank you to our incredible team for your passion and dedication to our vision and culture. With that, let me turn it over to Blake.