Trends in Revenue

Fiscal Years 2019-2020

• Q1 2019: Revenue of $155.8 million, a 37% year-over-year increase.
• Q2 2019: Revenue grew 37% year-over-year to $178 million.
• Q3 2019: Revenue rose 37% year-over-year to $178 million.
• Q4 2019: Revenue of $200 million, representing 34% growth versus Q4 of the previous year.
• Fiscal Year 2019 Total: Annual revenue of $701 million, reflecting 35% year-over-year growth.

Fiscal Years 2020-2021 (Pandemic Period)

• Q1 2020: Revenue grew 39% year-over-year to $297 million.
• Q2 2020: Revenue increased 50% year-over-year to $342 million.
• Q3 2020: Revenue increased 53% year-over-year to $383 million.
• Q4 2020: Revenue grew 57% year-over-year to $431 million.
• Fiscal Year 2020 Total: Annual revenue of $1.45 billion, a 49% increase over the prior year.

Fiscal Years 2021-2022

• Q1 2021: Revenue increased 58% year-over-year to $469 million.
• Q2 2021: Revenue grew 50% year-over-year to $512 million.
• Q3 2021: Revenue increased 42% year-over-year to $545 million.
• Q4 2021: Revenue grew 35% year-over-year to $581 million.
• Fiscal Year 2021 Total: Annual revenue reached $2.1 billion, an increase of 45% over the previous year.

Fiscal Years 2022-2023 (Post-Pandemic Normalization)

• Q1 2022: Revenue increased 25% year-over-year to $589 million.
• Q2 2022: Revenue grew 22% year-over-year to $622 million.
• Q3 2022: Revenue increased 18% year-over-year to $645 million.
• Q4 2022: Revenue grew 14% year-over-year to $660 million.
• Fiscal Year 2022 Total: Annual revenue reached $2.5 billion, a 19% increase over the prior year.

Fiscal Year 2023

• Q1 2023: Revenue was $710 million, up 7% year-over-year.
• Q2 2023: Revenue was $736 million, up 7% year-over-year.
• Q3 2023: Revenue was $755 million, up 8% year-over-year.

Summary of Revenue Trends:

• 2019-2021: Strong revenue growth, peaking during the pandemic with year-over-year increases of 40%-60% due to heightened demand for digital agreement solutions.
• 2022-2023: Post-pandemic normalization with revenue growth rates moderating to mid-teens, and then to single digits (7%-8%) in fiscal 2023.

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Trends in Product Usage

Core eSignature Adoption

• Accelerated Demand: Significant increase in eSignature usage during the pandemic as organizations shifted to remote work.
• Continued Dominance: eSignature remains the core product driving the majority of revenue.

Expansion of Product Offerings

• DocuSign Agreement Cloud: Introduced to automate and connect the entire agreement process.
• New Products and Features:
  • DocuSign CLM (Contract Lifecycle Management): Manages the entire lifecycle of contracts.
  • DocuSign Gen: Automates generation of signature-ready contracts within Salesforce.
  • DocuSign Negotiate: Simplifies and accelerates the negotiation process.
  • DocuSign Click: Captures consent for standard agreements without a signature.
  • DocuSign Identify: Automates ID verification for enhanced security.
  • DocuSign Analyzer: Uses AI to analyze and summarize agreements.
  • DocuSign Notary: Enables remote online notarization.

Technology Innovations

• AI and Machine Learning:
  • Seal Software Acquisition: Enhanced AI-based contract analytics capabilities.
  • Integration of AI: Applied across products for smarter agreement processes.
• Integrations and Partnerships:
  • Salesforce: Extended integrations including DocuSign Gen and CLM.
  • Microsoft: Collaborations on products like DocuSign for Microsoft Teams.
  • Other Platforms: Partnerships with Google, SAP, Oracle, Dropbox, Slack, and Zoom.

Usage Metrics

• Customer Growth: Rapid increase in new customers, especially during the pandemic.
• Stabilization Post-Pandemic: Usage growth has normalized, with a focus on expanding use cases within existing customer bases.

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Trends in New Markets

International Expansion

• Revenue Contribution:
  • 2019: International revenue represented 17% of total revenue.
  • 2022: Grew to 28% of total revenue, with international markets outpacing domestic growth.
• Market Presence:
  • Data Centers: Opened in Canada and expanded infrastructure globally.
  • Operational Footprint: Increased presence in Europe, Asia-Pacific, Latin America, and Japan.
• Localization Efforts: Tailored products and compliance (e.g., GDPR, eIDAS regulations) to meet local market needs.

Industry Vertical Focus

• Financial Services and Insurance:
  • Adoption of advanced features like DocuSign Notary and ID Verification.
• Healthcare and Life Sciences:
  • Digitization of patient onboarding and medical agreements.
• Government and Public Sector:
  • Solutions compliant with federal regulations, aiding in digital transformation.
• Real Estate and Mortgage:
  • Introduction of DocuSign Rooms for Mortgage for streamlined closing processes.
• Technology and Telecommunications:
  • Partnerships and integrations to enhance digital workflows.

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Trends in Use Cases for DocuSign

Cross-Departmental Expansion

• Human Resources:
  • Digital employee onboarding, offer letters, and internal agreements.
• Sales and Customer Relations:
  • Automated sales contracts, renewals, and customer service agreements.
• Procurement and Legal:
  • Streamlined supplier agreements and contract negotiations.

Workflow and Process Integration

• API Utilization:
  • Nearly 60% of transactions come through DocuSign's API integrations.
• Custom Integrations:
  • Deep embedding of DocuSign into proprietary systems for seamless workflows.
• Advanced Security Features:
  • Adoption of ID Verification and authentication enhancements for sensitive transactions.

Industry-Specific Solutions

• Mortgage and Real Estate:
  • Digital solutions for notarization and compliance with industry regulations.
• Healthcare:
  • Integration with Electronic Health Records (EHR) systems.
• Government Services:
  • Digitized processes for applications, permits, and public service agreements.

Pandemic-Driven Use Cases

• Remote Operations:
  • Enabled businesses to continue agreements without face-to-face interaction.
• Emergency Services Delivery:
  • Assisted government agencies in efficient distribution of relief funds.
• Telehealth:
  • Facilitated digital consent and documentation in remote healthcare services.

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Summary

DocuSign has demonstrated significant growth in both revenue and product usage over recent years, particularly during the pandemic when digital transformation accelerated globally. The company expanded its product suite beyond eSignature to include comprehensive agreement management solutions through the DocuSign Agreement Cloud. International markets have become increasingly significant, contributing a larger share of revenue and exhibiting higher growth rates. DocuSign continues to innovate and adapt its offerings to meet the evolving needs of various industries, integrating deeply into customer workflows and expanding use cases across departments and sectors.