DocuSign, Inc. (NASDAQ:DOCU) Q1 2020 Earnings Conference Call - Final Transcript

Jun 06, 2019 • 04:30 pm ET


DocuSign, Inc. (NASDAQ:DOCU) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's First Quarter Fiscal 2020 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 conference call. (Operator Instructions).

I'd now like to turn the conference over to your host, Anne Leschin, Head of Investor Relations. Thank you. You may begin.

Anne Leschin

Thank you, operator. Good afternoon, everyone. Welcome to DocuSign's first quarter fiscal 2020 earnings conference call. On the call today, we have DocuSign's CEO, Dan Springer and CFO, Mike Sheridan. The press release announcing our first quarter results was issued earlier today and is posted on our Investor Relations website.

Before we get started, I'd like to let everyone know that we will be participating in the 40th Nasdaq Conference in London on June 13th, as other events come up, we'll make additional announcements.

Now, let me remind everyone that the statements made on this call include forward-looking statements that are based on assumptions, we believe to be reasonable as of this date and on information currently available to management including statements about expected financial metrics, customer growth and estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any other results, performance, achievements expressed or implied by the forward-looking statements.

Further information on these risks and uncertainties is included in our January 31, 2019 Annual Report on Form 10-K and other filings with the SEC. You should not rely on forward-looking statements as predictions of future events. Except as required by law, we assume no obligation to update these forward-looking statements or the reason if actual results differ materially from those anticipated in forward-looking statements.

I'd now like to turn the call over to Dan. Dan?

Daniel Springer

Thanks, Anne. Good afternoon, everyone, and thanks for joining our Q1 earnings call today. I'd like to start by highlighting some of the quarter's results and then go into announcements we made this quarter around our DocuSign agreement cloud, suite of products. Let me start with financial results and a couple of key highlights. DocuSign began the year with solid top and bottom line results, marking our 6th consecutive quarter of positive non-GAAP earnings per share.

First quarter revenue was $214 million, representing 37% growth year-over-year. We were again profitable on non-GAAP basis, with operating income of nearly $10 million or 5% for the quarter. We also had an exceptionally strong quarter in terms of cash flow with $30 million of free cash flow.

Two highlights, stand out for me this quarter. The first is the announcement of the DocuSign agreement cloud. Our expanding product portfolio that addresses not just signing, but the entire agreement process both before and after that signature. I will talk more about this shortly.