The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Maybe I just wanted to start out with, I mean, you talked a lot about some of the cost-cutting measures and being really disciplined. While obviously,
I applaud focusing on not wasting money, you're not a super-high cash burner, and it feels like a higher priority might be sales execution, finding
new use cases, expanding internationally.
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SEPTEMBER 08, 2022 / 8:30PM, DOCU.OQ - Q2 2023 DocuSign Inc Earnings Call
So why spend so much management time and attention right now, identifying areas for cost savings, scrutinizing cost savings and for that matter,
upgrading, migrating your ERP system as well, when realistically, it feels like, from my perspective, it should be on sales execution and that kind of
stuff and then maybe identify cost savings later? Maybe some color there would be helpful. And then I have a follow-up.
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: All right. Got it. That's really helpful. And then just as I think about the guidance, right, you're talking about mid-single-digit billings in the near
term, and I guess, turnarounds take time. So maybe help us understand, looking beyond this year, and I'm not asking for guidance for next year,
but what sort of underlying growth rates would you be pleased with or happy with?
And what are kind of the steps to get from that mid-single-digit level, which if we're looking at billings is the best leading indicator, to a healthier
kind of more robust growth rate?
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Maybe I've got 2 questions. Cynthia, a few on billings. One is did the large deals you flagged, Microsoft and Goldman Sachs, did that have any
material impact on either 2Q billings or the second half outlook?
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Got it. Okay. I just wanted to check. And then maybe, Cynthia, just on the fourth quarter billings. If I look at your 3Q guide, look at your full year
guide back into implied 4Q billings, it's $709 million. So that's $120 million sequential increase, 3Q to 4Q. That's your strongest ever and much
stronger than the prior 4Qs.
Is there anything you would help us understand, point to about 4Q, maybe you've got a better renewal base or you're counting on something that
might get us comfortable with that outlook?
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