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
: First, I wanted to just start on the billings guidance for next year. Look, it does imply a little bit of an acceleration, perhaps more than
a little bit depending on how we think about seasonality, in the back half of FY '23 relative to what you're guiding to in Q1. Can you
maybe walk us through the dynamics there? What's giving you confidence in that acceleration outside of the obvious easy comps?
And I guess, maybe alongside that, look, I mean, your stock is down to -- in the aftermarket where it was before COVID even happened
and pulled forward all this demand. I guess why even provide a billings guide if that calls for a good amount of acceleration in the
back half of the year? Is that based on pipeline, something that you're seeing to be able to give that level of confidence just given
how quickly these sort of things change? And then I've got a follow-up.
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Okay. Great. That's helpful. And then I wanted to look at international. So international decelerated by a pretty dramatic magnitude
from Q3 to Q4. Maybe walk us through what's going on in international, how we should be thinking about that going forward. I
mean especially because, look, as we've talked about before, international feels like it should be a lot more underpenetrated and,
maybe as a result, shouldn't be suffering from the lack of demand generation to the same extent as the U.S. And yet, we're seeing
13 points of decel from Q3 to Q4. So maybe can you walk us through what's going on internationally as well?
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Maybe I'll direct this one to Cynthia. Cynthia, your operating margin guide for fiscal '23 was a little bit higher actually than I was
thinking. And I think a lot of people thought it might be a little bit lower given DocuSign's got a big need to invest, wage inflation,
an uptick in T&E costs, but it's only down 2 points from your peak. Can you talk through what perhaps some of the offsets to those
sources of cost pressures are that got you landing at the 18% number?
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: And Cynthia, as a follow-up, does that assume any change in average cash comp structure at DocuSign in order to attract and retain
employees?
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