DocuSign (DOCU) 5 Dec 242025 Q3 Earnings call transcript

Greetings, and welcome to the DocuSign Q3 Fiscal 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce you to your host, Heather Harwood, Head of Investor Relations. Thank you. Heather, you may begin.

operator. you, Thank welcome and QX XXXX Fiscal Good to Call. Earnings afternoon, DocuSign's

DocuSign's today's Thygesen; on me CEO, call Joining Grayson. are Allan Blake and CFO,

press is third issued The a published Relations our XXXX our with announcing was prepared of results remarks. website, quarter along earlier on posted fiscal and version our Investor today release

are at known different. call are that our Any on based factors related me on believe our light results We are the to let begin, of factors and some to we forward-looking. forward-looking consider everyone that they pace to of time assume may information. and together update with are cause of or performance and our in statements based by read therefore the with SEC, date, these risks and and demand risk expectations no unknown uncertainties reasonable, Please change. our events our obligation subject the the are our Before remind forward-looking to statements estimates or we required content this as In regarding call. best innovation subject these to assumptions future and new customer in actual statements be expectations filings our law, product are statements on except to this but materially and expectations and of affecting today's particular, assumptions

measures. During this financial present call, non-GAAP will and we GAAP

you all GAAP or share weighted isolation performance. our analyzing to provide in billings. we addition, be when information results. to intended for We consider average non-GAAP superior a non-GAAP and not measures These cash substitute from, regarding our are In and count to free measures encourage flows considered

to and at financial on directly earnings information, website today's found our figures, regarding a press investor.docusign.com. refer the please information measures most For which reconciliation be release, of quantitative can those GAAP our comparable non-GAAP

I'd to to Allan. over like now call turn the

afternoon, you, and everyone. good Heather, Thank

capabilities innovation for Agreement new platform. by for or the IAM, powerful customers, new Intelligent Management, highlighted delivered we QX, In Docusign

our core performance We to improved continued also drive business. greater in efficiency and maintained

was business improvement. improved, continuing QX, X% retention in XXX% $XXX combined Fundamentals its gross increased customer QX Dollar usage across XXXX. to retention million, in year-over-year. net in of Increases revenue QX with up XX% ongoing of fiscal the low trends. retention net up focus and drove recent the our utilization dollar from core on

also customer new momentum growth XX% We million saw in to customers. year-over-year at X.X sustained

with the improving QX evidence XX.X% In XX.X% profitability needed margins, making in XXXX, non-GAAP up addition, to efficiency fiscal while reaccelerate investments we to commitment our produced from growth. strong operating of

forward, move days we that As we've strong steps on journey, Docusign but set the platform. recognize IAM multi-year early long-term our aspiration towards path to achieve the on delivering transformational our we've with the growth. sustainable for in initial IAM We sights we double-digit believe our value taken customers it's

Our QX and innovation, accelerating product strengthening strategic our results capabilities, demonstrate continued progress go-to-market operating pillars: efficiency. across increasing our omnichannel X

help expanding management. customers to IAM staggering regions, with global trillion platform department-level year deployments inefficient X sizes releases customers. the enterprise and into value we launching capabilities, for enabling to of each lost $X the enhanced new several more Starting agreement innovation, fronts: These economic availability all cut across in

Microsoft Google SharePoint. from to including capabilities where Box, of of capability analyze In can OneDrive insights agreements as imports store, multiple and further a from few Lexion agreement surface more we've to closing by Navigator's including and Navigator core import, partners, months a third-party acquisition, the search, built IAM system array acting platform, and IAM use Drive, Navigator. AI of a just Docusign document of types record Within platform, ability enhanced in the Lexion's QX, the the AI a into we Dropbox, customers sources. adding extensive manage, from

upgraded experience an and launched typeahead we the results. export includes In more that predictive ability addition, functionality, to filters, search

released just in expanded of early automated America, agreement with markets: France, five we've AI features In Maestro, to U.K. Also, and IAM major this new all Latin countries regulatory October, workflow APAC. and week, our in availability builder, across including and local DocuSign these that Docusign we most models America, Germany, Canada, compliance Navigator We countries, geographies. AI created the the regions EMEA, In more Australia, North requirements. meet where IAM operates, also shipped to

use even to fine-tune and department-level based agreement third-party begins IAM and In rollout November, enterprise-wide multi-year compliance we controls product the go-to-market This development of towards integrations. and depth workflows, on sophisticated which available This management, making feedback. access customers. measured more deployments, IAM customer will delivering began journey our cases greater include breadth and enterprise us more for complex for allows execution eventually

Part new evolution create platform. to that supporting into company is of developers, platform builders, solutions dynamic community the our of a and partners capabilities of IAM a our extend

introduced we and the Workday suite Docusign developer IAM Center. will Microsoft, Docusign the with partners Discover, build by to Developers, showcased our Just powered SAP, X apps platform. App share Partners Docusign can tools, in weeks integrations apps ago, a that for use IAM of at and their

and AI-assisted CLM, continue with document markup Word contracts. needs. contract Microsoft documents review allowing customers we In we for in CLM, QX, Docusign agreement review incorporated quickly to With customers edit invest in and to complex innovation management into Lexion's launched

a for We SAP process new our also partnership. on Ariba, connector agreement SAP source-to-pay which speeds up and procurement Docusign powerful expands released for the

of faster sophisticated of customers securing Gartner's for market Docusign customers' commitment for fifth CLM is in In prospective a CLM influencing evaluation culture remains product thriving our says business. the strong reignited been ecosystem. is workflows we've on supporting with road DocuSign's powerful Gartner Quadrant leader for has short, shortlists.” CLM. For a with to application robust named product a fast-growing and a year, DocuSign a consideration the and a consecutive place a for “in innovation releases, part developer Magic and position a map,

times second traction closed with customers to gained expectations. and QX, deals IAM in mid-sized XX% nearly Docusign our and initial Canada, sell In quarter. we as and than the QX, rollout States, our sales the markets have momentum more. more United the with closed the every our X has XX% eligible increasing IAM small turn Early let's XX of In outpaced we of strategic in in have month accelerated in go-to-market. did more IAM sold omnichannel and launch Australia. the to volume pillar, many reps QX, or Now deal X deals, or as we

live with to particularly live increasing customers The hundreds we and market speed the adoption of of IAM platform. Time strengthen they is our month encouraging strong customers faster also our ability are eSignature, usage on of of ease customer applications, direct than each see to force. thousands IAM the through Equally and sales the engagement slightly remarkably Navigator, IAM to quick, platform. is their

and Our their manage transform customers can when how begin agreements. they their seamlessly contracts, they quickly upgrade to renew to IAM

an is will Funds, client success, company, insurance KPC to agreement XX%. XX% IAM repository. time streamline example time manual using As engagement multiple code-based application Maestro, investment Employee Catchafire workflow. and accelerate processing of create Royal sales its by creation onboarding life Maestro Docusign an replacing customer and platform which customer flexible process has reducing of management contract and a across slashed anticipates wealth connects workflows service parts America, its of Private use a member alternative firms a to onboarding using Salesforce new opportunities, with Neighbors by for integration business, and self-service with its

QX. evolving Another top growth digital in has investments QX Self-serve versus a been priority in capability. to led our revenue self-serve acceleration year-over-year

larger-than-anticipated improved our we quarter, leading to it for upsell upgrade the During to digital easier capabilities expansion. revenue customers their plans, making

We including as verification. WhatsApp, available additional products SMS also online, like multi-channel ID add-on made as delivery, and well

try, will customers business. We and products efficiency greater across improve buy continue enabling scale our and digitally, to discover, how use, our

we contracts existing deployed enterprises, to build as department streamline deploy direct automate and XX% at execute IAM by accelerating larger negotiations, is deploying contract to Also, to parent Automotive, our by workflows, time of the through already level and radically agreements standard to clauses. the use CLM of Blue faster, partner customers CLM per Cox Docusign Kelley XX% Book, the case begin more Autotrader on Cox enables revenue. channels. simplify month and reviews we'll company with its executing breadth

Portugal reduced managing employee-related on by onboarding new contracts time paper. digitally employee instead of IKEA has

Docusign easily qualified and to eSignature, to has for Verification secure Portugal EU's signature, efficiently Identity them electronic addition In both EU the form adopted ID use most digital Qualified IKEA enabling the and Wallet, our of signature.

integration United new onboarding HR Airlines process by to ServiceNow from accelerated our with using its in organization. weeks has for days hires the

strategically investing overall agreements. for In the execution deliver IAM the platform. world the the as improvements while closing, excited of future to significant And pleased made strong we our proud with to the rapidly how opportunity profitability. manages by we’re transforming customers we've way I'm I'm the innovate value about maintaining we’re in our

and When signature I had leading address that a vision a joined most agreement world's customers we DocuSign, end-to-end process. trusted to the the position help opportunity electronic company unique entire our created as

about much over I our challenge results. customer further want future our to long-term focus transformation, steps optimistic momentum Blake for enthusiasm, that, will gaining the entire first so discuss is ahead. With thank to energy, DocuSign team multi-year bringing this the in it embracing and and we're DocuSign to this and turn mission. to I a in

everyone. Thanks, Allan, good afternoon, and

strong QX. in We delivered another quarter

strategic strengthening go-to-market pillars: capabilities, increasing improvements Our innovation, as efficiency. our business omnichannel and against showed X operating we executed accelerating our product

an demonstrating the business, the core we customer first early improving signs since with deal volumes late traction during to our and of saw quarter IAM In QX IAM encouraging addition launch, platform full engagement. growing

X% performance, were with approximately and $XXX the and revenue billings retention up X% $XXX of subscription remainder digital from coming the million, renewals QX $XXX million Early Billings total outperformance, million, year-over-year. growth, X/X IAM better early revenue was both up was contributions. drove year-over-year.

As due to timing billings fluctuate can quarter-to-quarter of deals. the a reminder,

stabilizing large customer net the remaining from our go-to-market opportunity XXXX. historical motions up to XXX% in and our believe from QX XX% retention core X QX and business, fiscal of to better of QX, proud retention and represents a rate We substantial team's The have our customer focus to of in points on progress XX% improve dollar low we product align in This up work in improved we as needs. with improve retention. I'm the

retention up slightly. As expect we flat net to be dollar look we to QX, into

improvements. increased of particularly QX. in again, health The to modest quarter. consecutive improvements once and usage, continued fourth customer Also, further improve in year-over-year measure like the volume Continued envelopes year-over-year, positive and consumption, supported a showed year-over-year of utilization, in verticals sent trends, business technology, utilization, for insurance, trends Usage growth care.

solid a We see routes customers adoption QX, across base's market of XX% for This scale acquisition. segments in growth continued to customer foundation consistent investing X.X the total in underscores million. customer momentum unique and continued year-over-year the grew our IAM geographies. and multiple importance create In growth breadth new platform. to future customer of to in Moreover,

large of spending over QX. in customers to X,XXX annually both $XXXk number The quarter-over-quarter increased year-over-year and

addition, QX. motion revenue deliver digital QX, investments accelerated in self-service results, In to in continue growth and from our

We upgrades, invest PLG to during self-service to continue which the such quarter. in plan as results helped drive self-service programs experiences, improve

XX% International grew and XX% of year-over-year. revenue revenue represented total

an Our outside global especially vision, the as expansion continued optimistic opportunities markets, international is are we becomes available and America. of our the about strategy our important of component North in long-term growth platform IAM

agreements. and opportunity, struggle into Allan November, XX% value tools we we embrace intelligence agreement customer launched Many opportunities opportunity eligible the our to X grew mid-sized QX rapidly least IAM their insights the that the embraced well. and deal reps QX. deals at our inventory, to and IAM those segments, full small customers and in the unlock and the as seeing beginning extensive go-to-market As with from IAM opportunities their of early in in mentioned, platform to as the Beginning teams in have and are presents companies that volume closing are signs for just value provides of QX enterprise IAM appreciate international businesses. segments in departmental some IAM untap

have IAM come, are time will started. and to It adoption getting been in to we early but ramping take years signals fiscal year driving throughout just promising, continue the XXXX and

Turning financials. to the

results strong XX.X% year's to prior for yielded XX.X%, cloud than quarter. costs. Our the QX gross focus margin slightly migration lower on impacts of efficiency Non-GAAP this operating was additional the due

the to additional As mentioned, migration due resulting in transition. associated cloud some gross been year this infrastructure previously margins have this impacted expenses with ongoing

migration impact as and year easing larger in slightly of margin we fiscal a fiscal expect that complete before year in bulk We XXXX the next year XXXX beyond. gross

margin was QX ago. year-over-year, significantly margin. margin last from in for $XXX resulting operating operating XX.X% XXX years Non-GAAP X basis up over up XX% operating was operating income improved QX points XX.X% million, nearly year a the versus and

call, earnings margin to items to basis from slightly due point from launch of approximately and benefit quarter's support last highlighted our operating As the declined XXXX mentioned during QX IAM last quarter, one-time fiscal margins and versus XXX QX the both rollout. investments

the in will We while critical overall are efficiency versus profitability investments with improvement making like balance to areas pleased in and last overall year, R&D. continue

down We ended resource to X,XXX last QX approximately disciplined with X,XXX X%, approach reflecting year, employees versus allocation. our

We initiatives, to and continue measured support approach to take the to Lexion strategic hiring a PLG, R&D, including our acquisition.

head XXXX, we where of While QX and we are fiscal about since has add increased count talent. thoughtful how

was another QX a We flow. quarter for XX% delivered free of flow, million margin. cash strong $XXX cash

yield billings. QX, increased expected, than better from collections improved was Our higher free in-quarter driven which cash and by flow efficiency

approximately we our our full full-year the match margin. non-GAAP expect fiscal year, For margin flow cash will operating that free

cash, billion $X.X Our strong, balance cash investments. sheet equivalents, remains with and quarter the closing in

balance cash also the stability, us the invest business shareholders to enables capital returning sheet. financial generation, to debt We consistent on have flow with This opportunistically. while free combined in no

In through million QX, of back shareholders. quarterly cash of buybacks, effectively the repurchased share $XXX we flow to stock bulk our free redeploying generation

have repurchase of part as authorization, our we strategy. capital million under repurchase to current our continue opportunistically We to expect shares and $XXX allocation remaining

impact to also quarter, used reducing settlements, $XX on dilutive due million programs. pay the in RSU taxes our cash equity During the we of

cost stock points revenue percentage dropped a QX our the compensation as of programs, expense of approximately our basis from year. XXX prior the Regarding equity

equity. predominantly partly reduce shift to compensation a to versus compensation revenue we expect as year fiscal in percentage expense our of We cash roles continue stock to some XXXX, as

was was Non-GAAP QX EPS $X.XX diluted $X.XX, year. for year. per from last GAAP $X.XX $X.XX versus an share $X.XX diluted last improvement EPS

me let that, With turn to guidance.

For and $X.XXX year-over-year XXXX fourth X% $X.XXX $XXX fiscal we for X% fiscal million and $XXX subscription increase $X.XXX expect a of of million to midpoint. the million QX to to fiscal or and quarter the billion increase expect midpoint, XXXX at increase for the billion XXXX, year X% total $XXX a the we midpoint. revenue at in $X.XXX year-over-year in $XXX year-over-year Of year-over-year or at revenue at or midpoint, X% billion the this, QX to million a a or billion increase

million rate $X.XXX of a $XXX year-over-year $X.XXX the we and growth QX million the billings, For $XXX fiscal midpoint. expect or to in X% growth X% at billion or billion at XXXX to for midpoint year-over-year

strength fiscal by driven reminder, had year-over-year strong a hard XX% growth that year-over-year XXXX billings a creates we of comparison. a with As partially QX early renewal

gross to for XX.X% non-GAAP XX.X% XX.X% be for margin fiscal QX and expect XX.X% We to to XXXX.

XX.X% We XXXX. and expect XX.X% fiscal non-GAAP operating margin to reach QX XX.X% for to XX.X% for to

shares of We XXX expect XXX and million to diluted average XXXX. for XXX non-GAAP fully weighted Fiscal XXX to QX for million million outstanding million

strengthening the improving in performance continued In our toward progress of IAM closing, business. we made the QX, vision and core platform

non-GAAP operating free We also efficiency strong operating cash maintained on and profit flow. focus produced our and

customer we partners. platform, effectively deepen relationships continue and across segments we remain our the and our more forward map as to out and additional capabilities customers Looking IAM with foundation, from this road to energized scale strategic by roll geographies,

stages in innovation long-term customers, execution and for and of life, to that that, let's consistent remarks. our questions. the prepared up our deliver our will bringing our call vision concludes early drive We shareholders. That we value to With our empower remain operator, believe for open the employees,

[Operator with Our Jake Roberge from line Blair. first the Instructions] William question comes of

I help you you much the us the of by that then tough versus comp how sustainable revenue your the starting see IAM? see think reaccelerate. is type in billings you're of that quarter, the being performance reacceleration driven momentum with to during understand both is? do billings to understand that to Can and but core start Great how fourth And stabilization

that? take to want you do Blake, Yes.

Sure.

question. the So for thanks

So core. and of IAM, on is the because And really driver core that's so the the evolution just of predominant IAM, versus it's early.

Earlies So prepared was That really pleased it. driver. in performance. was largest remarks, you the X/X about with the heard of the QX billings

continued and improvements And the it: to just remaining better were making X/X, core there business the in three retention there. components

We digital. also growth in saw accelerating

bookings. usage, smallest was business. our driver, three, better-than-expected the that's which in core of the also So And third then upgrades and the the IAM that's is and

a the of three, the of evolution the but that's it's of smallest the timing Now IAM. and just function

very first North had in IAM customer launched full is quarter single America. This we've segment in the a in

And IAM. that really but about contribution take evolve, for to going so hopefully that still excited it's for we to the ahead time see

helpful. done was was just and previously with about the been Yes, product what faster that's you've has than what IAM It able CLM to about previously Can so that obviously saw why much adoption. in great you increase hear to? versus talk XXx different to sell sequential able CLM IAM what's

that Yes, why I one. take don't

think enterprises agreement been agreement offering large and large has negotiated and to be particular that developed types. continues leaves I CLM for both lead the of very workflows. universe, serves a And But BXB-centric it customer that complex So with for segment. needs our

business-to-consumer business employment-related So and workflows of of automation simpler even BXB systems. to all essentially by kinds of workflows, CLM unaddressed all workflows, kinds individual like

ops systems of CLM and to IAM with users, buyers sellers, historically legal that maybe departments of people, frontline widely goal set some generally cetera. our available. been or broader sales ops make not a the by province And used they've frontline is recruiters, but or been purchasing more also et has

training value that as of we can then sustain that illustrated fact and companies properly, commercial and at the CLM set necessary is amount on. of broader integration set it companies we by And a much to investment so targeted do deliver large to it With can to lastly, up launched all course, segment. out-of-the-box the IAM, the the of

unaddressed been by or software maybe, employees, to those it really pain space. have, significant enterprise out, as XX X,XXX the everyone say, let's turns companies even have So companies with that X,XXX agreement in

sales organizations, adoption the a and from companies. take-up. the inside of grows we're It's for conversation organically very very it a for our good so buying sellers, kind very productive seeing And there quick

very it's early. start. still So a encouraging It's

And We enterprises just it are outside across for, North into other Australia. workflows. rolling started sort markets it of and now selling out departmental-level say, America we of

it's think enterprise great to our class a BXB I as complex negotiation-related tool CLM, workflows. continue we will CLM So complement selling but for

would I IAM-related just add the the thing last system from that One all CLM innovation. is benefiting is

So now, you'll has CLM IAM eSignature-related dramatically. for is of the released features which integration after been customers to variety calls more available very be beta our repository, well. future about all a intelligent example, in made will improved of or And is products immediately shortly with our to CLM customers. hear be as Navigator, other as an on

So all from they investment that's IAM. innovation benefit and the happening on

Very results. helpful. great Congrats on the

Our comes of from Radke question next Tyler Citi. line the with

A question on the side. go-to-market

it You has going really attach? with August. in talked And opportunity ELA be joining kind her planning give a us since how and Hansen for motion you're some about running kind But about how areas you see the into through changes you're IAM here. year, just where heading 'XX FY do for of process of as of hit biggest the the next Paula ground thinking sense the focus

Paula having running. with partnership whole for Thanks hit and on organizations. her just leadership that team, really has ground and the question. I Yes, I'm critical thrilled, leading our Yes. and the the sales team

IAM launched our commercial look I it earlier, months of from the that. just very out, it's we bulk of our a focus, year we opportunity terms In the because for suitable partly segment, X if comes think

enterprise. longer more have There's sales cycle in We integration. a

perspective. both to do a product from have work go-to-market more We

is the said, in and ultimately, we largest the enterprise. believe With are that opportunity determined that

want that. we begin building to so And

the next build for type I of we'll over the capabilities mentioned, now. wall-to-wall the then just I sort we'll deployments end-to-end think here We deployments selling enterprise. have As out And in that here. departmental-level year, started

sales our with resellers. presales, focused enterprise Paula just system and our enablement, on DocuSign. cycle, our also to And to integrator internal not our distributors post-sales sales that's really entire is the and partners from That's to go-to-market partnership And marketing support. our to so everything in and

And board. I say, model. an It's so of the it's really would evolution, across our

sell model abroad. U.S. of the most and existing an enterprises. engagement have with large in to obviously enterprises We We the

XX% than the already more think I DocuSign. use XXX of Fortune

expand and And to growing do start we and we So an maturing but company-wide place land do that's And have some be on solution and the platform one us have the I good to grow the the established think motion, think in sell. a still opportunity. why team, big that to that our is capabilities focused Paula able to reasons of to we entire maturing help capability. service I brought team, onboard

Great. follow-up for Blake. And a

margin think going cash around incremental the sounds And we some think as there opportunity, year? and What for recent how Just about like of costs particularly it's into that forward? we are some you see the it into levers are next about should investments additional here, heading the hires, and margins compensation. the whether efficiency IAM AI

really to stab in the at last X Sure. I'll high level, pleased years. I'm From this. to made progress try a a take with X we've the

margin I'm our up ago. in that from and third actually in double the years X really points so same raising improvement. margin were That's I'm team ago. we're operating we're we in from of more XXX for operating Our year-over-year the QX, a than where that. than QX up proud year basis slightly nearly maintaining was quarter we for happy We're guidance more saw QX, that

get gains. most that from that's We're gains now. can I'm for and goes, excited accelerating efficiency it's we what where now, far always operating right focused on And we're But growth. long-term as as looking about right from leverage productivity really

as scale same Our don't costs the revenue. to at need rate

result. And we're if supporting that focus maintaining efficiency we happy I the we so gains really can opportunity with that while growth think on made,

at we those us. keep to point, year. relative unique just see basis year-over-year QX in pressure for if what can out And We've on Tyler, that in our see your to call full a for mind, got a we FY to you cloud costs. some couple creates of look guide for And did transition the 'XX, you items that folks temporary

run QX proxy. is good rate probably that think I a so And

in Now that beyond. 'XX fiscal and us ease for year should

onetime those credits We also year. have this

year. impacts than onetime and is to those that of So for we I larger probably QX in last And next slightly those adjustments that recall, compensation referenced. credit quarter, our the structure magnitude highlighted you'll the our QX,

productivity, when growth But those do operating efficiencies. drive extracting on really to we'll a for driving accelerating with shown our focused long-term experience, can for leverage be we growth we've us. that is great customer the But And or we actions it. continue without lever impacting

on really that, but also I'm maintaining So efficiencies gained. focused the highly we've that

from Brent line Jefferies. of the Thill comes question with next Our

I'm are if curious happening us macro your It put just could you getting but is months a give like you approach. you're what XX,XXX-foot planning characterize year? what next want over Allan, little don't on bit ourselves. we better, into hat X things seeing to would your How the and of as get you're go too of CEO from feels you ahead view your next and see what

almost would say, that's first index, enterprise we've because across practically software. seen We're and enterprise improvement and a for over I Yes. year in we're company macro all, sectors the of think a technology behind here, marginal your I sizes. question, environment the diversified so both

get openings everything account hiring new read we reasonable think from in engaged a we and so I to on. So and get

company the in material operating that is the markets benefit major happen, but we in look participate not it overweighted projecting that obviously tend We're North not seeing that were any that projecting I'm or everything to reasonably from positive. to that. and economies or the we're in, to change If that, manner. So would in America, we're that expecting we

seeing my discontinuities. say, that's approach. overall market, We're I'd So not

a their mortgage really around this of it's small And the of people though, with at relatively identified even point, questions buy customers part One we've, was the our thing gotten capacity. seeing because that obviously, business. mortgage-related increasing market we're number a I mortgages past, thought us interesting, in

where than in So terms interesting or on seeing business still volume that major indication It's is a a I is not interest. little segment overall even that less an envelope just of of but one positive increases. least par know on sentiment we're at volume, the of commentary

push get are a more make next bigger to early to year? side? Or very Does go-to-market disciplined still team on the give into being to capital you little that a Blake

hard-won same efficiency We've battles us that. more get you unlocking XXX% and time, on and and be think this are point from to to growth At some up. aligned. at are efficient we to give as I want I we Blake the said, focused don't operationally accelerating that had

we We around the sales overall so feel right investment sitting you can and now on where we self-fund for that, We if in based appropriate. segments that opportunity. think and now. envelope But move resources may will, investments, on start seeing and investment our we're light we're marketing is to the feel right our we of from those make envelope we marketing line our really and we won't trade-off. feels have But Obviously, that positive if on sales we opportunity, the like investments. now, holding hesitate incremental right

question line next Our Citizens comes from Walravens the JMP. with of Patrick

This Pat. Cole for on is Austin

so regard natural extracting the what product? gives confidence engagement generative I customer What larger IAM that is AI a kind with of to with of marriage. of documents of of with attacking kind cases think And are and this documents, Navigator from kind far? in with data kind some the use you customers that seeing you're

industries value Yes, instantaneously, and for and we very and functions. LLMs, of very case deliver natural across broad use it applies a agree that extraction is we range quickly can a and

In people easily one workflows that dates and mean, example terms is on specific information. notice periods. things And based notifications extract obvious alerts that examples, a and as we can automate I renewal of or result, like even give

buyers one period, literally the see give tremendously imagine, everything you on within management. notice that's or as can as you we X So you're side other, can that's want powerful, frontline well that sales sellers procurement, be you or a months next running or to up the if dashboard. XX-day the That's in in and coming if for you and both

that We've is high really that's There's cetera. and people case risk, So leakage of example little like, done data an reliability. to very very it a that use et with implement. easy

very sizes. all are companies, So things for all think, those of of positive I

the of with from comes Josh question Stanley. Morgan line next Our Baer

you comment and could the hoping competitive in eSignature of customer in growth, greenfield, much the where replacements largest strength on you was really U.S. is how see the globally, I penetration opportunities. wondering and on your the focusing

Yes.

customers. new add to are We continuing

maintained It's I even headroom I overall several the internationally. expect, the of think space, said given the growth more range customers. in customer a SMB just XX% about There's we've There's count XX%, would XXX the now. for U.S. what rate Fortune opportunity XX% you net in as quarters in pretty still steady of already as having predominantly

we a to America of so South long a and we in And that's run. see markets lot that in and way got additions Europe in And Asia. think

will. it's installed same-store to way you our grow our so complement and And if wonderful growth, a base

offering company With installed that this richer, more to as leverage that have the us fact is broader a tremendous we've we product base installed fact have much this said, headroom our I growing that I grow think very base generally on with more to on massive think valuable And And to based now much our a that's bulk focus got allows value. us with that. offer set. of happy we the the

new sizes, that huge acquisition existing faster-growing super tremendous and of advantage we ensures us we're a fuels customers So with we companies. with it's for is all headroom have. customer future, growth our have in competitive the important, that younger, But

company. unusual That's think X.X million number at we're a software I enterprise monthly customers. for highly an paying

And competitive want so to we advantage. leverage that fully

guide. for billings the one If just I ask could Blake, on

early for bullish. early renewals the and in comp, guidance QX, helped looks the the comp, the Given the of pretty some tough year-over-year QX renewals that billings

anything quarter if guide contributing for how there an wondering that, to big the ramping, going. is any for to IAM signed Is billings QX? the like Just assumption deals you've already,

Sure.

we on right? assume do say that, guide happens an standout to would there's the think that. onetime quarter. make has estimate we component of our the some but our and for early just that the part able every component, to We renewal so that of for us that in book It estimate we'll no be a the were obviously, see I based up this I best it's that and quarter, rate expectation reflection renewals of that, book. on

comes Mark with Our the next from question JPMorgan. of Murphy line

a these key on questions excitement us see wondering and before Docusign the customer are rollout? for to any with areas IAM. commit Kolar regional up customers Allan, that other events and are and off planned IAM events there sense is in recent some on Murphy. with smaller the feedback to This willing CLM I you Congrats additional up for levels focus on that is at I was the picking bunch of coming they're Discover if provide Sonak perhaps of coming results. just Mark or of wide-scale that a could potential November, team

since Well, clarification, New Sao and called Docusign we we've really we London, Paris, We April, Yes. Momentum, event and Singapore, Sydney original just X continents Munich, Paulo, launch announced did which had first as our a series customer-focused introduced, then event. is events events in York or a then: of done Tokyo. the in on IAM

to been Paulo. all I've them think of I except Sao for

universal horizontal geos. I companies proposition think every pretty and large we at event even don't across is that see and equally is continent, that broad every ton see a value across a I to tremendously industries. this actually in appealing of midsized really differentiation

the I sooner get we that we'll customers hands everywhere, think capability can the the do. better in of

opportunity. horizontal very a it's think I So

our either was always ISVs even could DocuSign commercial first mentioned into be or It in-house Discover had for you applications. their to integrate that powerful has event corporate very just focused on Docusign people signature a developers. API developers.

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that variety so think we from really suite positive. here I of whole feedback And and community what was developers. a And of for programs announced tools was a the

look, going become a while us it's to platform for a company. Now to real take

opportunity big huge would executing the early in on opportunity. stages that and do a just be successfully. that if have we But a can it We of boost execute we're to that,

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I that on with going had universality even "I expected. better value than think want to the understand agreements" proposition I my is what's of

that People it think easy solved. be as clearly historically instantly it. pain could may to They I because didn't know not articulated it's the explain. get they have

XX electronically. has think years. digitized agreements. all the them maybe nothing We've you execute we they've e-mail If of and for changed. We essentially send processes, Other around about them that, unpredictability agreement than or inefficiency remained last and unchanged via the XXX

opportunity is folks. that And to eye-opening for very so change really our

naive. I'm not

a that more going bar. into now top-down departmental-level be of in will why I and which very rollouts. larger That's think a to to requirements, and then to And it will started when but we'll we're We we mid-market with. a motion we selling integrate with, motion a journey, a the convince, are that we're this very one familiar a There more be exciting is higher larger multiyear universal one. will very that parties companies. be more complement measured solution get then companies, And more taking with to view. systems the

And And early the I'm feeling can that adopt positive explain we about terms very proposition. most sell of have that the positive. we very are it? And it? signs value So it? importantly, customers the signs see can we early in Can all of we

helpful. very That's Great.

a in on period anything years, quick past QX the Is approach like this in I've hasn't it has As a DocuSign seemed there capital for consider active buyback Blake. to we of the very follow-up X been activity. as seen year? allocation QX of framework terms

no from really at function all quarterly a We a of at basis. at it. perspective. change don't QX it on like it as look We a No, just look

flow. cash free strong really generating are We

to We have is different an M&A that right? is investing capital a of one is deploy the one. of areas, to Running buyback to opportunity business, able them. number one. Stock be another another

and I of really that flow our a producing I'm so to have the the how cash framework. it by all don't to we those the and consider to optionality any look flexibility at strategy, generation us our excited free And components. allows take expect changes that's we're because

Securities. Our of Turrin next line from question comes Wells Michael with Fargo the

Berg what want some on improvements just that it you done Michael Is seeing color right could IAM? there. Turrin. in to on dynamic. we it it macro? you've on to improvements driving for double-click I what retention, Maybe This explore that. the is what's the wanted and gross Michael get hood under execution? drive to get more the Is Just are Is or

has then I'll it impressed front team's down taking just in. internally having feel Allan, of execution actual getting free those rep would it, a honestly, in the renewal take our around with renewal XX data conversations date. I a large way deal, by to in the to front in level improved I've months. I level, say, of accumulation renewal contract bit, opportunities, to jump of X front the stab operational getting a over and been quite deal feel like of and the last focus,

about excited super so that. And

like team's have we rate and our ability super just have that, around and up, mean our of as contributor folks the with because the conversations like small with timing retention dollar average obviously larger deal And happy to Obviously, of just that. the to have you IAM continued in see evolution start is there. to things obviously, room you sizes, a it been going But focus. I it's still net that

pleased I come think still with we're of outstanding. while that know lot from, there's a where really we've still opportunity we

relationships, stickier so not and at with customer we relationships we're So and how out build resting customers that. continuing all laurels on our about we deeper improve our see can build to have this can

coverage success, DNR was our Blake we double-click a improvement, massively simply to want customer just think with improving that saying, here said. XX did in I in I I what on contributed well agree of months, I just Yes. and to last the bit. everything one just think add of by I the things has is the that but implied would sort little Blake

opportunity for is of lower-cost very where case more had That's we success so if And some model customer you still development book, engagement that our and and nice you've And of will. we opportunity additional think there. historically, have and scaled found use now in the at and really top effort on. more that's big support And of we torso the a got to results focused more hubs book. the a Brazil do showing in out I Egypt. of the So

retention. and I a to not Blake to to sales, customer of So lot in done with pull want levers we multiple better, definitely fronts, better. said, We we on in in think think drive in we're there's can marketing, that. as success do been product, do And

and notable any then And anything follow-up just out retention in quick Helpful. describing? may that the the gross to point you a aiding that. dynamics competitive changes just Is were dynamics on there be

I that of changing basis, It's don't competitive the stable. a competitive competitors. actually fairly dynamics been same the do on all It's the much. go-forward think see class I change. environment

separate we've Signature business I with we evolve this just products, Intelligent from competed we Agreement ourselves in there. the that to suite as Management folks more historically broader So of the think Signature,

it's We I months perspective a help too will So think retention But X and over launched that early. time. from competition just just ago.

haven't and our available And up aiding it help as those But I most becomes geos, segments us. competitive think So more yet. it's of that in come agreements posture. for will renewal more

next line from Alex Zukin the Our of question with comes Wolfe Research.

expectations on next on on for in for CLM early Arsenije our is seeing eligible there IAM here ahead we year? to And get was how cycle given prep reps is. traction skis guardrails help that we growth reps training And or any many experience? easy get to don't sell are Zukin. This of just is can want Is great, Alex but How IAM given having it early that an today?

new are ramp commercial pretty engaged our this address really DocuSign business because the we're given that to excited a a was number a take reps in quick were bit of ramp Sure. in quickly disclosing stab. segment North I'll not And this I'll What a was, It's really I, reps Yes, number platform for we the just surprised it. that America we we about. how market. with going of saw able function. frankly, and have a we how is thing say, a to We're or positively

I different than business, Now much larger enterprise the an of North enterprise, America as everybody kind think, knows, commercial is cycle. like

about conversations just customers We the having And started with opportunities so see the that we're just to to few first departmental weeks. how enterprise going very few goes. in have last

for still early days so us. very it's And

year. But be so next FY in to of full like going still address about And guidance where is much it's real again, all call we that, 'XX early. March as think do like much more I'd that, provide able to when we as year at we'll least our guidance direction be, to

just And trend talking trying start to have kind and data we possible as before get right lines things. we as make can of those so learn and we're sure about the much

on of dynamic? terms million think this early we're tailwind for we've renewals. it tailwinds is on I you seen quarter contributing guidance into guess, renewal give what's out I driving seeing you about And that that the And there that guess XQ, of in explain early a called bit it. billings to what's to year, up a outperformance us about that embedded Got can more contributing little embedding $XX last can historically? billings XQ that anything fiscal guide, than that's and think you renewals I early bit how coming in

don't versus on out We break sure. that earlies been I little the stronger. have Yes, earlies a guide our else. based components bit will everything say

come me usage we But and things, okay. is their is right? in is from One want of just with still a they quarter customers those something lot trending at. that of of makes of okay as me just talking look timing the as those the actually out, And if as that those early to okay, health it's so do are more it those that really And that good that things strong. renewals quite the earlies earlies health to you're front of and and for of And that's long thing. get up a next is

the Our Needham with & Black line last question Company. of comes Ian from

much think impact from Where normalizing NRR about at? should how capacity are seeing And we you still rationalization?

have where out. a of seen saw outside of a in low made company year, And I QX to a decel we've of Sure. that that. first couple the dollar improvement. from idea saw stabilize a that ends lot big efforts slight historical COVID. an quarters we've now of last of don't net the and this We of I mean is retention

So that. really excited about

in the know the contracts we many I of of kind have I are lot asking been that. business through the dollar were number and and mean COVID about on average today, our COVID the the your of like largely QX I how of or or book the to referring contracts don't capacity think you're of dollars in if we kind maybe and a that I utilization have as all this of so written maybe during COVID, effectively that as of they're were contracts or XXXX proxy the written a years folks business. X% from periods shared XXXX, whatever, last a year from gone point, you using that the in it's that now. mean think, I'm for because during book are such, of components data and perspective under our I such, calendar

And so stabilized I think we're in place. more a much

I we've in think that you shown. the can that results see

I Utilization improving, like rates in think, X for like today they're And is improving. that modestly for been envelope increasing prepared we so the trends, year-over-year heard said the send you've remarks us capacity consecutive quarters. and on have

us. indicators where of and all call like optimistic us we opportunities have I the would about we front so trends those are in leading And get what for

Yes.

still we the to our So the very solid early was that, going about it and encouraged stress IAM, quarter stabilization early overall. I'm are It's for but signs. a in really core

through Thank IAM call. operator. am deliver you, as and customers today's you to proud really I the of we powerful who all our innovation to progress you Thank platform the of to their long-term time. Talk continue we core for your team our to vision. the business to improve to for Thanks support you as next and fundamentals. realize joined owners commitment the our

today's This concludes teleconference.

for you your lines your time. disconnect may Thank You at this participation.