DOCU - Earnings call transcript Q1 2025

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Operator

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's First Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of the website following the call. [Operator Instructions] I will now pass the call over to [ Matt Fanfold ] Interim Head of Investor Relations. Please go ahead.

Unknown Executive

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

quarter DocuSign's today's press Thygesen; first Investor issued Relations on a on me well version is CEO, today release results and earlier call our website The Joining our Grayson. of are Allan our posted remarks. was Blake and announcing as as XXXX published CFO, prepared

cause related today's our remind and Before may are our that therefore best the results regarding pace that some subject change. expectations on be to let of time subject assumptions estimates statements believe We me product are to at everyone these are call based materially begin, on unknown statements this forward-looking. we factors performance our and are demand different, they our innovation are uncertainties particular, customer expectations actual forward-looking reasonable, to in our and and or of risks but affecting and known to

risk our events assumptions by and new call. assume date, the are to information. we our Any on consider this statements obligation and except light these as based in and factors update forward-looking of no the read filings SEC, expectations future with content in law, Please statements the together of required with to or

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

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

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

Allan Thygesen

the DocuSign and with start management expansion Intelligent significant fiscal of afternoon, company our We to strategy our We're strong off a platform. in Matt, to launched announcement Thanks, everyone. good XXXX. a Agreement

We the acquisition Lexion to of AI accelerate also the platform. announced powering our

progress improving capabilities, our strategic and clear continue innovation, financial on X omnichannel accelerating go-to-market make product pillars: We to and increasing efficiency. operating our

improving showed versus remained net business quarter. operating X revenue fourth up strong, QX, shareholders, new our . QX investing gives In and Dollar year-over-year flow improved continue Free we margin XX.X% generation resulting free $X retention a the flow to X% year. us million, core percentage opportunistically million ongoing of year-over-year. the to $XXX increased buyback including versus was in growth non-GAAP through Our XX% to signs authorization cash today. points billion XX.X% in cash Strong margin. last stabilization. flow confidence to approximately capital that while X% $XXX returning cash announced

and further financial Blake business comments. details in will share his

relationships for shared business showcase agreement At outlined that road vision. new our our we product MomentumXX Intelligent customer flagship and product map number Over announcements stabilized event, customer tightened to for a XX long-term will operating vision increase platform QX, commitment that bold efficiency, management we've our innovation a for last the and and that customers. the launched made support of a In new growth. months, we

systems the of launch in customer is frustration in management and Intelligent recent lost a universal or Docusign and Management and DocuSign of friction cost time. DocuSign the believe cost up. We value agreement the Deloitte, practices global points economic add nearly company's in $X IAM agreements study the managing workers Intelligent and a hours trillion transformation. landmark pain management by costs moment poor Agreement across experience annually billions in journey. According to Agreement addresses Companies agreement

and actions. data transform agreement can With DocuSign IAM, insights customers into

commit create place. agreements, in platform customers and all enables manage to new Our to one

including from DocuSign customers capabilities boost IAM eSignature platform including our agreements past our DocuSign customers asked and CLM that of The workflows approach workflow without services Maestro, for, market-leading combines our creation automate review have The stand-alone using platform significant organization-wide. current productivity departure products. with our builder, code. streamlined new help cycles, products offering only of to a improve and contract the new platform Our products is new agreement

With Maestro, customer business customers capabilities DocuSign connect workflows configure verification ID in minutes, can combining to with to and third-party their like data verification agreement processes. eSignature, apps

HubSpot, well find manage valuable includes customer's agreements. And allows coding the accumulated customers agreements, past Navigator At from structured Google launch, Drive This App our and services agreements easily DocuSign into eSignature Second, Stripe and App particularly any or integrate This is management agreements. you and Process information, expensive insights Docusign Builders, signed leverages Admins agreements. can access vital unstructured applications Docusign for agreements AI agreement without easily Navigator powerful help quickly DocuSign data, center workflows like to their library gain it and custom their document-sharing to easy Salesforce, to as features configure IAM of needs. to SharePoint. from analyze ServiceNow, development. as into for used who Microsoft entire non-DocuSign using and transform agreement store, unique apps third making third, OneDrive commonly and party Center

launch verticals. IAM to well within as addition for Sales Core applications legal, services, for IAM specific for In Customer time, we also for platform HR creating procurement usage. unveiled suites also functions organizations. industry will for DocuSign new teams launched IAM starting and and experience, we for specific IAM In application general-purpose with IAM as

out customers XX, next year. our launched small U.S. with to DocuSign and available availability On Canada also the for more select plans customers mid-market more the will Australia. and over with IAM in and in geographies May DocuSign IAM roll

agreement size any companies platform of that's market. customers for offering an execute workflows significantly takes to focused to set rollout, agreements, broader functionality their flexibility all sizes CLM showed manage giving IAM for to management deep enterprise we're our them and the their which intelligence. organization. unleashes with for IAM any customers. from of on the us the we increasing the of of expanding applies member agreement this remains agreement importance ability sophisticated As advanced learnings accessible and a customer CLM,

a the we're a agreement and proven platform its which due to feedback, compatible the in to IAM DocuSign goals. high community. AI our technology AI-based to sophisticated AI acquisitions. bar is our Lexion maintain promising thrilled out welcome We particularly vision, significantly customer stood in architecture to traction capabilities, leader Lexion excellent for and technology accelerates Lexion is platform And family. central commercial with legal

leaders we're our important platform Additionally, The AI into of acquisition forward an Lexion and in talent step exceptional DocuSign. marks bringing strong journey.

market. quarter remained at consistent digital revenue QX, strategic utilization for turn saw both EnvelopeS XX% growth. International Let's sent go-to-market, with growth customer In pillar. momentum and row. direct to total modest routes across solid CLM Overall year-over-year. a our growth QX the to to continued meaningfully in second the and our was improvements revenue partner second omnichannel outpace contract year-over-year and

continued like with key from partners strong and The show partner improvement growth Microsoft. channel SAP to

customer of life, Salesforce that's For engagement is on creating we applications. X for Sales event brand rolling first DocuSign DocuSign example, productivity continents. welcome the and and Across agreements largest the in our to to customers of Cloud, DocuSign integrations thousands event series, of York to off engagement on localized all way Copilot Microsoft was our kick access a one IAM This a international new flagship events This paves and to sales global focused bringing partners Dynamics momentum creating out spanning New year, behind channels, of in focused customers agreements the markets. with and versions MomentumXX. in larger XXX and the X largest we're

of their customers companies. who customer recognize by Hat we X,XXX users events, over has their now JPMorgan's process XX,XXX and on Bank stand several use sales these In services quickened over signature envelops innovation and impact X clients. business Red At And DocuSign capabilities out DocuSign experience by CLM within has lending cases, across sales-related for its Commercial deploying for its annually. weeks base sending

Flowserve, $X.X use procurement Santander DocuSign stand process of reformatting through contracts world's control products in in using corporate and as transformed commercial and providers lending DocuSign manages through agreements to its billion and fluid the U.K. leading CLM. suppliers. of its And panel Meta one services out Customers and well. DocuSign used facility including X million over motion contracts analyze bank, automation. cases its in customers, partners legal over fulfillment across and

for an and leveraging important was is that solving for to as wave broader have exciting just customers never helping DocuSign. believe this opportunity we a market DocuSign. of Management, define step We journeys. for QX our and that problems is eSignature of a customers beginning navigate addressed. we're With been new IAM new agreements record for phase value the customer of age-old the DocuSign, forward system unlocks growth reimagine leadership Agreement a their by What's in CLM closing, as agreement In management Intelligent market

for your we've Thank quarters, vision you started. Blake. let just realizing of We're me customers. and With and and to getting accomplished what months proud over entire dedication to our that, to passion in we're it for turn team recent our

Blake Grayson

good demonstrate our Thanks, to stabilization that afternoon, business. in business and and in everyone. delivered QX continued financial We results Allan, strong core

can in free focus on initiatives we growth, QX we while efficiency, performance omnichannel income operating solid critical flow help continuing resulting addition, line newly invest improving growth cash the efficiency in go-to-market operating and and believe launched aspirations. and operating metrics our financial generation. platform, In maintained our gains that continued showed capabilities AI to drive long-term top IAM strong

long-term X% year-over-year to $XXX continue outperformance year-over-year of growth to and now as early represents driven grew million. key approximately to to as and stronger revenue. total revenue, overall Billings billings our guidance subscription The increased by International well Total X% the driver was higher $XXX grew million revenue QX XX% grow growth $XXX to rate year-over-year X% in retention renewals revenue million. a at primarily compared rates. revenue double

remaining about to international we be excited have still the markets. continue our in opportunity long-term We

several business Similar of X encouraged continued to quarters, the by signs are past we stabilization.

mentioned, Allan improved the dollar which QX driver from quarter-on-quarter sequential retention. XX% modestly of This rate to as year-over-year rates in in Gross retention your first in years. the QX. in the improvement improved several net XX% was retention sequential primary net is First, dollar improvement

will these trends QX, to dollar stabilization And slightly. to continue. rate anticipate We down in flat recent net expect retention be we that

expansion. we believe Management Agreement there the term, of through growth customer new Longer and for and penetration core with opportunity Intelligent business across addition the both platform is continued significant our

experienced care, saw measure we time XXXX. improvement, fiscal this slightly the a Second, what year-over-year in year-over-year insurance last increases declines modest sent contract to the technology verticals. usage similar year-over-year, trends utilization by and again health Envelope year. of half the improved in compared second Consumption, to increased also once at slightly showed we led

customers of QX and large fiscal counts QX at spending by at X%. contract $XXX,XXX XXXX. QX, with of value number similar of in total relatively double-digit compared annually by QX from saw to large customers the over decreased number $X last $XXX,XXX from volatility customers increase customer when the in million year least customers over year-over-year We remains in X,XXX Also, stable QX. spending bookings sequentially to continuing Third, rates lower to

Fourth, X.XX million. XX% to new the with growth QX total acquisition remained strong in year-over-year third customers for increasing quarter by consecutive customer

account quarterly growth seen in we grew XX,XXX additions customers, digital is XXXX. that Our year-over-year of highest QX X driven since fiscal absolute net of in X.X gain XX% by the This million. have was years to sequential over predominantly

year-over-year We adoption through will grew motions. to XX% and XXX,XXX. self-service on Direct to focus our features driving continue customers PLG

and Agreement and business long-term continues scale customer unique of base As asset rollout be the strong the of Management a the expansion measured software creates Intelligent geographies, begin to across for potential segments our the landscape. across we

drove migration financials. expect will performance in QX Turning take the and with that year, our was margin versus in XXXX. QX. guidance initiatives Non-GAAP for place fiscal infrastructure financial line throughout given gross last strong XX.X% we ongoing cloud efficiency to Operating XX.X%

year, revenue been and marketing from points ago. from a XX.X% last by XX% improvement to efficiency share gross compared within the XX% by margin. where in significant from subscription last we've non-GAAP revenue to our QX from gains XXX XX.X% margin record up up of last Non-GAAP XX.X% able XX.X% increase as also of largely operating spend QX departments, a years basis ago. versus a to of $XXX sales versus operating was has high ago to X points margin year from migration. This reduce our the year is million, operating was X income over year come QX impacted XXX nearly years a revenue year-over-year The and XX% basis

communications. in investing count GAAP-specific continue million QX, expense previous consistent year, in with provided This QX, was at this We our incurred A than in in ended has non-GAAP In non-GAAP X,XXX with to us margin ability margin approximately $XX X,XXX a employees time operating the percent to revenue. relative restructuring portion timing. of by charges line previously at related from lower guidance versus QX the the in year. the announced operating outperformance benefited lower driven X% R&D to our We prior last restructuring. of head

continue to in with motions, growth GTM organization efficiencies our sales R&D align our and scale of G&A. and will to opportunities We partner manage hiring our plans realize in support digital long-term

We to model to that last X% days our collections point efficiency has due, with less continue a significant ended particular, receivable QX generates in increased of XX past cash strength. million Free working continue with capital flow QX year-over-year. over than improvements. versus a yield In a We been improvement flow. of benefit significant a XX% margin from QX business in initiatives of XX% to cash year. Efficiency $XXX accounts

cash we we XXXX. As that, Related QX quarter, margin QX. flow foundation flow allows in capital as see discussed investment of closely have currently We more margin a quarter strong non-GAAP debt to balance well This cash to is flow harness free support for cash end, yield equivalents fiscal last we financial opportunistically and no position. balance to rate had investments. future to will sheet the a in lower year us $X.X cash, versus sheet. significant free approximate strong as shareholders. excess operating full At redeploy cash our expect anticipate The on free generation to billion

$XXX versus during $XX more repurchase repurchased QX slightly cash in and million of share the million end, the to shares, greater in used fiscal To more Xx in that than prior year of repurchases than QX, we we in all XXXX.

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

have we Allan also of on for our an a increase is As the closed May remaining $X regard program billion, the to approximately acquisition Lexion open-ended With the mentioned, we is fit existing which XX. Lexion $XXX of Board allocation, authorization. in buyback recently strategic to top on authorized million strong DocuSign. capital

and bar our can valuation opportunities a excited ultimately framework customers. the for for provide have high disciplined and for We culture I'm acquisitions this

AI-powered help their and road strengthen leadership Lexion's with will Lexion's map technical technology will accelerate our industry and team our experience. founders AI IAM foundation

fiscal In $X.XX XXXX guidance. EPS on is per XXXX, from will terms current have impact was the and not financial impact a margins of QX year. and in financials, Lexion reflected $X.XX share revenue diluted material for operating a our improvement fiscal non-GAAP in $X.XX, Non-GAAP last

shares shares. GAAP $X.XX million diluted approximately EPS was versus XXX $X.XX last to X% Diluted increased year. year-over-year

non-GAAP to manage equity restructuring, excluding XX% of GAAP We XXX income programs. are XXXX. as In fiscal a stock annual revenue, basis year-over-year our QX, percent from from QX XXXX compensation of of in GAAP fiscal points impact net declined cost gains both profitability per continue encouraged QX the XX% of dilution expense by in as by in work in the share profitability, we and improvements target we to and and and to

be and a flat to excluding fiscal year-over-year revenue continue as cost of expect year-over-year. expect that the decline to stock-based in XXXX to restructuring approximately compensation, from impact We percent

XXXX, approximately to GAAP quarter. tax $XXX the fiscal this allowance $XXX a me Related in Further on that let assets, of was With valuation our that certain our estimate will which filing. is financial million. be details found impact possible turn our existing was financials, million decreasing by a would to noncash deferred released, discussed we that, last will published expense have we guidance. GAAP-only to XX-Q it XX-K in tax When in reasonably release

midpoint. million total to For year $XXX year-over-year and $XXX expect X% at fiscal or QX increase in QX 'XX a the million of we revenue XXXX,

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

$XXX $XXX for we to billion $X.XXX expect million fiscal QX billings, million to $X.XXX in XXXX. For billion and

impacted timing shown the recent book comparisons of and can This customer is of billings the years, create quarter-over-quarter from scale period. quarters renewals, continually period year-over-year of impacts heavily and in variability meaningful are further by our amplified to by and As the which business. sequential

expect lowest contracts. results in the of fiscal discussed timing have comparison customer our last year-over-year versus As and call performance to growth quarter, QX the rate renewal last strong impact in we year's given primarily billings XXXX, on-time various

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

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

lower to the costs several efficiency well continue announced to we improvement the February in expect ongoing year, from company. as across realize as the initiatives During restructuring

Our long-term scale profitably. particular, opportunities, growth ultimate goal efficiencies us in is to allow R&D, invest while in that to in generating

non-GAAP innovation, to diluted fiscal both outstanding quarter are XXXX. go-to-market operational for X strengthening of progress million enhancing to strategic our expect product accelerating We In shares weighted against fully another pillars: and average XXX XXX pleased and initiatives million our closing, efficiency. financial report of QX we our and

progress with solid our free our flow generation. improving overall the stabilizing showed pleased cash with and relationships we business customers fundamentals, profitability in remain QX and and

for in IAM to DocuSign realizing a future the worldwide customers is AI-powered are strategy X.X Agreement strong We our and agreements, deliver Management position million bright against with their a platform. to of execute to continuing customers believe with our to Intelligent over vision default, endeavors committed as we invest trusted as new the partner long-term

for the With that, That operator, concludes prepared our remarks. up open questions. let's call

Operator

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

Jacob Roberge

in guide. the It full subscription was doesn't the could were us quarter, sounds into [indiscernible] recent like understand help to just through subscription how guide. you trends like it pushed improved consumption but your the factored Blake, look consumption

from of see impacts macro the is macro conservatism started curious headwinds? as just exited potential any I'm in quarter if or to the guide out front if So getting you the any really in you

Blake Grayson

the Thanks Jade. for Thanks, question. Sure.

you what revenue professional revenue look think on-prem by forth back may assumed And a slightly such. I we revenue. in services full if sub granular bit year at more just and actually then total as contracts us year, line other of the of There's more look that's guide, versus in that midpoint as have our full beat and bit if far function between lifted at you especially than and QX. getting a forecast our little it into the a little the our we in and really be guide

with. on say consistent the we would shift and like I any spend. both as signs, monthly a perspective haven't of material to investment I get trended continue into usage scrutinize -- in well, into modestly seen QX macro really from happy like highly May both another side, companies stabilizing us. which been had like we've was consumption quarter as We've as and for linear actually up

the this the XX,XXX account perspective I And for the just that also is of that so size macro we because being and also over have. of business quarter from fact us of think, we growth it's able the of size had I think book encouraging, a that account in to of see the our base

about I'm pretty so And happy that.

Operator

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

Tyler Radke

the fits a Do into with post Seal, momentum Lexion Lexion, deal And clearly, just SpringCM you complete that assets announcements share the could around core your you, the it's help ask feedback the that how us IAM. launch for? you you you're Can with that combination being understand from eSignature, product? looking just have feel areas like vision? any to there specifically announcement perceived? wanted the you how some and other customers of lot then I and Are of and of of

Blake Grayson

one. that take I'll Yes,

ahead. and of further, looked we ease models all, had that ran we as a keep started companies it for evaluating on and space their ecosystem of to technical our to through integration And good in as our way companies established when we deeply extremely really Lexion was came idea, a several scored by was could existing So persuaded much on a headroom they strategy. dug decided out had with well. which then first look we the in faster with they the so engagement tab the at a into and framework of really platforms, team [indiscernible] on that integral Lexion We our even very that also so the we at. We thought venture our close Lexion, hundreds fall They customers, customers. extremely well listened engage that. . I go

was, I their think, validation that And of terrific so a platform.

adds area AI, and how workflow. where of another our terms I think we augment quantity where legal really agreement it DocuSign, platform, think market-leading quality they're overall their I In extraction to using

from agreement, might if standard language So ingesting how workflow a to how productivity automation your a that a that. for for teams, an you're really as terms you the templates legal immediately use agreement, job can counter you AI propose to third-party may lawyers, for want done example, that's with assess excellent and understand highlight they've deviate accelerates and

So in. it how fits to overall, It that's have. what we complementary perfectly

excited And to glove. We're very hand so in on. them it brought was have really

IAM deal based As that Friday, team on probably they around early agreement DocuSign the the built just to road statements think -- that throughout other know, customer is question, aspects feedback entire carry pain we Maybe we and were the quickly, to I'm ably response map to batches. there obviously if problem journey. closed your you and IAM. trying now last

we and And there is have available. then of exciting feedback last commercial North release as what But stronger. is actually targeted into be shipped layer initial it And and we'll customers. good a out time, feedback over We've in segments to live during GA access the very more now it's now the couldn't and at We be The geographies. clients we've result, commercially American availability. into on early had hundreds beta general phases. Thursday. went

point. on thing that last X Maybe

engagement we've ton had response been themselves. full transformation, In a partner several is for channel. the this could around can agreement agreements the really had more engaged of channel. legal management, end-to-end from for CLM, didn't looking addition do practices that SIs, DocuSign eSignature I've global platform that need feedback, so the a We've a pleased mostly tremendous IM, we've company With been the integration, who've SI with with with platform to customer support and efforts. large of from those -- really product But clients and

for obviously So that's great validation a very bullish on us. that, and

Operator

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

Brent Thill

Blake, XX.X% [ number need walk think you're year? the margin go that at QX, op to the kind to ] in that that for year. midpoint make full margins guess you yet happen that of down the to hit guiding about I for through when investments what to cause below you the range, can would

Blake Grayson

driven for Sure. just Brent. fair coming [ Thanks guide, the the chunk by midpoint XX.X% questions. our the is above timing, also The revenue but beat, of by expense of ] that a in not

in really timing basis, being year-over-year our low expenses a they're our actually rate, at -- pretty those at a look particular, while grow a G&A an some absolute to year-over-year down expect you dollar of perspective. is down non-GAAP more If on which on basis, function we

So when it's year. out, that you smooth the steady throughout actually pretty

what trying to team engage do with focus to IAM product here is right right, get out iterated investment with with DocuSign, on sold them. sure that also discontinued efficiency maintain balance in to customers, and order operating then at Now we're launched, we the the making

But something sure making ourselves we're that what we think and set so trying term a that productivity, do is can that. up to really in balance try catalyst in be we we're possible to do in efficiency really our order for focus and support believe for the that on accelerate us, always going to And to the growth. to way I long best us

Brent Thill

for quickly just Allan. And

year. not still that's to is way there to know double-digit your your I think anything in goal? an aspirations But grower. I you're inherently longer-term obstacle for is that that guiding this a be achieving

Allan Thygesen

headroom a we're rallied plenty for got we've feel think launch around us. think No, that. our of given certainly, of we addressable do that, aspiration of expansion with that's significant that's I that And reasonable long-term we the market IAM, what to all the

with this ahead of I go-to-market marketing nothing we the still of to execution product DocuSign, game. the no, stress is this and milestones want super still the So that an us. is relaunch launch achieved do quarter the important some side while

think X.X we a And of with of customer feedback. eSignature we are our obviously, product customers we've month based positive heavily paying on and the customer position so have very And very on. experience all million and and built in starting base the affinity CLM strong a and a from that

still an evolution. it's But

we think I today. sell -- we enterprises to have very heavily

I of a a in then Fortune and And stats think countries. we But to and selling we're Agreement platform similar I for the enterprise have there. growing XXX point an XX% Management. between -- in application difference do there's other think still some

say our the execution an standpoint, in I'd So focused from we it's but where I'm control. feel that's most

to capitalize on that. We have us strong large great a up just a addressable opportunity, set products, of customer it's relationships, and to

Operator

of line The Pat next from with the JMP. Walravens comes question

Patrick Walravens

this platform the of new is going rolling and old way it going to How the what me versus out terms motion. manner you in of IAM in does guys are creating wonder are the exciting, given make the repeatable it's a launch you consistent ones? go-to-market products super sell a but the do to

Allan Thygesen

first who enterprise right? signature Yes. very natural in applicable, a deployed much deploys So the has was more of our accessible more designed in it's a if CLM product, that and of if will, set Well, afford distribution integration is of broader broader product. your set historically, into a any that much all, about much means a to so key be very we [indiscernible] only upsell, companies lightweight IAM that broader it broadly company our . across it. management you to cross-sell question to a And could large of users all was a customization the to is really you which IAM much space obviously be CLM needed. broader also that the think particular, contract and

look, that story and underplay the sales and the in I I of mentioned, of scale So process. number don't want to constituencies of an as complexity terms evolution, of this is just that

we're only close starting think standing our I entire already on and some I general pretty hand, other the business, deals. a shoulders exciting, We think into we're it's go. eSignature and week to On availability of the went

the don't So too space motion, of tremendous right then ability but much a our customers. commercial of inbound pretty that, And seeing we're extract feeling to amount starting into moving I'm and want now. up to enterprise repeatable a I on about develop the good our platform

Operator

Our Capital Markets. question line Rishi Jaluria from of with comes next the RBC

Rishi Jaluria

Lexion. to into Wonderful. I just little want drill bit a

million can us customers. walk $XXX for You mentioned is Maybe give you full how guide of us bit about you and own models, immaterial, Lexion. to just improved How the Lexion a versus you through our it's think of to for color It's of the of for little Maybe paid execution? but much could that it. the rate attributable year. got hundreds

Blake Grayson

We're would It or revenue integrating think, the it materiality. have. long into the us, opportunity is that over The its X of Lexion out in breaking to for to -- of Sure. we IAM customers purchase because op DocuSign that size like to term, margin for we the well can the technology just overarching That us. I doesn't it's message platform. the Lexion on material not and that not is send about apply million

even ago. that us platform spinning that really on and AI guess, can't development because about flywheel That's transaction But I integration closed the our to valuable long the I ability loud like early say obviously IAM flywheel. to this can more our excited spin we days, really that extremely for so X is that faster just and what It's extremely term the and make excites what we days our customers. we're and about Lexion in enough,

Allan Thygesen

lot deploy the that that we the of had But platform just make and emphasize, across took Lexion hundreds IAM as comfort integrates say intend entire platform that add of we do I motivation customers. we'll capability IAM support as to customers Blake to a want our then being here was to fact suite. in from I'll to that Maybe Lexion features, they And in Lexion Lexion to validated continue the customers. their Yes. product too. primary to said, able available

Operator

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

Josh Baer

wanted order market a IAM. enterprise. Wondering capabilities light stick IAM. as happens broader in from customers be shine economic to was adopt serve little to need to out you missing are an what if what upmarket And rolled to in wondering on the the I standpoint could or

Allan Thygesen

Yes.

list look, particularly can sense, the that that on But imagine. things like long you something would list. would give will a be access control. is point, The So be never-ending a large concerned company largest about of you very want there's customers stuff mean, to first a I a

tied who systems commission into that which something needs building agreements. we working tightly to robustly access ability So and on, can existing out. are be that to control so and That's on

to a announced playbooks. area Lexion Another will And tends that's also and to functionality Again, having you'll on of year be able larger of area the as a companies. say, intention of in in. in agreements And based edit for should agreement being some this playbook deployed is as functionality that well system review we've characteristic our more where develop launch play later to a capability. see and that editing we IM robust, of agreements

on our sold the product has terms been core basis. capacity principally In signature historically, envelope an structure, of pricing

So envelopes. prebuy of certain a number

offer a Although do has predominantly seat we also basis. when on sold been set CLM configuration

user IMS on adjustments sold for and functionality. evolving towards are different premium We a with profiles for basis different then seat overlays principally

we're basic way who accustomed. buy just customers want so carefully. to product that e-signature our managing make And We that's need in that they're sure to continue something a that can that

launched what richness of want [indiscernible] premium that, advantage to sold that and historically had. who do we take packages a at Customers is IAM can and to that of we've

we've that's that. thinking So about been how

Blake Grayson

to would on I what just And said. Allan pile

can also become in a from, well. that. right? we ways, pretty Our And IAM right, it expansion do become of us. we come It to to going as perhaps, value better we customer customers, believe in if where a can strongly can their more IAM that for different as as think and can is integral trends stickier some and create about relationship, overall just number come retention their with of Customers workflows to drive can it processes we we a that value more agree or is and philosophy will share

on Allan add said. to top just So what from

Operator

of Berg from Our the question Needham. line Scott with next comes

Scott Berg

X. have I

overall like moved future think next fiscal for company. on the early and IM. this on sounds almost set. build obviously, maybe high the it's 'XX? -- released interest is Or the investor interest 'XX continuing start model least gradually It Let's some high. to as with to seems is But And meaningful conference, your we at out But can like going think customers be somewhat we to it or the big bet do the too. is know of theme probably as customer the as a you upmarket was functionality about the at of revenue company. the next here play for fiscal leg I to see for is this going impact released. just That's you how the growth forward? year. do first impact profile commercial it, the It

Blake Grayson

talk exact some think expectation. Yes. I we're be a magnitude. but see Yes, next year, ready to the about lift we'll that not would yet yes, But reasonable

Allan Thygesen

like. challenge, which This so launched it's I here going just or availability take say we just this is And would general ramp. to ago, in the right, time and week a to is

renewal the of I the general in just mind as things also and is one have of that size well. we the book we we keep of to the business that have have think

billion So we've guide our full I year got -- think billings. in around just is $X

urgency take those about kind time on iterate to of move getting customer the honest, the as right it's the the to going now, as be giving out and like excited to to needle, team some far getting So that things. mostly magnitude the right experience I'm and the launch

on input go-to-market early future. billings focus launch, into besides the that obviously we in get new well. that's me, right, the need the to for the we on honestly, flywheel of spin days then That's as And those components that what to product if get a we

Scott Berg

comments. that the [indiscernible] right of near be And Got and needs wanted net macro to installed instability driven the balance base is the the up little I follow and over everything net now from the on where board come at bit from new sales about least in coming to earlier, greater Does in what it. think see more then stability From driver a on the feel customers you we business with it on some might wanted new revenues the upside those to that Helpful. be there? this challenging? position, term? do Or and how kind Just you X more near term. how

Blake Grayson

gross obviously, right? that. ability our we improve say I while rates on room both, an focused focused guess excited to And I have impacts. we're a organization book Like of super the And our have, on that to would right? greatly large have so Yes. we're we retention can improve, on business about I'm as trends large stabilization

your output We because took quarter grow we granular improve such, are being steps be renewals of that's so good input you believe that are an That's adoption a of obviously, in front order drive of those big resources, able rates success retention allocating billings. there this renewals -- to we mean, deal. and approach kind lot helps churn it's of in more getting focusing to about which if a and them I forth, sort we far last can and metric it's feature in customer and how sticky large on of lower to the

have But making that, of big the obviously, we're the top expansion just available of Obviously, on we is Now a lot side, on IAM. still penetration an eSignature. within investment

we And drive renewals. through able expansion for so while can those areas be us. to improving And

there's end It's we the to what to think and a the launching most features maybe responsible for we're in and that believe what because to we happy think there, messaging. out customers with. focus we And opportunity Yes, spot for a need really are products we in on like I Allan's now. do we're is really is the I clear point execution up the need earlier,

Operator

question line next America. with from comes of Brad Our Bank of the Sills

Bradley Sills

I here launch new IAM, on exciting wanted to ask a here. question

As where don't channel of more overnight. more these approach make level signature for of things you guys here the sale. the transactional into make the happen speak getting the that to a to suite of automation. preparedness workflow know Can more consultative to you I sales from pivot you're type

you towards a kind just of If to more speak road more the strategic map a sale. there making consultative could that in transition vendor for

Allan Thygesen

Yes. Yes.

been months, mind, have it's enablement been the that's the top ongoing that over we probably the and and internally, several of company's history a largest underway has say, right program in I'd So now. last

robust on we're with partners. with to direct VSI, mentioned frictionless organize IAM we that our channel effort. that reseller more engage aspect, efforts how every teams, complementing accelerate working of partners I think further how and Day same huge time, revising is that a At is available the sales we and more distribution importance the a to our I X. and

can't So all of the eye that it. we our goes into But off take ball.

that velocity have We with an needs existing business to maintained. be also

next of overall. But we advantage had we're those, and be develop position the first, of ship I far, so able be full But need [indiscernible]. same over it both This so time, conceive those entire a so to good. I this it, several with And to take balancing and journey on know as think, want probably opportunity. will look, at to to to execute years we we mature go-to-market it our the it,

begins. now that the now think I

so And in the don't far, it. about months -- think excited optimistic has as felt XX at as feeling good I'm I company . very I ever. and DocuSign, think my is this

Operator

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

Michael Turrin

a Blake, of trough comment you had growth. the as billings in QX around terms

the play of are renewal cohorts so the factors you we expand how much that? it wanted I And driving a improvement expected How much what getting out visibility of give year? on tougher work other to as it into is that at or to chance further drives is

Blake Grayson

Sure.

quarterly And so what with this line of kind the with I talked about is in to trends. quarter regards last

-- QX have around particularly hard with we issue really the really hard so And we've got comps is renewals. X

in So really recall had on-time first and renewal XXXX, you XXXX, if QX that of particularly quite we half in volume. strong of the

we large our recall, we and our incentive that with some such made to you If begin changes pretty renewals retentions on-time saw sales gains that. from we program incentivizing [indiscernible] force and

our if prepared early that, you part billings renewals. top driven hard relative of have that. for on against comp for was a from our of Then heard by QX, outperformance QX in guide remarks to so the And we the

little into QX from So a for that. a bit pull of forward QX

kind can see. billings line half then prop the we provided in indicative in so full I back that's and in the that to the same of be quarter, And with year a that QX you bit discussion to of that into like just guide year, accelerate the last expect

Michael Turrin

Okay.

added a Or dynamics functionality, term Just of of having of pulled that we thinking longer anything kind . complexity that? better agreement ahead term broader be impactful either that's at mindful Is the into follow-on. small could in activity renewal but near here? add the just any terms change there of could be about all should anything should that the platform we

Allan Thygesen

it's to the I obviously. IM think platform, brand relative new,

we're it's So obviously of obviously, going expected guide changes diligently. billion that reflective And of nothing stuff. this any see, the Again, business. of reflect QX changes of nothing to those and -- to in fair, I kind there's which be $X against we think book kind track

that expect would going out. but would not time, nothing call to evaluate in it, from over I there's we're I particular but material So movements

Operator

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

Arsenije Matovic

is Matovic Wolfe from Alex Research. Arsenije on for Zukin This

year an outlook guidance organic first up following macro, full a for is, and asking has guidance? changed revenue your what year for not since simply So the subscription your excluding set been you revenue raised question, just basis? prior And on on on contribution have would and but Lexion, full

Blake Grayson

second E so the let first. question me answer

macro, I macro consistent, stability has year. on So through very say, been this our would

to to then and material margin. it see not . And change to on not material no we've out. we're It's not our first or And macro for operating usage your the Lexion, breaking on continued -- It's revenue improved. again then question and actually So us. consumption numbers. to side

Operator

Keirstead Our next question comes line of UBS. from the Karl with

Karl Keirstead

and being look to billings skinny numbers, around revenue Like, was was bit light. logos to it the to good hear good it's color volumes your Blake. very QX the Okay. normal stabilizing a a and new revenues But on QX, Great. being were I'll sequentially transaction we this beat good. little at Maybe and beat direct the core when and down objectively, commentary

or things It Maybe that it was it are that feels been that So actually, was you saw. must the view there support stable kind don't some offset and just of strong, numbers tank that the the like more I'm XQ. super have in improving. XQ a drive about to in it is pretty for was, stable. little a left why figure bit trying fact, out wasn't little QX fact, robust demand if, it commentary your

Blake Grayson

Sure.

the beat to comment regard the end we for your top with our So beat, on of revenue. guide

performed on of has relative I beats But I'm what we time. such. affects QX a and quarter the over sequential to relative in those drop, quite comment you company hard in pleased with that. to that that. talk how the might function there's to some you the And is, think be how to larger had forecast made historically, it's other I to referring to days think you With regard that the

QX, in as to more QX that have QX, go you well. mind from days I to so X think So there's you in keep versus QX as

some also of retention over dollar coming of sequentially And for in net on of the million is actually, but doing well the with the metrics that gross stronger quite based growth was the rate rate. guide. with that I called $XX again, of improving billings it several the So time performance retention think we that the growth account midpoint reflective the company, think, out is first in, course, with I years that is some early, of the that

say there offset suggesting. an was out So of were nothing like and you any type call would that I

Allan Thygesen

a I just significant guys been think had -- guidance. We've could to the I say more both and we've past we've you just tighten some I trying And outperformance If on precise handle forecast. now. pretty the give business that, we to got add would on good range

changing was bit little tighter. good in the solid. material demand we felt with very, it. completely Blake, very So agree we're a There very about nothing able was to It environment. I really be

and we underlying said, team. showed so Blake metrics operating improvement tthe meaningful several As actually stabilization of continue that

the numbers. stabilization And continue. we to them I the in that expect that have it show here, sentiment and does think that's So we

Operator

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

Sonak Kolar

Blake, Kolar looking be follow-up more IAM in such backdrop Murphy. This you some also through us to on mortgages, be embedded at And as hire for end a around the then concerns is can might on I'm real the see might estate, had what how for guide. longer, for the in walk just I Sonak want Allan. half of for markets the that Mark of and rate-sensitive forecast I back given the quick impacting the

far days than early faster of several initial IAM in CLM is of the ago? it years adoption, Just the trending launch so

Blake Grayson

handle see macro what the we the on on and So is side, what forecast based we know. way forecast we our we

to continues of And verticals. not as surprising terribly that be far those one go, has so as real It's been under verticals probably estate pressure.

so assumption would is general that continue. the And

because what I longer based So see risk it's don't any terrible it higher for on for is today.

for so have know improves. we our future forecasts rate in don't of the kind follow I the We on side And as second verticals nothing think us, environment let like But Allan interest make up those bird. . macro I'll opportunities guidance. when the actually aggressive.

Aleksandr Zukin

just Spring goal our been Feel. to I much acquisitions users and And applicable adopt broad those since the a that with customer configurable time space it's inside would of broadly offer point, easier a at that a to the we same more broad IAM broader got But those organizations. set already is more set . through customers is of to that at functionality significantly of were Look and while categories Yes. say CLM into and the established.

has the is a CLM but Maybe a it just much power I pretty particular much This play. was involved optimized because broader. of club it's exclusive historically think because users. been for eSignature, heavy [indiscernible] lifts broader

than that just business So . CLM over become maturity larger will expect on but curves. our I they're business, certainly different meaningfully time very

Operator

from of Iwanyc George Oppenheimer. question with And our next the line comes

George Iwanyc

seeing expand on into you Allan, you're seeing drill digital with perspective that, down and the on a strength some with could little you're And the the as provide motion what SMBs? more bit maybe self-serve efforts? you

Allan Thygesen

continuing nicely. very business grow digital we're to think I Overall, our Yes,

this our the also and effort I that but we're journey in that continue. pleased think there And have the and customers I realm, will natively improving think year digital progress we investment that is out quite and and self-serve a this functionality for as time better experience. who stayed and just just internally direct options are where go well team will that is we're with serviced And provide those better much partners free the for for digital not by resource customers, rolling year. up the and customer of as sales is lot

nice, think, I continue feeling pretty upcoming And faster we that add... create side we'll have that about So Blake, momentum. want the do good you digital on to I'm to some functionality that.

Blake Grayson

top, of side, Just our at net on XX,XXX additions, target the account kind look came on made for channel over us. of to those, targeting from the our enhancements. add we improvements bulk quarterly we've as self-service better the And marketing for

And a become as so reduced improved we've friction quarter paying customer. things this payments. as from experience move also to the also to We purchase, as with to I'll them simple to trial call regards

essentially, the we customers, reduced for have. so that launched And ACH payment we've failures also we and of number

up order on And also so that the to back self-service there's speed that well. work of channel end we kind can things in as

little bit highlighted. that to In addition to those tactical efforts more relative Allan's longer-term

Allan Thygesen

last [indiscernible] the Yes, maybe annuals broader I trends. thing because get SMB X about

business. SMB love look, So the I

slightly think now. the provides right the be We're and than mid-market right diversification are business. enterprise, robust I have very balance. that a And enterprise And now. represented SMB might a think, environment well like if think to This having I blessed we I across anything, SMB. tighter I environment S&P

very our overall, So working and a think have is we that in favor. book, balanced I

wrap call. through . to create closing, progress [indiscernible] In That's we'll you Thank I operator. and Thank for think Intelligent Agreement all the it continues customers make for for DocuSign there. joining Management you, platform. we'll the value today's okay. the excited

your we So realize continue to Thank we support you. that as vision. appreciate

Operator

concludes teleconference. This today's

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

DocuSign (DOCU) 6 Jun 242025 Q1 Earnings call transcript