Q4 2025 DocuSign Inc Earnings Call

March 13, 2025

Operator: Good afternoon, ladies and gentlemen, and thank you for joining DocuSign's Q4 fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. As a reminder, this call is being recorded, and it will be available for replay from the investor relations section of the website following the call. If anyone should require operator assistance, please press star zero on your telephone keypad. I will now pass the call over to Matthew Sonefeldt, Head of Investor Relations. Please go ahead.

Operator: Good afternoon, ladies and gentlemen, and thank you for joining DocuSign's Q4 Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. As a reminder, this call is being recorded, and it will be available for replay from the investor relations section of the website following the call. If anyone should require operator assistance, please press star zero on your telephone keypad. I will now pass the call over to Matthew Sonefeldt, Head of Investor Relations. Please go ahead.

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Speaker Change: Good afternoon, ladies and gentlemen, and thank you for joining DocuSign's fourth quarter of fiscal year 25 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer section. As a reminder, the folks being recorded and there will be available for replay from the investor relations section on the website following the call. If anyone should require operator assistance, there will be a press star zero on your child's own keypad. That's a reminder. Thank you.

Matthew Sonefeldt: Thank you, operator. Good afternoon and welcome to DocuSign's Q4 Fiscal 2025 Earnings Call. Joining me on today's call are DocuSign's CEO Allan Thygesen and CFO Blake Grayson. The press release announcing our Q4 fiscal 2025 results was issued earlier today and is posted on our investor relations website, along with a published version of our prepared report. Before we begin, let me remind everyone that some of our statements on today's call are forward-looking. We believe our assumptions and expectations related to these forward-looking statements are reasonable, but they are subject to known and unknown risks and uncertainties that may cause our actual results or performance to be materially different. In particular, our expectations regarding the pace of product innovation and factors affecting customer demand are based on our best estimates at this time and are therefore subject to change.

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

Matthew Sonefeldt: Please read and consider the risk factors in our filings with the SEC together with the content of this call. Any forward-looking statements are based on our assumptions and expectations to date, and are based on our best estimates except as required by law, and we assume no obligation to update these statements in light of future events or new information. During this call, we will present GAAP and Non-GAAP financial measures. In addition, we provide Non-GAAP weighted average share counts and information regarding free cash flows and billings. These Non-GAAP measures are not intended to be considered in isolation from a substitute for, or superior to our GAAP and Non-GAAP financial measures. We encourage you to consider all measures when analyzing their performance.

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

Speaker Change: Except as required by law, we assume no obligation to update these statements in light of future events or new information. During this call. We will present GAAP and non-GAAP financial measures. In addition, we provide non-GAAP weighted average share count and information regarding free cash flows and billings. These non-GAAP measures are not intended to be considered in isolation from a substitute for or <unk>.

To consider all measures when analyzing our performance for information regarding our non-GAAP financial information the most directly comparable GAAP measures and a quantitative reconciliation of these figures. Please refer to today's earnings press release, which can be found on our website at Investor Day, Darkies signed dot com with that I'd like to turn the call over to Alan.

Matthew Sonefeldt: For information regarding our non-GAAP financial information, the most directly comparable GAAP measures and the quantitative reconciliation of these figures, please refer to today's earnings press release, which can be found on our website at investor.docusign.com. With that, I'd like to turn the call over to Allan. The most directly comparable GAAP measures and the quantitative reconciliation of these figures, fiscal 2025 was a transformative year for DocuSign, led by the introduction of Intelligent Agreement Management, or IAM. Our vision is that DocuSign IAM establishes a new system of record that transforms how organizations create, commit to, and manage their agreements in a full-suite, AI-powered, end-to-end platform. During the year, we also improved the performance of our business, building a strong foundation to add greater customer value and drive future growth. In a full-suite.

Speaker Change: Period to our GAAP results, we encourage you to consider all measures when analyzing our performance for information regarding our non-GAAP financial information the most directly comparable GAAP measures and a quantitative reconciliation of these figures. Please refer to today's earnings press release, which can be found on our website at Investor Day Dock, you signed dot com with that I'd like to turn the call over.

Allan Thygesen: The most directly comparable GAAP measures and the quantitative reconciliation of these figures, fiscal 2025 was a transformative year for DocuSign, led by the introduction of Intelligent Agreement Management, or IAM. Our vision is that DocuSign IAM establishes a new system of record that transforms how organizations create, commit to, and manage their agreements in a full-suite, AI-powered, end-to-end platform.

Alan: Thank you, Matt and good afternoon, everyone.

Alan: Fiscal 2025 was a transformative year for Doctor side led by the introduction of intelligent agreement management or I am.

Alan: Our vision is the Doctor sign I am establishes a new system of record that transforms how organizations create commit to and manage their agreements.

Speaker Change: Alan.

Alan: Thank you, Matt and good afternoon, everyone.

Alan: Fiscal 2025 was a transformative year for doctors side led by the introduction of intelligent agreement management or I am.

Alan: Full suite.

Alan: High powered end to end platform.

Allan Thygesen: During the year, we also improved the performance of our business, building a strong foundation to add greater customer value and drive future growth. In a full-suite. Q4 revenue was $776 million, up 9% year over year, and fiscal 2025 revenue was $3 billion, up 8% year over year.

Alan: Our vision is the Doctor sign I am establishes a new system of record that transforms how organizations create commit to and manage their agreements in a full suite.

During the year, we also improved the performance of our business building, a strong foundation to add greater customer value and drive future growth.

Alan: Q4 revenue was $776 million up 9% year over year in fiscal 2025 revenue was 3 billion up 8% year over year.

Matthew Sonefeldt: Q4 revenue was $776 million, up 9% year over year, and fiscal 2025 revenue was $3 billion, up 8% year over year. IAM momentum was strong, and fundamentals across the core business continued to improve, with dollar net retention increasing to 101% in fiscal 2025. Revenue was $3 billion. In addition, we produced strong profitability with 29% Non-GAAP operating margins in Q4 and 30% in fiscal 2025, with dollar net retention increasing to 101%. Both significant increases in fiscal 2024, reflecting continued progress in our commitment to improving efficiency while prioritizing investment to re-accelerate growth. As we look to fiscal 2026, we're focused on increasing the value that we deliver to DocuSign customers as the world's leading agreement platform. We will continue to execute across our three strategic pillars.

Alan: AI powered end to end platform.

Alan: During the year, we also improved the performance of our business building, a strong foundation to add greater customer value and drive future growth.

Allan Thygesen: IAM momentum was strong, and fundamentals across the core business continued to improve, with dollar net retention increasing to 101% in fiscal 2025. Revenue was $3 billion. In addition, we produced strong profitability with 29% Non-GAAP operating margins in Q4 and 30% in fiscal 2025, with dollar net retention increasing to 101%.

Alan: I am momentum was strong and fundamentals across the core business continued to improve with dollar net retention increasing to 101% in Q4.

Alan: Q4 revenue was $776 million up 9% year over year in fiscal 2025 revenue was 3 billion up 8% year over year.

Alan: In addition, we produced strong profitability with 29% non-GAAP operating margins in Q4.

Alan: Momentum was strong and fundamentals across the core business continued to improve with dollar net retention increasing to 101% in Q4.

And 30% for fiscal 2025.

Alan: Both significant increases from fiscal 'twenty 'twenty four.

Allan Thygesen: Both significant increases in fiscal 2024, reflecting continued progress in our commitment to improving efficiency while prioritizing investment to re-accelerate growth. As we look to fiscal 2026, we're focused on increasing the value that we deliver to DocuSign customers as the world's leading agreement platform. We will continue to execute across our three strategic pillars accelerating product innovation through an ambitious AI-led product development process, involving our three routes to market and leveraging operating efficiency gains to invest in future growth. Let's dive deeper into why the future is bright, turning first to innovation.

Alan: In addition, we produced strong profitability with 29% non-GAAP operating margins in Q4.

<unk> continued progress and our commitment to improving efficiency, while prioritizing investments to reaccelerate growth.

Alan: And 30% for fiscal 2025.

Alan: As we look to fiscal 2026, we're focused on increasing the value that we deliver to doctors signed customers as the worlds leading agreement platform.

Both significant increases from fiscal 'twenty to 'twenty four.

Alan: <unk> continued progress in our commitment to improving efficiency, while prioritizing investments to reaccelerate growth.

Alan: We will continue to execute across our three strategic pillars accelerating product innovation through an ambitious AI led product roadmap.

Matthew Sonefeldt: As we look to fiscal 2026, we're focused on accelerating product innovation through an ambitious AI-led product development process, involving our three routes to market and leveraging operating efficiency gains to invest in future growth. Let's dive deeper into why the future is bright, turning first to innovation. Last spring, we introduced IAM at our momentum events, then rolled the platform out to our sales-led small and mid-core customer segments in the United States, Canada, and Australia. At the end of the year, we launched departmental-level deployment to enterprise customers while also opening up IAM availability globally. The initial launch delivered DocuSign Navigator, our intelligent agreement repository, DocuSign Maestro, our automated workflow builder, and the DocuSign App Center, where ISV partners deliver third-party apps to customers. We followed that launch by releasing DocuSign for developers to support our developer ecosystem.

Alan: As we look to fiscal 2026, we're focused on increasing the value that we deliver to doctors signed customers as the world's leading agreement platform.

Alan: Evolving our three routes to market and leveraging operating efficiency gains to invest in future growth.

Alan: We will continue to execute across our three strategic pillars accelerating product innovation through an ambitious AI led product roadmap.

Let's dive deeper into why the future is bright turning first to innovation.

Allan Thygesen: Last spring, we introduced IAM at our momentum events, then rolled the platform out to our sales-led small and mid-core customer segments in the United States, Canada, and Australia. At the end of the year, we launched departmental-level deployment to enterprise customers while also opening up IAM availability globally.

Alan: Evolving our three routes to market and leveraging operating efficiency gains to invest in future growth.

Alan: Last spring, we introduced I am at our momentum event, then roll the platform out to our sales lead small and mid market customer segment.

Alan: Let's dive deeper into why the future is bright turning first to innovation.

Alan: States, Canada and Australia.

Alan: At the end of the year, we launched departmental level deployment enterprise customers. While also opening up I am availability globally.

Alan: Last spring, we introduced I am at our momentum event, then roll the platform out to our sales lead small and mid market customer segment.

Allan Thygesen: The initial launch delivered DocuSign Navigator, our intelligent agreement repository, DocuSign Maestro, our automated workflow builder, and the DocuSign App Center, where ISV partners deliver third-party apps to customers. We followed that launch by releasing DocuSign for developers to support our developer ecosystem.

Alan: The initial launch delivered doctor sign navigator or intelligent agreement repository, Dr signed maestro, our automated workflow builder and the Doc sign App Center, where is the partners deliver third party apps to customers.

Alan: I'd States, Canada and Australia.

At the end of the year, we launched departmental level deployments to enterprise customers. While also opening up I am availability globally.

Alan: The initial launch delivered doctors signed navigator or intelligent agreement repository, Dr signed maestro, our automated workflow builder and the Doctor sign App Center, where ISP partners deliver third party apps to customers.

Alan: Followed that launch by releasing Darkey side for developers to support our developer ecosystem.

Matthew Sonefeldt: Through the acquisition of Lexion, we integrated additional powerful Agreement AI capabilities. Today, IAM customers are using Agreement AI to streamline document review and editing, extract critical insight, verify parties, and build workflows integrated with third-party applications. Some IAM customers have reduced their contract by up to 75%. You can see our full list of recent product releases in our earnings release. We hope you can join us at our April Momentum Customer Conference and Partner Day in New York, where we'll share our ambitious fiscal 2026 growth map featuring Agreement AI, innovative new workflows, and expanded ecosystems. I hope you can join us at our April Momentum Customer Conference and Partner Day in New York, all with the goal of sharing the agreement system of record. Within our omnichannel go-to-market pillar, I first want to highlight IAM's capabilities for our Momentum's enterprise customers.

Allan Thygesen: Through the acquisition of Lexion, we integrated additional powerful Agreement AI capabilities. Today, IAM customers are using Agreement AI to streamline document review and editing, extract critical insight, verify parties, and build workflows integrated with third-party applications. Some IAM customers have reduced their contract by up to 75%. You can see our full list of recent product releases in our earnings release.

Alan: And through the acquisition of <unk>, we integrated additional powerful agreement AI capabilities today.

Today I am customers are using agreement AI to streamline document review and editing extract critical insights verify parties and build workflows integrated with third party applications.

Alan: We followed that launch by releasing Doctor sign for developers to support our developer ecosystem.

Alan: And through the acquisition of <unk>, we integrated additional powerful agreement AI capabilities today.

Alan: Today I am customers are using agreement AI to streamline document review and editing extract critical insights verify parties and build workflows integrated with third party applications.

Some I am customers have reduced their contracting cycles by up to 75%.

You can see our full list of recent product releases in our earning release.

Allan Thygesen: We hope you can join us at our April Momentum Customer Conference and Partner Day in New York, where we'll share our ambitious fiscal 2026 growth map featuring Agreement AI, innovative new workflows, and expanded ecosystems. I hope you can join us at our April Momentum Customer Conference and Partner Day in New York, all with the goal of sharing the agreement system of record. Within our omnichannel go-to-market pillar, I first want to highlight IAM's capabilities for our Momentum's enterprise customers.

We hope you can join us at our April momentum customer conference and partner day in New York, where we will share our ambitious fiscal 'twenty six product roadmap featuring agreement AI innovative new workflows and expanded ecosystem power.

Alan: Some customers have reduced their contracting cycles by up to 75%.

You can see our full list of recent product releases in our earnings release.

Alan: We hope you can join us at our April momentum customer conference and partner day in New York, where we will share our ambitious fiscal 2026 product roadmap featuring agreement AI innovative new workflows and expanded ecosystem powerful new capabilities for enterprise customers.

Alan: Powerful new capabilities enterprise customers.

Alan: All with the goal, becoming the agreement system of record.

Alan: Within our Omnichannel go to market pillar.

Alan: First one a highlight I am strong momentum in.

Matthew Sonefeldt: In Q4, just the second quarter post-launch to our small and mid-market customers, IAM represented a high single-digit percentage of in-quarter deal volume for the direct channel and over 20% of direct new customer deals. Customer demand continues to exceed our expectations, indicating strong product-market fit in this segment. In fact, IAM has quickly become the fastest-growing new product in DocuSign's history. Our sellers are sharing the IAM vision with all customers and approaching the renewal process as a natural opportunity for customers to start their IAM journey. In fact, IAM has quickly become the best. Metro Credit Union is using Maestro to optimize member account maintenance workflows, reducing the time required to process automated payment. Using the renewal process in just a few seconds for customers, saving nearly 50 hours of work each month.

Allan Thygesen: In Q4, just the Q2 post-launch to our small and mid-market customers, IAM represented a high single-digit percentage of in-quarter deal volume for the direct channel and over 20% of direct new customer deals. Customer demand continues to exceed our expectations, indicating strong product-market fit in this segment. In fact, IAM has quickly become the fastest-growing new product in DocuSign's history.

In Q4, just the second quarter post launch to our small and mid market customers I am represented the high single digit percentage in quarter deal volume for the direct channel at over 20% of direct new customer deals.

Alan: All with the goal of becoming the agreement system of record.

Alan: Within our Omnichannel go to market pillar.

Alan: At first I want to highlight <unk> strong momentum.

Alan: In Q4, just the second quarter post launch to our small and mid market customers.

Alan: Customer demand continues to exceed our expectations.

Alan: Indicating strong product market fit in this segment.

Alan: Am represented a high single digit percentage of in quarter deal volume for the direct channel at over 20% of direct new customer deals.

Alan: I am has quickly become the fastest growing new product in <unk> history.

Allan Thygesen: Our sellers are sharing the IAM vision with all customers and approaching the renewal process as a natural opportunity for customers to start their IAM journey. In fact, IAM has quickly become the best. Metro Credit Union is using Maestro to optimize member account maintenance workflows, reducing the time required to process automated payment. Using the renewal process in just a few seconds for customers, saving nearly 50 hours of work each month.

Alan: Our sellers are sharing the I envisioned with all customers and approaching the renewal process has a natural opportunity for customers to start there I am journey.

Customer demand continues to exceed our expectations.

Alan: Indicating strong product market fit in this segment in fact, I am has quickly become the fastest growing new product in <unk> history.

Metro credit Union is using maestro to optimize member account maintenance workflow, reducing the time required process automated payment form five minutes to just a few seconds.

Alan: Our sellers are sharing the I envisioned with all customers and approaching the renewal process as a natural opportunity for customers to start there I am journey.

Alan: Saving nearly 50 hours of work each month.

Matthew Sonefeldt: Metro Credit Union is an enterprise IAM deployment driven by our ecosystem partner, Sandbox Banking, an nCino company, and a trusted fintech integration provider in our industry, saving nearly 50 hours of work each month. The HR team at Duncan Family Farms, a multi-regional agricultural company, is building Maestro workflows integrated with our WhatsApp capabilities to onboard multinational workers and easily set up low-friction direct deposits. The HR team at Duncan Family Farms, a multi-regional agricultural company, is building Maestro workflows integrated with our multinational workers. Customer engagement also continues to increase. A typical IAM customer now has approximately 4,000 contracts uploaded into the asset management portal. This highlights the scale of challenge companies face with agreements and demonstrates the value IAM creates by transforming this process. They now have 4,000 contracts. User adoption of IAM also continues to rise. This highlights the scale of challenge companies.

Allan Thygesen: Metro Credit Union is an enterprise IAM deployment driven by our ecosystem partner, Sandbox Banking, an nCino company, and a trusted fintech integration provider in our industry, saving nearly 50 hours of work each month. The HR team at Duncan Family Farms, a multi-regional agricultural company, is building Maestro workflows integrated with our WhatsApp capabilities to onboard multinational workers and easily set up low-friction direct deposits.

Alan: <unk> credit Union is using maestro to optimize member account maintenance workflows, reducing the time required to process automated payment forms five minutes to just a few seconds saving nearly 50 hours of work each month.

Metro credit Union is an enterprise I am deployment, driven by our ecosystem partner Sandbox banking and Encino company and.

Alan: Trusted fintech integration provider and our App Center.

Speaker Change: The HR team at Dunkin' family farms Ah multi regional agricultural company is building maestro workflows integrated with our whatsapp capabilities to onboard multinational workers and easily set up low friction direct deposit.

Alan: Pro credit Union is an enterprise deployment, driven by our ecosystem partner Sandbox banking and Encino company and.

Alan: And trusted Fintech integration provider and our App Center.

Allan Thygesen: Work that previously took days now gets done in minutes. Customer engagement also continues to increase. A typical IAM customer now has approximately 4,000 contracts uploaded into the asset management portal. This highlights the scale of challenge companies face with agreements and demonstrates the value IAM creates by transforming this complexity into actionable insights. User adoption of IAM also continues to rise.

Alan: The HR team of Duncan family farms Ah multi regional agricultural company is building maestro workflows integrated with our whatsapp capabilities to onboard multinational workers and easily set up low friction direct deposit.

Speaker Change: Work that previously took days now gets done in minutes.

Speaker Change: Customer engagement also continues to increase the typical I am customer now has approximately 4000 contracts uploaded into navigator.

Alan: Work that previously took days now gets done in minutes.

Speaker Change: This highlights the scale of challenge companies face with agreements.

Alan: Customer engagement also continues to increase the typical <unk> customer now has approximately 4000 contracts.

Speaker Change: And demonstrates the value I am creates by transforming this complexity into actionable insights.

Speaker Change: User adoption of I am also continues to rise.

<unk> loaded into navigator.

Alan: Highlights the scale of challenge companies face with agreements and.

Matthew Sonefeldt: Multi-cohort data shows consistent growth in usage, particularly for Navigator, as customers deepen their engagement with the platform. Beyond IAM, we continue to drive improvement across the core lines. In Q4, our Dollar Net Retention rate, once again particularly for Navigator, rising to 101%, an increase of more than 2 percentage points from Q4 of fiscal 2024 and the highest level. We continue to drive improvement across the core lines. Dollar Net Retention continues to benefit from improved growth retention rate and solid customer use trends, rising to 101%. We also sustained momentum in new customer growth by 10% year-over-year to nearly 1.7 million. Dollar Net Retention continues to benefit from improved growth. International and digital growth both continue to outpace the overall business and represent significant opportunities in the long term.

Allan Thygesen: Multi-cohort data shows consistent growth in usage, particularly for Navigator, as customers deepen their engagement with the platform. Beyond IAM, we continue to drive improvement across the core lines. In Q4, our Dollar Net Retention rate, once again particularly for Navigator, rising to 101%, an increase of more than 2 percentage points from Q4 of fiscal 2024 and the highest level.

Monthly cohort data shows consistent growth in usage, particularly for navigator as customers deepen their engagement with the platform.

Alan: It demonstrates the value and creates by transforming this complexity into actionable insights.

Speaker Change: Beyond I am we continued to drive improvement across the core business in Q4, our dollar net retention rate once again improved rising to 101, an increase of more than two percentage points from Q4 of fiscal 2024, and the highest level in six quarters.

User adoption of I am also continues to rise.

Alan: The cohort data shows consistent growth in usage, particularly for navigator as customers deepen their engagement with the platform.

Alan: Beyond <unk>, we continue to drive improvement across the core business in Q4, our dollar net retention rate once again improved rising to 101, an increase of more than two percentage points from Q4 of fiscal 2024, and the highest level in six quarters.

Allan Thygesen: Dollar Net Retention continues to benefit from improved growth retention rate and solid customer use trends, rising to 101%. We also sustained momentum in new customer growth by 10% year-over-year to nearly 1.7 million. International and digital growth both continue to outpace the overall business and represent significant opportunities in the long term.

Speaker Change: Net retention continues to benefit from improved gross retention and solid customer usage trends.

Speaker Change: We also saw sustained momentum in new customer growth at 10% year over year to nearly one 7 million customers.

Alan: Net retention continues to benefit from improved gross retention and solid customer usage trends.

Speaker Change: International and digital growth both continue to outpace the overall business and represent significant opportunities in the long term.

Alan: We also saw sustained momentum in new customer growth at 10% year over year to nearly one 7 million customers.

Matthew Sonefeldt: Digital self-service revenue growth accelerated for the second straight quarter, reflecting on the improvement in our self-service business. We also continue to outpace the overall business. The partner channels' contribution to the business continued to increase in Q4 and fiscal 2025, leveraging gains we've made with technology partners like Microsoft, SAP, and Salesforce, as well as growing interest from independent software vendors and global system integrators. We continue to generate growth opportunities in our core business. Avis Budget Group, a leading global car rental company, is using DocuSign to accelerate agreement generation, enhance collaboration, improve productivity, and more effectively manage supply chain. We continue to generate growth opportunities in our core business. Our Gartner-recognized DocuSign CLM product remains a market leader and top choice for customers with sophisticated enterprise workflows.

Allan Thygesen: Digital self-service revenue growth accelerated for the second straight quarter, reflecting on the improvement in our self-service business and the partner channels' contribution to the business continued to increase in Q4 and fiscal 2025, leveraging gains we've made with technology partners like Microsoft, SAP, and Salesforce, as well as growing interest from independent software vendors and global system integrators.

Speaker Change: Digital self service revenue growth.

Speaker Change: <unk> for the second straight quarter, a reflection on the improvement in our self service capability.

Alan: International and digital growth both continue to outpace the overall business and represent significant opportunities in the long term.

Speaker Change: And the partner channels contribution to the business continued to increase in Q4 and fiscal 2025, leveraging gains we've made with technology partners like Microsoft or SAP, and Salesforce as well as growing interest from independent software vendors and global system integrators.

Alan: Digital self service revenue growth.

Alan: Accelerated for the second straight quarter, a reflection on the improvement in our self service capability.

Alan: And the partner channels contribution to the business continued to increase in Q4 and fiscal 2025 leveraging gains we've made with technology partners like Microsoft.

Allan Thygesen: We continue to generate growth opportunities in our core business. Avis Budget Group, a leading global car rental company, is using DocuSign to accelerate agreement generation, enhance collaboration, improve productivity, and more effectively manage supply chain. Our Gartner-recognized DocuSign CLM product remains a market leader and top choice for customers with sophisticated enterprise workflows.

We continue to generate growth opportunities in our core business Avis budget group, a leading global car rental company is using DOCSIS side to accelerate agreement generation enhanced collaboration improve productivity and more effectively manage its supply chain.

Alan: And salesforce as well as growing interest from independent software vendors and global system integrators.

Alan: We continue to generate growth opportunities in our core business Avis budget group, a leading global car rental company is using DOCSIS side to accelerate agreement generation enhanced collaboration improved productivity and more effectively managing supply chain.

Speaker Change: Our Gartner recognized Darkey Science C. L M product remains a market leader in top choice for customers with sophisticated enterprise workflows.

Matthew Sonefeldt: Cognizant Technology Solutions, one of the world's leading professional services companies for creating digital solutions, is deploying CLM across its organization to streamline agreement processes, improve efficiency, mitigate risks, and create AI-driven workflows. In our direct sales channel, we have strong IAM momentum for small and medium-sized customer organizations. This segment represents a large opportunity for growth and customer impact in fiscal 2026, and it's where we expect the majority of near-term sales and adoption. In our direct sales channel, this year, our direct sales team will have greater ability to sell IAM across more SKUs and solutions while also focusing on more consultative solution selling, resulting in greater upsell opportunities and adoption. In parallel, we'll continue to evolve both product and go-to-market for enterprise customers. In fiscal 2026, we will continue to focus on departmental-level use case adoption within enterprise opportunities.

Allan Thygesen: Cognizant Technology Solutions, one of the world's leading professional services companies for creating digital solutions, is deploying CLM across its organization to streamline agreement processes, improve efficiency, mitigate risks, and create AI-driven workflows. In our direct sales channel, we have strong IAM momentum for small and medium-sized customer organizations.

Speaker Change: Cognizant technology solutions, one of the world's leading professional services companies for creating digital solutions is deploying CRM across its organization to streamline agreement processes improve efficiency mitigate risks and create AI driven workflows.

Alan: Our Gartner recognized Darkey science CRM product remains a market leader in top choice for customers with sophisticated enterprise workflows cockpit.

Speaker Change: In our direct sales channel, we have strong I am momentum the small and medium sized customers. This segment represents a large opportunity for growth and customer impact in fiscal 'twenty 'twenty six.

Allan Thygesen: This segment represents a large opportunity for growth and customer impact in fiscal 2026, and it's where we expect the majority of near-term sales and adoption. This year, our direct sales team will have greater ability to sell IAM across more SKUs and solutions while also focusing on more consultative solution selling, resulting in greater upsell opportunities and adoption.

Speaker Change: And it's where we expect the majority of near term sales and adoption.

Alan: In our direct sales channel, we have strong momentum for small and medium sized customers. This segment represents a large opportunity for growth and customer impact in fiscal 2026.

This year, our direct sales team will have greater ability to sell I am across more skus and solutions, while also focusing on more consultative solution selling resulting in greater upsell opportunities.

And it's where we expect the majority of near term sales and adoption.

Allan Thygesen: In parallel, we'll continue to evolve both product and go-to-market for enterprise customers. In fiscal 2026, we will continue to focus on departmental-level use case adoption within enterprise. Also, a strong partner channel will continue to support and contribute to growth with enterprise customers. We're excited by the several early IAM enterprise customer wins after the initial Q4 launch. We'll also continue to invest in our self-service channel to make it easier for customers of any size to discover, buy, and manage our product digitally.

In parallel we will continue to evolve both product and go to market for enterprise customers.

Alan: This year, our direct sales team will have greater ability to sell I am across more skus and solutions, while also focusing on more consultative solution selling we sell.

Speaker Change: 'twenty 'twenty six we will continue to focus on departmental level use case adoption within enterprises.

Alan: <unk> and greater upsell opportunities.

Matthew Sonefeldt: Also, a strong partner channel will continue to support and contribute to growth with enterprise customers. We're excited by the several early IAM enterprise customer wins after the initial Q4 launch. We'll also continue to invest in our self-service channel to make it easier for customers of any size to discover, buy, and manage our product digitally. In April, our larger direct customers will be able to add more capacity and renew their contracts to the self-service channel, and soon after, we'll unlock the ability for new and existing customers to buy IAM standard and professional plans directly from DocuSign.com in the United States, Canada, France, Germany, the UK, and Australia. Driving greater efficiencies and effectiveness across our sales and marketing efforts remains a large focus this year. In fiscal 2025, we made substantial improvements in our operating efficiency pillar.

Speaker Change: Also a strong partner channel will continue to support and contribute to growth with enterprise customers.

In parallel we will continue to evolve both product and go to market for enterprise customers.

We're excited by the several early I am enterprise customer wins after the initial Q4 launch.

Alan: In fiscal 'twenty 'twenty six we will continue to focus on departmental level use case adoption within enterprises.

Alan: Also a strong partner channel will continue to support and contribute to growth with enterprise customers.

Speaker Change: We will also to continue to invest in our self service channel to make it easier for customers of any size to discover buy and manage our products digitally.

We're excited by the several early I am enterprise customer wins.

Allan Thygesen: In April, our larger direct customers will be able to add more capacity and renew their contracts to the self-service channel, and soon after, we'll unlock the ability for new and existing customers to buy IAM standard and professional plans directly from DocuSign.com in the United States, Canada, France, Germany, the UK, and Australia. Driving greater efficiencies and effectiveness across our sales and marketing efforts remains a large focus this year. In fiscal 2025, we made substantial improvements in our operating efficiency pillar.

In April our larger direct customers will be able to add more capacity and renew their contracts via self serve.

Alan: After the initial Q4 launch.

Alan: We will also to continue to invest in our self service channel to make it easier for customers of any size to discover buy and manage our products digitally.

Speaker Change: And soon after we will unlock the ability for new and existing customers to buy I am standard and professional plans directly from Doctor sign Dot com in the United States, Canada, France, Germany, the UK and Australia.

Alan: In April our larger direct customers will be able to add more capacity and renew their contracts via self serve.

Alan: And soon after we will unlock the ability for new and existing customers to buy I am standard and professional plans directly from Doctor sign Dot com in the United States, Canada, France, Germany, the UK and Australia.

Driving greater efficiencies and effectiveness across our sales and marketing efforts remains a large focus this year.

In fiscal 2025, we made substantial improvements in our operating efficiency pillar.

Driving greater efficiencies and effectiveness across our sales and marketing efforts remains a large focus this year.

Speaker Change: Our full year operating margin increased by four points.

Matthew Sonefeldt: Our full-year operating margins increased by 4 points this year and by nearly 10 points over the past two years. We've also become significantly more cash flow generative over the past two years, producing over $900 million in free cash flow and deploying nearly 75% of the cash flow over the past two years. In fiscal 2026, our priority is to retain the profitability gains we've made during the past two years while making the necessary investments to accelerate growth. Beyond fiscal 2026, as growth increases, we believe we will create further profitability and margin gains while driving towards our most important long-term financial goal of re-accelerating to sustainable, double-digit top-line growth. As growth increases, Blake will provide more detail about our fiscal 2026 outlook in his remarks. In closing, DocuSign made incredible progress in fiscal 2025, and we're encouraged by customer enthusiasm about the IAM platform.

Allan Thygesen: Our full-year operating margins increased by 4 points this year and by nearly 10 points over the past two years. We've also become significantly more cash flow generative over the past two years, producing over $900 million in free cash flow and deploying nearly 75% of it back to shareholders over the past two years. In fiscal 2026, our priority is to retain the profitability gains we've made during the past two years while making the necessary investments to accelerate growth.

Speaker Change: By nearly 10 points over the past two years.

Alan: In fiscal 2025, we made substantial improvements in our operating efficiency pillar.

Speaker Change: We've also becomes significantly more cash flow generative over the past two years producing over $900 million in free cash flow and deploying nearly 75% of it back to shareholders and share repurchases.

Alan: Our full year operating margin increased by four points.

Alan: By nearly 10 points over the past two years.

Speaker Change: In fiscal 'twenty 'twenty six our priority is to retain the profitability gains we've made during the past two years, while making the necessary investments to accelerate growth.

We've also become significantly more cash flow generative over the past two years producing over $900 million in free cash flow and deploying nearly 75% of it back to shareholders and share repurchases.

Allan Thygesen: Beyond fiscal 2026, as growth increases, we believe we will create further profitability and margin gains while driving towards our most important long-term financial goal of re-accelerating to sustainable, double-digit top-line growth. Blake will provide more detail about our fiscal 2026 outlook in his remarks. In closing, DocuSign made incredible progress in fiscal 2025, and we're encouraged by customer enthusiasm about the IAM platform.

Speaker Change: <unk> fiscal 2026 as growth increases we believe we will create further profitability and margin gains while driving towards our most important long term financial goal of re accelerating to sustainable double digit topline growth.

Speaker Change: In fiscal 2026, our priority is to retain the profitability gains we've made during the past two years, while making the necessary investments to accelerate growth.

Speaker Change: Blake will provide more detail about our fiscal 2026 outlook in his remarks.

Speaker Change: In closing.

Speaker Change: <unk> signed meeting credible progress in fiscal 2020 five.

Speaker Change: And we're encouraged by customer enthusiasm about the I M platform.

Speaker Change: Blake will provide more detail about our fiscal 2026 outlook in his remarks.

Matthew Sonefeldt: With IAM, we're building an AI-powered end-to-end system of records that operates at scale and enables organizations of all sizes to manage their agreements and create value from their agreement data. I want to thank the entire team for their commitment and hard work in increasing the pace and scale of innovation to manage their agreements. The past year, we're well-positioned to pursue the significant opportunity that lies ahead. Now, I'll turn it over to Blake to discuss our financial results. Thanks, Allan, and good afternoon, everyone. In fiscal 2025, we focused on stabilizing and improving our core business while building a foundation for future growth through our three strategic pillars: accelerating product innovation, strengthening our omnichannel go-to-market capabilities, and increasing our operating efficiency. Q4 results delivered substantial progress towards these initiatives.

Allan Thygesen: With IAM, we're building an AI-powered end-to-end system of records that operates at scale and enables organizations of all sizes to manage their agreements and create value from their agreement data. I want to thank the entire team for their commitment and hard work in increasing the pace and scale of innovation at DocuSign. The past year, marked a turning point for DocuSign and we're well-positioned team pursue the significant opportunity that lies ahead. Now, I'll turn it over to Blake to discuss our financial results.

Speaker Change: With I am we're building an AI powered end to end system of record that operates at scale and enables organizations of all sizes to manage their agreements and create value from their agreement data.

Speaker Change: In closing.

Speaker Change: <unk> signed meeting credible progress in fiscal 2025.

Speaker Change: And we're encouraged by customer enthusiasm about the iam platform.

Speaker Change: I want to thank the entire team for their commitment and hard work and decreasing the pace and scale of innovation a doctor sign.

Speaker Change: With I am we are building an AI powered end to end system of record that operates at scale and enables organizations of all sizes to manage their agreements and create value from their agreement data.

Speaker Change: The past year marked attorney points Pataki sign and we're well positioned to pursue the significant opportunity that lies ahead.

I want to thank the entire team for their commitment and hard work and increasing the pace and scale of innovation a doctor sign.

Speaker Change: Now I'll turn it over to Blake to discuss our financial results.

Blake Grayson: Thanks, Allan, and good afternoon, everyone. In fiscal 2025, we focused on stabilizing and improving our core business while building a foundation for future growth through our three strategic pillars: accelerating product innovation, strengthening our omnichannel go-to-market capabilities, and increasing our operating efficiency. Q4 results delivered substantial progress towards these initiatives.

Blake: Thanks, Alan and good afternoon, everyone in fiscal 2025, we focused on stabilizing and improving our core business, while building a foundation for future growth through our three strategic pillars accelerating product innovation strengthening our omnichannel go to market capabilities and increasing our operating efficiency.

Speaker Change: The past year marked a turning point if you talk to sign and we are well positioned to pursue the significant opportunity that lies ahead.

Speaker Change: Now I'll turn it over to Blake to discuss our financial results.

Blake: Thanks, Alan and good afternoon, everyone and fiscal 2025, we focused on stabilizing and improving our core business, while building a foundation for future growth through our three strategic pillars accelerating product innovation strengthening our omnichannel go to market capabilities and increasing our operating efficiency.

Q4 results delivered substantial progress towards these initiatives the core business once again improved with both a rising dollar net retention rate and continued growth in customer usage, while I am maintained strong early performance in both product delivery and customer adoption.

Matthew Sonefeldt: The core business once again improved with both a rising Dollar Net Retention rate and continued growth in customer usage, while IAM maintained strong early performance in both product delivery and customer adoption. We also continue to drive significant gains in profitability from an efficiency focus across the company. Q4 total revenue was $776 million, and subscription revenue was $758 million, both up 9% year-over-year, slightly higher than our full-year fiscal 2025 growth rates of 8%. Q4 billings were $923 million, up 11% year-over-year, and full-year fiscal 2025 billings were up 7% year-over-year. Our performance in Q4 billings relative to our forecast was driven primarily by three factors. First, approximately half of the beat was driven by higher early renewals, including those influenced by increasing consumption trends where customers add extra capacity before their existing contracts expire.

Blake Grayson: The core business once again improved with both a rising Dollar Net Retention rate and continued growth in customer usage, while IAM maintained strong early performance in both product delivery and customer adoption. We also continue to drive significant gains in profitability from an efficiency focus across the company. Q4 total revenue was $776 million, and subscription revenue was $758 million, both up 9% year-over-year, slightly higher than our full-year fiscal 2025 growth rates of 8%. Q4 billings were $923 million, up 11% year-over-year, and full-year fiscal 2025 billings were up 7% year-over-year.

Blake: We also continued to drive significant gains in profitability from an efficiency focus across the company.

Blake: Q4, total revenue was $776 million and subscription revenue was $758 million, both up 9% year over year slightly higher than our full year fiscal 2025 growth rates of 8%.

We also continued to drive significant gains in profitability from an efficiency focus across the company.

Speaker Change: Q4, total revenue was $776 million and subscription revenue was $758 million, both up 9% year over year slightly higher than our full year fiscal 2025 growth rates of 8%.

Blake: Q4, billings were $923 million up 11% year over year and full year fiscal 'twenty twenty-five billings were up 7% year over year.

Blake Grayson: Our performance in Q4 billings relative to our forecast was driven primarily by three factors. First, approximately half of the beat was driven by higher early renewals, including those influenced by increasing consumption trends where customers add extra capacity before their existing contracts expire. That dynamic also drove some of the Q4 revenue beat versus our forecast. The remaining half of the billings beat were driven by the other two factors, higher IAM billings as well as more deals shifting to annual billing time. While we invoice the vast majority of contracts upfront and annually, we saw the rate increase slightly in Q4, which impacts current quarter billing.

Blake: Outperformance in Q4 billings relative to our forecast was driven primarily by three factors.

Speaker Change: Q4, billings were $923 million up 11% year over year and full year of fiscal 2025 billings were up 7% year over year.

Blake: First approximately half of the beat was driven by higher early renewals, including those influenced by increasing consumption trends, where customers add extra capacity before their existing contract expires that dynamic also drove some of the Q4 revenue outperformance versus our forecast.

Speaker Change: Outperformance in Q4 billings relative to our forecast was driven primarily by three factors.

Matthew Sonefeldt: That dynamic also drove some of the Q4 revenue beat versus our forecast. The remaining half of the billings beat were driven by the other two factors, higher IAM billings as well as more deals shifting to annual billing time. While we invoice the vast majority of contracts upfront and annually, we saw the rate increase slightly in Q4, which impacts current quarter billing. As it relates to early renewals, we are making a concerted effort in fiscal year 2026 to focus our go-to-market cycles more deeply on those with expansion opportunities and drive higher on-time renewals for those without expansion. The dollar net retention rate improved to 101% in Q4, up from 100% in Q3 and from the historical low of 98% in Q4 of fiscal 2024. Improvements in gross retention continue to be the primary driver of overall DNR improvement.

Speaker Change: First approximately half of the beat was driven by higher early renewals, including those influenced by increasing consumption trends, where customers add extra capacity before their existing contract expires that dynamic also drove some of the Q4 revenue outperformance versus our forecast.

The remaining half of the billings beat were driven by the other two factors higher I am billings as well as more deals shifting to annual billing terms, while we invoiced. The vast majority of contracts upfront and annually. We saw the rate increased slightly in Q4, which impacts current quarter billings.

Speaker Change: The remaining half of the billings beat were driven by the other two factors higher I am billings as well as more deals shifting to annual billing terms, while we invoice the vast majority of contracts upfront and annually. We saw the rate increased slightly in Q4, which impacts current quarter billings.

Blake Grayson: As it relates to early renewals, we are making a concerted effort in fiscal year 2026 to focus our go-to-market cycles more deeply on those with expansion opportunities and drive higher on-time renewals for those without expansion. The dollar net retention rate improved to 101% in Q4, up from 100% in Q3 and from the historical low of 98% in Q4 of fiscal 2024. Improvements in gross retention continue to be the primary driver of overall DNR improvement.

Blake: As it relates to early renewals, we are making a concerted effort in fiscal year 2026 to focus our go to market cycles more deeply on those with expansion opportunities and drive higher on time renewals for those without expansion.

As it relates to early renewals, we are making a concerted effort in fiscal year 2020 to focus our go to market cycles more deeply on those with expansion opportunities and drive higher on time renewals for those without expansion.

The dollar net retention rate improved to 101% in Q4 up from 100% in Q3 and from the historical low of 98% in Q4 of fiscal 'twenty 'twenty four.

Blake: Improvements in gross retention continued to be the primary driver of overall DNR improvement.

The dollar net retention rate improved to 101% in Q4 up from 100% in Q3 and from the historical low of 98% in Q4 of fiscal 2024.

Matthew Sonefeldt: Over the past 18 months, we have put a growing focus on improving our engagement with customers through better business operations, sales compensation design, and an improved solution selling driver of overall. We are proud of the progress we have made this year in DNR, and we recognize that we have remaining opportunities for improvement. Also, Dollar Net Retention benefits from consistent year-over-year growth in both envelope spent and consumption. Customer consumption, a measure of contract utilization, increased year-over-year in Q4 in nearly every industry vertical and customer segment. We expect Dollar Net Retention to be flat in Q1 of 2026 and then moderately improve throughout the year based on both incremental improvements in gross retention as well as the growing contribution from IAM upsell opportunities. We expect Dollar Net Retention to be flat in Q4. Total customers grew 10% year-over-year, approaching 1.7 million.

Blake Grayson: Over the past 18 months, we have put a growing focus on improving our engagement with customers through better business operations, sales compensation design, and an improved solution selling driver of overall. We are proud of the progress we have made this year in DNR, and we recognize that we have remaining opportunities for improvement. Also, Dollar Net Retention benefits from consistent year-over-year growth in both envelope spent and consumption.

Blake: Over the past 18 months, we've put a growing focus on improving our engagement with customers through better business operations sales compensation design and an improved solution selling motion.

Speaker Change: Improvements in gross retention continued to be the primary driver of overall DNR improvement.

Blake: We are proud of the progress we have made this year and DNR and we recognize that we have remaining opportunities for improvement.

Speaker Change: Over the past 18 months, we've put a growing focus on improving our engagement with customers through better business operations sales compensation design and an improved solution selling motion.

Blake: Also dollar net retention benefitted from consistent year over year growth in both envelope scent and consumption.

Blake Grayson: Customer consumption, a measure of contract utilization, increased year-over-year in Q4 in nearly every industry vertical and customer segment. We expect Dollar Net Retention to be flat in Q1 of 2026 and then moderately improve throughout the year based on both incremental improvements in gross retention as well as the growing contribution from IAM upsell opportunities. In Q4, total customers grew 10% year-over-year, approaching 1.7 million.

Speaker Change: We are proud of the progress we have made this year and DNR and we recognize that we have remaining opportunities for improvement.

Blake: Customer consumption, a measure of contract utilization increased year over year in Q4, and nearly every industry vertical and customer segment.

Speaker Change: Also dollar net retention benefitted from consistent year over year growth in both envelope scent and consumption.

Blake: We expect dollar net retention to be flat in Q1 of 2026, and then moderately improve throughout the year based on both incremental improvements in gross retention as well as the growing contribution from I am upsell opportunities.

Speaker Change: Customer consumption, a measure of contract utilization increased year over year in Q4, and nearly every industry vertical and customer segments.

We expect dollar net retention to be flat in Q1 of 2026, and then moderately improve throughout the year based on both incremental improvements in gross retention as well as the growing contribution from I am upsell opportunities.

Blake: In Q4 total customers grew 10% year over year approaching $1 7 million.

Matthew Sonefeldt: Our continued momentum in customer growth highlights the value of investing in diverse routes to markets and geographies. Additionally, we continue to believe that the breadth and scale of our customer base provide a strong foundation for the continued growth of the IAM platform. Customer growth highlights the value of our customer base. The number of large customers spending over $300,000 annually increased both year-over-year and quarter-over-quarter to 1,131 in Q4. This was our strongest quarter for large customer growth in two years. In addition, investments in our self-service motion continue to deliver strong results. In Q4, digital revenue growth accelerated for the second consecutive quarter on the back of initiatives to make it easier for customers to self-service account upgrades and grow their business with. Continue to deliver strong results.

Blake Grayson: Our continued momentum in customer growth highlights the value of investing in diverse routes to markets and geographies. Additionally, we continue to believe that the breadth and scale of our customer base provide a strong foundation for the continued growth of the IAM platform. The number of large customers spending over $300,000 annually increased both year-over-year and quarter-over-quarter to 1,131 in Q4.

Blake: Our continued momentum in customer growth highlights the value of investing in diverse routes to market and geographies.

Speaker Change: In Q4 total customers grew 10% year over year approaching $1 7 million or.

Blake: Additionally, we continue to believe that the breadth and scale of our customer base provide a strong foundation for the continued growth of the I M platform.

Speaker Change: Our continued momentum in customer growth highlights the value of investing in diverse routes to market and geographies. Additionally.

Blake: The number of large customers spending over $300000 annually in both year over year and quarter over quarter to 1131 in Q4.

Speaker Change: Additionally, we continue to believe that the breadth and scale of our customer base provide a strong foundation for the continued growth of the iam platform.

Blake Grayson: This was our strongest quarter for large customer growth in two years. In addition, investments in our self-service motion continue to deliver strong results. In Q4, digital revenue growth accelerated for the second consecutive quarter on the back of initiatives to make it easier for customers to self-service account upgrades and grow their business with with DocuSign. In fiscal year 2026, self-service and PLG programs will remain an investment focus area to reduce friction and improve the customer experience across all customer sizes and segments, including those that historically were sales-led. As we continue to make gains in self-service motion, it provides us with an opportunity in fiscal 2026 to reinvest in higher-value sales motions and IAM platform development.

Blake: This was our strongest quarter for large customer growth in two years.

The number of large customers spending over $300000 annually increased both year over year and quarter over quarter to 1131 in Q4.

Blake: In addition investments in our self service motion continued to deliver strong results in Q4 digital revenue growth accelerated for the second consecutive quarter on the back of initiatives to make it easier for customers to self service account upgrades and grow their business with Darkies home and.

This was our strongest quarter for large customer growth in two years.

In addition investments in our self service motion continued to deliver strong results in Q4 digital revenue growth accelerated for the second consecutive quarter on the back of initiatives to make it easier for customers to self service account upgrades and grow their business with Darkies home and.

Matthew Sonefeldt: In fiscal year 2026, self-service and PLG programs will remain an investment focus area to reduce friction and improve the customer experience across all customer sizes and segments, including those that historically were sales-led. As we continue to make gains in self-service motion, it provides us with an opportunity in fiscal 2026 to reinvest in higher-value sales motions and IAM platform development. Progress in self-service allows us to continue evolving our go-to-market motions, create additional sales capacity, and provide increased future opportunities. As Allan mentioned, we are seeing encouraging signs of strong initial customer demand for the IAM platform. In Q4, a high single-digit percentage of direct customer deal volume included IAM, representing a low single-digit percentage share of our total subscription recurring revenue book of business.

Blake: In fiscal year 2026, self service N P. L. G programs will remain an investment focus area to reduce friction and improve the customer experience across all customer sizes and segments, including those that historically where sales led.

Speaker Change: In fiscal year, 2026, self service and PMG programs will remain an investment focus area to reduce friction and improve the customer experience across all customer sizes and segments, including those that historically where sales lead.

As we continue to make gains in self service motions. It provides us with an opportunity in fiscal 'twenty or 'twenty six to reinvest in higher value sales motions and I M platform development.

Blake Grayson: Progress in self-service allows us to continue evolving our go-to-market motions, create additional sales capacity, and provide increased future opportunities. As Allan mentioned, we are seeing encouraging signs of strong initial customer demand for the IAM platform. In Q4, a high single-digit percentage of direct customer deal volume included IAM, representing a low single-digit percentage share of our total subscription recurring revenue book of business.

Blake: Progress in self service allows us to continue evolving our go to market motion create additional sales capacity and provide increased future operating leverage.

Speaker Change: As we continue to make gains in self service motions. They provides us with an opportunity in fiscal 2026 to reinvest in higher value sales motions and iam platform development.

As Alan mentioned, we are seeing encouraging signs of strong initial customer demand for the I M platform in Q4, a high single digit percentage of direct customer deal volume included I am representing a low single digit percentage share of our total subscription recurring revenue book of business.

Blake: Progress in self service allows us to continue evolving our go to market motion create additional sales capacity and provide increased future operating leverage.

As Alan mentioned, we are seeing encouraging signs of strong initial customer demand for the iam platform in Q4, a high single digit percentage of direct customer deal volume included I am representing a low single digit percentage share of our total subscription recurring revenue book of business.

Matthew Sonefeldt: We expect this IAM contribution to grow this fiscal year and anticipate it representing a low double-digit percentage share of our total subscription recurring revenue book of business by Q4 of fiscal 2026. International revenue in Q4 represented 28% of total revenue and grew 12% year-over-year. With improved stability and the launch of IAM in North America, we are seeing a changing dynamic across geographies. The domestic US business has started to re-accelerate, while the international business, which is still growing faster on a relative basis, encountered growth headwinds in fiscal 2025. The Q4 launch of IAM outside of North America, where we will refocus our attention on upsell opportunities within our install base, combined with a stronger partner channel, creates a significant long-term international growth opportunity that we remain excited about in fiscal 2026 and beyond.

Blake Grayson: We expect this IAM contribution to grow this fiscal year and anticipate it representing a low double-digit percentage share of our total subscription recurring revenue book of business by Q4 of fiscal 2026. International revenue in Q4 represented 28% of total revenue and grew 12% year-over-year. With improved stability and the launch of IAM in North America, we are seeing a changing dynamic across geographies.

We expect this I am contribution to grow this fiscal year and anticipated representing a low double digit percentage share of our total subscription recurring revenue book of business by Q4 of fiscal 2026.

Blake: We expect this I am contribution to grow this fiscal year and anticipated representing a low double digit percentage share of our total subscription recurring revenue book of business by Q4 of fiscal 2026.

Blake: International revenue in Q4 represented 28% of total revenue and grew 12% year over year with improved stability and the launch of I am in North America, we are seeing a changing dynamic across geographies. The domestic U S business has started to reaccelerate, while the international business, which is still growing faster on a.

Blake Grayson: The domestic US business has started to re-accelerate, while the international business, which is still growing faster on a relative basis, encountered growth headwinds in fiscal 2025. The Q4 launch of IAM outside of North America, where we will refocus our attention on upsell opportunities within our install base, combined with a stronger partner channel, creates a significant long-term international growth opportunity that we remain excited about in fiscal 2026 and beyond.

Blake: International revenue in Q4 represented 28% of total revenue and grew 12% year over year with improved stability and the launch of <unk> in North America, we are seeing a changing dynamic across geographies. The domestic U S business has started to reaccelerate, while the international business, which is still growing faster on a.

Blake: The basis encountered growth headwinds in fiscal 2025.

Blake: The Q4 launch of I am outside of North America.

Blake: We will refocus our attention on up sell opportunities within our install base combined with a stronger partner channel creates a significant long term international growth opportunity that we remain excited about in fiscal 2026 and beyond.

Blake: The basis encountered growth headwinds in fiscal 2025.

Blake: The Q4 launch of I am outside of North America, where we will refocus our attention on up sell opportunities within our installed base combined with a stronger partner channel creates a significant long term international growth opportunity that we remain excited about in fiscal 2026 and beyond.

Matthew Sonefeldt: Although it is still early for IAM internationally, Q4 IAM deal volume in Europe and Latin America combined were up 6 times from Q3. Turning to the financials, our focus on operating efficiency initiatives drove strong results this quarter and in fiscal 2025. Non-GAAP gross margin for Q4 was 82.3%, down approximately 20 basis points from the prior year, as benefits of higher revenue during the quarter mostly offset the impact of additional cloud migration costs. For fiscal 2025, non-GAAP gross margin was 82.2%, also down slightly on a year-over-year basis. As discussed last quarter, gross margins have been impacted due to the ongoing cloud infrastructure migration, resulting in additional expenses associated with this transition. We expect a larger gross margin impact in fiscal 2026 as we complete the bulk of that migration in fiscal 2026, before evening in fiscal year 2027 and beyond.

Blake Grayson: Although it is still early for IAM internationally, Q4 IAM deal volume in Europe and Latin America combined were up 6x from Q3. Turning to the financials, our focus on operating efficiency initiatives drove strong results this quarter and in fiscal 2025. Non-GAAP gross margin for Q4 was 82.3%, down approximately 20 basis points from the prior year, as benefits of higher revenue during the quarter mostly offset the impact of additional cloud migration costs.

Blake: Though it is still early for I am internationally Q4, I am deal volume in Europe, and Latin America combined were up six times from Q3.

Blake: Turning to the financials, our focus on operating efficiency initiatives drove strong results this quarter and in fiscal 2025.

Although it is still early for I am internationally Q4, I am deal volume in Europe, and Latin America combined were up six times from Q3.

Blake: non-GAAP gross margin for Q4 was 82, 3% down approximately 20 basis points from the prior year as benefits of higher revenue during the quarter, mostly offset the impact of additional cloud migration costs.

Blake: Turning to the financials, our focus on operating efficiency initiatives drove strong results this quarter and in fiscal 2025.

Blake Grayson: For fiscal 2025, non-GAAP gross margin was 82.2%, also down slightly on a year-over-year basis. As discussed last quarter, gross margins have been impacted due to the ongoing cloud infrastructure migration, resulting in additional expenses associated with this transition. We expect a larger gross margin impact in fiscal 2026 as we complete the bulk of that migration in fiscal 2026, before evening in fiscal year 2027 and beyond.

Blake: For fiscal 2025, non-GAAP gross margin was 82, 2% also down slightly on a year over year basis as discussed last quarter gross margins have been impacted due to the ongoing cloud infrastructure migration, resulting in additional expenses associated with this transition.

Blake: For fiscal 2025, non-GAAP gross margin was 82, 2% also down slightly on a year over year basis.

Blake: We expect a larger gross margin impact in fiscal 2026, as we complete the bulk of that migration in fiscal 'twenty 'twenty sex.

Blake: As discussed last quarter gross margins have been impacted due to the ongoing cloud infrastructure migration, resulting in additional expenses associated with this transition.

Blake: Before easing in fiscal year 2027 and beyond.

Blake: non-GAAP operating income for Q4 was $224 million up 25% year over year, resulting in a 28, 8% operating margin Q4 operating margin was up 3.8 percentage points versus last year and significantly improved over the 23, 6% operating margin from two years ago.

Matthew Sonefeldt: Non-GAAP operating income for Q4 was $224 million, up 25% year-over-year, resulting in a 28.8% operating margin in fiscal 2026. Q4 operating margin was up 3.8 percentage points versus last year and significantly improved over the 23.6% operating margin from two years ago, resulting in a. Non-GAAP operating income for fiscal 2025 was $886 million, also up 25% year-over-year, resulting in a 29.8% operating margin versus 25.8% in fiscal 2024 and 20.5% in fiscal 2023. We have made significant improvements in profitability over the last two years and will continue to prioritize efficiency versus 25%. While making critical investments in areas like R&D. We ended Q4 with 6,838 employees versus 6,840 at the end of fiscal year 2024, essentially flat year-over-year including our acquisition of Lexion.

Blake Grayson: Non-GAAP operating income for Q4 was $224 million, up 25% year-over-year, resulting in a 28.8% operating margin in fiscal 2026. Q4 operating margin was up 3.8 percentage points versus last year and significantly improved over the 23.6% operating margin from two years ago. Non-GAAP operating income for fiscal 2025 was $886 million, also up 25% year-over-year, resulting in a 29.8% operating margin versus 25.8% in fiscal 2024 and 20.5% in fiscal 2023.

Blake: We expect a larger gross margin impact in fiscal 2026, as we complete the bulk of that migration in fiscal 2020 before easing in fiscal year 2027 and beyond.

Blake: non-GAAP operating income for Q4 was $224 million up 25% year over year, resulting in a 28, 8% operating margin Q4 operating margin was up three eight percentage points versus last year and significantly improved over the 23, 6% operating margin from two years ago.

Blake: non-GAAP operating income for fiscal 'twenty twenty-five was 886 million also up 25% year over year, resulting in a 29, 8% operating margin versus 25, 8% in fiscal 'twenty 'twenty, four and 25% in fiscal of 2023.

Blake: non-GAAP operating income for fiscal 2025 was 886 million also up 25% year over year, resulting in a 29, 8% operating margin versus 25, 8% in fiscal 2024 and 25% in fiscal of 2023.

Blake Grayson: We have made significant improvements in profitability over the last two years and will continue to prioritize efficiency versus 25%. While making critical investments in areas like R&D. We ended Q4 with 6,838 employees versus 6,840 at the end of fiscal year 2024, essentially flat year-over-year including our acquisition of Lexion.

Blake: We've made significant improvements in profitability over the last two years and will continue to prioritize efficiency, while making critical investments in areas like R&D.

Blake: We ended Q4 with 6838 employees versus 6840 at the end of fiscal year, 2024, essentially flat year over year, including our acquisition of Alexia.

Blake: We've made significant improvements in profitability over the last two years and will continue to prioritize efficiency, while making critical investments in areas like R&D.

Matthew Sonefeldt: We remain deliberate in our hiring approach to align with key initiatives and are mindful of hiring locations based on cost and skills required for fiscal year 2024. In Q4, we delivered $280 million of Free Cash Flow, a 36% margin. We remain deliberate. Our Free Cash Flow margin improved by approximately 1 percentage point from the prior year, driven by increased collections efficiency and higher Q4 billing. For fiscal 2025, we delivered $920 million of Free Cash Flow, a 31% margin. More than double the annual Free Cash Flow we generated two years ago. Our Free Cash Flow margin for the year trended slightly higher versus non-GAAP operating margin, a trend we expect to continue for fiscal 2026, driven mostly by the strength in our forecasted billing spend. Our balance sheet remains strong, closing the quarter with $1.1 billion in cash, cash equivalents, and investments.

Blake Grayson: We remain deliberate in our hiring approach to align with key initiatives and are mindful of hiring locations based on cost and skills required for fiscal year 2024. In Q4, we delivered $280 million of free cash flow, a 36% margin. Our free cash flow margin improved by approximately 1 percentage point from the prior year, driven by increased collections efficiency and higher Q4 billing.

Blake: We remain deliberate in our hiring approach to align with key initiatives and are mindful of hiring locations based on cost and skills required.

We ended Q4 with 6838 employees versus 6840 at the end of fiscal year, 2024, essentially flat year over year, including our acquisition of lexicon.

Blake: In Q4, we delivered $280 million of free cash flow, a 36% margin or free cash flow margin improved by approximately one percentage point from the prior year, driven by increased collections efficiency and higher in quarter billings.

Blake: We remain deliberate in our hiring approach to align with key initiatives and are mindful of hiring locations based on cost and skills required.

In Q4, we delivered $280 million of free cash flow, a 36% margin or free cash flow margin improved by approximately one percentage point from the prior year, driven by increased collections efficiency and higher in quarter billings.

Blake Grayson: For fiscal 2025, we delivered $920 million of free cash flow, a 31% margin. More than double the annual free cash flow we generated two years ago. Our free cash flow margin for the year trended slightly higher versus non-GAAP operating margin, a trend we expect to continue for fiscal 2026, driven mostly by the strength in our forecasted billing spend. Our balance sheet remains strong, closing the quarter with $1.1 billion in cash, cash equivalents, and investments.

Blake: For fiscal 2025, we delivered $920 million of free cash flow of 31% margin and more than double the annual free cash flow, we generated two years ago.

Blake: Our free cash flow margin for the year trended slightly higher versus non-GAAP operating margins a trend we expect to continue for fiscal 'twenty 'twenty driven.

For fiscal 2025, we delivered $920 million of free cash flow of 31% margin and more than double the annual free cash flow, we generated two years ago.

Blake: Driven mostly by the strength in our forecasted billings growth.

Blake: Our balance sheet remains strong closing the quarter with $1 1 billion in cash cash equivalents and investments we have no debt on the balance sheet. This financial stability combined with consistent free cash flow generation enables us to invest in the business. While also opportunistically returning capital to shareholders.

Our free cash flow margin for the year trended slightly higher versus non-GAAP operating margins a trend we expect to continue for fiscal 2026, driven mostly by the strength in our forecasted billings growth.

Matthew Sonefeldt: We have no debt on the balance sheet. This financial stability, combined with consistent free cash flow generation, enables us to invest in the business while also holistically returning capital to shareholders. In Q4, we repurchased $162 million of stock. For fiscal 2025, we repurchased a total of $684 million of stock, using approximately 75% of our annual free cash flow generation. This rate is closer to 100% for the year when including the cash utilized to cover taxes on RSU. We have $608 million remaining under our current repurchase authorization, and we expect to continue to opportunistically repurchase shares as part of our capital. Regarding the cost of our equity programs, our Q4 compensation expense as a percentage of revenue was 19.3%, down over 3 percentage points from the prior year.

Blake Grayson: We have no debt on the balance sheet. This financial stability, combined with consistent free cash flow generation, enables us to invest in the business while also holistically returning capital to shareholders. In Q4, we repurchased $162 million of stock. For fiscal 2025, we repurchased a total of $684 million of stock, using approximately 75% of our annual free cash flow generation.

In Q4, we repurchased $162 million of stock through share buyback.

Blake: For fiscal 2025, we repurchased a total of 684 million of stock using approximately 75% of our annual free cash flow generation. This rate is closer to 100% for the year when including the cash utilized to cover taxes on RSC vesting.

Blake: In Q4, we repurchased $162 million of stock through share buybacks for fiscal 2025, we repurchased a total of 684 million of stock using approximately 75% of our annual free cash flow generation. This rate is closer to 100% for the year when including the cash utilized to cover taxes.

Blake Grayson: This rate is closer to 100% for the year when including the cash utilized to cover taxes on RSU. We have $608 million remaining under our current repurchase authorization, and we expect to continue to opportunistically repurchase shares as part of our capital. Regarding the cost of our equity programs, our Q4 compensation expense as a percentage of revenue was 19.3%, down over 3 percentage points from the prior year.

Blake: We have $608 million remaining under our current repurchase authorization and we expect to continue to opportunistically repurchase shares as part of our capital allocation strategy.

Blake: Regarding the cost of our equity programs, our Q4 stock compensation expense as a percentage of revenue was 19, 3% down over three percentage points from the prior year.

Blake: RSC vesting.

Blake: We have $608 million remaining under our current repurchase authorization and we expect to continue to opportunistically repurchase shares as part of our capital allocation strategy.

non-GAAP diluted EPS for Q4 was 86 cents, a 10 cent per share improvement from 76 cents last year.

Matthew Sonefeldt: Non-GAAP diluted EPS for Q4 was $0.86, a $0.10 per share improvement from $0.76 last year. GAAP diluted EPS for Q4 was $0.39 versus $0.13 last year. For full-year 2025, non-GAAP diluted EPS was $3.55 versus $2.98 in fiscal 2024, and GAAP diluted EPS was $5.08 versus $0.36 last year. As a reminder, GAAP earnings in fiscal 2025 were positively impacted by the tax valuation allowance release that occurred in Q2 of 2025, and it's explained in more detail in our file. Diluted weighted shares outstanding for Q4 was 214.5 million, slightly higher than expected, primarily due to the impact of a higher share price on unvested awards, which are accounted for under the Treasury Stock Method. Basic shares outstanding for Q4 decreased by 2.2 million year-over-year to 203.3 million total shares, reflecting the anti-dilutive impact of our buyback program under the Treasury Stock Method.

Blake Grayson: Non-GAAP diluted EPS for Q4 was $0.86, a $0.10 per share improvement from $0.76 last year. GAAP diluted EPS for Q4 was $0.39 versus $0.13 last year. For full-year 2025, non-GAAP diluted EPS was $3.55 versus $2.98 in fiscal 2024, and GAAP diluted EPS was $5.08 versus $0.36 last year. As a reminder, GAAP earnings in fiscal 2025 were positively impacted by the tax valuation allowance release that occurred in Q2 of 2025, and it's explained in more detail in our file.

Blake: Regarding the cost of our equity programs, our Q4 stock compensation expense as a percentage of revenue was 19, 3% down over three percentage points from the prior year.

Blake: GAAP diluted EPS for Q4 was 39 cents versus 13 cents last year for full year 2025, non-GAAP diluted EPS was $3 55 versus.

Blake: non-GAAP diluted EPS for Q4 was 86 cents, a 10 cent per share improvement from 76 cents last year.

Blake: Versus $2 98 in fiscal 'twenty, 'twenty, four and GAAP diluted EPS was $5 eight versus 36 cents last year as a reminder, GAAP earnings in fiscal 2025 were positively impacted by the tax valuation allowance release that occurred in Q2 of 2025 and as explained in more <unk>.

Blake: GAAP diluted EPS for Q4 was 39 cents versus <unk> 13 cents last year for full year 2025, non-GAAP diluted EPS was $3 55.

Blake: Versus $2 98 in fiscal 2024, and GAAP diluted EPS was $5 eight versus 36 last year.

Blake: Detailed on our filings.

Blake Grayson: Diluted weighted shares outstanding for Q4 was $214.5 million, slightly higher than expected, primarily due to the impact of a higher share price on unvested awards, which are accounted for under the Treasury Stock Method. Basic shares outstanding for Q4 decreased by $2.2 million year-over-year to $203.3 million total shares, reflecting the anti-dilutive impact of our buyback program. With that, let me turn to guidance. For Q1 2026, we expect total revenue between $745 million and 749 million to increase by a 5% year-over-year increase at the midpoint, and we expect full-year fiscal 2026 revenue between $3.129 billion and 3.141 billion, also a 5% year-over-year increase at the midpoint.

Diluted weighted shares outstanding for Q4 was $214 5 million slightly higher than expected primarily due to the impact of a higher share price on Unvested Award, which are accounted for under the Treasury stock method.

Blake: As a reminder, GAAP earnings in fiscal 2025 were positively impacted by the tax valuation allowance release that occurred in Q2 of 2025 and as explained in more detail in our filings.

Blake: Diluted weighted shares outstanding for Q4 was $214 5 million slightly higher than expected primarily due to the impact of a higher share price on Unvested awards, which are accounted for under the Treasury stock method.

Blake: Basic shares outstanding for Q4 decreased by $2 2 million year over year to $203 3 million total shares reflecting the anti dilutive impact of our buyback program.

Blake: With that let me turn to guidance.

Matthew Sonefeldt: With that, let me turn to guidance. For Q1 2026, we expect total revenue between $745 million and 749 million to increase by a 5% year-over-year increase at the midpoint, and we expect full-year fiscal 2026 revenue between $3.129 billion and 3.141 billion, also a 5% year-over-year increase at the midpoint. The guided growth rates include an approximate 0.7 percentage point of headwind to both Q1 and full-year fiscal 2026 revenue from the impact of forecasted foreign currency rates across our international business. We expect subscription revenue of $729 million to 733 million in Q1, or a 6% year-over-year increase at the midpoint, and $3.062 billion to 3.074 billion for fiscal 2026, or a 6% year-over-year increase at the midpoint.

Basic shares outstanding for Q4 decreased by $2 2 million year over year to $203 3 million total shares reflecting the anti dilutive impact of our buyback program.

Blake: For Q1, 2026, we expect total revenue between $745 million and $749 million in Q1, or a 5% year over year increase at the midpoint and we expect full year fiscal 2026 revenue between 3.129 billion and $3 141 billion also a 5% year over.

Blake: With that let me turn to guidance.

Blake: For Q1, 2026, we expect total revenue between $745 million and $749 million in Q1, or a 5% year over year increase at the midpoint and we expect full year fiscal 2026 revenue between $3 129 billion and $3 141 billion also a 5% year on.

Blake: Year increase at the midpoint.

Blake Grayson: The guided growth rates include an approximate 0.7 percentage point of headwind to both Q1 and full-year fiscal 2026 revenue from the impact of forecasted foreign currency rates across our international business. We expect subscription revenue of $729 million to 733 million in Q1, or a 6% year-over-year increase at the midpoint, and $3.062 billion to 3.074 billion for fiscal 2026, or a 6% year-over-year increase at the midpoint.

Blake: The guided growth rates include an approximate 0.7 percentage point of headwind to both Q1 and full year fiscal 2026 revenue from the impact of forecasted foreign currency rates across our international business.

For year increase at the midpoint.

Blake: We expect subscription revenue of 729 million to $733 million in Q1, or a 6% year over year increase at the midpoint and 3.062 billion to 3.074 billion for fiscal 2026, or a 6% year over year increase at the midpoint.

Blake: We expect subscription revenue of 729 million to $733 million in Q1, or a 6% year over year increase at the midpoint and 3.062 billion to 3.0, $7 4 billion for fiscal 2026, or a 6% year over year increase at the midpoint.

Blake: For billings, we expect 741 million to $751 million in Q1, or a 5% year over year growth rate at the midpoint and we expect full year fiscal 'twenty 'twenty six billings between 3.300 billion to $3 354 billion or a 7% year over year growth rate at the midpoint.

Matthew Sonefeldt: For billings, we expect $741 million to $751 million in Q1, or a 5% year-over-year growth rate at the midpoint, and we expect full-year fiscal 2026 billings between $3.300 billion to $3.354 billion, or a 7% year-over-year growth rate at the midpoint. The guided growth rates include an approximate 1 percentage point of headwind to both Q1 and full-year fiscal 2026 billing from the impact of forecasted foreign currency rates across our international business. Our fiscal 2026 guidance represents the first year we anticipate accelerated annual billings growth from fiscal year 2021. As we build up demonstrated momentum in IAM and continued improvements in retention, as shown in recent quarters and years, billings are impacted by the timing of customer renewal, which can create meaningful variability from period to period. We included the following three considerations in our top-line guidance.

Blake Grayson: For billings, we expect $741 million to $751 million in Q1, or a 5% year-over-year growth rate at the midpoint, and we expect full-year fiscal 2026 billings between $3.300 billion to $3.354 billion, or a 7% year-over-year growth rate at the midpoint. The guided growth rates include an approximate 1 percentage point of headwind to both Q1 and full-year fiscal 2026 billing from the impact of forecasted foreign currency rates across our international business.

Blake: For billings, we expect 741 million to $751 million in Q1, or a 5% year over year growth rate at the midpoint and we expect full year fiscal 2026 billings between three 300 billion to 335 4 billion or a 7% year over year growth rate at the midpoint.

The guided growth rates include an approximate one percentage point of headwind to both Q1 and full year fiscal 'twenty 'twenty six billings from the impact of forecasted foreign currency rates across our international business.

Blake Grayson: Our fiscal 2026 guidance represents the first year we anticipate accelerated annual billings growth from fiscal year 2021. As we build up demonstrated momentum in IAM and continued improvements in retention, as shown in recent quarters and years, billings are impacted by the timing of customer renewal, which can create meaningful variability from period to period. We included the following three considerations in our top-line guidance.

The guided growth rates include an approximate one percentage point of headwind to both Q1 and full year fiscal 2026 billings from the impact of forecasted foreign currency rates across our international business.

Blake: Our fiscal 'twenty 'twenty six guidance represents the first year, we anticipate accelerated annual billings growth since fiscal year 2021 as we build up demonstrated momentum than I am and continued improvements in retention as shown in recent quarters and years billings are impacted by the timing of customer renewals, which can.

Blake: Our fiscal 2026 guidance represents the first year, we anticipate accelerated annual billings growth since fiscal year 2021, as we build up demonstrated momentum than I am and continued improvements in retention as shown in recent quarters and years billings are impacted by the timing of customer renewals, which can create.

Blake: Create meaningful variability from period to period.

Blake: We included the following three considerations in our topline guidance.

Matthew Sonefeldt: First, in Q1, we expect an approximate 1 percentage point headwind year-over-year to revenue from the leap variability from period to period. Second, as mentioned above, the impact of foreign currency rates will have an approximate 0.7 percentage point headwind for revenue in Q1 and the full-year fiscal 2026. For billings, we expect an approximate 1 percentage point headwind in Q1 and the full-year fiscal 2026. Third, for the full-year fiscal 2026, we expect a billings-specific headwind of approximately 1 percentage point headwind to account for reduced early renewal volume as a result of go-to-market design changes to reflect a growing focus on IAM upsell, including the introduction of an IAM transition skew that can help offer IAM features to customers through upsells without the need to renew existing contracts. We expect non-GAAP gross margin to be 80.5% to 81.5% for both Q1 and fiscal 2026.

Blake Grayson: First, in Q1, we expect an approximate 1 percentage point headwind year-over-year to revenue from the leap variability from period to period. Second, as mentioned above, the impact of foreign currency rates will have an approximate 0.7 percentage point headwind for revenue in Q1 and the full-year fiscal 2026. For billings, we expect an approximate 1 percentage point headwind in Q1 and the full-year fiscal 2026.

Blake: First in Q1, we expect an approximate one percentage point headwind year over year to revenue from the leap year impact.

Meaningful variability from period to period.

Blake: Second as mentioned above the impact of foreign currency rates will have an approximate 0.7 percentage point headwind for revenue in Q1, and the full year fiscal 2026 for billings, we expect an approximate one percentage point headwind in Q1, and the full year fiscal 2020.

Blake: We included the following three considerations in our topline guidance first in Q1, we expect an approximate one percentage point headwind year over year to revenue from the leap year impact.

Blake Grayson: Third, for the full-year fiscal 2026, we expect a billings-specific headwind of approximately 1 percentage point headwind to account for reduced early renewal volume as a result of go-to-market design changes to reflect a growing focus on IAM upsell, including the introduction of an IAM transition skew that can help offer IAM features to customers through upsells without the need to renew existing contracts. We expect non-GAAP gross margin to be 80.5% to 81.5% for both Q1 and fiscal 2026.

Third for the full year fiscal 2026, we expect a billings specific headwind of approximately one percentage point to account for reduced early renewal volume as a result of go to market design changes to reflect a growing focus on I am upsell, including the introduction of an I am transition skew that can help offer.

Blake: Third for the full year fiscal 2026, we expect a billing specific headwind of approximately one percentage point to account for reduced early renewal volume as a result of go to market design changes to reflect a growing focus on I am upsell, including the introduction of an I am transition skew that can help offer.

Blake: I am features to customers through upsells without the need to renew existing contracts.

We expect non-GAAP gross margin to be 85% to 81, 5% for both Q1 and fiscal 2026.

I am features to customers through upsells without the need to renew existing contracts.

Blake: We expect non-GAAP operating margin to reach 27.0% to 28.0 per cent for Q1, and 27, 8% to 28, 8% for fiscal 2026.

Matthew Sonefeldt: We expect non-GAAP operating margin to reach 27.0% to 28.0% for Q1 and 27.8% to 28.8% for fiscal 2026. We included the following two considerations in our profitability guidance. For Q1 and the full-year fiscal 2026, we expect an approximate 1 percentage point gross margin headwind due to the ongoing cloud data center migration. As discussed previously, we expect a larger gross margin impact in fiscal 2026 before easing in fiscal 2027 and beyond. Also, for the full-year fiscal 2026, we expect an approximate 1.5 percentage point operating margin headwind due to both the 1 percentage point gross margin impact from cloud migration as discussed above, as well as the hard comp for the full-year fiscal 2026 previously discussed Q2 2025 one-time release of a litigation reserve, and the fiscal 2026 shift of some roles to cash compensation versus equity.

Blake Grayson: We expect non-GAAP operating margin to reach 27.0% to 28.0% for Q1 and 27.8% to 28.8% for fiscal 2026. We included the following two considerations in our profitability guidance. For Q1 and the full-year fiscal 2026, we expect an approximate 1 percentage point gross margin headwind due to the ongoing cloud data center migration. As discussed previously, we expect a larger gross margin impact in fiscal 2026 before easing in fiscal 2027 and beyond.

Blake: We expect non-GAAP gross margin to be 85% to 81, 5% for both Q1 and fiscal 2026.

We included the following two considerations in our profitability guidance.

We expect non-GAAP operating margin to reach 27.0% to 28.0% for Q1, and 27, 8% to 28, 8% for fiscal 2026.

Blake: For Q1, and the full year fiscal 2026, we expect an approximate one percentage point gross margin headwind due to the ongoing cloud data center migration efforts as discussed previously we expect a larger gross margin impact in fiscal 2026 before easing in fiscal 2027 and beyond.

We included the following two considerations in our profitability guidance for Q1, and the full year fiscal 2026, we expect an approximate one percentage point gross margin headwind due to the ongoing cloud data center migration efforts as discussed previously we expect a larger gross margin impact in fiscal 2026 before.

Blake Grayson: Also, for the full-year fiscal 2026, we expect an approximate 1.5 percentage point operating margin headwind due to both the 1 percentage point gross margin impact from cloud migration as discussed above, as well as the hard comp for the full-year fiscal 2026 previously discussed Q2 2025 one-time release of a litigation reserve, and the fiscal 2026 shift of some roles to cash compensation versus equity.

Blake: Also for the full year fiscal 2020.

Blake: We expect an approximate one five percentage point operating margin headwind due to both the one percentage point gross margin impact from cloud migration as discussed above as well as the hard comp against the previously discussed Q2 2025, one time release of a litigation reserve.

Easing in fiscal 2027 and beyond.

Blake: Also for the full year fiscal 2026, we expect an approximate one five percentage point operating margin headwind due to both the one percentage point gross margin impact from cloud migration as discussed above as well as the hard comp against the previously discussed Q2 2025, one time release of a litigation reserve.

Blake: The fiscal 2026 shift of some roles to cash compensation versus equity.

Matthew Sonefeldt: This overall approach to profitability reflects our intent to maintain similar levels of operating margins realized in fiscal 2025 and excluding the unique gross margin and operating expense headwinds noted above. This also allows us to prioritize IAM investments to drive longer-term growth. When we combine these with forecasted accelerating billings growth in fiscal year 2026, we're excited about our longer-term opportunity to improve operating levels. We expect Non-GAAP fully diluted weighted average shares outstanding of $210 million to $215 million for both Q1 and fiscal 2026. In closing, in Q4 we made continued progress towards strengthening the IAM platform vision and improving the performance of our core business with solid revenue and billings growth in Q1 and fiscal 2026. We also maintain our focus on operating efficiency and produce strong Non-GAAP operating profit and free cash flow. Stepping back, fiscal 2025 was a transformative year for DocuSign.

Blake Grayson: This overall approach to profitability reflects our intent to maintain similar levels of operating margins realized in fiscal 2025 and excluding the unique gross margin and operating expense headwinds noted above. This also allows us to prioritize IAM investments to drive longer-term growth. When we combine these with forecasted accelerating billings growth in fiscal year 2026, we're excited about our longer-term opportunity to improve operating levels.

This overall approach to profitability reflects our intent to maintain similar levels of operating margins realized in fiscal 2025, excluding the unique gross margin and operating expense headwinds noted above.

Blake: And the fiscal 2026 shift of some roles to cash compensation versus equity.

Blake: This also allows us to prioritize I am investments to drive longer term growth.

Blake: When we combine these with forecasted accelerating billings growth in fiscal year 2026, we're excited about our longer term opportunities to improve operating leverage we.

Blake Grayson: We expect Non-GAAP fully diluted weighted average shares outstanding of $210 million to $215 million for both Q1 and fiscal 2026. In closing, in Q4 we made continued progress towards strengthening the IAM platform vision and improving the performance of our core business with solid revenue and billings growth. We also maintain our focus on operating efficiency and produce strong Non-GAAP operating profit and free cash flow. Stepping back, fiscal 2025 was a transformative year for DocuSign.

Blake: We expect non-GAAP fully diluted weighted average shares outstanding of $210 million to $215 million for both Q1 and fiscal 2026.

Blake: When we combine these with forecasted accelerating billings growth in fiscal year 2026, we're excited about our longer term opportunities to improve operating leverage we.

Blake: In closing in Q4, we made continued progress towards strengthening the I am platform vision and improving the performance of our core business with solid revenue and billings growth.

Blake: We expect non-GAAP fully diluted weighted average shares outstanding of $210 million to $215 million for both Q1 and fiscal 2026.

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

Blake: In closing in Q4, we made continued progress towards strengthening the iam platform vision and improving the performance of our core business with solid revenue and billings growth.

Blake: Wrapping back fiscal 2025 was a transformative year for Doc design, we built a strong foundation created by nearly $1 7 million customer relationships, improving business fundamentals and accelerated product innovation.

Matthew Sonefeldt: We built a strong foundation created by nearly 1.7 million customer relationships, improving business fundamentals and accelerated product innovation. We are excited to continue developing the IAM platform to create greater value for our customers across verticals, geographies, and company sizes. We remain in the early stages of bringing our agreement management vision to life, and through consistent execution, we believe we can transform DocuSign for customers, employees, and our shareholders. That concludes our prepared remarks. With that, operator, let's open up the call for questions. We believe we can transform DocuSign for customers, employees, and our shareholders. That concludes our prepared remarks. With that, operator, let's open up the call for questions. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you ask one question and one follow-up question.

Blake Grayson: We built a strong foundation created by nearly 1.7 million customer relationships, improving business fundamentals and accelerated product innovation. We are excited to continue developing the IAM platform to create greater value for our customers across verticals, geographies, and company sizes.

Blake: We also maintain our focus on operating efficiency and produce strong non-GAAP operating profit and free cash flow.

Blake: Stepping back fiscal 2025 was a transformative year for Doc design, we built a strong foundation created by nearly $1 7 million customer relationships, improving business fundamentals and accelerated product innovation.

We are excited to continue developing the I M platform to create greater value for our customers across verticals geographies and company sizes.

Blake Grayson: We remain in the early stages of bringing our agreement management vision to life, and through consistent execution, we believe we can transform DocuSign for customers, employees, and our shareholders. That concludes our prepared remarks. With that, operator, let's open up the call for questions.

We remain in the early stages of bringing our agreement management vision to life and through consistent execution. We believe we can transform doctor sign for customers employees and our shareholders that concludes our prepared remarks with that operator, let's open up the call for questions.

Blake: We are excited to continue developing the <unk> platform to create greater value for our customers across verticals geographies and company sizes.

Blake: We remain in the early stages of bringing our agreement management vision to life and through consistent execution. We believe we can transform darkey sign for customers employees and our shareholders.

Operator: Thank you, if you would like to ask a question please press star one on your telephone keypad. The confirmation telephone indicate your line is in the question que, you may press star two if you would like to remove your question from the que. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you ask one question and one follow-up question. One moment while we poll for questions. Our first question is from Jake Roberge with William Blair. Please proceed.

Thank you if you would like to ask a question. Please press star one on your telephone.

Keypad.

Blake: Jim will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

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

Blake: Thank you if you would like to ask a question. Please press star one on your telephone keypad.

Blake: Tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys, we ask that you ask one question and one follow up question one moment, while we poll for.

Blake: Ask that you ask one question and one follow up question one moment, while we poll for questions.

Matthew Sonefeldt: One moment while we poll for questions. Our first question is from Jake Roberge with William Blair. Please proceed. Yeah, thanks for taking the question, and congrats on the really strong results in Q4. Allan, you've obviously had a pretty successful start selling IAM into the SMB and commercial segment over the last few quarters. As you've started to move the product farther upmarket, curious if you've had any questions. The early reception has been with those consumers, and if there have been any new learnings for IAM in the enterprise space in the SMB and commercial segment over the last few quarters. Yeah, so just as a reminder for everyone, we launched to SMB and mid-market customers in US, Canada, and Australia in early June, and then to

Jay: Our first question is from Jay <unk> with William Blair. Please proceed.

Jake Roberge: Yeah, thanks for taking the question, and congrats on the really strong results in Q4. Allan, you've obviously had a pretty successful start selling IAM into the SMB and commercial segment over the last few quarters. As you've started to move the product farther upmarket, curious if you've had any questions. The early reception has been with those consumers, and if there have been any new learnings for IAM in the enterprise space.

Blake: Yeah.

Yeah, Thanks for taking the questions and congrats on the really strong results in Q4, and Alan you've obviously had a pretty successful start selling.

Blake: <unk>.

Jay <unk>: Our first question is from Jay <unk> with William Blair. Please proceed.

Blake: And commercial segment over the last few quarters as you've started to move.

Further up market curious how that the early reception has been with with those customers out there have been any new learning learnings.

Jay <unk>: Yeah. Thanks for taking my questions and congrats on the really strong results in Q4, and Alan you've obviously had a pretty successful start selling.

Blake: Enterprise space.

Blake: And commercial segment over the last few quarters as you've started to move the product further up market curious how that the early reception has been with with those customers out there have been any year learning learnings for AAM in the enterprise space.

Blake: Yeah.

Allan Thygesen: Yeah, so just as a reminder for everyone, we launched to SMB and mid-market customers in US, Canada, and Australia in early June, and then to Globally and to enterprise deployments at the beginning of December. So we just have a couple of months of data in early June. But I would say the early signs, both on the enterprise international front, are very encouraging. Just start with international, we're seeing very similar patterns in sales productivity and customer acceptance in the SMB and mid-market segments in the new geographies we're targeting.

Blake: So just as a reminder for everyone.

Blake: We launched to SMB and mid market customers in U S, Canada and Australia.

Early June.

Blake: And then too.

Yes, so just as a reminder for everyone.

Blake: Broader globally and to enterprise deployments.

Matthew Sonefeldt: Globally and to enterprise deployments at the beginning of December in US, Canada, and Australia. So we just have a couple of months of data in early June. But I would say the early signs, both on the enterprise international front, are very encouraging. And to start with international, we're seeing very similar patterns in sales productivity and customer acceptance in the SMB and mid-market segments in the new geographies we're targeting. The enterprise side obviously still tags longer, but we've already closed a number of enterprise deals, and I think the value prop is even stronger than customer acceptance. I think it goes up more than proportionally with company size because the cost of complexity just increases as companies get larger. And we're seeing that interest. And of course, it's reflected if you draw a line back to CLM.

We launched to SMB and mid market customers in U S, Canada and Australia in early June.

Blake: December.

Blake: So we just have a couple of months of data.

Blake: Sandy.

And then too.

The early signs both on the enterprise International front are very encouraging.

Blake: Broader globally.

Speaker Change: Maybe just start with international.

Blake: And to enterprise deployments.

Speaker Change: We're seeing very similar patterns in sales productivity and customer acceptance and the SMB and mid market segments in the new geographies that were targeting enterprises, obviously, the sales cycle is longer but we've already closed a number of enterprise deals.

Blake: December.

Blake: So we just have a couple of months of data, but I would say.

Blake: The early signs both on the Enterprise International fund are very encouraging.

Allan Thygesen: The enterprise side obviously still tags longer, but we've already closed a number of enterprise deals, and I think the value prop is even stronger. I think it goes up more than proportionally with company size because the cost of complexity just increases as companies get larger. And we're seeing that interest. And of course, it's reflected if you draw a line back to CLM.

Maybe just start with international.

Speaker Change: I think the value prop.

Blake: Seeing very similar patterns in sales productivity and customer acceptance and the SMB and mid market segments in the new geographies, we are targeting thereby it's obviously the sales cycle is longer but we've already closed a number of enterprise deals.

Speaker Change: Is even stronger.

I think it goes up more than proportionally with company size because the cost of complexity just increases as companies get larger and we said, we're seeing that interest and of course, it's reflected if you issue.

Blake: I think the value prop.

Blake: Is even stronger.

Draw a line back to <unk>.

Blake: I think it goes up more than proportionally with company size because the cost of complexity just increases as companies get larger and we said, we're seeing that interest and of course, it's reflected if you issue.

Matthew Sonefeldt: CLM has historically been the enterprise-first category, and IAM is, in many ways, sort of a super step in replatforming of that. So it's not surprising that there's a lot of appetite. And of course, with IAM, we can provide that value to a much broader set of users inside the companies, not just to the people who historically have handled contracts full-time, but frontline sellers, frontline buyers, frontline recruiters, and so on. And there's a lot of appeal to that. And of course, we're very bullish on the enterprise opportunity. We still have some maturing to do, both on the product and go-to-market side, to be able to fully exploit that. But that's kind of part of the booster rocket for the business and why we think we have multiple years of expansion ahead. We still have some maturing to do, but we're go-to-market. Okay, that's helpful.

Allan Thygesen: CLM has historically been the enterprise-first category, and IAM is, in many ways, sort of a super step in replatforming of that. So it's not surprising that there's a lot of appetite. And of course, with IAM, we can provide that value to a much broader set of users inside the companies, not just to the people who historically have handled contracts full-time, but frontline sellers, frontline buyers, frontline recruiters, and so on.

Speaker Change: <unk> has historically been an enterprise first category and.

Speaker Change: And in many ways sort of a super set re platforming of that so.

Speaker Change: It's not surprising that there is a lot of appetite.

Blake: Align back to two CLO CLO has historically been an enterprise first category and IMS and in many ways sort of a super set re platforming of that so.

Speaker Change: Of course, we can provide that value to a much broader set of users inside the companies not just to the people who historically have had a contract full time, but frontline sellers frontline by our frontline recruiters and so on and Theres a lot of appeal to that so we're very bullish on the enterprise opportunity. We have still have some maturing to do both on the product and go to market side too.

Blake: Not surprising that there is a lot of appetite.

Allan Thygesen: And there's a lot of appeal to that. And of course, we're very bullish on the enterprise opportunity. We still have some maturing to do, both on the product and go-to-market side, to be able to fully exploit that. But that's kind of part of the booster rocket for the business and why we think we have multiple years of expansion ahead.

Blake: And of course, we can provide that value to a much broader set of users inside the companies not just to the people who historically have had a contract full time, but frontline sellers frontline by our frontline recruiters and so on and Theres a lot of appeal to that so.

Speaker Change: We able to fully exploit that but that's kind of part of the booster rocket four for the business and why were we think we have multiple years of expansion.

Blake: Ryan bullish on the enterprise opportunity, we still have some maturing to do both on the product and go to market side to be able to fully exploit that but that's kind of part of the booster rocket four for the business and why were we think we have multiple years of expansion ahead.

Speaker Change: Okay. That's helpful and then and Blake can you.

Jake Roberge: OK. That's helpful. And then, Blake, can you help us better understand the revenue growth guide in the context of the nice billings acceleration you've seen over the past few quarters and the 11% billings growth you saw in the Q4?. Would just be helpful to understand when we should start seeing that billings acceleration flow through to revenue growth on that pathway back to the double-digit growth levels? Thanks.

Matthew Sonefeldt: And then, Blake, to be able to fully exploit that. That's kind of a new growth. That's a booster rocket for the business that we've seen over the past few quarters and the 11% billings growth you saw in Q4. It would just be helpful to understand when we should start seeing that billings acceleration flow through to revenue growth on that pathway back to the double-digit growth levels that you saw in the past few quarters and the 11% growth. Sure. And so what I would do is let me just start with subscription revenue because obviously that's the vast majority of our revenue. So the first thing I would do when you look at these things on a year-over-year basis is make sure to adjust for FX. We called out in the press release and the prepared remarks if you were reviewing that year over year.

Help us better understand the revenue growth guide in the context of the nice billings acceleration you've seen over the past few quarters and the 11% billings growth you saw in Q4 and just to be helpful to understand when we should start seeing that billings acceleration flowed through to revenue growth on that pathway back to double.

Speaker Change: Okay. That's helpful and then and Blake can you help.

Blake: Help us better understand the revenue growth guide in the context of the nice billings acceleration you've seen over the past few quarters, and then 11% billings growth you saw in Q4 and just to be helpful to understand when we should start seeing that billings acceleration flowed through to revenue growth on that that pathway back to.

The double digit growth levels. Thanks.

Speaker Change: Sure and so what I would do is let me just start.

Blake Grayson: Sure. And so what I would do is let me just start with subscription revenue because obviously that's the vast majority of our revenue. So the first thing I would do when you look at these things on a year-over-year basis is make sure to adjust for FX. We called out in the press release and the prepared remarks if you were reviewing that year-over-year.

Speaker Change: With subscription eminent is obviously, yes.

The vast majority of our revenues for the first thing I would do when you look at these things on a year over year basis make sure to adjust for FX, we called out in the press release and the prepared remarks, if you're reviewing that year over year. So our subscription revenue guide is about five 8% I think at the midpoint. So if you reflect the point.

Blake: The double digit growth levels. Thanks.

And so what I would do is let me just start with subscription eminent is obviously.

Matthew Sonefeldt: So our subscription revenue guide is about 5.8%, I think, at the midpoint. So if you reflect the 0.7% headwind from FX, that includes it's normalized while doing that FX around 6.5%, which I think might make a bit more sense when you're looking at the flow through the midpoint. The dynamic of revenue is that it lags billings, right? It takes 6 to 7 quarters because our average duration, our weighted average duration, is still around 19 months to recognize that revenue. So while billings growth decelerates as it has been over the past couple of years, revenue decelerates as well, but it's on a lag basis. It just takes time to shift. And so in fiscal 2026, we're still rolling off the revenue tail from earlier contracts, that deceleration. So in FY 2024, billings grew over 9%. In FY 2025, it grew under 7%.

Blake Grayson: So our subscription revenue guide is about 5.8%, I think, at the midpoint. So if you reflect the 0.7% headwind from FX, that includes it's normalized while doing that FX around 6.5%, which I think might make a bit more sense when you're looking at the flow through the midpoint. The dynamic of revenue is that it lags billings, right?

The vast majority of our revenue. So the first thing I would do when you look at these things on a year over year basis make sure to adjust for FX, we called out in the press release and the prepared remarks, if you're reviewing that year over year. So our subscription revenue guide is about five 8% I think at the midpoint. So if you reflect the point.

Speaker Change: 7% headwind from.

Speaker Change: Matt back to that includes its normalized call. It FX around six 5%, which I think might make a bit more sense when youre looking at the flow through the dynamic of revenue is that it just isn't.

Blake: 7% headwind from.

Speaker Change: Lags billings right. It takes six to seven quarters, because our average duration or weighted average duration is still around 19 months to recognize that revenue. So while billings growth decelerates as it has been over the past couple of years revenue decelerates as well, but it's on a lag basis. It just takes time to ship and so in fiscal 'twenty, we're still.

Blake Grayson: It takes 6 to 7 quarters because our average duration, our weighted average duration, is still around 19 months to recognize that revenue. So while billings growth decelerates as it has been over the past couple of years, revenue decelerates as well, but it's on a lag basis. It just takes time to shift. And so in fiscal 2026, we're still rolling off the revenue tail from earlier contracts, that deceleration. So in FY 2024, billings grew over 9%. In FY 2025, it grew under 7%.

Blake: From FX and that includes its normalized call. It ex FX around six 5%, which I think might make a bit more sense when youre looking at the flow through to the dynamic of revenue is that.

Blake: Lags billings right. It takes six to seven quarters, because our average duration or weighted average duration is still around 19 months to recognize that revenue. So while billings growth decelerates as it has been over the past couple of years revenue decelerates as well, but it's on a lag basis. It just takes time to shift and so in fiscal 'twenty, we're still.

Speaker Change: Rolling off the revenue tail from earlier contracts on deceleration. So in FY 'twenty for billings grew over 9% in FY 'twenty, five and grew under 7% and so FY 'twenty six is unique though.

Matthew Sonefeldt: And so FY26 is unique, though, in that it's the first full year we're really expecting to accelerate our billings. And that's particularly so when you think about it excluding the impact from FX. And that has a lot to do with the expected ramp we have in IAM. And you can imagine with the ramp, that occurs a bit more into the second half of the year. And so I'm really excited. If we can re-accelerate billings in FY26 and continue that, I think we've got the opportunity to really accelerate revenue then in the longer-term as well. The ramp that occurs a bit more into the second half of the year. And so I'm really excited. If we can re-accelerate billings in FY26 and continue that, I think we've got the opportunity to really accelerate revenue then in the longer-term as well. Oh, great. Thank you so much.

Blake Grayson: And so FY 2026 is unique, though, in that it's the first full year we're really expecting to accelerate our billings. And that's particularly so when you think about it excluding the impact from FX. And that has a lot to do with the expected ramp we have in IAM. And you can imagine with the ramp, that occurs a bit more into the second half of the year.

Blake: Rolling off the revenue tail from earlier contracts on deceleration. So in FY 'twenty for billings grew over 9% in FY 'twenty, five and grew under 7% and so FY 'twenty six is unique though.

Speaker Change: First full year were really expecting to accelerate our billings and that's particularly so when you think about it excluding the impact from FX and that has a lot to do with the expected ramp we have and I am and you can imagine what the ramp that hurt us a bit more into the second half of the year and so I'm really excited like we can reaccelerate billings in FY 'twenty.

Blake: First full year, and we're really expecting to accelerate our billings and that's particularly so when you think about it excluding the impact from FX and that has a lot to do with the expected ramp we have and I am and you can imagine what the ramp that occurs a bit more into the second half of the year and so I'm really excited like we can reaccelerate billings in FY 'twenty.

Blake Grayson: And so I'm really excited. If we can re-accelerate billings in FY 2026 and continue that, I think we've got the opportunity to really accelerate revenue then in the longer-term as well.

Speaker Change: We continue that I think we've got the opportunity to really accelerate revenue then in the longer term as well.

Operator: Our next question is from Brad Sills with Bank of America. Please proceed.

Our next question is from Brad Jones with Bank of America. Please proceed.

Speaker Change: We continue that I think we've got the opportunity to really accelerate revenue then in the longer term as well.

Brad Sills: Oh, great. Thank you so much. I did want to ask a question on the current macro environment. Given that you've got a front-row seat here with a transactional model, at least in the Q4, I think you're seeing some global-based pricing. What's your observation in terms of effectivity? Inquiry, signature, and expansion deals. A lot of moving parts right now with macro policy changes. So wanted to get your thoughts on that in real time. Thank you.

Oh, great. Thank you so much I did want to ask a question on the current macro environment given that <unk> got a front row seat here with the transactional model at least in that in the core esignature business with the envelope based pricing what's your observation in terms of just activity.

Matthew Sonefeldt: I did want to ask a question on the current macro environment. Given that you've got a front-row seat here with a transactional model, at least in the Q4, I think you're seeing some global-based pricing. What's your observation in terms of effectivity? I did want to ask a question on the current macro environment. Inquiry, signature, and expansion deals. A lot of moving parts right now with macro policy changes. So wanted to get your thoughts on that in real time. Thank you. What's your observation in terms of just activity, inquiry, signature? So we're not seeing material changes in trend in terms of envelope volume. For example, as we looked at our February numbers, they were as expected and on the trend line. So nothing has flowed through to us yet. I mean, I will stress changes in trend.

Our next question is from Brad Sills with Bank of America. Please proceed.

Brad Sills: Oh, great. Thank you so much I did want to ask a question on the current macro environment, you know given that you've got a front row seat here with the transactional model at least in that in the core esignature business with the envelope based pricing what's your observation in terms of just activity.

Speaker Change: In core esignature expansion deals a lot of moving parts right now with the macro policy changes so wanted to.

Speaker Change: It gets your thoughts on that real time. Thank you.

Speaker Change: Yes.

Blake: In core esignature expansion deals a lot of moving parts right now with the macro policy changes so wanted to get.

Speaker Change: So we're not seeing.

Allan Thygesen: Yeah, So we're not seeing material changes in trend in terms of envelope volume. For example, as we looked at our February numbers, they were as expected and on the trend line. So nothing has flowed through to us yet. I mean, I will stress changes in trend. Incredibly diversified across sectors and across company sizes and even somewhat on geography basis. So, to the extent that there are individual industries that are exposed to us yet, I mean, I will stress we would be less likely to see that in a strong way. So far, no material impact that you have, but there are individual industries.

Material changes in trend in terms of envelope volume for example, as we look at our February numbers, they were as expected and on the trend line.

Blake: Get your thoughts on that real time, thank you.

Yes.

Blake: So we're not seeing.

Speaker Change: So.

Speaker Change: Nothing has flowed through to us yet and I will stress we are.

<unk> changes in trend in terms of envelope volume for example, we looked at our February numbers, they were as expected and on the trend line.

Matthew Sonefeldt: Incredibly diversified across sectors and across company sizes and even somewhat on geography basis. So, to the extent that there are individual industries that are exposed to us yet, I mean, I will stress we would be less likely to see that in a strong way. So far, no material impact that you have, but there are individual industries. Obviously, to the extent that the global macroeconomy meaningfully accelerates or decelerates at some point, that'll flow through to us. But some of these more sectoral things or individual countries don't have. Obviously, to the extent that the global macroeconomy meaningfully accelerates or decelerates at some point, that'll flow through to us. But some of these more sectoral things or individual countries don't have as much effect. That's a more involved sales cycle than your traditional sales cycle found.

Incredibly diversified across sectors and across company sizes, and even somewhat on geography basis and so.

Speaker Change: To the extent that there are individual industries that are exposed.

Blake: So.

Blake: Nothing has flowed through to us yet and I will stress we are.

Speaker Change: We would be less likely to to see that it has been a strong way.

Incredibly diversified across sectors and across company sizes, and even somewhat on geography basis and so.

Speaker Change: So.

Speaker Change: So far no material impact.

Speaker Change: To the extent that there are individual industries that are exposed.

But.

Speaker Change: Obviously to the extent that the global macro economy meaningfully accelerates or decelerates at some point that will flow through to us but some.

Allan Thygesen: Obviously, to the extent that the global macroeconomy meaningfully accelerates or decelerates at some point, that'll flow through to us. But some of these more sectoral things or individual countries don't have as much effect.

Speaker Change: We would be less likely to to to see that it has been a strong way.

Speaker Change: So.

Speaker Change: Some of these more structural things.

Speaker Change: So far no material impact.

Speaker Change: In individual countries.

But.

Speaker Change: Obviously to the extent that the global macro economy meaningfully accelerates or decelerates at some point that will flow through to us, but but yes.

Speaker Change: Perfect.

Understood. Thank you for that and then one more if I may just on <unk>.

With the move towards more of a solutions sale here.

Speaker Change: Some of these more structural things or in individual countries.

Speaker Change: Workflow in.

Speaker Change: <unk> solution it would seem that that's more involve sales cycle.

Speaker Change: <unk>.

Brad Sills: Understood. That's a more involved sales cycle than your traditional sales cycle found. If you could just give us an understanding, please, on kind of more of a seriousness in the direct sales channel for selling that type of a deal. It would seem that obviously, you're expecting real healthy results and ramps for this year. So it would suggest that you are prepared in the channel. But just give us an idea for that effort and kind of where you're at with that.

Speaker Change: Understood. Thank you for that and then one more if I may just on.

Speaker Change: And then your traditional sales cycle. So if you could just give us an understanding please on kind of Paradise and the direct <unk>.

Matthew Sonefeldt: If you could just give us an understanding, please, on kind of more of a seriousness in the direct sales channel for selling that type of a deal. It would seem that obviously, you're expecting real healthy results and ramps for this year. So it would suggest that you are prepared in the channel. But just give us an idea for that effort and kind of where you're at with that. Sure. I think it's a great question. Yeah. So as I mentioned earlier, we launched to the SMB and mid-market segment. Those tend to be shorter sales cycles, relatively speaking. But still, we're selling something a little bit more complex and broader. And we've been thrilled with the time to close the win rate. Obviously, the average deal size is larger, and we're able to sell it very successfully. And then we've seen very rapid install.

Speaker Change: With the move towards more of a solutions sale here.

<unk> channel for selling that type of a deal.

Speaker Change: Workflow and end to end solution. It would seem that that's more involve sales cycle.

Speaker Change: Obviously youre expecting.

Healthy results and ramp through this year. So it would seem to suggest that you are prepared in the channel, but can you just give us an idea for that effort and kind of where you're at with that thank you.

Speaker Change: And then your traditional sales cycle. So if you could just give us an understanding please on kind of the preparedness and the direct.

Speaker Change: Sales channel for selling that type of a deal.

Allan Thygesen: Sure. I think it's a great question. Yeah. So as I mentioned earlier, we launched to the SMB and mid-market segment. Those tend to be shorter sales cycles, relatively speaking. But still, we're selling something a little bit more complex and broader. And we've been thrilled with the time to close the win rate. Obviously, the average deal size is larger, and we're able to sell it very successfully. So, I think and then we've seen very rapid installed. We were able to turn on new clients in less than a month I think 17, 18 days is the average right now, which is pretty incredible for us.

Sure the answer to your question.

Speaker Change: Obviously youre expecting.

Speaker Change: Yes, so as I mentioned earlier, we locked to the SMB and mid market segment, those tend to be shorter sales cycles relative.

Speaker Change: A real healthy results and ramp through this year. So it would suggest that you are.

Speaker Change: Third in the channel, but can you just give us an idea for that effort and kind of where you're at with that thank you.

Relatively speaking, but still we're selling something a little bit more complex and broader.

Speaker Change: Sure the answer to your question.

We've been thrilled with.

Speaker Change: Yes, so as I mentioned earlier, we launched for the SMB and mid market segment those tend to be shorter sales cycles.

Speaker Change: The <unk>.

Time to close the win rates, obviously, the average deal size is larger.

Relatively speaking, but still we're selling something a little bit more complex and broader.

Speaker Change: And we're able to sell it very successfully so I think and then we've seen very rapid.

Speaker Change: And.

Speaker Change: We've been thrilled with.

Speaker Change: Install we were able to turn on.

Matthew Sonefeldt: We were able to turn on the win rate clients in less than a month. I think 17, 18 days is the average right now, which is pretty incredible for us. And then we've seen, particularly given some of what we're doing here. So I think that's very encouraging. As we look ahead to enterprise deployments, we are expecting that this is a more complicated sale that we're doing here to more stakeholders and more senior stakeholders. And so we are making some changes which we've already implemented go-to-market to try to prepare for that. We're not counting on a lot from the enterprise segment this year, as I mentioned, in more standard markets. And most of the growth contribution in IAM is coming from the SMB and mid-market segment in fiscal 2026. But obviously, the enterprise segment is huge for us in the long run.

Speaker Change: The time to close the win rates obviously, the average deal size is larger.

Speaker Change: New clients unless it above 17 18 days the average right now which is pretty incredible.

Speaker Change: And we're able to sell it very successfully so I think and then we've seen very rapid.

Allan Thygesen: And then we've seen, particularly given some of what we're doing here. So I think that's very encouraging. As we look ahead to enterprise deployments, we are expecting that this is a more complicated sale that we're doing here to more stakeholders and more senior stakeholders.

Speaker Change: Fair.

Speaker Change: Particularly given some of what we're doing here.

Install we were able to turn on.

Speaker Change: So I think that's very encouraging.

New clients and less than a month 17, 18 days the average right now which is pretty incredible.

Speaker Change: As we look ahead to two enterprise deployments, we are expecting that this is a more complicated sale.

Speaker Change: Sure.

Speaker Change: In particular, given some of what we're doing here.

Two more stakeholders add more senior stakeholders.

Speaker Change: So I think that's very encouraging.

Allan Thygesen: And so we are making some changes which we've already implemented go-to-market to try to prepare for that. We're not counting on a lot from the enterprise segment this year, as I mentioned, in more standard markets. And most of the growth contribution in IAM is coming from the SMB and mid-market segment in fiscal 2026. But obviously, the enterprise segment is huge for us in the long run.

Speaker Change: And so we are making some changes that you've already implemented go to market to try to prepare for that we're not counting on a lot from the enterprise segment. This year as I mentioned in my prepared remarks, most of the growth contribution coming from SMB and mid market segment.

Speaker Change: As we look ahead to two enterprise deployments, we are expecting that this is a more complicated sale.

Speaker Change: Two more stakeholders add more senior stakeholders.

And so we are making some changes.

But obviously the enterprise segment is huge for us in the long run.

Speaker Change: We implemented and our go to market to try to prepare for that we're not counting on a lot from the enterprise segment. This year as I mentioned in my prepared remarks, most of the growth contribution in <unk> is coming from the SMB and mid market segment.

Matthew Sonefeldt: And so, to prepare for that, we moved a significant number of accounts to the core, predominantly self-serve model here at the beginning of this fiscal year. And that has then freed up the ability to rejigger the portfolios and sales so that everybody has smaller portfolios and the ability to go deeper with individual clients this fiscal year. And that's been incredibly well received by the sales team, and I think is the first step in getting ready. Then there's quite a bit of enablement. So we've just had our global sales kickoff within the training leading up to that. So we're investing very heavily in upskilling our teams to be ready for that broader conversation. We've also made some changes to our incentive plans around kickoff and rewarding more new growth as well as rewarding IAM more specifically in upskilling our teams.

Allan Thygesen: And so, to prepare for that, we moved a significant number of accounts to the core, predominantly self-serve model here at the beginning of this fiscal year. And that has then freed up the ability to rejigger the portfolios and sales so that everybody has smaller portfolios and the ability to go deeper with individual clients this fiscal year. And that's been incredibly well received by the sales team, and I think is the first step in getting ready.

Speaker Change: For that we moved a significant number of accounts to a predominantly self serve model.

Speaker Change: At the beginning of this fiscal year and that has been freed up.

Speaker Change: <unk>, but obviously the enterprise segment is huge for us in the long run and so to prepare for that we moved a significant number of accounts to a predominantly self serve model.

Speaker Change: Ability to rejigger the portfolios with sales so that everybody has smaller portfolios and the ability to go deeper in.

With individual clients.

Here at the beginning of this fiscal year and that has been freed up.

Speaker Change: That's been incredibly well received by the sales team I think is the first step in getting ready then there is a quite a bit of enablement. So we just had our global sales kickoff and a whole bunch of training leading up to that.

Speaker Change: The ability to rejigger the portfolios to sales so that everybody has smaller portfolios and ability to go deeper in.

Allan Thygesen: Then there's quite a bit of enablement. So we've just had our global sales kickoff within the training leading up to that. So we're investing very heavily in upskilling our teams to be ready for that broader conversation. We've also made some changes to our incentive plans around kickoff and rewarding more new growth as well as rewarding IAM more specifically.

Speaker Change: With individual clients.

That's been incredibly well received by the sales team.

So we are investing very heavily in upskilling, our teams to be ready for that product conversation.

Speaker Change: <unk> is the first step in getting ready then there is a quite a bit of enablement. So.

We've also made some changes to our incentive plans around <unk>.

Speaker Change: Had our global sales kickoff and a whole bunch of training leading up to that.

Speaker Change: Rewarding more new growth as well as rewarding I am more specifically.

So we are investing very heavily in upscaling, our teams to be ready for that product conversation.

Matthew Sonefeldt: There's all kinds of other initiatives that you would expect to align to this. Another area that we're investing in this year is deepening our work with partners for enterprise customers. So I'll work with the big SIs, for example. It's a key focus there as well. That's a key element of both the sales and the post-sale process. So we are working with partners. We think we have some work to do to fully capitalize on the opportunity, but we're already seeing, I think, very good demand. And of course, this is a reminder of the post-sale process. We have a lot of customers across all customer segments. We think we have 95%. We think we have some work to do to fully capitalize on the equivalent in many of our overseas markets.

And there's all kinds of other initiatives as you would expect to to align to this.

Allan Thygesen: There's all kinds of other initiatives that you would expect to align to this. Another area that we're investing in this year is deepening our work with partners for enterprise customers. So I'll work with the big SIs, for example. It's a key focus there as well. That's a key element of both the sales and the post-sale process. So we think we have some work to do to fully capitalize on the opportunity, but we're already seeing, I think, very good demand. And of course, we are this is a reminder of the post-sale process. We have a lot of customers across all customer segments. We think we have 95%. We think we have some work to do to fully capitalize on the equivalent in many of our overseas markets.

Speaker Change: <unk> also made some changes to our incentive plans around.

Another area that we're investing in this year is deepening our work with partners <unk> customers. So I'll work with the biggest size for example.

Speaker Change: Rewarding more new growth as well as rewarding I am more specifically.

Speaker Change: And there's all kinds of other initiatives as you would expect to to align to this and.

Speaker Change: As a key focus area to settle that's a key element of closed sales in the post sale process. So.

Speaker Change: Another area that we're investing in this year is deepening our work with partners for enterprise customers. So I'll work with the biggest size for example.

<unk>.

Speaker Change: We think we have we think we are.

Speaker Change: Some work to do to fully capitalize on the opportunity, but we're already seeing I think very good demand and of course. We are this is a reminder.

A key focus area saddle, that's a key element of both the sales and the post sale process.

We have a lot of customers across all customer segments, where 95% or more of the fortune 500 equivalent many of our overseas markets.

We are.

Speaker Change: We think we have.

Speaker Change: I think we have some work to do to fully capitalize on the opportunity, but we're already seeing I think very good demand and of course. We are this is a reminder, we have a lot of customers across all customer segments, where 95% or more of the fortune 500 equivalent many of our overseas markets. So we already have a foot in the door, we already approved vendor.

Matthew Sonefeldt: So we already have a foot in the door. We're already a proved vendor. We're already well regarded. And so that gives us a great starting point from which to sell this broader solution. But I'm not naive. I think we have work to do to become a full enterprise company, and we're investing in that both on the product and the go-to-market side to be able to capitalize on the opportunity we have to sell this broader solution. But I'm not naive. I think we have work to do to become a full enterprise company, and we're investing in that both on the product and the go-to-market side to be able to capitalize on the opportunity we have. Yeah. Thanks very much. I'll add another one on IAM. Allan, could you just try to dimensionalize the opportunity for IAM at accounts when you get in there?

Allan Thygesen: So we're already a proved vendor. We're already well regarded. And so that gives us a great starting point from which to sell this broader solution. But I'm not naive. I think we have work to do to become a full enterprise company, and we're investing in that both on the product and the go-to-market side to be able to capitalize on the opportunity we have.

Speaker Change: We already have the door, we're already approved vendor, we're already well regarded and so that gives us a great starting point from which to.

Two to sell this broader solution, but I'm not nave I think we have work to do to become a.

Enterprise company and we're investing in that both on the product and the go to market.

We're already well regarded and so that gives us a great starting point from which to.

Speaker Change: Capitalize on the opportunity we have.

Brad Sills: Very exciting. Thanks, Allan.

Operator: Our next question is from Kirk Materne with Evercore ISI. Please proceed.

Speaker Change: To sell this broader solution, but im not nave I think we have work to do to become.

Speaker Change: Very exciting thanks Alan.

Yes.

Speaker Change: Okay.

Speaker Change: A full enterprise company and we're investing in that both on the product and the go to market side to be able to capitalize on the opportunity we have.

Our next question is from Kirk <unk> with Evercore ISI. Please proceed.

Speaker Change: Yes, Thanks, Tim I saw another one on I am.

Kirk Materne: Yeah. Thanks very much. I'll add another one on IAM. Allan, could you just try to dimensionalize the opportunity for IAM at accounts when you get in there? Meaning, is this something that can lift the average spend with you all from 20% to 50%? I'm just trying to think about that. I think you mentioned the enterprise could obviously be larger given the complexity. But how should we think about the opportunity in terms of customer penetration and then sort of the potential uplift for you all?

Speaker Change: Very exciting thanks Alan.

Speaker Change: Just trying to dimensionalize the opportunity for I am at accounts when you get in there meaning is this something that can lift the average spend with you all from 20% to 50%.

Speaker Change: No.

Speaker Change: Our next question is from Kirk <unk> with Evercore ISI. Please proceed.

Matthew Sonefeldt: Meaning, is this something that can lift the average spend with you all from 20% to 50%? I'm just trying to think about that. I think you mentioned the enterprise could obviously be larger given the complexity. But how should we think about the opportunity in terms of customer penetration and then sort of the potential uplift for you all? Think about that. Yeah. I mean, we're not getting into the specific uplift, but suffice it to say, it's very meaningful. We don't even let reps sell IAM right now unless there's an uplift. And just because we believe we're delivering a tremendous amount of value, and we want to be compensated for that. And we're not seeing that as a huge friction point. We're, I think, doing very, very well with that.

Tom Shaw: Yes, Thanks, Tom Shaw and another one on I am.

Think about that I think you mentioned the enterprise can obviously be larger given the complexity that how should we think about the opportunity in terms of <unk>.

Speaker Change: Just trying to dimensionalize the opportunity for Iam at accounts when you get in there meaning is this something that can lift the average spend with you all from 20% to 50%.

Speaker Change: Customer penetration then served.

Potential uplift for you all.

Think about that I think you mentioned the enterprise can obviously be larger given the complexity of it how should we think about the opportunity in terms of.

Allan Thygesen: Yeah. I mean, we're not getting into the specific uplift, but suffice it to say, it's very meaningful. We don't even let reps sell IAM right now unless there's an uplift. And just because we believe we're delivering a tremendous amount of value, and we want to be compensated for that. And we're not seeing that as a huge friction point. We're, I think, doing very, very well with that.

Speaker Change: Yes, I mean, we're not getting into the specific uplift.

Speaker Change: Suffice it to say, it's very meaningful we don't we don't even let rep sell I am right now unless theres an uplift.

Speaker Change: Customer penetration denser.

Speaker Change: <unk> uplift for you all.

Speaker Change: And just because we believe we are delivering a tremendous amount of value.

Speaker Change: Yeah.

Speaker Change: Yes, I mean, we're not getting into the specific uplift.

Speaker Change: We want to be compensated for that.

Speaker Change: I would say, it's very meaningful we don't we don't even let rep sell I am right now unless there is an uplift.

Speaker Change: We're not seeing that as a huge friction point in fact, we are I think doing very very well with that so.

Matthew Sonefeldt: And just because we believe we're delivering a huge friction point in terms of how we enter, and we want to, I'd say that there are multiple functional areas that can be drivers. We've always had a strong relationship with sales organizations, whether it's B2B or P2C customer onboarding. And that continues. And IAM is very strong for that. Procurement tends to be another very important functional area. HR can be another area of opportunity. But really, it cuts across the enterprise. The larger the company, the more likely it is we enter in one of the functions. But in the small companies, it's often another single ubiquitous solution day one. All their agreements get ingested. And of course, we have, but really, it cuts across the enterprise. Most or all of their agreements. The larger the company, the more likely it is we enter.

Allan Thygesen: So because we believe how we enter, I'd say that there are multiple functional areas that can be drivers. We've always had a strong relationship with sales organizations, whether it's B2B or P2C customer onboarding. And that continues. And IAM is very strong for that. Procurement tends to be another very important functional area.

Speaker Change: And just because we believe we are delivering a tremendous amount of value and.

Speaker Change: In terms of how we enter.

Speaker Change: And we want to be compensated for that.

Speaker Change: I would say that there are multiple functional areas that can be drivers.

Speaker Change: We're not seeing that as a huge friction point in fact, we are I think doing very very well with that so.

Speaker Change: Sales, we've always had a strong.

Speaker Change: Relationship with sales organizations, whether it's <unk> or PVC customer onboarding.

In terms of how we enter.

Speaker Change: And that continues.

Speaker Change: I would say that there are multiple functional areas that can be drivers.

Speaker Change: I am is very strong for that procurement tends to be another very important functional area HR can be another area of opportunity, but really it cuts across the enterprise new larger the company the more likely as we entered one of the functions, but in the smaller companies it's often.

Sales, we've always had a strong.

Allan Thygesen: HR can be another area of opportunity. But really, it cuts across the enterprise. The larger the company, the more likely it is we enter in one of the functions. But in the small companies, it's often another single ubiquitous solution day one. All their agreements get ingested. And of course, we have, but really, it cuts across the enterprise. Most or all of their agreements. The larger the company, the more likely it is we enter.

Relationship with sales organizations, whether it be <unk> or PVC customer onboarding.

And that continues.

Speaker Change: Ubiquitous solution they want all the agreements get adjusted.

Speaker Change: And of course, we have often most or all of the agreements is there anything you sign customers.

Matthew Sonefeldt: And so that just allows us to deliver value really day one. Single ubiquitous solution. So I think we feel it's a very significant expansion opportunity with customers of all sizes. And as you mentioned, we'll just have to see just how big it can get with big enterprise clients. But this is an acute pain point. You go to a really large company. I think we feel it's a very significant expansion opportunity. We're excited, as you mentioned, to pursue that. We'll just have to see just how big it can get with enterprise clients. And then maybe a quick follow-up from Blake. I think you mentioned if you go to a really large company. And that dollar retention being flat this year. I guess if everything goes on from it seems like you made really good progress on gross.

Allan Thygesen: And so that just allows us to deliver value really day one. Single ubiquitous solution. So I think we feel it's a very significant expansion opportunity with customers of all sizes. And as you mentioned, we'll just have to see just how big it can get with big enterprise clients. But this is an acute pain point. You go to a really large company. I think we feel it's a very significant expansion opportunity. We're excited, as you mentioned, to pursue that.

Speaker Change: So that just allows us to deliver value really day one.

Speaker Change: So I think we feel it's a very significant expansion opportunity with customers of all sizes and as you mentioned, we'll just have to see just how big it could get big enterprise clients, but this is the other.

Justin.

Speaker Change: And of course, we have often most or all of their agreements. If they are an existing <unk> customers and so that just allows us to deliver value really day one.

Speaker Change: Acute pain point, you got a really large company.

Speaker Change: So I think we feel it.

Joe: This is Joe.

Significant expansion opportunity with customers of all sizes and as you mentioned, we'll just have to see just how big it could get big enterprise clients, but this is a.

Speaker Change: Tens of millions of dollars. So we're excited to do.

Speaker Change: To pursue that.

Speaker Change: And then maybe a quick follow up for Blake I think you've mentioned.

Kirk Materne: And then maybe a quick follow-up for Blake. I think you mentioned if you go to a really large company. And that dollar retention being flat this year. I guess if everything goes on from it seems like you made really good progress on gross. And then maybe you're sort of hitting a limit on the ability to keep moving that higher. I guess could you just talk a little bit about the puts and takes of that being flat this year?

Speaker Change: An acute pain point did you go to a really large company.

Speaker Change: You're expecting net.

Speaker Change: Salary and retention to be flat. This year I guess is there anything going on from it seems like you've made really good progress on gross is are you start hitting a limit on the ability to keep moving that higher I guess, but can you just talk a little bit about the puts and takes of that thanks.

Speaker Change: This is.

Speaker Change: Tens of millions of dollars. So we're excited too to pursue that.

Speaker Change: That sounds good and then maybe a quick follow up for Blake I think you mentioned.

Matthew Sonefeldt: And then maybe you're sort of hitting a limit on the ability to keep moving that higher. I guess could you just talk a little bit about the puts and takes of that being flat this year? I guess. Sure. The commentary in the prepared remarks around the flat Dollar Net Retention, that was specific to Q1. We actually do expect moderate, gradual improvement throughout the year. And the reason we believe that's an opportunity for us is both there's still gross retention improvements that we can continue to make. We made a lot. And so far, the team's done hats off to the team there across DocuSign to be able to improve retention rates. We still have more opportunity remaining, so that's part of it.

Youre expecting net retention, our net dollar retention to be flat. This year I guess is there anything going on from it seems like you've made really good progress on growth is there.

Speaker Change: Sure the commentary in the prepared remarks around the flat dollar net retention that was specific to Q1.

Blake Grayson: Sure. The commentary in the prepared remarks around the flat Dollar Net Retention, that was specific to Q1. We actually do expect moderate, gradual improvement throughout the year. And the reason we believe that's an opportunity for us is both there's still gross retention improvements that we can continue to make. We made a lot. And so far, the team's done hats off to the team there across DocuSign to be able to improve retention rates. We still have more opportunity remaining, so that's part of it.

Speaker Change: Are you sort of heading a limit on the ability to keep moving that higher I guess can you just talk a little bit about the puts and takes of that.

Speaker Change: Actually I do expect moderate gradual improvement throughout the year. So I think the reason we believe that is an opportunity for US is both there is still a gross retention improvements that we can continue to make we made a lot. So far the team's done hats off to the team there cross dock designed to be able to.

Speaker Change: Sure.

Sure the commentary in the prepared remarks around the flat dollar net retention that was specific to Q1, we actually do expect moderate gradual improvement throughout the year. So I think and the reason we believe that's an opportunity for US is both theres still gross retention improvements that we can continue to make we made a lot so far.

Speaker Change: Improved retention range, we still have more opportunity remaining so that's part of it and then the other part obviously it comes with expansion opportunities that we believe that in particular I am.

Matthew Sonefeldt: And then the other part, obviously, comes with expansion opportunities that we believe, in particular, IAM provides us for, but also within our eSign business as well. And so with those two components, we believe that there's a moderate improvement opportunity for us to see throughout the year past Q1, which we're forecasting as being flat. Allan, just on the sales changes you're making, can you just maybe put that in context? Is this more of a tweak? Is this maybe the biggest overall you've had in your go-to-market in the last couple of years?

Blake Grayson: And then the other part, obviously, comes with expansion opportunities that we believe, in particular, IAM provides us for, but also within our eSign business as well. And so with those two components, we believe that there's a moderate improvement opportunity for us to see throughout the year past Q1, which we're forecasting as being flat.

Speaker Change: The team's done.

Speaker Change: It's off to the team there are cross dock designed to be able to.

Speaker Change: Provides us for but also within already signed business as well and so those two components. We believe that there is a moderate improvement opportunity for us to see throughout the year past Q1, which were forecasting as being flat.

Speaker Change: Improved retention rates, we still have more opportunity remaining so that's part of it and then the other part obviously it comes with expansion opportunities that we believe that but in particular I am provides.

Okay perfect. Thanks for clarifying congrats on the quarter.

Speaker Change: Provides us form, but also within already signed business as well and so those two components. We believe that there is a moderate improvement opportunity for us to see throughout the year past Q1, which were forecasting as being flat.

Speaker Change: Thanks.

Our next question is from Brent.

Speaker Change: With Jefferies. Please proceed.

Speaker Change: Alan just on the sales changes you're making can you just maybe put that in context is this more of a tweak is just maybe the biggest overall you've had in your go to market in the last couple of years, how would you just characterize what youre doing with the sales team this year and a quick follow up for <unk>.

Kirk Materne: Allan, just on the sales changes you're making, can you just maybe put that in context? Is this more of a tweak? Is this maybe the biggest overall you've had in your go-to-market in the last couple of years? How would you just characterize what you're doing to the sales team this year? And a quick follow-up for Blake.

Speaker Change: Okay perfect. Thanks for clarifying congrats on the quarter.

Speaker Change: Thanks.

Brent Thill: Our next question is from Brent Thill with Jefferies. Please proceed.

Matthew Sonefeldt: How would you just characterize what you're doing to the sales team this year? And a quick follow-up for Blake. Can you just put that in context? Is this more of a tweak? Is this the biggest overall? Yeah. I think it's neither. I think it's somewhere in the middle. Look, I don't want to underplay it. This is a big thing for us to graduate up to becoming a big-time enterprise company. And I'm well aware of what that takes. And it's somewhere in the middle. This is the beginning of that journey. At the same time, I think you're well aware we've made some pretty substantial changes over the last couple of years. And I have come through that, I think, pretty well. And those involved. This layoff and other things.

Speaker Change: Mike.

Speaker Change: Yeah, I think it's neither I think it's somewhere in the middle I think look I don't want to play it.

Allan Thygesen: Yeah. I think it's neither. I think it's somewhere in the middle. Look, I don't want to underplay it. This is a big thing for us to graduate up to becoming a big-time enterprise company. And I'm well aware of what that takes. And it's somewhere in the middle. This is the beginning of that journey. At the same time, I think you're well aware we've made some pretty substantial changes over the last couple of years. And I have come through that, I think, pretty well. And those involved. This layoff and other things.

Speaker Change: The big thing for us to graduate up to becoming a big time Enterprise company.

Yeah, I think it's neither I think it's somewhere in the middle I think look I don't want to underplay. It. This is a big thing for us to graduate up to becoming a big time Enterprise company and I'm, well aware of what that takes and.

Speaker Change: I'm well aware of what that takes and.

Speaker Change: This is the beginning of that journey.

At the same time, I think you're well aware, we've made some pretty substantial seats just over the last couple of years.

Speaker Change: Have come through that I think pretty well in those involved lay.

This is the beginning of that journey.

Layoffs and other things and this time, we were able to move people around and make.

Matthew Sonefeldt: This time, we were able to move people around and make changes that are much more manageable. I think the organization has already digested that. It was just at the global sales kickoff last week with everyone. It was fantastic to see just how lean the team was, how they had already set all their territories, quotas, and knew customers. We're just excited to get going. Of course, we've been pretty successful over the last eight months. Everybody knows that. So lean the team was. There's a lot of excitement on their team. So I'm in quotas. We want to be purposeful and thoughtful about how we roll these changes. I just want to give a quick shout-out to Paula Hansen, who we all know, joined us in early August of last year and really led all this work.

Allan Thygesen: This time, we were able to move people around and make changes that are much more manageable. I think the organization has already digested that. It was just at the global sales kickoff last week with everyone. It was fantastic to see just how lean the team was, how they had already set all their territories, quotas, and knew customers.

Speaker Change: At the same time, I think you're well aware, we've made some pretty substantial seats over the last couple of years.

Speaker Change: Changes that much more manageable and I think the organization has already digested that it was just I was just at the global sales kickoff last week with everyone and it was it was fantastic to see just how lean and the team was how they had already.

Speaker Change: Have come through that I think pretty well in those involved layoffs and other things and this time, we were able to move people around and make.

Speaker Change: Territories, and quotas and new Cott bottles, and we're just excited to get going and of course, it doesn't hurt that.

Allan Thygesen: We're just excited to get going. Of course, we've been pretty successful over the last eight months. Everybody knows that. So there's a lot of excitement on their team. So I'm in quotas. We want to be purposeful and thoughtful about how we roll these changes. I just want to give a quick shout-out to Paula Hansen, who we all know, joined us in early August of last year and really led all this work. And it's just been a fantastic addition to the senior team in every way. And has the full-on commitment behind her. And I think it's testimony to her leadership.

Speaker Change: Successful over the last six to eight months and everybody knows that so.

There's a lot a lot of excitement so on.

Speaker Change: Im.

Speaker Change: We want to be purposeful in.

Speaker Change: Get going and of course, it doesn't hurt that we've been pretty successful over the last six to eight months and everybody knows that so.

Paul Hudson: Full about how we roll these changes I just wanted to give a quick shout out to Paul Hudson, who.

Speaker Change: Theres a lot a lot of excitement.

I'll know joined US in early August of last year, and really led all of this work.

Speaker Change: Im.

We want to be purposeful in.

It's just been a fantastic addition to the senior team in every way and it has the full organization behind her and I think it's.

Matthew Sonefeldt: And it's just been a fantastic addition to the senior team in every way. And has the full-on commitment behind her. And I think it's testimony to her leadership. She joined us in early August of last year and really led all this work. Is there a rough range you put on it that you've seen so far? There's not, Brent. I get asked this question frequently. And one of the reasons why, I mean, like Allan said, we are seeing larger deal sizes. We've actually set up publicly a number of times.

Speaker Change: Full about how we how we roll these changes I just wanted to give a quick shout out to Paul Hudson, who as you all know joined US in early August of last year and really led all of this work and it's just been a fantastic addition to the senior team in every way and as has the full organization behind her and I think it's tough.

Paul Hudson: Testament to our leadership.

Brent Thill: Okay. For Blake and IAM, what is kind of the average uplift you're seeing in ASPs when IAM is going in? I know it's across the board, but is there is a rough range you’d put on it that you're seeing so far?

Speaker Change: Okay and for Blake and I am what is the kind of average uplift youre seeing in Asp's. When you when I am going in I know it's across the board is there is there a rough range would you put on it that youre seeing so far.

Speaker Change: Testament to our leadership.

Speaker Change: Okay and for Blake and I am what is the kind of average uplift you're seeing in Asps. When you when I am going to and I know it's across the board is there is there a rough range you had you put on it but youre seeing so far.

Theres not Brian.

Blake Grayson: There's not, Brent. I get asked this question frequently. And one of the reasons why, I mean, like Allan said, we are seeing larger deal sizes. We've actually set up publicly a number of times. The vast, vast majority of our IAM deals to date have been in kind of that SMB mid-market, those segments. So until we get much further kind of up the chain we’re not trying to give out expansion rates. I'm a little worried about things don't apply necessarily across all these customer segments.

Speaker Change: I get asked this question frequently and one of the reasons why I mean like Alan said, we are seeing larger deal sizes, we've actually set up publicly a number of times.

Speaker Change: We are the vast vast majority of our iam deals to date have been in kind of that SMB mid market.

Matthew Sonefeldt: The vast, vast majority of our IAM deals to date have been kind of that SMB mid-market segment. And so until we get much further kind of up the chain around trying to give out expansion rates, I'm a little worried about the vast, vast majority of our IAM deals. Things don't apply necessarily across all these customer segments. We'll have to see. But suffice it to say that our billings guide of accelerated billings for us next year reflects the expansion opportunities, frankly, that we get, along with retention gains, which is still top of mind. But we're not breaking out the expansion rates in specific terms today. Our billings guide of accelerated billings for us next year reflects the expansion opportunities, frankly, that we get, along with retention gains, which is still top of mind.

Okay.

Speaker Change: Theres not Brian.

I get asked this question frequently and one of the reasons why I mean like Alan said, we are seeing larger deal sizes, we've actually set up publicly a number of times.

Those segments and so until we get much further kind of up the chain are out trying to give out expansion rates I'm a little worried about.

Speaker Change: We are the vast vast majority of our iam deals to date have been in kind of that SMB mid market.

Speaker Change: Things don't apply necessarily across all of these customer segments, while at the C. But suffice it to say that our billings guide of accelerated billings for US next year reflects the expansion opportunities frankly that we got along with retention gains, which is still top of mind, but we're not breaking out the expansion rates in specific terms Tonight.

Blake Grayson: But suffice it to say that our billings guide of accelerated billings for us next year reflects the expansion opportunities, frankly, that we get, along with retention gains, which is still top of mind. But we're not breaking out the expansion rates in specific terms today.

Speaker Change: Those segments and so until we get much further kind of up the chain or trying to give out expansion rates I'm a little worried about.

Speaker Change: Things don't apply necessarily across all of these customer segments will have to see but suffice it to say that our billings guide of accelerated billings for US next year reflects the expansion opportunities frankly that we get along with retention gains, which is still top of mind, but we're not breaking out the expansion rates in specific terms Tonight.

Brent Thill: Great. Thanks.

Operator: Our next question is from Patrick Walravens with Citizens. Please proceed.

Speaker Change: Great. Thanks.

Speaker Change: Our next question is from Patrick Cooperations with citizens. Please proceed.

Matthew Sonefeldt: But we're not breaking out the expansion rates in specific terms today. This is Austin Cole on for Pat Walravens. Appreciate you guys taking the questions here. Congrats on some nice results. Wanted to dig into the customers over 300,000 ACV. Had a nice uptick this quarter. I was wondering if there's any kind of more detail on what drove that number and what you're seeing in those larger customers. Customers over 300,000 ACV. I mean, I'll take a stab. I would say most of that increase is from customers in our core, right? Like IAM, there's a contribution there in IAM, but it's not the majority of it at all. You can imagine it's because we just launched into the larger customer segment.

Austin Coal: Yes. This is Austin coal on for Pat Walraven I. Appreciate you guys, taking the questions here and congrats on some nice results.

Austin Cole: This is Austin Cole on for Pat Walravens. Appreciate you guys taking the questions here. Congrats on some nice results. Wanted to dig into the customers over 300,000 ACV. Had a nice uptick this quarter. I was wondering if there's any kind of more detail on what drove that number and what you're seeing in those larger customers.

Speaker Change: Great. Thanks.

Speaker Change: Our next question is from Patrick Wall Ravens with citizens. Please proceed.

Speaker Change: Wanted to dig into the <unk>.

Customers over 300, K ACD had a nice.

Austin: Yes. This is Austin coal on for Pat Walraven I. Appreciate you guys, taking the questions here and congrats on some nice results.

Speaker Change: Uptick this quarter I was wondering if theres any kind of more detail on what drove that number and what youre seeing.

Speaker Change: Wanted to dig into the <unk>.

Speaker Change: And those larger customers.

Speaker Change: Customers over 300, K ACD had a nice.

Speaker Change: Well I mean, I'll take a stab I would say most of that increase is from customers in our core Gaiam Theres a contribution there than I am but it's not the majority of it at all.

Blake Grayson: I mean, I'll take a stab. I would say most of that increase is from customers in our core, right? Like IAM, there's a contribution there in IAM, but it's not the majority of it at all. You can imagine it's because we just launched into the larger customer segment.

Speaker Change: Uptick this quarter I was wondering if theres any kind of more detail on what drove that number and what youre seeing.

Speaker Change: And those larger customers.

Can imagine because we just launched into the larger customer segment and so I think it just goes to seeing these trends of higher usage higher trends getting customers that are already installed to lift up and expand with us.

Speaker Change: Well I mean, I'll take a stab I would say most of that increase is from customers in our core right and there is a contribution there than I am but it's not the majority of it at all and you can imagine because we just launched into the larger customer segment and so I think it just goes to seeing these trends of higher usage.

Matthew Sonefeldt: I think it just goes to seeing these trends of higher usage, higher trends getting customers that are already installed to lift up and expand with us. I'm really excited by it. I think there's volatility in that number on a quarter-to-quarter basis. But it's really predominantly out of the core. And so it's what our enterprise and kind of larger customer segment go-to-market teams are working on. And I've been really excited to see that progress. Yeah. If I can just add to that to say that, but it's really predominantly, I think, in particular, we're really pleased with the continuing recovery and progress that we're working on in our market business. Where, of course, both of our businesses, you know. And I'll just add to that. I think it's a testament to the continued improvement there.

Blake Grayson: I think it just goes to seeing these trends of higher usage, higher trends getting customers that are already installed to lift up and expand with us. I'm really excited by it. I think there's volatility in that number on a quarter-to-quarter basis. But it's really predominantly out of the core. And so it's what our enterprise and kind of larger customer segment go-to-market teams are working on. And I've been really excited to see that progress.

Speaker Change: I'm really excited by it I think there is volatility in that number on a quarter to quarter basis, but it's really predominantly out of the core and so it's what our enterprise and kind of larger customer segment go to market teams are working on them.

Speaker Change: Higher trends getting customers that are already installed to lift up and expand with us.

Speaker Change: Really excited to see that progress yes.

Speaker Change: I'm really excited by it I think there is volatility in that number on a quarter to quarter basis, but it's really predominantly out of the core and so it is what our enterprise.

Allan Thygesen: Yeah. If I can just add to that to say that, but it's really predominantly, I think, in particular, we're really pleased with the continuing recovery and progress that we're working on in our market business. Where, of course, both of our businesses, you know. And I'll just add to that. I think it's a testament to the continued improvement there.

Speaker Change: Yes, if I could just.

Speaker Change: I'll just add to that to say that.

I think in particular, we're really pleased with the continuing recovery in progress at our North American business, where of course bulk of our business as you know and.

Speaker Change: Larger customer segment go to market teams are working on.

Speaker Change: Really excited to see that progress yes.

Speaker Change: Yes, if I could just.

Speaker Change: I'll just add to that to say that.

Speaker Change: I think it's a testament to the continued improvement there and I think we're sort of more fully out of the shadows of the Covid stuff.

Speaker Change: I think in particular, we're really pleased with the continuing recovery in progress at our North American business, where of course, the bulk of our business as you know and.

Matthew Sonefeldt: And I think we're sort of more fully out of the shadows of COVID stuff. And of course, everybody wants, you know, better agreement processes. And I think it's a testament to the economic activity has been fairly decent across the broad-range sectors. And so shadows of the COVID. We are well poised to capitalize on that. Everybody wants better agreement processes. And there was actually some commentary about economic activity has been fairly decent across the sectors. Dropbox was talking about kind of de-emphasizing their sign business. And just was wondering if you guys had seen or anticipate any kind of competitive opportunity there. Dropbox is talking about kind of de-emphasizing their sign business. No. I mean, there are lots of companies that offer some basic sign solutions. People come in and out. I think we've held our own very well. We continue to be the market-leading player.

Allan Thygesen: And I think we're sort of more fully out of the shadows of COVID stuff. And of course, everybody wants, you know, better agreement processes. And I think it's a testament to the economic activity has been fairly decent across the broad-range sectors. And so shadows of the COVID. We are well poised to capitalize on that.

Speaker Change: <unk>.

Speaker Change: Everybody wants better agreement processes and.

Speaker Change: I think it's a testament to the continued improvement there and I think we're sort of more fully out of the shadows of the COVID-19 stuff in it.

Speaker Change: But he is being kind of a <unk>.

Speaker Change: Activity has been fairly decent across a broad range of sectors and so we.

Speaker Change: We are well poised to capitalize on that.

<unk>.

Everybody wants.

Austin Cole: Great. And there was actually some commentary about economic activity has been fairly decent across the sectors. Dropbox was talking about kind of de-emphasizing their sign business. And just was wondering if you guys had seen or anticipate any kind of competitive opportunity there.

Great and then.

Better agreement processes and.

Speaker Change: There was actually some commentary about.

Speaker Change: Everybody is economic activity has been fairly decent across a broad range of sectors and so.

Speaker Change: Dropbox is talking about kind of deemphasizing their sign business and just was wondering if you guys have seen or anticipate any kind of competitive opportunity there.

Mike: We are well poised to capitalize on that.

Speaker Change: Great and then.

Speaker Change: There was actually some commentary about.

Speaker Change: Dropbox is talking about kind of deemphasizing their sign business and just was wondering if you guys have seen or anticipate any kind of competitive opportunity there.

Speaker Change: No I mean, there are lots of companies that offer basic science solutions people come in and out.

Speaker Change: I think we've held our own very well, we continue to be the market leading player.

Matthew Sonefeldt: And I don't focus on No. We have lots of companies that offer basic sign solutions. Specifically. Really, the competitive environment, I think, in eSign is pretty stable at this point. And we continue to be, I think, the leading player. And I'm probably making a little bit of a silence, so. I'm pleased with how we've been able to stabilize that specifically. Really, the competitive environment, I think, in eSign is pretty stable at this point. And our next question is from Mark Murphy with J.P. Morgan. Please proceed. Thanks. This is Sonakshi Sethi on for Mark Murphy. Congrats on the results. Allan, I noticed this disclosure of essentially 100% penetration of the top 20 or 25 Fortune 500 companies across Finserv, healthcare, and technology, which is no doubt quite impressive. Congrats on the results.

Allan Thygesen: And I don't focus on No. We have lots of companies that offer basic sign solutions. Specifically. Really, the competitive environment, I think, in eSign is pretty stable at this point. And we continue to be, I think, the leading player. And I'm probably making a little bit of a silence, so. I'm pleased with how we've been able to stabilize that.

Speaker Change: Polka sudden.

Speaker Change: No I mean, there are lots of companies that offer our basic science solutions.

Individual comps.

Speaker Change: Companies.

Speaker Change: Specifically it really the competitive environment I think any sign is pretty stable at this point.

He will come in and out.

I think we've we've held our own very well, we continue to be the market leading player and a focus on.

Speaker Change: If anything I think we're.

Speaker Change: Probably making a little bit of progress so.

Speaker Change: Individual companies.

Speaker Change: I am pleased with how we've been able to stabilize that.

Austin Cole: Great, Thank you.

Speaker Change: Specifically I really the competitive environment I think any sign is pretty stable at this point.

Speaker Change: Great. Thank you.

Operator: And our next question is from Mark Murphy with J.P. Morgan. Please proceed.

Our next question is from Mark Murphy with J P. Morgan. Please proceed.

Speaker Change: If anything I think we're probably making a little bit of progress so.

Sonakshi Sethi: Thanks. This is Sonakshi Sethi on for Mark Murphy. Congrats on the results. Allan, I noticed this disclosure of essentially 100% penetration of the top 20 or 25 Fortune 500 companies across Finserv, healthcare, and technology, which is no doubt quite impressive. As you consider the growth levers going forward, how do you think about the balance between net new customer wins versus sort of increasing the RPO of your existing large installed base, particularly with IAM, which is no doubt quite impressive? As you consider the growth levers going forward, how do you think about it?

John.

Thanks, This is cynical or on for Mark Murphy Congrats on the results.

Pleased with how we've been able to stabilize that.

Speaker Change: Great. Thank you.

Alan I noticed disclosure of essentially 100% penetration of the top 20.

Mark Murphy: Our next question is from Mark Murphy with J P. Morgan. Please proceed.

25, Fortune 500 companies across fin serve health care and technology.

Speaker Change: Thanks, This is cynical or on for Mark Murphy Congrats on the results Alan.

Speaker Change: No doubt quite impressive.

Speaker Change: As you consider the growth levers going forward, how do you think about the balance between net new customer wins versus sort of increasing Dr. Arko of your existing large installed base, particularly with I am.

Matthew Sonefeldt: As you consider the growth levers going forward, how do you think about the balance between net new customer wins versus sort of increasing the RPO of your existing large installed base, particularly with IAM, which is no doubt quite impressive? As you consider the growth levers going forward, how do you think about it? Well, I think for us, the question that, as you might imagine, we're very focused on growing RPO with existing customers. But we don't want to leave any stone unturned on the new customer acquisition front. As you can tell, we can keep growing that. And those are the future customers that grow into 300,000 or more. And we want to make sure we continue to win there at an appropriate rate.

Speaker Change: Alan I noticed disclosure of essentially 100% penetration of the top 20.

25, Fortune 500 companies across fin serve health care and technology, which has no doubt quite impressive.

Speaker Change: Yeah, I mean, I think trials from the question that.

Paul Hudson: As you consider the growth levers going forward, how do you think about the balance between net new customer wins versus sort of increasing the <unk> of your existing large installed base, particularly with I am.

Allan Thygesen: Well, I think for us, the question that, as you might imagine, we're very focused on growing RPO with existing customers. But we don't want to leave any stone unturned on the new customer acquisition front. As you can tell, we can keep growing that. And those are the future customers that grow into 300,000 or more. And we want to make sure we continue to win there at an appropriate rate.

Speaker Change: As you might imagine we're very focused on growing our proved with existing customers, but we don't want to leave any stone unturned on the new customer acquisition front and as you can tell we can keep growing that and those are the future customers that grow into 300 care more and we want to make sure. We continue to win there at an appropriate rate.

Speaker Change: Yeah.

Speaker Change: So I think fairly from a question that.

As you might imagine we're very focused on growing our proved with existing customers, but we don't want to leave any stone unturned on the new customer acquisition front and as you can tell we can keep growing that and those are the future customers that grow into 300 care more and we want to make sure we continue to win their appropriate rate.

Matthew Sonefeldt: But we don't want to leave on our primary focus and the focus of our sales team, basically the focus of our marketing team, that is on upsell to the existing base and particularly of IAM. And we want to make sure we continue to win there. Thank you. And then as a quick follow-up, last quarter, you seemed to convey a marginal improvement in the environment for enterprise technology, I think, sort of towards the end of 2024. Fast forwarding to today amidst all this uncertainty around tariffs, trade wars, duties, etc., has that view shifted at all? And are customers a bit more cautious and perhaps to lean into some of that software towards the end of 2024? Fast forwarding to today amidst all this uncertainty around tariffs, trade wars, etc., as I mentioned, I think. Has that view shifted at all?

Allan Thygesen: But we don't want to leave on our primary focus and the focus of our sales team, basically the focus of our marketing team, that is on upsell to the existing base and particularly of IAM.

But our primary focus the focus of our sales teams increasingly a focus of our marketing teams as an upsell to the existing base in particular I am.

Speaker Change: Thank you and then as a quick follow up last quarter, you seem to convey a marginal improvement in the environment for enterprise technology, I think sort of towards the end of 2020 for SaaS forwarding to today amidst all of this uncertainty around tariffs trade wars et cetera is that view shifted at all and their customers.

Sonakshi Sethi: Thank you. And then as a quick follow-up, last quarter, you seemed to convey a marginal improvement in the environment for enterprise technology, I think, sort of towards the end of 2024. Fast forwarding to today amidst all this uncertainty around tariffs, trade wars, duties, etc., has that view shifted at all? And are customers a bit more cautious and perhaps to lean into some of that software towards the end of 2024? Fast forwarding to today amidst all this uncertainty around tariffs, trade wars, etc., as I mentioned, I think. Has that view shifted at all?

Speaker Change: But our primary focus and the focus of our sales teams increasingly focus of our marketing teams as an upsell to the existing base in particular I am.

Speaker Change: More cautious perhaps to lean into some of that software spending plans.

Speaker Change: Yes, we haven't seen that yet.

Speaker Change: So as I mentioned I think.

We see our envelope volumes through the month of February nothing changes so there's nothing on the activity front.

Matthew Sonefeldt: We see our ongoing volume through the month of February. Nothing changes. So there's nothing on the activity front. It's certainly possible that sentiment could evolve to where that affects technology spend. I think we're in a good place where nothing changes, relatively speaking, to some other categories. That it's pretty fundamental to how companies operate to use electronic signing. IAM has a fantastic and highly economic value proposition. So relatively speaking to some other categories and that the global economy really takes a turn for the worse. Our sentiment takes a turn significantly for the worse, then that will affect everybody. IAM has a fantastic and highly economic value proposition. Thank you. Congrats.

Allan Thygesen: We see our ongoing volume through the month of February. Nothing changes. So there's nothing on the activity front. It's certainly possible that sentiment could evolve to where that affects technology spend. I think we're in a good place where nothing changes, relatively speaking, to some other categories. That it's pretty fundamental to how companies operate to use electronic signing. IAM has a fantastic and highly economic value proposition. So relatively speaking to some other categories and that the global economy really takes a turn for the worse. Our sentiment takes a turn significantly for the worse, then that will affect everybody. IAM has a fantastic and highly economic value proposition.

Speaker Change: More cautious perhaps to lean into some of that software spending plans.

Speaker Change: Certainly possible that sentiment could evolve to where that affects technology spend in.

Speaker Change: Yes, we haven't seen that yet.

Speaker Change: So as I mentioned I think.

I think we are.

Speaker Change: We see our envelope volumes through the month of February and changes so there's nothing on the activity front.

We're in a good place.

Relatively speaking to some other categories and that it is.

Speaker Change: Certainly possible that sentiment could evolve to where that affects technology spend and I think we are.

Speaker Change: Pretty fundamental to how companies operate.

Electronic signing.

Speaker Change: <unk> is a fantastic and highly economic value proposition and so.

Austin Coal: We're in a good place.

Speaker Change: Relatively speaking to some other categories and that it is.

Speaker Change: Obviously, if the global economy really takes a turn for the worse and sediment takes term significantly worse.

Speaker Change: Pretty fundamental to how companies operate to use electronic signing.

Speaker Change: And that will affect us and it will affect everybody.

Speaker Change: At IMS, a fantastic and highly economic value proposition and so.

Speaker Change: Thank you and congrats again.

Sonakshi Sethi: Thank you. Congrats.

Operator: Our next question is from Josh Baer with Morgan Stanley. Please proceed.

Matthew Sonefeldt: But obviously, if the global economy really takes a turn for the worse, the sentiment takes a turn significantly for the worse, then that will affect the process. And that will affect everybody. Hey, guys. This is Chris Quintero on for Josh here. Thanks for taking the questions. Maybe one on IAM. As you make that move more into the enterprise, I guess, how much of a priority is IAM with those more senior stakeholders that you're having conversations with? What are those early conversations sounding like? Maybe one on IAM. Yeah. As you make that move more into the enterprise, I guess, how much of a priority is IAM? It's ironic. It's just a very acutely felt pain point. But I don't know that everybody realized that there was a solution to the problem.

Speaker Change: But.

Speaker Change: Mhm.

Speaker Change: Obviously, if the global economy really takes a turn for the worse from settlement takes term significantly worse than <unk>.

Our next question is from Josh Baer with Morgan Stanley. Please proceed.

Then that will affect us and it will affect everybody.

Chris Quintero: Hey, guys. This is Chris Quintero on for Josh here. Thanks for taking the questions. Maybe one on IAM. As you make that move more into the enterprise, I guess, how much of a priority is IAM with those more senior stakeholders that you're having conversations with? What are those early conversations sounding like?

Speaker Change: Hey, guys. This is Chris <unk> on for Josh here, Thanks for taking the questions.

Speaker Change: Thank you and congrats again.

Speaker Change: Mhm.

Maybe one on I am.

Speaker Change: Our next question is from Josh Baer with Morgan Stanley. Please proceed.

Speaker Change: As you make that more into the enterprise I guess like how much of a priority as I am with those more senior stakeholders that you are having conversations with what.

Hey, guys. This is Chris <unk> on for Josh here, Thanks for taking the questions.

Speaker Change: What are those early conversations sounding like.

Speaker Change: Maybe one on I am as you make that more into the enterprise I guess like how much of a priority is I am with those more senior stakeholders that youre, having conversations with.

Speaker Change: Yes, I think we are.

Allan Thygesen: Yeah. It's ironic. It's just a very acutely felt pain point. But I don't know that everybody realized that there was a solution to the problem. So I think everybody has almost become accustomed to agreements being brittle, broken, delayed, and causing inefficiencies throughout the enterprise. And so it's incredibly eye-opening when we can show them solutions that address that problem because that immediately leads to well, if we can solve that, So that is a game-changer. I meet with C-suite executives in many of our Fortune 500 clients here and abroad.

Speaker Change: This is a very.

Speaker Change: It's ironic I'd say, it's a very acutely felt pinpoint but I don't know that everybody has realized that there was a a solution to the problem. So I think everybody has almost become accustomed to agreements being brittle and broken them delayed and causing inefficiencies throughout the enterprise and so it's incredibly eye opening.

Speaker Change: What are those early conversations sounding like.

Matthew Sonefeldt: So I think everybody has almost become accustomed to agreements being brittle, broken, delayed, and causing inefficiencies throughout the enterprise. And so it's incredibly eye-opening when we can show them solutions that address that problem because that immediately leads to. So that is a game-changer. I meet with C-suite executives in many of our Fortune 500 clients here and abroad. And I mean, it's exceptionally rare that I have a C-suite meeting where the IAM proposition doesn't resonate incredibly strongly. So I feel like it's more on us to execute and mature the product to where it can be deployed, have a use case in their company, and meet all the various checks that you have to go through. And for us to mature our go-to-market process to really fully deliver on that.

Speaker Change: Yes, I think we are.

Speaker Change: This is a very.

Speaker Change: When we can show them.

Solutions that address that problem because that immediately leads to well we can solve that that is a game changer and so I find.

Speaker Change: I meet with C suite executives and many of our.

Speaker Change: When we can show them solutions that address that problem because that immediately leads to well we can solve that that is a game changer and so I find.

Speaker Change: Fortune 500.

Lyons here and abroad.

Allan Thygesen: And I mean, it's exceptionally rare that I have a C-suite meeting where the IAM proposition doesn't resonate incredibly strongly. So I feel like it's more on us to execute and mature the product to where it can be deployed, have a use case in their company, and meet all the various checks that you have to go through. And for us to mature our go-to-market process to really fully deliver on that. But in terms of the core value proposition, it resonates incredibly strongly and perhaps even better than large companies.

Speaker Change: <unk>.

Speaker Change: It's exceptionally rare that I have.

Speaker Change: C suite meeting, where the iam proposition doesn't resonate incredibly strongly.

I meet with C suite executives and many of our.

So.

Fortune 500 clients here and abroad and.

Speaker Change: I feel like it's more on us to execute mature the product to where it can be deployed to never use case in their company and meet all the all the various checks that you have to go through and for us to mature our go to market process to really.

I mean, it's exceptionally rare that I have.

C suite meeting, where the iam proposition doesn't resonate incredibly strongly.

Speaker Change: So.

I feel like it's more on us to execute mature the product to where it can be deployed in every use case in their company and meet all the all the various checks that you have to go through and for us to mature our go to market process to really.

Speaker Change: Fully deliver on that but in terms of the core value proposition that's.

Matthew Sonefeldt: But in terms of the core value proposition, it resonates incredibly strongly and perhaps even better than large companies. All the various checks that you have to go through. And for us to mature our go-to-market process to that. Got it. That's super helpful. And then really great to see customer consumption increase year-over-year. But just curious what you're seeing on maybe the pricing front on eSignature. Has that remained stable, or is that also improving? Got it. That's super helpful. Sure. I mean, our pricing has been quite stable over time. It's something where we recognize that we are a premium product. But that's for a reason. We trust the brand, the security, the features, the functionality that we bring. And I think we're set up well for that. But no changes in pricing that I would call out over the trending period.

Speaker Change: It resonates incredibly solid and perhaps even even better in large companies and smaller companies.

Got it that's super helpful. And then great to see customer consumption increase year over year, but just curious what youre seeing on maybe the pricing front on esignature has that remained stable or is that also improving.

Chris Quintero: Got it. That's super helpful. And then really great to see customer consumption increase year-over-year. But just curious what you're seeing on maybe the pricing front on eSignature. Has that remained stable, or is that also improving?

Speaker Change: Fully deliver on that but in terms of the core value proposition is.

Speaker Change: It resonates incredibly solid and perhaps even even better in large companies and smaller companies.

Speaker Change: Got it that's super helpful and then.

Speaker Change: Okay.

Speaker Change: Sure I mean, our pricing has been quite stable over time.

Blake Grayson: Sure. I mean, our pricing has been quite stable over time. It's something where we recognize that we are a premium product. But that's for a reason. We trust the brand, the security, the features, the functionality that we bring. And I think we're set up well for that. But no changes in pricing that I would call out over the trending period.

Speaker Change: To see customer consumption increase year over year, but just curious what youre seeing on maybe the pricing front on esignature has that remained stable or is that also improving.

Something where we recognize that we are a premium product, but that's for a reason with the trust the brand the security the features of the functionality that we bring.

Speaker Change: Sure I mean, our pricing has been quite stable over time, it's something where we recognize that we are a premium product, but that's for a reason with the trust the brand the security the features and functionality that we bring.

Speaker Change: And I think we're set up set up well for that but no no changes in pricing that I would call out over the trailing period.

Matthew Sonefeldt: We trust the brand, the security, the features, and the functionality that we bring. And I think we're set up well for that. But no changes in pricing that I would call out. Oh, wonderful. Thanks so much for taking my questions. Nice to see continued momentum in the business. I apologize if I missed this during prepared remarks earlier. But when you gave your color around IAM contribution to subscription revenue for the year, how would you be thinking about exactly how that's being defined, especially given you've had revenue from CLM? Is that CLM revenue separate? Is some of that being recategorized into IAM? Maybe just help us understand the push and takes around that definition. And then I have a quick follow-up. Especially given Sure.

Speaker Change: Excellent. Thanks, so much.

Speaker Change: Our next question is firmly see Jon <unk> with RBC. Please proceed.

And I think we're set up set up well for that but no no changes in pricing that I would call out over the trailing period.

Chris Quintero: Excellent. Thanks so much.

Jon: Wonderful. Thanks, so much for taking my questions nice to see continued momentum in the business I apologize if I missed this during our prepared remarks or earlier, but when you gave your color around I am contribution to subscription revenue for the year.

Operator: Our next question is from Rishi Jaluria with RBC. Please proceed.

Rishi Jaluria: Thanks so much for taking my questions. Nice to see continued momentum in the business. I apologize if I missed this during prepared remarks earlier. But when you gave your color around IAM contribution to subscription revenue for the year, how would you be thinking about exactly how that's being defined, especially given you've had revenue from CLM? Is that CLM revenue separate? Is some of that being recategorized into IAM? Maybe just help us understand the push and takes around that definition. And then I have a quick follow-up.

Speaker Change: Excellent. Thanks, so much.

Speaker Change: Our next question is from Lucy Galeria with RBC. Please proceed.

Lucy Galeria: Wonderful. Thanks, so much for taking my questions nice to see continued momentum in the business I apologize if I missed this during our prepared remarks or earlier, but when you gave your color around iam contribution to subscription revenue for the year.

Speaker Change: Just how should we be thinking about exactly how that's being defined defined especially given you've had revenue from CLR is that CRM revenue separated some of that being re categorized into I am maybe just help us understand the puts and takes around that definition, then I have a quick follow up.

Speaker Change: Just how should we be thinking about exactly how that's being defined defined especially given you have had revenue from CLR is that CRM revenue separated some of that being re categorized into I am maybe just help us understand the puts and takes around that definition, then I have a quick follow up.

Speaker Change: Sure. So when we talk about the <unk> as a percentage of our subscription recurring revenue book of business that does not include CLO.

Allan Thygesen: Sure. So when we talk about the IAM as a percentage of our subscription recurring revenue book of business, that does not include CLM. And it essentially represents book of business; for us, we're defining as essentially the monthly recurring revenue at the end of that period. And that's relative to our total subscription revenue book. So I think it's pretty simple. And it just showed that the momentum that I think we're launching out of here in Q4 with regards to our outlook for Q4 of 2026.

Matthew Sonefeldt: So when we talk about the IAM as a percentage of our subscription recurring revenue book of business, that does not include CLM. And it essentially represents book of business; for us, we're defining as essentially the monthly recurring revenue at the end of that period. And that's relative to our total subscription revenue book. So I think it's pretty simple. And it just showed that the momentum that I think we're launching out of here in Q4 with regards to our outlook for Q4 of 2026. So yeah. I was just thinking pretty simple. And it just showed that the numbers that we're continuing to sell CLM enterprise clients very successfully. It's an industry-leading product of Gartner, Magic Quadrant, the last four years, all that. And it has some functionality for advanced workflows and AI that goes well beyond very successfully built into the baseline IAM platform.

Speaker Change: And it's essentially represents like book of business is for US we are defining as like the essentially the monthly recurring revenue at the end of that period and Thats relative to our total subscription revenue.

Sure. So when we talk about the <unk> as a percentage of our subscription.

Speaker Change: Current revenue book of business that does not include CLO.

Speaker Change: I think it's pretty simple and to just show that the momentum that I think we're launching out of here in Q4 with regards to our outlook for Q4 two.

Speaker Change: 2026.

Allan Thygesen: So yeah. I was just thinking pretty simple. And it just showed that the numbers that we're continuing to sell CLM enterprise clients very successfully. It's an industry-leading product of Gartner, Magic Quadrant, the last four years, all that. And it has some functionality for advanced workflows and AI that goes well beyond very successfully built into the baseline IAM platform.

Speaker Change: Yes, I would just.

Speaker Change: I think it's pretty simple and to just show that the momentum that I think we're launching out of here in Q4 with regards to our outlook for Q4 of.

Speaker Change: And so beyond the numbers were.

Speaker Change: But we're continuing to sell.

<unk> enterprise clients very successfully it's an industry, leading product Gartner magic quadrant for the last four years all of that and.

Speaker Change: 2026.

Speaker Change: Yes.

Speaker Change: And so beyond the numbers.

Speaker Change: And it has some functionality for advanced workflows, and AI that goes well beyond what we built into the baseline <unk> platform and this year, you'll start to see a lot of the platform capabilities.

Speaker Change: We're continuing to sell CLO to enterprise clients very successfully it's an industry leading product.

Speaker Change: Gartner Magic quadrant for the last four years all of that and.

Matthew Sonefeldt: This year, you'll start to see a lot of the platform capabilities from IAM become available to CLM customers. So things like Navigator and Maestro, as well as all of the others, we'll announce that Monitor should come. We will be available to CLM customers. So I think that vision of CLM as an integral component built on top of IAM really comes to fruition this year. So that'll be the two that will be available to CLM. In fact, they're not cannibalizing. More that it's a supercharger for our CLM vision and allows us to expand access to agreements to a much broader set within a large company. So is it a conflict, cannibalizing. I've got it. That's really helpful. Then just going to the international business, you talked about. You're seeing maybe that decelerate while domestic is accelerating.

Allan Thygesen: This year, you'll start to see a lot of the platform capabilities from IAM become available to CLM customers. So things like Navigator and Maestro, as well as all of the others, we'll announce that Monitor should come. We will be available to CLM customers. So I think that vision of CLM as an integral component built on top of IAM really comes to fruition this year. So that'll be the two that will be available to CLM. In fact, they're not cannibalizing. More that it's a supercharger for our CLM vision and allows us to expand access to agreements to a much broader set within a large company.

Speaker Change: And it has some functionality for advanced workflows, and AI that goes well beyond what we would be.

Speaker Change: Some available CLEC customers, so things like navigate our maestro as well as other things will we will announce that momentum should come.

Built into the baseline <unk> platform and this year, you'll start to see a lot of the platform capabilities become available CLEC customers, so things like navigate our maestro as well so things will we will announce that momentum should come.

Speaker Change: We will.

We'll be available to <unk> customers.

So I think.

Speaker Change: That vision of CRM as an integral component built on top of I believe it comes to fruition this year and so I don't view the two.

Speaker Change: <unk>.

Speaker Change: We'll be available to <unk> customers.

Speaker Change: Yes.

Speaker Change: Conflict or cannibalizing more that its a supercharger four are still envisioned and allows us to expand access to agreements to a much broader your set within large.

Speaker Change: So I think.

That vision of CRM is an integral component built on top of it really comes to fruition. This year and so I don't view the two.

Large companies.

Speaker Change: Alright got it. Thanks, that's really helpful. And then just going to the international business.

Yes.

Speaker Change: Conflict or cannibalizing more that its a supercharger four are still envisioned and allows us to expand access to agreements to a much broader your set within large.

Rishi Jaluria: I've got it. That's really helpful. Then just going to the international business, you talked about. You're seeing maybe that decelerate while domestic is accelerating. Talked about the plans to re-accelerate growth with IAM. Maybe just help me understand. When I thought international, you're very underprioritized, right? I mean, in Europe, in Japan, let alone some of the emerging markets. And it feels like there's probably more TAM that's very greenfield in those. So why is it then that the core eSignature international geographies is slowing down on its own? And what steps can you take to accelerate just core eSignature outside of the US in those? Thanks.

You talked about Youre seeing maybe that decelerate, while domestic is accelerating talked about the plans to reaccelerate growth with I am maybe just help me understand.

Matthew Sonefeldt: Talked about the plans to re-accelerate growth with IAM. Maybe just help me understand. When I thought international, you're very underprioritized, right? I mean, in Europe, in Japan, let alone some of the emerging markets. And it feels like there's probably more TAM that's very greenfield in those. So why is it then that the core eSignature international geographies is slowing down on its own? And what steps can you take to accelerate just core eSignature outside of the US in those? So why is it then that the core eSignature in eSignature? Look, I think international is obviously still growing faster than our domestic business. But there definitely was a deceleration in the second half of last year. I think it's a combination of factors. One is that we historically have been quite customer acquisition-focused. And as we discussed earlier on this call, that definitely was the deceleration.

Speaker Change: Large companies.

Speaker Change: Alright got it. Thanks, that's really helpful. And then just going to the international business.

Speaker Change: International.

Youre very underpenetrated right.

Speaker Change: You talked about Youre seeing maybe that decelerate, while domestic is accelerating talked about the plans to reaccelerate growth with I am maybe just help me understand when I think.

Speaker Change: In Europe, and Japan, let alone some of the emerging markets and it feels like there's probably more Tam that's very greenfield in Dallas.

Speaker Change: On international.

Is it then that the core esignature.

Speaker Change: You are very under penetrated right.

Speaker Change: International <unk> and CRE.

In Europe, and Japan, let alone some of the emerging markets and it feels like there's probably more Tam that's a very greenfield in those so what why is it then that the core esignature in international geographies is slowing down on its own and what steps can you take to accelerate core <unk>.

Speaker Change: If he is slowing down on its own and what steps can you take to accelerate core esignature outside of the U S. Thanks.

Allan Thygesen: Yeah, Look, I think international is obviously still growing faster than our domestic business. But there definitely was a deceleration in the second half of last year. I think it's a combination of factors. One is that we historically have been quite customer acquisition-focused. And as we discussed earlier on this call, that definitely was the deceleration.

Yes.

Speaker Change: And Nashville is obviously still growing faster than our domestic business, but it definitely was the deceleration in <unk>.

Speaker Change: Second half of last year.

Speaker Change: English here outside of the U S. Thanks.

Speaker Change: I think it's a combination of factors one is that we have historically been quite customer acquisition focus and as we discussed earlier on this call.

Speaker Change: Yes.

Speaker Change: And Nashville is obviously still growing faster than our domestic business, but that definitely was the deceleration in <unk>.

Speaker Change: Or if it really needs to be towards more.

Matthew Sonefeldt: Our pivot really needs to be towards more off-the-shelf sell and use case deployment with existing customers. That motion has been stronger in North America than, for example, in Europe. We've pivoted that. I think we're going to make significant progress on that. I'd say that's more of an execution issue on our side with existing customers. Then on the product side, we just launched IAM in international markets. We have a first with the localized product. We have, I'd say, the great opportunity there for that as a further boost to our international momentum. We saw some really nice early results in those first few months. Lastly, I'd say, as a third lever, is the evolution of the partner channel as a force for that. This is early days.

Allan Thygesen: Our pivot really needs to be towards more off-the-shelf sell and use case deployment with existing customers. That motion has been stronger in North America than, for example, in Europe. We've pivoted that. I think we're going to make significant progress on that. I'd say that's more of an execution issue on our side with existing customers. Then on the product side, we just launched IAM in international markets. We have a first with the localized product. We have, I'd say, the great opportunity there for that as a further boost to our international momentum. We saw some really nice early results in those first few months. Lastly, I'd say, as a third lever, is the evolution of the partner channel as a force for that. This is early days.

Speaker Change: Half of last year.

Speaker Change: I think it's a combination of factors one is that we have historically been quite customer acquisition focused and as we discussed earlier on this call.

Speaker Change: Upsell and cross sell and use case deployment.

Speaker Change: <unk> deployment.

Speaker Change: With with existing customers.

Speaker Change: And that motion has been stronger in North America than for example in Europe.

Speaker Change: Or if it really needs to be towards more.

Speaker Change: So we have we pivoted that and I think we're going to make significant progress on that so I'd say, that's more of an execution issue on our side.

Upsell and cross sell and use case dips.

Speaker Change: Deployment.

With with existing customers.

And then on the product side, we just launched <unk> in international markets.

Speaker Change: And that motion has been stronger in North America than for example in Europe.

Speaker Change: So we have we pivoted that and I think we're going to make significant progress on that so I'd say, that's more of an execution issue on our side.

Speaker Change: Number one with a localized product.

Speaker Change: And so we have.

Speaker Change: Great opportunity there to for that.

Speaker Change: Further boost to our international momentum.

Speaker Change: And then on the product side, we just launched <unk> in international markets.

Speaker Change: And we saw some really nice early results in those first few months.

Speaker Change: Number one with the localized product.

Speaker Change: And then lastly, I would say is a is the third lever is there.

Speaker Change: And so we have.

Speaker Change: The evolution of the partner channel.

Speaker Change: Great opportunity there to for that is is it fair.

Speaker Change: This is early days, but but historically that's been a very direct first as the first second and third.

Speaker Change: Further boost to our international momentum.

Matthew Sonefeldt: But historically, DocuSign has been a very direct first and third channel company. And even in markets where, frankly, we had very limited direct capabilities. And so we tried to get a lot crisper on top 10 markets. But I'll say that's where we're going to have a direct first body. And then other markets where we'll be partner first or partner only. And so we're running a variety of experiments in individual countries. And that, I think, can be a really nice growth lever for us as well. So I don't think we've had quite the right distribution mix, if you will, and pursue international. We are absolutely convinced that international should be a major growth driver for the company. We're investing in product and back office and all that stuff to be able to support that, if you will. And I travel internationally very heavily.

Allan Thygesen: But historically, DocuSign has been a very direct first and third channel company. And even in markets where, frankly, we had very limited direct capabilities. And so we tried to get a lot crisper on top 10 markets. But I'll say that's where we're going to have a direct first body. And then other markets where we'll be partner first or partner only. And so we're running a variety of experiments in individual countries. And that, I think, can be a really nice growth lever for us as well. So I don't think we've had quite the right distribution mix, if you will, and pursue international. We are absolutely convinced that international should be a major growth driver for the company. We're investing in product and back office and all that stuff to be able to support that, if you will. And I travel internationally very heavily.

Speaker Change: And we saw some really nice early results in those first few months.

Speaker Change: And then lastly, I would say as a as a third lever is the evolution of the partner channel.

Speaker Change: Channel Company.

Speaker Change: And even in markets, where frankly, we had very limited direct capabilities and so we've tried to get a lot crisper on.

Speaker Change: This is early days, but but historically <unk> been a very direct first in first second and third.

Speaker Change: Top 10 markets are roughly thats, where we are going to have a direct first model and then other markets, where we will be partner first partner only.

Channel Company.

Speaker Change: And even in markets, where frankly, we had very limited direct capabilities and so we've tried to get a lot crisper on.

Speaker Change: And so we're running a variety of experiments in individual countries from that I think can be a really nice growth lever for us as well. So I don't think we've had quite the right distribution makes if you will to pursue international.

Top 10 markets are roughly that.

Speaker Change: We are going to have a direct first model and then other markets, where we will be partner first partner only.

Speaker Change: We are absolutely convinced that international should be a major growth driver for the company. We are investing in product and back office and all of that stuff to be able to support that.

Speaker Change: And so we're running a variety of experiments in individual countries and that I think can be a really nice growth lever for us as well. So I don't think we've had quite the right distribution mix, if you will to pursue international.

And.

Speaker Change: I travel internationally very heavily.

Matthew Sonefeldt: I think I was in Europe six times last year. So we are a growth driver for the company. Absolutely pushing to deepen that penetration. Because I agree with you that there's no question we are less penetrated, I'd say, particularly outside of the major English-speaking markets. And in some markets like Germany and Japan, it's really quite early. And we have a lot of penetration. Because I agree with you that there's no question we are less penetrated. I'd say, particularly outside of the major English-speaking markets. And in some markets like Germany and Japan, it's really quite early. So great. And I appreciate you speaking to me. I was hoping we'd be further away from macro questions by now. But it's never the case. So the question is your stand on public sector impacts and if there's anything to consider.

Allan Thygesen: I think I was in Europe six times last year. So we are a growth driver for the company. Absolutely pushing to deepen that penetration. Because I agree with you that there's no question we are less penetrated, I'd say, particularly outside of the major English-speaking markets. And in some markets like Germany and Japan, it's really quite early. And we have a lot of penetration.

Speaker Change: I think it was Europe six times last year and so we are.

Speaker Change: Absolutely.

Speaker Change: Pushing to deepen that penetration because I agree with you that there is no question. We are we are less penetrated let's say, particularly outside of the major English speaking markets.

And.

Speaker Change: I travel internationally very heavily.

Speaker Change: I think it was Europe six times last year and so we are.

Speaker Change: And in some markets like Germany, and Japan, it's really quite early and we have a lot of it.

Absolutely.

Speaker Change: Wishing to deepen that penetration because I agree with you that there is no question. We are we are less penetrated let's say, particularly outside of the major English speaking markets and in some markets like Germany, and Japan, It's really quite early and we have a lot of it.

Rishi Jaluria: All right. Wonderful, thank you guys.

Speaker Change: Alright wonderful thank you guys.

Operator: Our next question is from Michael Turrin with Wells Fargo Securities. Please proceed.

Michael Turrin: Great. Thanks. I appreciate you sneaking me on. I was hoping we'd be further away from macro questions by now, but it's never the case. The question du jour has been on public sector impacts and if there's anything to consider. I don't think this is an outsized portion of DocuSign's business in any way, shape, or form. But can you just speak to public sector and whether that's never the case, potential opportunity, or something you're taking a more cautious stance at all in the coming years just based on either initial signals you might be seeing there?

Speaker Change: Okay.

Speaker Change: Our next question is from Michael <unk> with Wells Fargo Securities. Please proceed.

Speaker Change: Great. Thanks, I. Appreciate you sneaking me on I was hoping we'd be further away from macro questions by now but.

Speaker Change: Okay.

Alright wonderful thank you guys.

Speaker Change: Mhm.

Speaker Change: It's never the case so the question new jewelry has been on public sector impacts with theirs.

Speaker Change: Our next question is from Michael Caron with Wells Fargo Securities. Please proceed.

Speaker Change: Anything to consider I don't think this is an outsized portion of Doctor Science business.

Matthew Sonefeldt: I don't think this is an outsized portion of DocuSign's business in any way, shape, or form. But can you just speak to public sector and whether that's never the case, potential opportunity, or something you're taking a more cautious stance at all in the coming years just based on either initial signals you might be seeing there? Yeah. I think it's mostly outsized for us. We don't have a big federal business space. It's really pretty modest. We do quite a bit of business with state and local governments in the US. And we have a lot of our very successful deployments that we think we can replicate our success from there as well as with large enterprises with federal government.

Speaker Change: Great. Thanks, I. Appreciate you sneaking me on I was hoping we'd be further away from macro questions by now but it's.

Speaker Change: Way shape or form, but can you just speak to public sector and whether that's a.

Speaker Change: It's never the case. So the question is your estimate on public sector impact from that.

Speaker Change: Potential opportunity or something youre, taking a more cautious stance at all in the coming year just based on any initial signals he might be seeing there.

Speaker Change: Anything to consider I don't think this is an outsized portion of Doctor science business in any way shape or form, but can you just speak to public sector and whether that's a potential opportunity or something you are taking a more cautious stance at all in the coming year just based on initial signals he might be seeing there.

Allan Thygesen: Yeah. I think it's mostly outsized for us. We don't have a big federal business space. It's really pretty modest. We do quite a bit of business with state and local governments in the US. And we have a lot of our very successful deployments that we think we can replicate our success from there as well as with large enterprises with federal government.

Speaker Change: Yes, I think it was mostly upside for us we don't have a big federal business space, It's really pretty modest we do quite a bit of business with state and local governments in the U S and perhaps a lot of our very successful deployments that we think we can yes.

Speaker Change: Locate our success from there as well as with large enterprises.

Speaker Change: Yes, I think it was mostly upside for us we don't have a big federal versus state, it's really pretty modest we do quite a bit of business with the state and local governments in the U S and perhaps a lot of our very successful deployments that we think we can.

Speaker Change: Government and so we are investing and actually just brought on some senior leaders to lead our more concerted push into that area.

Matthew Sonefeldt: And so we're investing and actually just brought a bit of business with senior leaders to lead our more concerted push into that area that we think we can, and, of course, our value proposition as well: time, large enterprise efficiency, and better federal government. And so what I'm suggesting is that we will offer government service for senior leaders and taxpayers to support concerted push into that area. We don't have a lot to lose. And I think a big outside opportunity. And so we're leaning into that. And better government service. Great. Just if I may, just one for Blake on taxpayers. Seasonality. I think you mentioned early renewal. We don't have a lot to lose. And I think a big outside opportunity. And so we're leaning into that. And I think just looking at the Q1 guide, it looks great.

Allan Thygesen: And so we're investing and actually just brought a bit of business with senior leaders to lead our more concerted push into that area that we think we can, and, of course, our value proposition as well: time, large enterprise efficiency, and better federal government. And so what I'm suggesting is that we will offer government service for senior leaders and taxpayers to support concerted push into that area. We don't have a lot to lose. And I think a big outside opportunity. And so we're leaning into that. And better government service.

Speaker Change: Of course, our value prop I think resonates well at a time when when efficiency and better.

Speaker Change: Replicate our success from there as well as with large enterprises.

The federal government and so we are investing and actually just brought on some senior leaders to lead our <unk>.

Speaker Change: Better customer service. So we will for a government service recipients and taxpayers is important so.

Speaker Change: Our concerted push into that area and.

Speaker Change: Where we don't have a lot to lose them and I think a big upside upturn in so we're leaning into that.

Speaker Change: And of course, our value prop I think resonate as well at a time when when efficiency and better.

Great and just if I may just one for Blake.

Better customer service. So we will for a government service recipients and taxpayers is important so.

Michael Turrin: Great. Just if I may, just one for Blake on taxpayers. Seasonality. I think you mentioned early renewal. We don't have a lot to lose. And I think a big outside opportunity. And so we're leaning into that. And I think just looking at the Q1 guide, it looks great. Just, if I may, especially conservative, just walk us through one more time any seasonal components we should be contemplating and looking at Q4 to Q1 and then tying that into the fiscal year guidance. Thank you.

Speaker Change: Seasonality I think you mentioned early renewal.

Speaker Change: Where we don't have a lot to lose.

Speaker Change: Impacted Q4 revenue at least that touch as well and I think just looking at the Q1 guide it looks.

Speaker Change: I think a big upside upturn in so we're leaning into that.

Speaker Change: Great and just if I may just one for Blake on just seasonality I think you mentioned early renewal.

Matthew Sonefeldt: Just, if I may, especially conservative, just walk us through one more time any seasonal components we should be contemplating and looking at Q4 to Q1 and then tying that into the fiscal year guidance. Thank you. Sure. So if you're looking at Q4 to Q1 subscription revenue, we normally have a seasonal drop, right? But you are right that if you look at our guide, it's larger than normal seasonal guide. And so there are a couple extra things that you have to take into account that are affecting that. The first is the leap year impact. So that's a point. We normally have a seasonal when you're looking at Q1, not for one year. And then, obviously, that revenue acceleration that we had in Q4, that was relatively unique for us from some larger customer contracts that essentially had pretty early renewals based on consumption trends.

Speaker Change: Potentially especially conservative, but just walk us through one more time any seasonal components, we should be contemplating and looking at Q4 to Q1, and then tying that into the fiscal year guidance. Thank you.

<unk> impacted Q4 revenue at least to touch as well and I think just looking at the Q1 guide it looks.

Blake Grayson: Sure. So if you're looking at Q4 to Q1 subscription revenue, we normally have a seasonal drop, right? But you are right that if you look at our guide, it's larger than normal seasonal guide. And so there are a couple extra things that you have to take into account that are affecting that. The first is the leap year impact. So that's a point. We normally have a seasonal when you're looking at Q1, not for one year. And then, obviously, that revenue acceleration that we had in Q4, that was relatively unique for us from some larger customer contracts that essentially had pretty early renewals based on consumption trends.

Speaker Change: Sure. So if youre looking at Q4 to Q1 subscription revenue, we normally have a seasonal drop right.

Speaker Change: Essentially, especially conservative, but just walk us through one more time any seasonal components, we should be contemplating and looking at Q4 to Q1, and then tying that into the fiscal year guidance. Thank you.

But you are right that if you look at our guy its a larger than normal seasonal guide and so there are a couple of extra things that you have to take into account that are affecting that the first is the leap year impact that's a point for us when youre looking at Q1 full year.

Speaker Change: Sure. So if youre looking at Q4 to Q1 subscription revenue, we normally have a seasonal drop right.

Speaker Change: But you are right that if you look at our Guy is a larger than normal seasonal guidance. There are a couple of extra things that you have to take into account that are affecting that the first is the leap year impact that's a point for us when youre looking at Q1 for full year.

Speaker Change: Then obviously that revenue acceleration that we had in Q4 that was relatively unique for us from some larger customer contracts that essentially had pretty early renewals based on consumption trends and so exciting to have but thats was pretty unique and then also we just got we have a bit of a hard comp.

Matthew Sonefeldt: And so it's high and high, but that was pretty unique. And then also, we have a bit of a hard comp on a seasonal basis against the digital usage. We started seeing digital usage kind of increase a fair amount beginning in fiscal year 2025. And so that Q4 2024 to Q1 2025 had that bump there. So those are, I would say, the biggest three components that drive that quarter-on-quarter changes that are a little bit more magnified than you would have seen last year. That Q4 2024 to Q1 2025 had that bump there. So those are, I would say, the biggest three components that drive that quarter-on-quarter changes that are a little bit more magnified than you would have seen last year. Hey, guys. Just two quick ones from me.

Blake Grayson: And so it's high and high, but that was pretty unique. And then also, we have a bit of a hard comp on a seasonal basis against the digital usage. We started seeing digital usage kind of increase a fair amount beginning in fiscal year 2025. And so that Q4 2024 to Q1 2025 had that bump there. So those are, I would say, the biggest three components that drive that quarter-on-quarter changes that are a little bit more magnified than you would have seen last year.

Speaker Change: Then obviously that revenue acceleration that we had in Q4 that was relatively unique for us from some larger customer contracts that essentially had pretty early renewals based on consumption trends and so exciting to outbid Thats was pretty unique and then also we just have we have a bit of a hard comp.

Speaker Change: On a seasonal basis against the digital usage, we started seeing digital.

Speaker Change: Usage kind of increase a fair amount beginning in fiscal year 'twenty five and so that Q4 2004 to 225 had that that bump. There. So those are the I would say the biggest three.

Speaker Change: On a seasonal basis against the digital usage, we started seeing digital.

Speaker Change: Three components that drive that quarter on quarter changes it a little bit more magnified than you would have seen last year.

Speaker Change: Usage kind of increase a fair amount beginning in fiscal year 'twenty five and so that Q4, 'twenty, Florida Q on the 25 that had that bump there. So those are the I would say the biggest <unk>.

Michael Turrin: Thank you.

Operator: Our next question is from Alex Zukin with Wolfe Research. Please proceed.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Our next question is from Alex Zukin with Wolfe Research. Please proceed.

Speaker Change: Three components that drive that quarter on quarter changes a little bit more magnified than you would have seen last year.

Speaker Change: Hey, guys just two quick ones for me first congrats on a.

Speaker Change: Okay.

Matthew Sonefeldt: First, congrats on one of the strongest quarters and one of the most difficult-seeming periods. Our next question is from Blake. But maybe just IAM really liked the disclosure of that. Going from a low single-digit book of business to a low double-digit book of business. One of the strongest quarters and one of the most difficult-seeming periods. That was a 5- to 6x increase. So aside from the visibility that you've seen, better expected contribution this year, and good execution, what are you seeing in conversations that gives you that confidence of the momentum continuing? A 5- to 6x increase. So aside from the, I mean, for me, honestly, it's just with the data that you see coming in and the deal volume that we have and how our go-to-market teams have embraced this as an opportunity to help customers add value.

Alex Zukin: Hey guys, just two quick ones for me. First, congrats on one of the strongest quarters and one of the most difficult-seeming periods. But maybe just IAM really liked the disclosure of that. Going from a low single-digit book of business to a low double-digit book of business. One of the strongest quarters and one of the most difficult-seeming periods. That was a 5- to 6x increase. So aside from the visibility that you've seen, better expected contribution this year, and good execution, what are you seeing in conversations that gives you that confidence of the momentum continuing?

Speaker Change: Thank you.

Speaker Change: One of the strongest quarters in one of the most difficult ceiling periods.

Our next question is from Alex Zukin with Wolfe Research. Please proceed.

Speaker Change: But maybe just I really like the disclosure of that going from a low single digit book of business to low double digit book of business next year and that implies like a five to six X increase so aside from the visibility that you have seen with the better expected contribution this year and good execution.

Hey, guys just two quick ones for me first congrats on a.

One of the strongest quarters in one of the most difficult ceiling periods.

Speaker Change: But maybe just I really liked the disclosure of that going from a low single digit book of business to low double digit book of business next year and that implies like a five to six X increase so aside from the visibility that you have seen with the better expected contribution this year and good execution.

Speaker Change: What are you seeing in conversations that gives you that confidence of the momentum continuing.

Blake Grayson: For me, honestly, it's just with the data that you see coming in and the deal volume that we have and how our go-to-market teams have embraced this as an opportunity to help customers add value.

Speaker Change: I mean for me honestly, it's just what the data that you see coming in and the deal volume that we have and how our go to market teams have embraced this as an opportunity to help customers add back I think that is far and away what drives essentially that accelerating business growth I mean, obviously gross retention improve.

Speaker Change: What are you seeing in conversations that gives you that confidence of the momentum continuing.

Matthew Sonefeldt: I think that is far and away what drives essentially that accelerating business growth. I mean, obviously, growth retention improvements mean a ton, right, because of our book of business. And our focus on that is still a number one priority for us. But I think that is just that ramp that we've seen and how these go-to-market and product teams, and everybody, frankly, across DocuSign has really bought into the concept of the extra value we're providing to customers across this platform. And we're seeing it, although it is still very early days, we have a lot of room left to go and execute against. That's what is driving that kind of excitement for us in that accelerated billings guide that you're seeing. Yeah. I would say that looked very early days.

Blake Grayson: I think that is far and away what drives essentially that accelerating business growth. I mean, obviously, growth retention improvements mean a ton, right, because of our book of business. And our focus on that is still a number one priority for us. But I think that is just that ramp that we've seen and how these go-to-market and product teams, and everybody, frankly, across DocuSign has really bought into the concept of the extra value we're providing to customers across this platform. And we're seeing it, although it is still very early days, we have a lot of room left to go and execute against. That's what is driving that kind of excitement for us in that accelerated billings guide that you're seeing.

Speaker Change: I mean for me honestly, it's just with the data that you see coming in and the deal volume that we have and how our go to market teams have embraced this as an opportunity to help customers advice I think that is far and away what drives essentially that accelerating business growth I mean, obviously gross retention improvement.

Top right because of our book of business.

Speaker Change: Our focus on that is still our number one priority for us, but I think that is just that ramp that we've seen and how these go to market and product teams and everybody frankly across dock refine has really bought into the concept of the extra value, we're providing the customers across this platform and we're seeing it although it is.

Speaker Change: Top right because of our book of business.

Speaker Change: Our focus on that is still our number one priority for us, but I think that is just that ramp that we've seen and how these go to market and product teams and everybody frankly across occupying has really bought into the concept of the extra value, we're providing the customers across this platform and we're seeing it although it is.

Speaker Change: Still very early days, we have a lot of room left to go and execute against.

Speaker Change: That's what it is driving that kind of excitement for us and that accelerated billings guide that youre seeing from us.

Allan Thygesen: Yeah. I would say that looked very early days. One way to think about our business is we have different cohorts that have been launched with IAM at different times, right? We have the North America and Australia mid-market and S&P segments that we launched in June. So we kind of know what that looks like now, 8 months in. Those results are very positive. Then we got a couple of early months of data from trying to replicate that with other customer segments and geographies. It's showing similar patterns. So that is part of what gives us that confidence in being able to roll forward without even relying on replicate that and big success in the enterprise, which, of course, would provide extra upside. It's something that we hope to get in future years.

Speaker Change: Just to add that.

Speaker Change: Okay.

Speaker Change: Still very early days, we have a lot of room left to go and execute against.

Speaker Change: One way to think about our businesses, we have different cohorts that have been launched with I have a different time. So I think we have the North America.

Matthew Sonefeldt: One way to think about our business is we have different cohorts that have been launched with IAM at different times, right? We have the North America and Australia mid-market and S&P segments that we launched in June. So we kind of know what that looks like now, 8 months in. Those results are very positive. Then we got a couple of early months of data from trying to replicate that with other customer segments and geographies. It's showing similar patterns. So that is part of what gives us that confidence in being able to roll forward without even relying on replicate that and big success in the enterprise, which, of course, would provide extra upside. It's something that we hope to get in future years. That is part of what gives us that confidence in being able to roll forward. Makes sense.

That's what is driving that kind of excitement for us and that accelerated billings guide that youre seeing from us.

Speaker Change: Erica in Australia.

Speaker Change: Mid <unk>.

Speaker Change: Just add that.

Speaker Change: SMB segment that we launched in June and so we kind of know what that looks like now eight months in.

Speaker Change: Okay.

Speaker Change: One way to think about our businesses, we have different cohorts that have been launched with I have a different time. So I think we have the North America.

Speaker Change: And those results are very positive and then we got a couple of early months of data from trying to replicate that with other customer segments and geographies and it's showing similar patterns and so that is part of what gives us that confidence in being able to roll forward.

Speaker Change: And in Australia.

Speaker Change: Midmarket and SMB segment that we launched in June and so we kind of know what that looks like now eight months in.

And those results are very positive and then we got a couple of early months of data from trying to replicate that with other customer segments and geographies and it's showing similar patterns and so that is part of what gives us that confidence in being able to roll forward.

Speaker Change: Without even relying on big success in the enterprise, which of course would provide extra upside and something that we.

Speaker Change: Hope to get in future years.

Speaker Change: Makes sense and then maybe I'll just ask the inverse of Michael's question, which is if you look at.

Matthew Sonefeldt: And then maybe I'll just ask the inverse of the question, which is big success in the enterprise, which, of course, is DOGE and the push to digitize paperwork. Are there any conversations that actually could be positive for you guys over the coming year that maybe could be a tailwind from that particular vertical for you? DOGE and the push to digitize. Well, we're bullish on our opportunity with the federal government. And as mentioned, we've hired two new senior leaders to lead those efforts. They're already jumping in. And it's exciting to see. We're putting some product resources on it. And we're going to have a very robust offering to lead those.

Alex Zukin: And then maybe I'll just ask the inverse of the question, which is big success in the enterprise, which, of course, is DOGE and the push to digitize paperwork. Are there any conversations that actually could be positive for you guys over the coming year that maybe could be a tailwind from that particular vertical for you?

Speaker Change: Without even relying on.

Speaker Change: Big success in the enterprise, which of course would provide extra upside and something that we hope.

Speaker Change: Does the push to digitize paperwork are there any conversations that actually it can be positive for you guys over the coming year.

Speaker Change: Hope to get in future years.

Speaker Change: Makes sense and then maybe I'll just ask the inverse of Michael's question, which is if you look at.

Speaker Change: That that maybe it could be a tailwind from that particular vertical for you.

Does and the push to digitize paperwork are there any conversations that actually it could be positive for you guys over the coming year.

Speaker Change: While we are bullish on alternative with the federal government.

Allan Thygesen: Well, we're bullish on our opportunity with the federal government. And as mentioned, we've hired two new senior leaders to lead those efforts. They're already jumping in. And it's exciting to see. We're putting some product resources on it. And we're going to have a very robust offering to lead those.

Speaker Change: As mentioned we've.

We've hired two new senior leaders to lead those efforts.

Speaker Change: That maybe it could be a tailwind from that particular vertical for you.

Our earnings are jumping in and it's exciting to see.

Speaker Change: While we are bullish on our opportunity with the federal government.

Speaker Change: Putting some some product resources on it and.

Speaker Change: As mentioned we've.

Speaker Change: We're going to have a very robust offering.

Speaker Change: We've hired two new senior leaders to lead those efforts they are earnings.

Speaker Change: And so I think we have and frankly with all the products that we already have available today, we could add a lot of value to a lot of those processes, whether it's in procurement or in better and self serve options for taxpayers.

Matthew Sonefeldt: I think we have, frankly, with the products that we already have available today, we could add a lot of value to a lot of those processes, whether it's in procurement or in better self-serve options for taxpayers or service recipients. So we're having some of those early conversations. It's way too early to say whether it's going to contribute anything. It is not in our forecast. But if we get something, that would be great for taxpayers or service recipients. And so we're having some of those early conversations. It's way too early to say whether it's going to contribute anything. It is not in our forecast. But if we get something, that would be great. Well, you all have had a lot of success for a few quarters with early renewal activity, just due to consumption trends. Expansion, improvements.

Allan Thygesen: I think we have, frankly, with the products that we already have available today, we could add a lot of value to a lot of those processes, whether it's in procurement or in better self-serve options for taxpayers or service recipients. So we're having some of those early conversations. It's way too early to say whether it's going to contribute anything. It is not in our forecast. But if we get something, that would be great.

Speaker Change: Jumping in and it's exciting to see.

Speaker Change: Putting some some product resources on it and we're going to have a very robust offering.

Speaker Change: And so I think we have and frankly with our products that we already have available today, we could add a lot of value to a lot of a lot of those processes, whether it's in procurement or in better and self serve options for taxpayers.

Speaker Change: Taxpayers or service precipitous so.

Speaker Change: We're having some of those early conversations that it's way too early to say, whether it's going to contribute anything it is not in our forecast, but if we.

Speaker Change: We get something that would be great.

Alex Zukin: Awesome. Thank you, guys.

Allan Thygesen: Yeah.

Operator: Our final question is from Will Power with Robert W. Baird. Please proceed.

Will Power: Okay. Great. Thanks for squeezing me in. You all had a lot of success for a few quarters with early renewal activity just due to consumption trends and expansion improvements. I guess I just wonder, as you look at kind of the renewal cohorts that are coming up this year, why wouldn't we expect some of that to continue? It'd be great to kind of get kind of your flavor of what you're looking at in this coming year versus what you've seen here recently on the renewal front.

Speaker Change: Awesome. Thank you guys.

Speaker Change: Taxpayers service specific sense so.

Speaker Change: Yes.

Speaker Change: Our final question is from will power with Robert W. Baird. Please proceed.

Speaker Change: We're having some of those early conversations that it's way too early to say, whether it's going to contribute anything it is not in our forecast, but if we.

Will Power: Okay, great. Thanks for squeezing me in.

Speaker Change: If we get something that would be great.

Will Power: You all had a lot of success for a few quarters with early renewal activity just due to consumption trends.

Speaker Change: Awesome. Thank you guys.

Speaker Change: Yes.

Speaker Change: Our final question is from will power with Robert W. Baird. Please proceed.

Will Power: Expansion improvements I guess I'm just wondering as you look at kind of the renewal cohorts that are coming up.

Matthew Sonefeldt: I guess I just wonder, as you look at kind of the renewal cohorts that are coming up this year, why wouldn't we expect some of that to continue? It'd be great to kind of get kind of your flavor of what you're looking at in this coming year versus what you've seen here recently on the renewal front. This year. Sure. I'll take a step. I think we talked about this, actually, as one of the headwinds for us in the full-year guide. It's one of the considerations you'll see in the prepared remarks. I think your point is accurate, which is early renewals are great if they're customer-driven. We talked about this. If you're doing a healthy renewal, that's great. What also though is we have a certain amount of prepared remarks available for us, right, with a given quarter.

Speaker Change: Okay, great. Thanks for squeezing me in.

Speaker Change: You all had a lot of success for a few quarters with early renewal activity just due to consumption trends.

Will Power: This year why wouldn't we expect some of that to continue just it'd be great to kind of get kind of your flavor.

Speaker Change: An expansion improvements I guess I was just wondering as you look at kind of the renewal cohorts that are coming up.

Will Power: On what Youre looking at in this coming year versus what you've seen here recently on the renewal front.

Speaker Change: This year.

Will Power: Sure I'll take a stab.

Blake Grayson: Sure. I'll take a step. I think we talked about this, actually, as one of the headwinds for us in the full-year guide. It's one of the considerations you'll see in the prepared remarks. I think your point is accurate, which is early renewals are great if they're customer-driven. We talked about this. If you're doing a healthy renewal, that's great. What also though is we have a certain amount of prepared remarks available for us, right, with a given quarter.

Speaker Change: Why wouldn't we expect some of that to continue just it'd be great to kind of get a kind of your flavor.

I think we talked about this actually is one of the headwinds for us in the full year guidance one of the considerations youll see in the prepared remarks I think your point is accurate which is early renewals are great.

On what Youre looking at in this coming year versus what you've seen here recently on the renewal front.

Speaker Change: Sure I'll take a stab.

Will Power: Theyre customer driven.

Speaker Change: We talked about this actually is one of the headwinds for us in the full year guidance one of the considerations youll see in the prepared remarks I think your point is accurate which is early renewals are great. If there if there are customer driven.

Will Power: Youre doing a healthy renewal that's great. What it also does is we have a certain amount of capacity available for us right within a given quarter and so what we're trying to do in their go to market team in Apollo's World is really make sure. We're prioritizing our resources in the quarters that provide the best opportunities for expansion and so if we're doing.

Matthew Sonefeldt: And so what we're trying to do in the go-to-market team and in Paula's world is really make sure we're prioritizing resources in the corners that provide the best opportunities for expansion. And so if we're doing a flat, on-time renewal, the only reason to bring that in early might be from a certain customer situation. If the customer is asking for it, we should absolutely make that consideration, but giving our go-to-market teams the most capacity available to focus on expansion opportunities. And so you can have early renewals with expansion. And so that's good. But how do we balance that out? And so you could see that in the past couple of quarters, we have talked about a little bit of an early, on-time tailwind for us coming in. And what we're trying to do is just balance that out a little bit for us.

Blake Grayson: And so what we're trying to do in the go-to-market team and in Paula's world is really make sure we're prioritizing resources in the corners that provide the best opportunities for expansion. And so if we're doing a flat, on-time renewal, the only reason to bring that in early might be from a certain customer situation. If the customer is asking for it, we should absolutely make that consideration, but giving our go-to-market teams the most capacity available to focus on expansion opportunities. And so you can have early renewals with expansion. And so that's good. But how do we balance that out? And so you could see that in the past couple of quarters, we have talked about a little bit of an early, on-time tailwind for us coming in. And what we're trying to do is just balance that out a little bit for us.

Speaker Change: We're doing a healthy renewal that's great. What it also does is we have a certain amount of capacity available for us right with a given quarter and so what we're trying to do in their go to market team in Apollo's World is really make sure. We're prioritizing resources in the quarters that provide the best opportunities for expansion and so we're doing.

Will Power: A flat on time renewal the only reason to bring that in early might be from a certain customer situation of the customers asking for we should absolutely make that consideration, but giving our go to market teams.

A flat on time renewal the only reason to bring that in early might be from a certain customer situation of the customers asking for we should absolutely.

Will Power: Most capacity available to focus on expansion opportunities and so you can have early renewals with expansion and so that's good.

Will Power: But how do we balance that out and so you can see that in the.

That consideration, but.

Will Power: Past couple of quarters, we have talked about a little bit of an early on time tailwind for.

Speaker Change: Given our go to market teams the most capacity available to focus on expansion opportunities and so you can have early renewals with expansion and so that's good.

For us coming in what we're trying to do is just balance that out a little bit for us and we think that gives us essentially more resources to put towards the expansion opportunities and obviously our number one job right now is to try to spin. This flywheel expand this business and accelerated growth and we think that gives us the best opportunity to do that.

Matthew Sonefeldt: And we think that gives us, essentially, more resources to put towards the expansion opportunities. And obviously, our number one job right now is to try to spin this flywheel, expand this business, and accelerate the rest. And we think that gives us the best opportunities. And we think that gives us, essentially, more resources to put towards the expansion opportunities. And obviously, our number one job right now is to try to spin this flywheel, expand this business, and accelerate the rest. And we think that gives us the best opportunity to do that. Thank you, operator. And thank you to all who joined today's call. In closing, I'm really proud of DocuSign's progress as we improve the performance of our business and increase the pace and scale of innovation delivered to our customers through the IAM platform.

Blake Grayson: And we think that gives us, essentially, more resources to put towards the expansion opportunities. And obviously, our number one job right now is to try to spin this flywheel, expand this business, and accelerate the rest. And we think that gives us the best opportunity to do that.

Speaker Change: How do we balance that out and so you can see that in the past couple of quarters, we have talked about a little bit of an early is on time tailwind.

Speaker Change: For us coming in what we're trying to do is just balance that out a little bit for us and we think that gives us essentially more resources to put towards the expansion opportunities and obviously our number one job right now is to try to spin. This flywheel expand this business and accelerated growth and we think that gives us the best opportunity to do that.

Speaker Change: Okay, great. Thank you.

Speaker Change: Yes.

We have reached the end of our question and answer session I would like to turn the conference back over to Alan for closing remarks.

Speaker Change: Thank you operator, and thank you to all who joined today's call.

Will Power: Okay, Thank you.

Allan Thygesen: Operator.

Allan Thygesen: And thank you to all who joined today's call. In closing, I'm really proud of DocuSign's progress as we improve the performance of our business and increase the pace and scale of innovation delivered to our customers through the IAM platform.

Okay, great. Thank you.

Speaker Change: Yes.

Speaker Change: I'm really proud of the Doctor signs of progress as we improve the performance of our business and increase the pace and scale innovation delivered to our customers through the <unk> platform.

We have reached the end of our question and answer session I would like to turn the conference back over to Alan for closing remarks.

Thank you operator.

Matthew Sonefeldt: Thank you to the team for your commitment as we continue to transform DocuSign into our owners as we pursue the significant opportunity lies ahead. Thank you all. Innovation delivered to our customers through the IAM platform. Thank you to the team for today's conference. You may disconnect your lines at this time. Thank you for your participation. Thank you for your participation. As we continue to transform DocuSign into our owners as we pursue the significant opportunity lies ahead. Thank you all. Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Allan Thygesen: Thank you to the team for your commitment as we continue to transform DocuSign into our owners as we pursue the significant opportunity lies ahead. Thank you all.

Thank you to the team.

You to all who joined today's call.

And your commitment as we continue to transform data into.

Speaker Change: In closing I'm really proud of duck signs of progress as we improve the performance of our business and increase the pace and scale innovation delivered to our customers through the <unk> platform. Thank.

Speaker Change: And to our owners as we pursue the significant upturn annualize that thank you all.

Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

Thank you to the team for your commitment as we continue to transform doctor sign into our owners as we pursue the significant upturn annualize that thank you all.

Speaker Change: Okay.

Operator: Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change: Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

[music].

Yes.

Speaker Change: [music].

Q4 2025 DocuSign Inc Earnings Call

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