Financial Data and Key Metrics Changes - Total revenue for Q3 was $818 million, representing an 8% year-over-year increase, while billings reached $829 million, up 10% year-over-year [6][18] - Non-GAAP operating margin was 31%, with free cash flow growing 25% year-over-year to $263 million, reflecting a 32% margin [7][26] - Non-GAAP diluted EPS for Q3 was $1.01, up from $0.90 last year, while GAAP diluted EPS was $0.40 compared to $0.30 last year [28] Business Line Data and Key Metrics Changes - The Intelligent Agreement Management (IAM) platform saw significant growth, with over 25,000 paying customers by the end of Q3, up from more than 10,000 in April [8][24] - Dollar net retention improved to 102%, up from 100% in the prior year, indicating strong customer engagement and usage [24] - The eSignature business also performed well, with utilization rates at multi-year highs and consistent positive growth in envelopes sent [9][56] Market Data and Key Metrics Changes - International revenue reached approximately 30% of total revenue for the first time, growing 14% year-over-year [10][25] - The number of customers spending over $300,000 annually grew 8% year-over-year, marking the highest quarterly growth in over two years [25] - The IAM platform is expected to contribute a low double-digit percentage share of the subscription revenue by the end of Q4 [24] Company Strategy and Development Direction - The company aims for sustainable, profitable double-digit growth, focusing on operational efficiency and innovation in the IAM platform [7][17] - Strategic initiatives include enhancing go-to-market motions, expanding international presence, and deepening solution selling across customer segments [10][11] - The company plans to transition to reporting annual recurring revenue (ARR) and will no longer report billings starting in fiscal 2027, aiming for better transparency in growth metrics [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early retention rates of IAM customers and the potential for increased eSignature usage post-IAM adoption [8][40] - The company highlighted the importance of trust in AI solutions, noting that 70% of professionals prefer dedicated enterprise contract AI solutions over general-purpose models [16] - Management acknowledged the challenges of year-over-year comparisons due to elevated early renewal activity in the previous fiscal year but remains confident in the business's resilience [19][30] Other Important Information - The company achieved FedRAMP moderate and GovRAMP authorization for IAM, enhancing its credibility in the market [16] - The company repurchased $215 million in shares during Q3, marking the largest quarterly buyback in its history [27] - The IAM platform is positioned as a foundational capability for future growth, with plans for further integration and feature enhancements [45][92] Q&A Session Summary Question: Transition to ARR and its impact - Management indicated that while ARR is not yet disclosed, the trajectory of billings growth serves as a good proxy for business performance moving forward [36][37] Question: Early renewal cohorts and expansion - Management noted that early renewal cohorts are showing strong retention rates, with larger companies likely to expand their IAM deployments over time [39][40] Question: Navigator product and future monetization - The Navigator product is integral to the IAM platform, providing foundational capabilities that enhance overall value without being monetized separately [44][45] Question: Billings growth and subscription revenue guidance - Management explained that the guidance for Q4 reflects a deceleration from Q3 due to prior early renewals and strong growth in the previous year [48][49] Question: Envelopes sent and utilization rates - Management confirmed consistent year-over-year growth in envelopes sent, with utilization rates indicating customers are using more of what they paid for, suggesting future upsell opportunities [52][54] Question: AI contract agents and their impact - Management anticipates that while AI contract agents will not significantly impact financial momentum in the near term, they are strategically important for future growth [85][86] Question: Go-to-market strategy for IAM - Management highlighted the importance of expanding into procurement and HR departments, with a focus on integrated end-to-end workflows for future growth [91][92]

Financial Data and Key Metrics Changes - Revenue for Q3 was $818 million, an increase of 8% year-over-year, while billings reached $829 million, up 10% year-over-year [5][15] - Non-GAAP operating margin was 31%, and free cash flow grew 25% year-over-year to $263 million, representing a 32% margin [5][22] - Non-GAAP diluted EPS for Q3 was $1.01, up from $0.90 last year, while GAAP diluted EPS was $0.40 compared to $0.30 last year [23] Business Line Data and Key Metrics Changes - The Intelligent Agreement Management (IAM) platform saw significant growth, with over 25,000 paying customers by the end of Q3, up from over 10,000 in April [6][20] - Dollar net retention improved to 102%, up from 100% in the prior year, indicating strong customer engagement and usage [20] - The e-signature business also performed well, with utilization rates at multi-year highs and consistent positive growth in envelopes sent [7][40] Market Data and Key Metrics Changes - International revenue reached approximately 30% of total revenue for the first time, growing 14% year-over-year [8][21] - Total customers grew 9% year-over-year, ending the quarter at nearly 1.8 million, with significant growth in customers spending over $300,000 annually [21] - The company hosted momentum events in Sydney, Singapore, and Tokyo, reflecting growing interest in IAM [8] Company Strategy and Development Direction - The company remains focused on delivering sustainable, profitable double-digit growth, with a commitment to operational efficiency and product innovation [5][14] - IAM is positioned as a key growth driver, with plans to enhance its integration with existing business systems and expand its ecosystem of third-party integrations [10][12] - The company is transitioning to reporting Annual Recurring Revenue (ARR) and will no longer report billings starting in fiscal 2027, aiming for better transparency in growth metrics [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, with strong demand for IAM and e-signature solutions [15][20] - The company anticipates continued growth in ARR driven by expansion opportunities and improved retention rates [30][50] - Management acknowledged the importance of maintaining operational efficiency while navigating macroeconomic conditions [22][58] Other Important Information - The company achieved FedRAMP moderate and GovRAMP authorization for IAM, enhancing its credibility in security and compliance [13] - The company plans to continue opportunistic share repurchases, having repurchased $215 million in shares during Q3, the largest quarterly buyback in its history [23][54] Q&A Session Summary Question: Transition to ARR and its impact on growth - Management indicated that while ARR is not yet disclosed, the trajectory of billings growth serves as a good proxy for business performance moving forward [30] Question: Early renewal cohorts and expansion opportunities - Management noted that early renewal cohorts are showing strong retention rates, with larger companies likely to expand their IAM deployments upon renewal [32][34] Question: Future monetization opportunities with Navigator - Navigator is seen as a foundational capability for IAM, with various use cases expected to emerge as the platform matures [35][36] Question: Billings growth and subscription revenue guidance - Management explained that the guidance for Q4 reflects a deceleration from Q3 due to prior year comparisons and early renewal impacts [38] Question: Macro environment impact on envelope volumes - Management reported consistent growth in envelope volumes and utilization rates, indicating strong customer engagement across verticals [40][58]

Financial Data and Key Metrics Changes - Q4 revenue was $776 million, up 9% year over year, while fiscal year 2025 revenue reached $3 billion, an 8% increase year over year [8][24] - Q4 billings were $923 million, up 11% year over year, with full year fiscal 2025 billings increasing by 7% year over year [25] - Non-GAAP operating income for Q4 was $224 million, up 25% year over year, resulting in a 28.8% operating margin [32] - Free cash flow for Q4 was $280 million, with a 36% margin, and for fiscal year 2025, free cash flow was $920 million, a 31% margin [34] Business Line Data and Key Metrics Changes - The dollar net retention rate improved to 101% in Q4, up from 100% in Q3 and from 98% in Q4 of fiscal 2024 [15][26] - Digital self-service revenue growth accelerated for the second consecutive quarter, reflecting improvements in self-service capabilities [16] - The number of large customers spending over $300,000 annually increased to 1,131 in Q4, marking the strongest quarter for large customer growth in two years [28] Market Data and Key Metrics Changes - International revenue in Q4 represented 28% of total revenue and grew 12% year over year [30] - The U.S. business has started to reaccelerate, while international growth continues to outpace the overall business [31] Company Strategy and Development Direction - The company is focused on three strategic pillars: accelerating product innovation, strengthening omni-channel go-to-market capabilities, and increasing operating efficiency [23] - The introduction of Intelligent Agreement Management (IAM) is seen as a transformative step, aiming to establish a new system of record for managing agreements [7][9] - The company plans to continue investing in self-service channels and expanding IAM's capabilities to drive future growth [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong customer enthusiasm for the IAM platform and the potential for significant growth opportunities [21][42] - The company anticipates a gradual improvement in dollar net retention throughout fiscal year 2026, driven by improvements in gross retention and IAM upsell opportunities [27][79] Other Important Information - Non-GAAP gross margin for Q4 was 82.3%, slightly down from the prior year due to cloud migration costs [32] - The company repurchased $162 million of stock in Q4 and a total of $684 million for fiscal year 2025, utilizing approximately 75% of annual free cash flow [35] Q&A Session Summary Question: Early reception of IAM in enterprise space - Management noted encouraging early signs in enterprise international sales productivity and customer acceptance, with a strong value proposition for larger companies [46][48] Question: Revenue growth guidance in context of billings acceleration - Management explained that revenue growth lags behind billings due to the average contract duration, with expectations for revenue acceleration as billings improve [50][52] Question: Current macro environment impact on e-signature activity - Management reported no material changes in envelope volume trends, indicating stability across sectors and company sizes [58] Question: Preparedness for selling more complex solutions - Management highlighted ongoing training and adjustments in the sales team to prepare for more complex sales cycles, particularly in the enterprise segment [62][66] Question: Opportunity for IAM in customer accounts - Management indicated significant expansion opportunities with IAM, emphasizing the value delivered across various functional areas within organizations [72][75] Question: Net retention expectations - Management clarified that while net retention is expected to be flat in Q1, gradual improvement is anticipated throughout the year due to ongoing retention efforts and expansion opportunities [78] Question: Changes in sales strategy - Management characterized the changes in the sales team as significant but manageable, aimed at transitioning to a more enterprise-focused approach [84]