Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was $764 million, representing an 8% year-over-year growth, driven by increased IAM customers and self-serve digital revenue contributions [9][26] - Operating margins improved by 1% year-over-year to 29.5%, while free cash flow margin was strong at 30% [9][36] - Billings grew 4% year-over-year to $740 million, slightly below guidance due to lower early renewals [10][26] Business Line Data and Key Metrics Changes - Over 10,000 customers have purchased the DocuSign IAM platform, with significant engagement and usage growth, particularly in small and mid-market segments [11][30] - IAM sales exceeded expectations, with direct customer IAM deal volume increasing compared to Q4 [17][29] - Digital revenue continued to grow at more than double the rate of overall revenue, indicating strong performance in self-serve channels [19][32] Market Data and Key Metrics Changes - International revenue represented 28% of total revenue, growing 10% year-over-year, with IAM deal volume in international markets increasing over 50% from the previous quarter [33][34] - Customer growth was robust, with total customers increasing by 10% year-over-year, surpassing 1.7 million [30][31] Company Strategy and Development Direction - The company is focused on long-term transformation through the IAM platform, aiming for accelerated growth and innovation [8][24] - Strategic changes in the go-to-market approach were implemented to enhance sales efficiency and drive IAM adoption [20][72] - The company is committed to maintaining a strong balance sheet while returning capital to shareholders through share buybacks [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory despite short-term challenges related to early renewals [21][56] - The fundamentals of the core business are improving, with gross retention and dollar net retention rates showing positive trends [22][29] - The company is taking a cautious approach to forecasting due to the uncertain economic environment, but remains optimistic about future growth [40][62] Other Important Information - The company has authorized an additional $1 billion in share buybacks, bringing total repurchase authorization to $1.4 billion [37] - Non-GAAP diluted EPS for Q1 was $0.90, an improvement from $0.82 in the previous year [38] Q&A Session Summary Question: Can you elaborate on the go-to-market transition and the reasons for lower early renewals? - Management indicated that changes in compensation structures encouraged sales reps to close deals earlier, impacting early renewals [46][48] Question: How does the broader health of the business look, particularly regarding IAM upsell opportunities? - Management expressed confidence in the IAM upsell potential and noted improvements in retention and expansion metrics [53][56] Question: What are the assumptions for billings growth in the second half of the year? - Management expects a ramp in billings growth, driven by the scaling of the commercial business globally [60][61] Question: Are there any changes in customer behavior regarding contract envelopes due to the macro environment? - Management has not observed significant changes in customer behavior regarding contract envelopes, indicating stability in Q1 [64][66] Question: Can you discuss the role of GSI partners in driving new pipeline and enterprise growth? - Management acknowledged the growing interest from SIs and the potential for these partnerships to enhance enterprise engagement [91][94]

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]