DocuSign, Inc.

Greetings and welcome to the DocuSign Q3 fiscal 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If you require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Heather Harwood, Head of Investor Relations. Thank you, Heather. You may begin.

Thank you, Operator. Good afternoon, and welcome to DocuSign's Q3 Fiscal 2025 Earnings Call. Joining me on today's call are DocuSign's CEO, Alan Teegerson, and CFO, Blake Grayson. The press release announcing our third quarter fiscal 2025 results was issued earlier today and is posted on our Investor Relations website, along with a published version of our prepared remarks. 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. 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 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 counts and information regarding free cash flows and billing. These non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior 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 those figures, please refer to today's earnings press release, which can be found on our website at investor.docuSign.com. I'd now like to turn the call over to Alan.

Thank you, Heather, and good afternoon, everyone. In Q3, we delivered powerful new innovation for customers, highlighted by new capabilities for the DocuSign Intelligent Agreement Management, or IAM, platform. We also continued to drive improved performance and maintain greater efficiency in our core business. Q3 revenue was $755 million, up 8% year-over-year. Fundamentals across the core business improved, continuing the recent trends. Dollar net retention increased to 100% in Q3, up from its low 98% in Q4 fiscal 2024. Increases in customer usage and utilization, combined with our ongoing focus on gross retention, drove dollar net retention improvement. We also saw sustained momentum in new customer growth at 11% year-over-year to 1.6 million customers. In addition, we produced strong profitability with 29.6% non-GAAP operating margins up from 26.8% in Q3 fiscal 2024, evidence of our commitment to improving efficiency while making the needed investments to re-accelerate growth. As we move forward, We've set our sights on delivering transformational value for our customers with the DocuSign IAM platform. We recognize that it's early days in the multi-year IAM journey, but we believe we've taken strong initial steps on the path towards our aspiration to achieve sustainable, long-term, double-digit growth. Our Q3 results demonstrate continued progress across our three strategic pillars – accelerating product innovation, strengthening our omnichannel go-to-market capabilities, and increasing operating efficiency. Starting with innovation, we enhanced the IAM platform across three fronts, launching several new capabilities, expanding availability to more regions, and enabling department-level deployments for enterprise customers. These releases help customers of all sizes cut into the staggering $2 trillion in global economic value lost each year to inefficient agreement management. Within just a few months of closing the Lexion acquisition, we've built Lexion's AI capabilities into the IAM platform, including the ability to surface insights from a more extensive array of agreement types in DocuSign Navigator. Navigator is a core capability of the IAM platform, acting as a system of record where customers can import, store, manage, search, and use AI to analyze agreements from multiple sources. In Q3, we further enhanced Navigator by adding third-party document imports from partners, including Box, Dropbox, Google Drive, and Microsoft OneDrive and SharePoint. In addition, we launched an upgraded search experience, that includes predictive type ahead functionality, more filters, and the ability to export results. We also expanded the availability of IAM to more geographies. In early October, IAM with DocuSign Maestro, our automated agreement workflow builder, shipped to all regions where DocuSign operates, including North America, Latin America, EMEA, and most countries in APAC. Also, just this week, we released new AI features Navigator across five major markets. Australia, Canada, France, Germany, and the UK. In these countries, we've created AI models that meet local regulatory and compliance requirements. In November, we began making IAM available for department-level use cases for enterprise customers. This begins the multi-year journey towards delivering enterprise-wide IAM deployments, which will eventually include more sophisticated access controls and compliance management, more complex agreement workflows, and even greater breadth and depth of third-party integrations. This measured roll-up allows us to fine-tune our product development and go-to-market execution based on customer feedback. Part of our evolution into a platform company is supporting a dynamic community of developers, builders, and partners to create new solutions that extend the capabilities of our IAM platform. Just two weeks ago, at DocuSign Discover, We showcased IAM integrations with Microsoft, SAP, and Workday, and introduced a suite of developer tools, DocuSign for Developers, that our partners will use to build apps powered by the IAM platform. Partners can share their apps in the DocuSign App Center. With DocuSign CLM, we continue to invest in innovation for customers with complex agreement management needs. In Q3, we incorporated Lexion's AI-assisted contract review and launched document markup and Microsoft Word documents into CLM, allowing customers to quickly review and edit contracts. We also released a powerful new DocuSign connector for SAP Ariba, which speeds up the source-to-pay agreement process for procurement and expands on our SAP partnership. For the fifth consecutive year, DocuSign CLM has been named a leader in Gartner's magic quadrant for CLM. Gartner says DocuSign is in a strong position for influencing the market and securing a place consideration on prospective customers' evaluation shortlists. CLM is a powerful application for customers with sophisticated workflows and remains a fast-growing part of our business. In short, we've reignited DocuSign's culture of innovation with a robust product roadmap, faster product releases, and a commitment to supporting a thriving developer ecosystem. Now let's turn to the second strategic pillar, our omni-channel go-to-market. In Q3, we accelerated the rollout of DocuSign IAM and gained traction with small and mid-sized customers in the United States, Canada, and Australia. early sales momentum has outpaced our expectations. In Q3, we closed more than 10 times as many IM deals as we did in Q2, with deal volume increasing every month in the quarter. 80% of our reps eligible to sell IM in the initial launch markets have closed three or more deals, and nearly 60% have sold six or more. Equally encouraging is the strong customer engagement with the IAM platform. Times Alive is remarkably quick. It's slightly faster than eSignature. And we also see customers increasing their usage of IAM applications, particularly Navigator. Each month, they're live on the platform. The speed and ease of adoption strengthen our ability to market IAM to hundreds of thousands of customers who are direct Salesforce. our customers can seamlessly upgrade to IAM when they renew their contracts and quickly begin to transform how they manage their agreements. As an example of customer success, APC Private Funds, which connects wealth management firms with alternative investment opportunities, has slashed its client onboarding time by 70% using Maestro and anticipates reducing onboarding time by 90%. Royal Neighbors of America, a life insurance company, will use MyStore to accelerate new member application processing and customer service workflows across multiple parts of its business, replacing a manual code-based process with a flexible self-service workflow. Employee Engagement Platform Catchafire is using DocuSign IAM for sales and its Salesforce integration to streamline contract creation and create an agreement repository. Another top priority has been evolving our self-serve capability. Self-serve investments led to a year-over-year acceleration in digital revenue growth in Q3 versus Q2. During the quarter, we improved our upsell capabilities, making it easier for digital customers to upgrade their plans, leading to larger-than-anticipated revenue expansion. We also made additional add-on products available online, like multi-channel delivery, including SMS and WhatsApp, as well as ID verification. We will continue to improve how customers discover, try, use, and buy our products digitally in even greater scale and efficiency across our business. Also, as we begin to deploy IAM at the department level with enterprises, we'll build on the existing use case breadth already deployed by larger customers to our direct and partner channels. Cox Automotive, the parent company of AutoTrader and Kelley Blue Book, is executing 55% more contracts per month by deploying DocuSign CLM to streamline workflows, simplify negotiations, and automate reviews of standard contract clauses. CLM enables Cox to execute agreements 31% faster, radically accelerating its time to revenue. IKEA Portugal has reduced new employee onboarding time by managing employee-related contracts digitally instead of on paper. In addition to e-signature, IKEA Portugal has adopted both DocuSign ID verification for EU-qualified and our Identity Wallet, enabling them to easily and efficiently use the EU's most secure form of digital signature, the qualified electronic signature. And United Airlines has accelerated the onboarding process for new hires from weeks to days by using our integration with ServiceNow in its HR organization. In closing, we're pleased with our strong execution as we rapidly innovate the IAM platform. I'm excited about the significant opportunity to deliver value for our customers by transforming how the world manages agreements. And I'm proud of the way we're strategically investing in the future while maintaining the improvements we've made to overall profitability. When I joined DocuSign, we had a vision that our position as the world's leading and most trusted electronic signature company created a unique opportunity to help customers address the entire end-to-end agreement process. I want to thank the entire DocuSign team for embracing this challenge and bringing so much energy, enthusiasm, and customer focus to this mission. DocuSign is gaining momentum in our first steps in a multi-year transformation, and we're optimistic about the long-term future ahead. With that, I'll turn it over to Blake to further discuss our results.