DocuSign, Inc.

Good afternoon, ladies and gentlemen, and thank you for joining DocuSign's fourth quarter fiscal 2026 earnings 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 conference is being recorded and will be available for replay on the investor relations section of the website following the call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I will now pass the call over to Matthew Schoenfeld, Head of Investor Relations. Thank you. You may begin.

Thank you, Operator. Good afternoon and welcome to DocuSign's Q4 Fiscal 2026 Earnings Call. Joining me on today's call are DocuSign's CEO, Alan Teegerson, and CFO, Blake Grayson. The press release announcing our fourth quarter Fiscal 2026 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, including any statements regarding future performance. 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 factors affecting customer demand and adoption 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, billings, and ARR. 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, Matt, and good afternoon, everyone. In fiscal 2026, DocuSign's AI-native Intelligent Agreement Management, or IAM, platform established clear market leadership as the agreement system of action for companies of all sizes. After just 18 months, IAM customers are generating over $350 million in AR and delivering strong retention and expansions. We're proud of the improvements in product, go-to-market, and operational execution over the past three years that have led us to this inflection point. We are positioned to begin accelerating the business. Fiscal 2026 was defined by consistent execution, positioning us for durable long-term growth. In Q4, revenue was $837 million, up 8% year-over-year, while billings exceeded $1 billion for the first time, growing 10% year-over-year. ARR ended at $3.3 billion, up 8% year-over-year. IAM represented 11% of ARR. Fiscal 2026 was our first year with non-GAAP operating margins over 30% and free cash flow over $1 billion. In fiscal 2027, We expect to maintain operating margins at a similar level as we reinvest go-to-market efficiencies into increased R&D investment to accelerate our roadmap. We will also leverage strong cash flow generation to support our repurchase program, which we have expanded to $2.6 billion. In fiscal 2027, we're focused on two priorities to grow IAM. First, helping customers automate workflows and drive business results, and second, expanding our AI data and innovation advantage. IAM is an AI-native end-to-end platform that transforms how customers manage agreements across every part of an organization. In the front office, sales workflows connect to legal, finance, and operations teams while also integrating with CRM platforms. enabling customers to close deals faster, deliver a better customer experience, and gain meaningful top-line benefits. In the back office, IM's extraction and analysis capabilities enable a CFO in procurement use cases or a general counsel in legal use cases to better manage vendor relationships and gain previously unattainable insights into the business across hundreds of thousands of documents, using IM as a system of actions. Aon, a leading global professional services firm, is implementing DocuSign's Intelligent Agreement Management to surface intelligence buried in its legacy agreements and delivered through Aon's Meridian capability, equipping colleagues with the clarity they need to serve clients more effectively. Bank of Queensland signed a three-year strategic agreement and upgraded to IAM through the Microsoft Azure Marketplace. By leveraging our global partnership, Bank of Queensland will accelerate its digital transformation, streamline agreement workflows to reduce their cost to serve, improve speed to market, and strengthen regulatory controls through deeper Microsoft integration. IAM is now the center of gravity across our direct sales, partner, and product-led growth motions. Building on significant commercial momentum, in fiscal 2027, we will scale IAM with enterprises by adding a top-down C-suite focused sales motion. We're launching IAM consumption-based subscription pricing in Q1. Our partner channel is increasingly emphasizing IAM and made an improved contribution to our direct business in Q4 with total partner-contributed bookings growing by over 30% year-over-year. Our product strategy is also focused on delivering more use case value across organizations and enterprises. In fiscal 2027, IAM will cover more surface area for our customers by introducing new IAM SKUs for specific functions within companies, including IAM for HR and procurement. We're also building richer agentic tools for legal teams. This complements existing SKUs for sales and customer experience. We will continue to strengthen trust and compliance functionality through deeper permissioning, access management and auditing, as well as expanded IAM extensibility to more enterprise-focused third-party public and private applications. Recently launched AI-powered tools bolster IAM's workflow capabilities. Agreement Desk, Agreement Preparation, and AI-Assisted Review streamline agreement creation. Workspaces and identity verification speed up secure agreement commitment. And custom extractions and skim for DocuSign deliver sophisticated, scalable capabilities that enterprise customers require. You can see these in action in our demo videos found in the prepared remarks. eSignature remains a thriving part of our platform vision. In Q4, we added AI capabilities to eSignature that make every step of the signing process smarter and more trustworthy. We continue to see consistent year-over-year growth in the e-signature base, especially among customers spending $300,000 or more a year. Q4 envelope consumption once again increased year-over-year at near multi-year highs, while growth in envelope sent remains healthy and consistent. Our focus on improving sales engagement and reducing customer friction continues. delivered year-over-year improvements in gross and dollar net retention. Three years ago, we recognized that AI would transform how agreements are managed, and we began building the AI-native platform that became IAM. We believed that agreement management was a natural extension of DocuSign's business and that we had unique competitive advantages. These include a deep understanding of customer agreement workflows and context, a large ecosystem with more than 1,100 integrations, market-leading security and compliance, and customer trust and distribution relationships built over decades with companies around the world. Our AI data advantage continues to grow as customers invest in IM. Today, the number of private consented agreements ingested has expanded to more than 200 million agreements in DocuSign Navigator, our intelligent repository, up from 150 million in December. AI search leader Elastic is deploying Navigator to automate contract workflows across the business, while FinTech leader Clasp is leveraging Navigator and our suite of app extensions to automate agreement workflows and centralize its contract data. DocuSign AI models draw upon an enormous, unmatched body of agreement data gathered over two decades. By leveraging our customer-consented library of private contracts, we believe we can achieve up to a 15 percentage point improvement in precision and recall compared to our models trained on public contract data while operating at incredible cost efficiency. We've optimized AI processing costs by upwards of 50x compared to running direct prompts on LLMs. We further extend our AI advantage by directly integrating with the leading AI providers. Last month, we partnered directly with Anthropic to make IAM available as part of Cloud Cowork. The DocuSign MCP connector is available in beta today through Anthropic's connectors directory. It enables DocuSign customers to use Cowork's natural language prompts to automate agreement workflows and securely create, review, send, and manage agreements in IAM, all with DocuSign's trusted security and access controls. In addition to co-work, IAM also connects via MCP server to OpenAI's ChatGPT, Google Gemini, GitHub Copilot Studio, and Salesforce's AgentForce. IAM's ability to integrate with customer workflows and third-party applications delivers significant value to our customers. Leading venture-backed fintech company, Vestwell, connected IAM to its CRM, and reduced the time required to create a new customer agreement package from 75 minutes to 5 minutes. Move Forward Financial, a real estate lender, is saving money and delivering a better customer experience by using IAM for sales. Payworks, a Canadian developer workforce management software, increased 24-hour contract completion rates from 55% to 87%. and recovered more than $400,000 in annual sales representative productivity by integrating IAM workflows with a complex Salesforce implementation. Inside DocuSign, we're adopting AI across the organization, deploying new tools and enablement programs to boost productivity and gain efficiencies. The vast majority of our engineering organization is developing with AI, and 60% of new code is AI-assisted. In closing, we're proud of the immense value IAM delivers to customers by enabling them to build sophisticated and efficient agreement workflows and unlock the power of the data in their agreements. DocuSign IAM has emerged as the category-leading agreement management platform and puts DocuSign at the leading edge of AI innovation. I want to thank the entire DocuSign team for their dedication to helping our customers move faster, grow their businesses, and operate more efficiently, all while transforming DocuSign into a durable, long-term growth business. With that, let me turn it over to Blake.