DocuSign, Inc.

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's first quarter of fiscal year 27 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 will be available for replay from 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 Matt Sonnenfeld, Head of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon and welcome to DocuSign's Q1 of Fiscal 2027 Earnings Call. Joining me on today's call are DocuSign CEO Alan Teegerson and CFO Blake Grayson. Press release announcing our first quarter of Fiscal 2027 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 are based on our best estimates at this time and 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 flow, 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 these 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. We began fiscal 2027 with continued strong demand for DocuSign's AI-native Intelligent Agreement Management, or IAM, platform. We have 40,000 companies invested in IAM, and they generated 12.6% of total company AR. Our AI innovation is establishing IAM as the definitive agreement platform. And we are rapidly launching new capabilities that deliver increased value to customers and significantly widen our competitive advantage. Q127 results demonstrated the business durability. In Q1, revenue was $830 million, up 9% year-over-year. This consistency drives our conviction in the AR acceleration as part of our fiscal 27 outlook. On the bottom line, operating margins were 32%, and a strong 35% free cash flow margin supported $318 million in stock buybacks, the largest quarterly repurchase in our history. At our Momentum customer event, we continued the consistent drumbeat of innovation with a lineup of new products and partnerships that make IAM the center of gravity for agreements across the enterprise. Our overarching goal with IAM is to provide customers with a unified platform for everyone who touches contracts across an organization to unlock top line growth while eliminating friction and increasing efficiency on the bottom line. In fiscal 2027, we have two clear priorities. First, delivering powerful end-to-end agreement workflows for customers. And second, expanding our AI data and orchestration advantage. We have reached an inflection point in agreement management. Customers now recognize how a unified AI agreement platform spanning the organization can solve problems that isolated department-level point products cannot. IAM's end-to-end architecture eliminates the fragmented handoffs that create delays, introduce mistakes, and destroy value. A new Deloitte study quantifies this, finding that while AI point products yield a modest 3% increase in ROI, customers deploying an end-to-end AI platform like IAM realize a nearly 30% increase, or a 10x difference in value delivered. IAM's value to customers is increasing in two ways. with new line of business applications tailored to the unique business processes of different functional teams, and second, with a growing number of integrations with key third-party apps. For example, we made IAM more useful for in-house legal professionals by introducing a legal-specific contract assistant and agents. These agents autonomously triage, review, and progress documents to closing, drawing on knowledge of a company's past negotiations, and internal policies. We also deepened our partnership with Anthropic by integrating IAM with Claude's new legal tools so legal professionals can access IAM contracts and connect to IAM workflows from inside Claude. And we announced similar integrations with legal tech specialists Harvey, Legora, and Co-Counsel Legal by Thomson Reuters. In procurement, we partnered with spend management leader Coupa so procurement teams can build cross-functional workflows from inside the Coupa app. Within human resources, our new IAM for HR product connects Workday and Greenhouse to the IAM platform. And in partnership with Salesforce, we announced a deep Slack integration, so users can generate, review, and synchronize agreements in IAM directly via Slackbot. Payments are also integrated into IAM through our partnership with Stripe. These enterprise-grade workflows and integrations help accelerate IAM adoption among large customers. Experian, a global data and technology company, partnered with DocuSign to improve seller productivity and drive velocity in client contract cycle times. HSBC, one of the world's largest banking and financial service organizations, introduced IAM to digitize and simplify its credit lending process. To further support enterprise engagement, in Q1 we launched the IAM platform plan, a credit-based subscription pricing model that ties pricing to business outcomes. At this year's momentum, we recognize customers who are setting the benchmark for what can be achieved on the IAM platform. Crete United, a national network of mechanical, electrical, plumbing, and building automation specialists, reduced contract negotiation times by 80%, and improved deal execution speed by 90% by deploying AI-assisted review. Milky Moo, a milkshake franchisor with more than 800 stores in Brazil, uses our AI to track renewals, saving more than 1,000 hours of manual work last year. DocuSign's significant advantage in agreement AI enables IAM to deliver superior performance. Our AI engine, IRIS, harnesses frontier LLM intelligence and combines those capabilities with DocuScience orchestration, deep domain expertise, and unmatched body of agreement data. Hundreds of millions of consented private agreements have been ingested into IAM, with millions more flowing in every week. We continue to 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 more than 50x compared to running direct prompts on LLMs. Our other advantages include enterprise-grade security, an expansive ecosystem of over 1,100 third-party integrations, and long-established global distribution relationships. Our deep understanding of our customer workflows and context creates a significant advantage as we integrate agents that can autonomously perform tasks for customers safely, at their direction, under their control, with DocuSign providing compliance guardrails. At Momentum, we introduced agentic offerings that advance IAM's transformation into a system of action. First, pre-built agents in IRIS review agreements, suggest edits, and automatically request the right approvals in minutes. Second, custom agents in DocuSign Agent Studio enable customers to build their own agents tailored to unique business needs. And third, third-party agents through our MCP server connect IAM to Anthropic Cloud, Gemini, and OpenAI Chat GPT so teams can create, query, and manage IAM agreements within the chat apps they already use. IAM also connects with additional agentic platforms like GitHub Copilot, Microsoft Copilot Studio, and Salesforce AgentForce. In addition, at Momentum, we expanded our federated trust model, which lets customers choose from 76 identity providers. And we introduced AI-assisted web forms, a no-code solution that instantly transforms static PDFs into guided, mobile-friendly digital experiences. Within our internal operations, we continue to apply AI to gain efficiencies and boost productivity in both engineering and customer facing teams. Approximately 75% of all new code shipped is AI assisted, up from 60% just last quarter. In closing, the IAM platform's value and opportunity spring directly from our AI innovation, and we continue to build new features at the fastest pace in DocuSign's history. That innovation, coupled with our enormous user base and our enduring position as one of the world's most trusted software companies, positions DocuSign to become an essential foundation for the AI-driven enterprise. We're proud that people are taking notice. In Q1, Fast Company included DocuSign in its list of most innovative companies for 2026. Also, we were honored as a top-tier employer in the Where You Work Matters list. And for the third consecutive year, Newsweek named DocuSign one of the most trusted software and telecom companies in America. I also want to welcome our new Chief Product Officer, Graham Shelton. Graham joins us after working most recently as Chief Product Officer at UiPath, the industry's first enterprise-grade agentic automation platform. Before that, Graham spent more than 20 years at Microsoft, where he took Microsoft Teams from inception to 300 million users as corporate vice president of product. We're excited for his leadership as we realize our vision for agreement management. And I also want to thank outgoing chief product officer, Dmitry Kakowski, for his contribution to building IAM's foundations. Lastly, I want to thank the entire DocuSign team for their relentless commitment to helping our customers unlock the true power of their agreements in this era of rapid change. With that, let me turn it over to Blake.