DocuSign Inc Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Congrats on the nice numbers. Cynthia, I'd love if you could talk a little bit about your margin outlook for the second half. Despite raising your total revenue guide by $50 million, you left your operating margin target of 16 to 18 intact, and that would require a step down in the fourth quarter. So maybe you could talk a little bit about what assumptions are driving your second half margin outlook.

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And then maybe a follow-up again for you, Cynthia. You mentioned that you had another quarter of good early renewal and expansions. When you look into the guidance you provided for the second half, what are you embedding in terms of the continuation of those early renewal and expansion trends that you saw in Q1 and Q2? Are you expecting that to moderate in the second half?

Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst : Wonderful. Really nice to see continued momentum here. Just one question I wanted to ask maybe about what you're seeing in terms of services. Because looking at your guidance, you're expecting a bit of an acceleration on the professional services line in the back half of the year relative to what we've seen in the first half. Anything in particular? Is it due to just more CLM and not requiring a little bit more services? I know your services mix is going to remain very, very low. It's always been, and I expect it's going to be that way. But you are expecting this a little bit of uptick. So maybe walk us through the assumptions embedded in what you're expecting on the professional services line.