DocuSign Inc Q3 2025 Earnings Call Transcript

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

Question: Jake Roberge - William Blair & Co LLC - Analyst : Hey, thanks for taking the questions, and great to see both revenue and billing start to reaccelerate. Can you help us understand how much of that reacceleration is being driven by the stabilization in your core versus the momentum that you're starting to see with IAM? And then I understand that the tough billing comp during the fourth quarter, but how sustainable do you think that type of performance is?

Question: Jake Roberge - William Blair & Co LLC - Analyst : Yeah, that's helpful. It was obviously great to hear IAM. Saw the 10x sequential increase in adoption. Can you talk about what's different about IAM versus what you've previously done with CLM? And just why that product has been able to sell so much faster than what CLM was previously able to?

Question: Jake Roberge - William Blair & Co LLC - Analyst : Very helpful. Thanks for taking the questions and congrats on the great results.

Question: Tyler Radke - Citigroup Inc - Analyst : Yeah, thanks for taking the question. Question on the go-to-market side, you talked about how Paula Hansen's really hit the ground running since joining in August. But where do you kind of see the biggest opportunity with some of her focus areas heading into next year, be it the ELA motion and IAM attach? And just give us a sense for how you're thinking about kind of changes as you're going through the planning process for FY26 here.

Question: Tyler Radke - Citigroup Inc - Analyst : Great, and a follow-up for Blake, just as we think about the margin opportunity, sounds like there are some incremental costs here, whether it's the recent hires, investments in the IAM, and particularly around AI and some of the cash compensation. What are the additional levers that you see for efficiency going forward? And how should we think about margins heading into next year?

Question: Tyler Radke - Citigroup Inc - Analyst : Thank you.

Question: Brent Thill - Jefferies Group LLC - Analyst : Good afternoon. Allan, I'm curious if you could put your macro hat on over the next nine months and just give us your 40,000-foot view of what you see is happening from your CEO perch. Feels like things are getting a little bit better, but don't wanna get too ahead of ourselves. How would you characterize what you're seeing and what you're planning as we go into next year?

Question: Brent Thill - Jefferies Group LLC - Analyst : Does Blake get a little more capital to give to the go-to-market team to make a bigger push into early next year? Or are you still being very disciplined on that side?

Question: Brent Thill - Jefferies Group LLC - Analyst : Great, thanks.

Question: Austin Cole - Citizens JMP - Analyst : Great, thank you for taking my question. This is Austin Cole onto Pat. I think that Generative AI and documents is kind of extracting data from documents, is kind of a natural marriage. What are some of the use cases that you're seeing with Navigator so far? And what kind of -- with regard to the customer engagement with IAM gives you confidence in attacking larger customers with this product? Thank you.

Question: Austin Cole - Citizens JMP - Analyst : Great, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2024 / 10:00PM, DOCU.OQ - Q3 2025 DocuSign Inc Earnings Call

Question: Josh Baer - Morgan Stanley & Co LLC - Analyst : Great. Thank you for the question. I was hoping you could comment on the penetration of e-signature in the US and globally, really focusing on the strength in your customer growth, wondering how much is Greenfield, competitive replacements, and where you see the largest opportunities?

Question: Josh Baer - Morgan Stanley & Co LLC - Analyst : Thanks, Allan. If I could ask one for Blake, just on the billings guide. Given the early renewals in the year of your comp, the tough comp and some of the early renewals that helped Q3, like the Q4 guidance for billings looks pretty bullish. Just wondering if you've signed any big deals already, like how the quarter is going? Is there an assumption for IAM ramping and anything contributing to that -- to the billings guide for Q4?

Question: Josh Baer - Morgan Stanley & Co LLC - Analyst : Got it. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2024 / 10:00PM, DOCU.OQ - Q3 2025 DocuSign Inc Earnings Call

Question: Sonak Kolar - JPMorgan Chase & Co - Analyst : Hi, this is Sonak Kolar on from Mark Murphy. Thanks for taking the question and congrats on the results. Allan, coming off Ducks and Discover in November, I see that there are a bunch of other additional smaller regional events planned for CLM and IAM. I was just wondering if you could provide us with a sense of the recent customer excitement levels and feedback the team is picking up at some of these events? And perhaps any key focus areas or questions that are coming up with potential customers on IAM before they're willing to commit to that wide scale rollout?

Question: Sonak Kolar - JPMorgan Chase & Co - Analyst : Great, thank you. That's very helpful. As a quick follow up for Blake, I've seen the past two years, it hasn't seemed like Q4 has been a very active period DocuScience buyback activity. Is there anything to consider on the capital allocation framework as we approach Q4 of this year?

Question: Sonak Kolar - JPMorgan Chase & Co - Analyst : Understood, thanks again and congrats.

Question: Michael Berg - Wells Fargo Securities LLC - Analyst : Hi, this is Michael Burgon from Michael Turin. Thanks for taking our question. I just wanted to double-click on the improvements in gross retention, what's driving that. Maybe we could get under the hood and explore what you are seeing or what you've done right to drive the improvements there. Is it macro? Is it execution? Is it IAM? Just want to get some more color on that dynamic.

Question: Michael Berg - Wells Fargo Securities LLC - Analyst : Helpful, thank you. And then just a quick follow-up on that. Is there anything notable to point out and any changes in the competitive dynamics that may be aiding the gross retention dynamics you were just describing?

Question: Michael Berg - Wells Fargo Securities LLC - Analyst : Helpful, thank you.

Question: Arsenije Matovic - Wolfe Research LLC - Analyst : Hi. This is Arsenije on for Alex Zukin. How many reps are eligible to sell IAM today? And was that an easy training or prep cycle given reps having CLM experience? And just seeing that early traction in IAM is great, but we don't want to get ahead of our skis on expectations here given how early it is. Is there any help we can get on guardrails for growth next year. Thanks.

Question: Arsenije Matovic - Wolfe Research LLC - Analyst : Got it. And I guess, can you explain what's driving that early renewal tailwinds that we're seeing that's contributing a bit more to that billings outperformance than we've seen historically? And on fiscal 4Q, I think last year, you called out early renewals contributing about $30 million tailwind and the guidance for this quarter coming up embedding a little bit of early renewals. I guess is there anything you can give us in terms of what's embedded in that guide, how to think about it into 4Q on that billings dynamic?

Question: Arsenije Matovic - Wolfe Research LLC - Analyst : Thank you.

Question: Ian Black - Needham & Company LLC - Analyst : Where should we think about NRR normalizing at? And how much impact are you still seeing from capacity rationalization? Thank you.