DocuSign Inc Q3 2026 Earnings Call Transcript

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

Question: Jake Roberge - William Blair Capital Partners - Analyst : Nice to see the billing strength; and continued expectation for that to accelerate this year. As you start to transition to ARR, should we expect that ARR is seeing a fairly similar reacceleration that we're seeing with billings on a full-year basis? Or would there be any puts or takes that we should be thinking about around that metric, moving forward?

Question: Jake Roberge - William Blair Capital Partners - Analyst : That's helpful. And then, great to see IAM crossing that 25,000 customer mark. Could you talk more about what you're seeing with the early renewal cohorts? Sounds like retention has been strong. But for customers that may have initially started with only a portion of their base on IAM, are you starting to see those customers shift to broader and wider IAM deployments on renewal? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 10:00PM, DOCU.OQ - Q3 2026 DocuSign Inc Earnings Call

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Yeah. Obviously, great momentum on the IAM side, the 25,000 customers. The Navigator product, in particular, great to see the volume of agreements there. Bigger-picture question for you, Allan, like, how do you think about what the use cases and future monetization opportunity is? Is that volume of agreements continuing to grow within Navigator? Like, what -- how are customers going to be using it a year or two from now? What are the ways that DocuSign can monetize over the long run?

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Yeah. That's helpful. A follow-up for Blake. Good to see the billings upside this quarter. I think trailing 12-month billings accelerated. As we look at the subscription revenue guide for Q4, the growth is a little bit below where you guided Q3. Just given that you're going to be transitioning to ARR next quarter, how would you characterize the underlying growth of the business? Has it been steady? Is it accelerating? Maybe you're just adding in a bit more prudence in Q4 because of macro go-to-market changes.

Question: Mark Murphy - JPMorgan Chase & Co - Analyst : Congrats on a very nice performance. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 10:00PM, DOCU.OQ - Q3 2026 DocuSign Inc Earnings Call You had mentioned, I believe, consistent growth in envelopes. But you called out utilization rates reaching multiyear highs. I'm just wondering if there's any way to help us conceptualize that? For instance, are the envelope then growing mid-single digits or are they growing high-single digits? Or any sense of where the utilization rates stand? As part of that, should we read into this that customers are basically using more of what they paid for and so it's going to foreshadow pretty healthy upsell and expansion ARR opportunity in future periods? Or is there some other takeaway from that?

Question: Mark Murphy - JPMorgan Chase & Co - Analyst : Okay. And then, as a quick follow-up, I think you mentioned that the AI contract agents are in beta. Are you able to give any sneak peek at what you're engineering there; what usage scenarios you're imagining? I think we're trying to figure out if you're going to target procurement or sales workloads or take it broader and then, they review contracts or generate clauses? Or is there some other automation that you're going to do? If you're not able to speak to that now, I think we understand that, as well. But I thought I'd ask anyway. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 10:00PM, DOCU.OQ - Q3 2026 DocuSign Inc Earnings Call

Question: Peter Burkly - Evercore Inc - Analyst : Yeah. This is Peter Burkly, on for Kirk. Appreciate you taking the question. Strong quarter in the large customer segment, that 300,000 plus ACV customer group. I think it was the strongest growth in 8 or 10 quarters. Just curious if you can discuss how much of that's being driven by IAM adoption at the enterprise level versus just more broadly a stronger go-to motion at this point in time versus maybe a year ago?

Question: Peter Burkly - Evercore Inc - Analyst : Helpful. Maybe just a quick follow-up on IAM: (inaudible) IAM has been in the enterprise market for a few quarters now. Just curious if there's

Question: Brent Thill - Jefferies LLC - Analyst : Allan, I know your long-term aspiration is double-digit growth. You're obviously knocking on the door. But what do you think it needs to take from here for you to continue to sustain or get to double-digit growth from your side? Are there a couple of ingredients that you think still have to trigger before you can hit that mark?

Question: Brent Thill - Jefferies LLC - Analyst : Okay. Blake, could (inaudible) see the record buyback may play devil's advocate in the age of AI, why not lean it a little harder into M&A? Is there anything you need to do to help Allan's vision of that double-digit growth, even if it's inorganic? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 10:00PM, DOCU.OQ - Q3 2026 DocuSign Inc Earnings Call

Question: Brent Thill - Jefferies LLC - Analyst : The message is that you just keep leaning in the buyback until you find something you like and then, you can balance since you can do both.

Question: Scott Berg - Needham & Company LLC - Analyst : Nice quarter. Just one question for me -- I know maybe this is a question for Allan -- is on the AI contract agents, super interesting. I think legal contracts is one of the best use cases for these LLM technologies for all the, probably, inherent reasons we all know here on the call. But as we think about your customers and where they are in awareness for agents -- and I'm sure it's new to them -- (inaudible) how we think about maybe budget procurement, is this something that you think can have a meaningful impact to some of your momentum in fiscal '27? Or is this more of maybe a fiscal '28 opportunity as a test and trial next year and you can probably try to get some budgets after that?

Question: Brad Sills - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Maybe a go-to-market question, with regards to IAM. Allan, you talked about how you're seeing progress with HR and procurement departments. Is that the primary land in the departmental sale in those two legal? Just curious if the sales audience and the large enterprise really centers around those three departments. Curious how well prepared you feel the go-to-market is to address those.

Question: Brad Sills - Bofa Merrill Lynch Asset Holdings Inc - Analyst : That's great. Yeah, that's great. Thanks, Allan. Maybe, Blake, one for you, if I could, please. Any observations on the macro? Any changes to the backdrop, whether it's with regards to envelope volumes or signings? There's some moving parts in the SMB, right now. Just curious if you've seen any difference there between SMB commercial and enterprise in your envelope and signing activity?

Question: Josh Baer - Morgan Stanley & Co Ltd - Analyst : Got it. That's super helpful. One more. Could you talk about hiring expectations for the year ahead? What should headcount growth look like? What areas are you investing in aside from IAM and then, within IAM?

Question: Austin Cole - Citizens JMP Securities LLC - Analyst : This is Austin Cole, on for Pat. Allan, you called out one of the DocuSign's top 10 customers becoming second largest customer this quarter through IAM. I just wanted to give the opportunity if there's anything to call out on -- that expansion sounded pretty significant. What do they see in IAM? Is it Navigator where they're getting most of the unlock? Anything else there that would be helpful?

Question: Alex Zukin - Wolfe Research LLC - Analyst : Maybe just two quick ones. If we think about the early renewal dynamic that you saw impact billings this quarter, how much of that do you feel like was -- like, how much is IAM included in those early renewal conversations around the upsell dynamics, specifically? Is that now shifting more towards the installed base picking up that SKU, rather than just new customers? And then, I have a quick follow-up.

Question: Alex Zukin - Wolfe Research LLC - Analyst : Perfect. And then, maybe, Blake, just for you, a follow-up. This is a little bit more nuanced on the billings. But if I look at the delta between the implied Q4 billings guide from last quarter to this quarter, it looks like it went up from 7.5% to the new -- to 8%. That 0.5 point, how much of that raise is truly operational outperformance versus core FX and maybe other one-time non-core factors? How should we think about the underlying run rate billings growth, excluding early renewal timing or duration in FX for Q4?