DocuSign Inc Q4 2025 Earnings Call Transcript

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

Question: Jake Roberge - William Blair & Company - Analyst : Congrats on the really strong results in Q4. Allan, you've obviously had a pretty successful start selling IAM into the SMB and commercial segment over the last few quarters. As you've started to move the product further up market, curious how the early reception has been with those customers? And have there have been any new learnings for IAM in the enterprise space.

Question: Jake Roberge - William Blair & Company - Analyst : Okay. That's helpful. And then, Blake, can you help us better understand the revenue growth guide in the context of the nice billings acceleration you've seen over the past few quarters and the 11% billings growth you saw in the Q4. Would just be helpful to understand when we should start seeing that billings acceleration flow through to revenue growth on that pathway back to the double-digit growth levels?

Question: Bradley Sills - BofA Global Research - Analyst : I did want to ask a question on the current macro environment. Given that you've got a front row seat here with the transactional model, at least in the core eSignature business with the envelopes based pricing. What's your observation in terms of just activity in core eSignature and expansion deals, a lot of moving parts right now with macro policy changes. So I wanted to get your thoughts on that real time.

Question: Bradley Sills - BofA Global Research - Analyst : Understood. And then one more, if I may, just on IAM, with the move towards more of a solution sale here, workflow and end-to-end solution, it would seem that, that's a more involved sales cycle than your traditional sales cycle. So if you could just give us an understanding, please, on kind of the preparedness in the direct sales channel for selling that type of a deal. Obviously, you're expecting real healthy results and ramp through this year. So it would suggest that you are cared in the channel. But can you just give us an idea for that effort and kind of where you're at with that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 13, 2025 / 9:00PM, DOCU.OQ - Q4 2025 DocuSign Inc Earnings Call

Question: Kirk Materne - Evercore ISI - Analyst : I'll add another one on IAM. Allan, can you just try to dimensionalize the opportunity for IAM at accounts when you get in there, meaning is this something that can lift the average spend with you all from 20% to 50%. I'm just trying to think about that. I think you mentioned the enterprise could obviously be larger given the complexity. But how should we think about the opportunity in terms of customer penetration and then sort of the potential uplift for you all?

Question: Kirk Materne - Evercore ISI - Analyst : That sounds good. And then maybe a quick follow-up for Blake. I think you mentioned you're expecting net retention or net dollar retention to be flat this year. I guess, is there anything going on from? It seems like you made really good progress on gross -- are you sort of hitting a limit on the ability to keep moving that higher? I guess, can you just talk a little bit about the puts and takes of that?

Question: Brent Thill - Jefferies - Analyst : Allan, just on the sales changes you're making, can you just maybe put that in context? Is this more of a tweak? Is this maybe the biggest overall you've had in your go-to-market in the last couple of years? How would you just characterize what you're doing to the sales team this year and a quick follow-up for Blake.

Question: Brent Thill - Jefferies - Analyst : Okay. And for Blake and IAM, what is the kind of the average uplift you're seeing in ASPs when you -- when IAM is going in? I know it's across the board, but is there is a rough range you put on that you're seeing so far?

Question: Austin Cole - Citizens - Analyst : Yes. This is Austin Cole on for Pat Walravens. I appreciate you taking the questions and congrats on some nice results. I wanted to dig into the customers over $300,000 ACV had a nice uptick this quarter. I was wondering if there's any kind of more detail on what drove that number and what you're seeing in those larger customers?

Question: Austin Cole - Citizens - Analyst : Great. And then there was actually some commentary about Dropbox is talking about kind of deemphasizing their sign business and just was wondering if you guys have seen or anticipate any kind of competitive opportunity there?

Question: Sonak Kolar - JPMorgan - Analyst : This is Sonak Kolar on for Mark Murphy. Congrats on the results. Allan, I noticed the disclosure of essentially 100% penetration of the top 20 -- 25 Fortune 500 companies across Finserv, health care and technology, which is, no doubt, quite impressive. As you consider the growth levers going forward, how do you think about the balance between net new customer wins versus sort of increasing the ARPU of your existing large installed base, particularly with IAM.

Question: Sonak Kolar - JPMorgan - Analyst : And then as a quick follow-up, last quarter, you seemed to convey a marginal improvement in the environment for enterprise technology, I think, sort of towards the end of 2024. Fast forwarding to today amidst all this uncertainty around tariffs, trade wars, Dodge, et cetera. Has that view shifted at all and are customers a bit more cautious perhaps to lean into some of that software spending plans?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : It's nice to see continued momentum in the business. I apologize if I missed this during our prepared remarks or earlier, but when you gave your color around IAM contribution to subscription revenue for the year. Just how should we be thinking about exactly how that's being defined, especially given you've had revenue from CLM, is that CLM revenue separate? Is some of that being re-categorized into IAM. Maybe just help us understand the puts and takes around that definition. And then I have a quick follow-up.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : All right. Got it. That's really helpful. And then just going to the international business. You talked about you're seeing maybe that decelerate while domestic is accelerating, you talked about the plans to reaccelerate growth with IAM. Maybe just help me understand, when I think about international, you're very underpenetrated, right? I mean, in Europe, in Japan, let alone some of the emerging markets, and it feels like there's probably more TAM that's very greenfield in those. So why is it then that the core eSignature in international geographies is slowing down on its own? And what steps can you take to accelerate just core eSignature outside of the U.S.

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : No, great. Thanks. I appreciate you speaking me on. I was hoping we'd be further away from macro questions by now. But it's never the case. So the question is (inaudible) has been on public sector impacts and if there's anything to consider. I don't think this is an outsized portion of DocuSign's business in any way, shape or form, but can you just speak to public sector and whether that's a potential opportunity or something you're taking a more cautious stance at all in the coming year just based on an initial signals you might be seeing there?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Great. And just if I may, just to -- one for Blake on just seasonality. I think you mentioned early renewal impacted Q4 revenue at least to touch as well. And I think just looking at the Q1 guide, it looks potentially especially conservative, but just walk us through a more time any seasonal components we should be contemplating and looking at Q4 to Q1 and then tying that into the fiscal year guidance.

Question: Aleksandr Zukin - Wolfe Research - Analyst : Just two quick ones for me. First, congrats on one of the strongest quarters and one of the most difficult ceiling periods. But maybe just IAM, really like the disclosure of that going from a low single-digit book of business to low double-digit book of business next year and that implies like a 5 to 6x increase. So aside from the visibility that you've seen with the better expected contribution this year and good execution, what are you seeing in conversations that gives you that confidence of the momentum continuing?

Question: Aleksandr Zukin - Wolfe Research - Analyst : Makes sense. And then maybe I'll just ask the inverse of Michael's question, which is if you look at Doge and the push to digitize paperwork, are there any conversations that actually could be positive for you guys over the coming year that maybe could be a tailwind from that particular vertical for you?

Question: William Power - Robert W. Baird & Co., Inc. - Analyst : Okay. Great. You all had a lot of success for a few quarters with early renewal activity just due to consumption trends and expansion improvements. I guess I just wonder, as you look at kind of the renewal cohorts that are coming up this year, why would we expect some of that to continue? Just it would be great to kind of get kind of your flavor on what you're looking at in this coming year versus what you've seen here recently on the renewal front.