Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was $764 million, representing an 8% year-over-year growth, driven by increased IAM customers and self-serve digital revenue contributions [9][26] - Operating margins improved by 1% year-over-year to 29.5%, while free cash flow margin was strong at 30% [9][36] - Billings grew 4% year-over-year to $740 million, slightly below guidance due to lower early renewals [10][26] Business Line Data and Key Metrics Changes - Over 10,000 customers have purchased the DocuSign IAM platform, with significant engagement and usage growth, particularly in small and mid-market segments [11][30] - IAM sales exceeded expectations, with direct customer IAM deal volume increasing compared to Q4 [17][29] - Digital revenue continued to grow at more than double the rate of overall revenue, indicating strong performance in self-serve channels [19][32] Market Data and Key Metrics Changes - International revenue represented 28% of total revenue, growing 10% year-over-year, with IAM deal volume in international markets increasing over 50% from the previous quarter [33][34] - Customer growth was robust, with total customers increasing by 10% year-over-year, surpassing 1.7 million [30][31] Company Strategy and Development Direction - The company is focused on long-term transformation through the IAM platform, aiming for accelerated growth and innovation [8][24] - Strategic changes in the go-to-market approach were implemented to enhance sales efficiency and drive IAM adoption [20][72] - The company is committed to maintaining a strong balance sheet while returning capital to shareholders through share buybacks [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory despite short-term challenges related to early renewals [21][56] - The fundamentals of the core business are improving, with gross retention and dollar net retention rates showing positive trends [22][29] - The company is taking a cautious approach to forecasting due to the uncertain economic environment, but remains optimistic about future growth [40][62] Other Important Information - The company has authorized an additional $1 billion in share buybacks, bringing total repurchase authorization to $1.4 billion [37] - Non-GAAP diluted EPS for Q1 was $0.90, an improvement from $0.82 in the previous year [38] Q&A Session Summary Question: Can you elaborate on the go-to-market transition and the reasons for lower early renewals? - Management indicated that changes in compensation structures encouraged sales reps to close deals earlier, impacting early renewals [46][48] Question: How does the broader health of the business look, particularly regarding IAM upsell opportunities? - Management expressed confidence in the IAM upsell potential and noted improvements in retention and expansion metrics [53][56] Question: What are the assumptions for billings growth in the second half of the year? - Management expects a ramp in billings growth, driven by the scaling of the commercial business globally [60][61] Question: Are there any changes in customer behavior regarding contract envelopes due to the macro environment? - Management has not observed significant changes in customer behavior regarding contract envelopes, indicating stability in Q1 [64][66] Question: Can you discuss the role of GSI partners in driving new pipeline and enterprise growth? - Management acknowledged the growing interest from SIs and the potential for these partnerships to enhance enterprise engagement [91][94]

DocuSign (DOCU) Q1 2026 Earnings Call June 05, 2025 05:00 PM ET Speaker0 Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's First Quarter Fiscal Year twenty six Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section of the website following the call. I'll now pass t ...

San Francisco – June 5, 2025 – Docusign, Inc. (NASDAQ: DOCU) today announced results for its fiscal quarter ended April 30, 2025. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast. DOCUSIGN, INC. Exhibit 99.1 Docusign Announces First Quarter Fiscal 2026 Financial Results; Announces $1.0 Billion Increase to Share Repurchase Program Key Business Highlights Expanded Intelligent Agreement Management ("IAM") Pla ...

Bringing Agreements to Life Q1 FY26 Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. All statements contained in this presentation other than statements of historical fact, ...

Core Insights - Docusign (DOCU) is set to report its first-quarter fiscal 2026 results on June 5, with revenue expectations of $747 million, reflecting a 5.3% year-over-year growth, while earnings per share are estimated at 81 cents, indicating a 1.2% decline from the previous year [1][3] Financial Performance - The consensus estimate for subscription revenues is $730.8 million, representing a 5.7% increase year-over-year, driven by the adoption of Intelligent Agreement Management (IAM), increased feature usage, and upgrades to higher-tier plans [5][7] - The professional services and other revenues are projected at $16.1 million, showing an 11.4% decline compared to the same quarter last year [5] Earnings Expectations - Docusign currently has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating lower chances of an earnings beat this quarter [3] - The company has a history of surpassing earnings estimates, with an average surprise of 8% over the last four quarters [2] Market Performance - Docusign's stock has increased by 67.7% over the past year, outperforming the industry average of 35.5% and the Zacks S&P 500 composite's 13.2% rise [8] - The current price-to-earnings ratio for DOCU is 24.96X, which is lower than the industry average of 37.6X, but higher than BILL Holdings at 18.99X and slightly lower than BlackLine at 25.45X [11] Product Development - The launch of IAM in 2024 aims to enhance agreement management through AI, contributing over 20% to direct sales in the fourth quarter of fiscal 2025 [12][13] - Despite early sales success, concerns remain regarding the product's scalability and early monetization challenges [13][17] Liquidity Concerns - Docusign's current ratio is 0.81, significantly below the industry average of 2.38, indicating potential liquidity issues [15] - The low current ratio raises concerns about the company's ability to meet short-term obligations effectively [15]

Core Insights - Analysts project that DocuSign (DOCU) will report quarterly earnings of $0.81 per share, reflecting a year-over-year decline of 1.2% [1] - Revenue is expected to reach $746.98 million, marking a 5.3% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - Analysts estimate 'Revenue- Professional services and other' at $16.09 million, indicating a decline of 11.4% from the prior-year quarter [4] - 'Revenue- Subscription' is projected to reach $730.77 million, reflecting a growth of 5.7% from the prior-year quarter [4] Key Metrics - 'Non-GAAP billings' are expected to arrive at $746.34 million, compared to $709.54 million reported in the same quarter last year [5] - The total number of customers is projected to reach 1.69 million, up from 1.5 million a year ago [5] - 'Enterprise & Commercial Customers' are forecasted to reach 268.32 thousand, an increase from 248 thousand in the previous year [5] Profitability Metrics - 'Non-GAAP subscription gross profit' is estimated to be $605.46 million, compared to $581.92 million from the previous year [6] Stock Performance - Shares of DocuSign have increased by 7.9% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 6.1% [6] - DocuSign holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [6]

Financial Data and Key Metrics Changes - The company reported a total of 202,502,561 shares of common stock outstanding as of April 7, 2025, which were entitled to vote at the annual meeting [4] - The voting results confirmed that all three nominated directors were reelected, and PwC was ratified as the independent registered public accounting firm for the fiscal year ending January 31, 2026 [15] Business Line Data and Key Metrics Changes - No specific data regarding individual business lines was provided in the meeting records Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed in the meeting records Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance through the election of directors and the ratification of its independent auditors, which reflects a commitment to transparency and accountability [8][10] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The meeting included a nonbinding advisory vote on the compensation of named executive officers, which received the requisite number of votes to pass [15] Q&A Session All Questions and Answers Question: Were there any questions submitted during the Q&A session? - No questions pertinent to the meeting matters or related to the company's business were submitted [16]

Company Performance - DocuSign (DOCU) closed at $86.29, reflecting a +1.99% change from the previous day, underperforming the S&P 500's gain of 2.05% [1] - Over the past month, DocuSign shares increased by 3.15%, lagging behind the Computer and Technology sector's gain of 8.52% and the S&P 500's gain of 5.21% [1] Upcoming Earnings - DocuSign is set to report earnings on June 5, 2025, with projected earnings of $0.81 per share, indicating a year-over-year decline of 1.22% [2] - The consensus estimate for revenue is $746.98 million, reflecting a 5.26% increase from the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $3.46 per share and revenue of $3.13 billion, representing changes of -2.54% and +5.2% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for DocuSign indicate confidence in the company's business performance and profit potential [3] - The Zacks Rank system, which includes estimate changes, currently ranks DocuSign at 3 (Hold) [5] Valuation Metrics - DocuSign has a Forward P/E ratio of 24.44, which is lower than the industry average Forward P/E of 28.23 [6] - The company has a PEG ratio of 5.55, compared to the Internet - Software industry's average PEG ratio of 2.12 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 64, placing it in the top 26% of all industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework identifies companies with durable business models, mispriced cash flow potential, and intelligent capital allocation, emphasizing a structured and repeatable approach [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability, simplicity, and relevance [1] Group 2 - Research coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing professional-grade insights and actionable valuations [1]

Core Insights - Stanley Druckenmiller's Duquesne Family Office has been active in the first quarter of 2025, adding new positions and increasing existing ones [3][4] Group 1: Taiwan Semiconductor Manufacturing (TSMC) - TSMC was one of Druckenmiller's largest bets, with a 457% increase in shares to 491,265 [7] - The stock experienced a decline but rebounded due to strong first-quarter results, with revenue up 41.6% year over year and earnings per share increasing by 60% [8] - Despite a slight dip in sales from the previous quarter, demand from major customers suggests potential for modest growth [9] - TSMC's largest customer, Nvidia, saw Microsoft increase its capital expenditures by 53% year over year, indicating strong demand in the semiconductor sector [10] Group 2: Flutter Entertainment - Druckenmiller increased his position in Flutter Entertainment by purchasing over 1 million shares, making it the 11th-largest holding in the portfolio [11] - Flutter's FanDuel brand grew monthly users by 11% year over year to 4.3 million, capturing a 43% market share in the U.S. sports betting market [11] - The company launched a cross-promotion for FanDuel, boosting monthly iGaming users in the U.S. above 1 million, with first-quarter revenue from iGaming growing by 32% year over year to $472 million [12] Group 3: Docusign - Druckenmiller initiated a new position in Docusign valued at $87.5 million, making it the 10th largest position in the portfolio [14] - Docusign's revenue grew by 7% year over year, with subscriptions accounting for 97% of first-quarter revenue [14] - The company reported a gross margin of 78.9% and free cash flow of $232.1 million, representing 33% of total revenue [15]