DocuSign(DOCU)2025-06-05 22:02Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was 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 1.4 billion [37] - Non-GAAP diluted EPS for Q1 was 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]