A：The AI native intelligent agreement management (Iam) platform is significant for DocuSign as it has established clear market leadership as the agreement system of action for companies of all sizes. After just 18 months, Iam customers have generated over $350 million in AR, showcasing strong retention and expansion capabilities. The platform has led to an inflection point in DocuSign's performance, demonstrating improvements in product go to market and operational execution over the past three years.

A：For DocuSign's fourth quarter fiscal 2026, the key financial results include revenue of $837 million, an 8% year-over-year increase; billings exceeding $1 billion for the first time, with a 10% year-over-year growth; and an ending ARR of $3.3 billion, up 8% year over year. Additionally, the non GAAP operating margins were over 30%, and free cash flow reached over $1 billion.

A：The key priorities for expanding the Iam platform are to help customers automate workflows and drive business results, and to expand the AI data and innovation advantage.

A：DocuSign plans to scale and improve the Iam platform by introducing new Iam SKUs for specific functions within companies, such as Iam for HR and procurement, as well as richer AI tools for legal teams. The company will also continue to enhance trust and compliance functionality, including permissioning, access management, and auditing. The goal is to deliver sophisticated, scalable capabilities to enterprise customers, making the signing process smarter and more trustworthy, and to further integrate with leading AI providers to bolster Iam's capabilities.

A：AI plays a crucial role in the DocuSign platform, enhancing agreement management capabilities. The AI native platform, Iam, allows customers to manage agreements across their organizations, transforming workflows and providing insights through extraction and analysis of documents. This helps CFOs, procurement, general counsel, and legal teams to gain better control over vendor relationships and achieve previously unattainable insights.

A：Examples of companies that have implemented or upgraded to the Iam platform include Aon, a leading global professional services firm, which is using Iam to surface intelligence from legacy agreements; Bank of Queensland, which has signed a three-year agreement to upgrade to Iam through Microsoft Azure Marketplace; and Move Forward Financial, a real estate lender, which is saving money and improving customer experience by using Iam for sales and pay work.

A：AI is being integrated into the e-signature process by enhancing every step of the signing process to make it smarter and more trustworthy. This is particularly noticeable in the signature part of the DocuSign platform, where AI capabilities have been added to improve the base and ensure consistent year-over-year growth. Additionally, AI is streamlining agreement creation and custom extractions, and boosting security measures.

A：DocuSign has several competitive advantages in the AI native platform business, including a deep understanding of customer agreement workflows and context, a large ecosystem of over 1,100 integrations, market-leading security and compliance, and customer trust and distribution relationships established over decades. These strengths, combined with the AI data advantage from customer investments in Iam, provide a solid foundation for DocuSign's position as a leading AI innovator in the business space.

A：The integration of Iam into DocuSign's business and its impact on achieving over $1 billion in free cash flow signify the company's growth by demonstrating the successful transition to using Iam as the primary driver of value. This milestone reflects the progress made over the past three years and the potential for even greater gains in the future, indicating a strong and durable foundation for long-term growth.

A：Revenue growth in Q4 and for the full year 2026 benefited from approximately 80 basis points and 20 basis points from foreign exchange rates, respectively. Additionally, there was a slight tailwind from digital add-ons launched in late fiscal 2025.

A：The introduction of the Iam platform and its features contributed to the revenue growth by driving accelerating gross new bookings, primarily from Iam customers, as well as gross retention improvements. Iam represented over $350 million in ARR or 10.8% of total company ARR, up from 2.3% at the end of fiscal 2020 and 2025, and the first Iam renewal cohorts performed better than the company average.

A：International revenue grew by 15% year over year in Q4 2026 and surpassed 30% of total revenue.

A：Fiscal 2026 marked the first year with over $1 billion of free cash flow, representing a 33% margin compared to 31% a year prior. Q4 generated $350 million of free cash flow, a 25% year over year growth and a 42% margin.

A：In Q4 2026, the company had the largest quarterly dollar buyback to date, repurchasing $158 million in shares. The company also established a $10 billion share repurchase program and announced a $2 billion increase to its repurchase program, bringing the total remaining authorization to $2.6 billion.

A：Non GAAP diluted EPS for Q4 2026 was $1.01, a 15 cent per share improvement from 86 cents last year. GAAP diluted EPS for Q4 2026 was 44 cents versus 39 cents last year.

A：The company expects a year over year growth in ARR of 8.25% to 8.75%, with an 8.5% year over year increase to $3.551 billion at the midpoint for the end of Q4 fiscal 2027. Growth is expected to be driven by gross new bookings from both new and expanding Iam customers, as well as gross retention improvements.

A：For Q1 fiscal 2027, the projected revenue growth is 8% year over year, with total revenue expected between $822 million and $826 million. For the full fiscal year 2027, the projected revenue growth is also 8%, with total revenue between $3.484 billion and $3.496 billion. These figures have been adjusted for impacts from foreign exchange and include moderate tailwinds from digital add-ons in fiscal 2026.

A：The primary focus areas inside the company for driving expansion and retention include new expansion bookings and retention efforts. The expansion efforts are mainly led by Imam, while retention efforts are concentrated in East Simon, which has been improving with increasing DNR rates. Although the contribution from Im (which has higher retention) is modest and currently a small part of the book, it is expected to become more significant in the future.

A：The company continues to forecast and communicate what it sees in the business without any change in its philosophy. As things develop over time, the company will continue to update its forecasts accordingly, emphasizing that there is no change in the structure of their forecasting approach.

A：Renewal cycles play a significant role in the company's strategy for customer retention, and the discussions with customers focus on a consultative approach that aims to meet their needs and support their business. This consultative approach is viewed as critical to becoming an even larger percentage of the company's revenue over time and is considered a key growth lever for reaching the aspirational double-digit growth rate.

A：The company views its proprietary data as a significant advantage, benefiting from a huge library of private consented agreements and not just public data. The partnership with Anthropic is central to the company's strategy, and the use of private data, combined with the capabilities of Anthropic and other AI innovators, is driving increased accuracy in models and significant cost advantages in processing large data sets. The company's proprietary access to data workflows and customer trust are also key components of its differentiation.

A：DocuSign's user experience strategy is to reach users and enable them to do their work wherever they prefer, including through the DocuSign UI, Salesforce, Workday, and other applications. The company plans to extend its reach to new services like Anthropic and OpenAI, which were announced last fall, as part of its ongoing strategy to make its services available wherever important to its customers. The company intends to continue this strategy by offering its services in emerging important platforms for customers.

A：The company has made concerted efforts to manage stock-based compensation (SBC), resulting in a slight year-over-year growth in SBC despite it being flat for the past few years. The percentage of revenue attributed to SBC has been declining, and the company expects this trend to continue into the next fiscal year. The reduction in SBC growth is attributed to actions taken around headcount management, resource adjustments, fewer executive grants, and a shift towards more cash compensation. Although there is still work to be done, the company is proud of the progress made in this area.

A：Financial services have always been an important vertical for DocuSign, with use cases ranging from bank account onboarding to mortgages and loan agreements. Historically, DocuSign worked primarily at the execution moment of financial processes but is now powering the entire onboarding process, from initial sign-up to real-time data and identity verification. The company has been able to work with every bank, especially large ones, and is now offering end-to-end processes to simplify and improve both the customer experience and internal efficiency. An example of this is the partnership with Bank of Queensland, which is an early customer for the end-to-end process, and the company expects to do more of this in the coming years.

A：The company invests extra in financial services, healthcare, and government because they are complicated, high-value industries where the company performs well.

A：The company is cautiously optimistic about customer retention for its new cohort of customers, based on early renewal data that shows better gross retention and dollar net retention rates compared to the company average.

A：Customers and sales teams have appreciated the consumption-based credit pricing model, and the company plans to roll it out next month as it is seen as the right approach for enterprise customers to grow value over time.

A：While the company has long-term aspirations for 10% top line growth, there is no specific timeline shared for achieving this goal after the current quarter.

A：The company plans to accelerate enterprise growth by continuing to refine and expand usage of AI, moving customers from pilot programs to larger deployments, and focusing on driving value for the enterprise business, which is seen as a larger opportunity than in the past.

A：The shift into the enterprise market is contributing more to the company's top line mix and is expected to become a bigger part of the business than in the past due to the significantly larger addressable opportunity.

A：The company is working to have discussions with customers who are further out from their renewal and exploring various contract structures to facilitate deals out of cycle. This helps identify opportunities for sales teams and align with customer readiness for discussions.

A：The driving force behind the confidence in the guidance around ARR is the platform shift to Iam, which includes existing customers upgrading and contributing to ARR growth. Non-Iam ARR is expected to improve significantly, supported by gains in company-wide retention.

A：While not quantified in the transcript, the introduction of subscription consumption is expected to contribute to the guidance for Iam ARR, with potential for gradual improvement throughout the year as the pricing model is rolled out.

A：Based pricing will provide an opportunity to appeal to more enterprise customers and build increased usage over time.

A：The enterprise space is a smaller but accelerating part of the business that is expected to contribute to growth over time through increased utilization of credits.

A：The company has observed that transitioning existing customers from e-signature to the Iam platform results in higher spending. However, specific figures on the increase in spending are not provided in the transcript.

A：AI and machine learning features are being well-received by customers, who find value in the capabilities such as automated data validation and identity verification. The company is optimistic about further innovations in this area.

A：The company's focus with Iam is primarily on existing customers, who constitute the majority of Iam revenue. The strategy includes leveraging the company's existing agreements, trust, and reputation to deliver value and process their agreements with AI.

A：The company is reinvesting efficiency gains from the market side in research and development. Investments are geared towards enterprise and AI, the legal tech roadmap, continued security investments, and other priority areas to support growth and efficiency.