Cynthia Gaylor: Yes, thanks for the question. It is a good one, and I agree with you, it is a bit unusual. But I think the dynamic is for software companies, with subscription models, you have a certain level of on-time renewals, early renewals, late renewals, there’re spill in and spill over every quarter, and we model it out pretty granularly. And so, I think what we saw in Q1 is the dynamic of two things with on-time renewals, which means renewals that don’t fall into the grace period and spill over to the following quarter. So, our rate of renewal is consistent, and so it’s really a timing of deals. And those deals for on-time renewals more landed in Q1, which means in Q2, the implication is there’s less spill over into Q2.
So that is now baked into the guide. We think it’s attributable to two things. One is execution by the team that focuses on the installed base, better execution and kind of closing what’s in front of them, which is great. And we’re really pleased with that. And then, I think the other is, there is a macro dynamic of less early renewals. So, customers are really scrutinizing their budgets. And when you look at kind of things like expansion rates and deal sizes and volumes, those are coming down. And so again, that’s all baked into the guidance, but I would look at the outperformance on billings in Q1 at the timing piece. And again, it’s baked into our full year guide, and that’s why you’re seeing kind of partial push through relative to other options there.
Alex Zukin: Understood. Thank you, guys. Congrats.
Allan Thygesen: Yes, I would just add to that, that we were very intentional, obviously, about encouraging our teams to focus on renewals and on consumption within our existing contracts. And so, I just want to echo what Cynthia said that we made some adjustments there in terms of our — with our organization and our incentive models, and I think that was helpful as well. So, kudos to Steve and his team.
Operator: Thank you. Our next question comes from Shebly Seyrafi with FBN Securities. Please proceed with your question.
Shebly Seyrafi: Yes, thank you very much. Allan, can you talk about the potential for the company to become a double-digit revenue growth company again? I note that the guidance for billings this year embeds around 3% to 4% growth, which is less than half of your revenue growth expected this year. So, I think in response to Alex’s question, you talked about product innovation, self-service, like near-term growth drivers and AI longer term, it could be the biggest. So, I’m just wondering if things gel with AI in, I don’t know, a few years from now, just talk about the potential for the revenue growth to be double digits again.
Allan Thygesen: Yes. Well, so just to go back in time, I think ’23 was a year of change for DocuSign — fiscal ’23 last year was a lot of change. As I said on previous earnings call, this year is really about setting the foundation for growth. And that is still true, and we’re starting to really make good progress, I think, on that foundation. We are very excited about the long-term potential, and we are reshaping the company to deliver on that. But that kind of transformation is not achieved overnight. So, we’re not changing our guidance beyond what we’re providing guidance for next year at this time. But I’d say all the early signs in terms of our initiatives in product innovation, self-serve, as you mentioned, the growth of the partner channel and operational efficiency, I think all of those will contribute to that.
But we believe we have a very strong opportunity and that AI could be an incremental unlock beyond the core momentum in the business. So, more to come when we’re ready to share next year targets later in the year.
