DocuSign, Inc. (NASDAQ:DOCU) Q3 2024 Earnings Call Transcript

Sonak Kolar: Great. This is Sonak Kolar on for Mark Murphy. Thank you taking the question. Allan, can you provide an update on any changes you may be seeing in the competitive dynamics for the e-signature market, particularly towards the lower end market that you called out in the past? Just curious if there’s a sense that DocuSign e-signature efforts are helping with the retention and competitive wins, particularly within those users of basic e-signature use cases?

Allan Thygesen: Yes. I think the dynamic is as I’ve described in the previous quarters, I don’t see a material change. So with larger clients, we may see local competitors in certain international markets, Adobe and some of them and then the smaller clients, it’s just mattering of a variety of names that are maybe less familiar. And I think we are — I’m not seeing any change in our win rates in competitive deals. And I’m cautiously optimistic with some of the initiatives I referenced earlier in terms of our new pricing and packaging that we are responding pretty effectively at both ends of the market. And then lastly, I just mentioned at the very low end, if you will, where it’s really being embedded in workflows. We’ve dramatically upgraded our solutions for ISVs to embed DocuSign, and we’ve adopted a more flexible billing model that we refer to as pay-as-you-go and that saw some very nice accelerated growth here since the launch in Q2.

So, on multiple fronts, I’m feeling that we’re doing pretty well, and I’m not seeing a material change in the competitive dynamic.

Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to Allan Thygesen for closing comments.

Allan Thygesen: Thank you. Thank you, operator, and thank you all for joining today’s call. So this quarter, DocuSign was especially effective at making progress on our product initiatives while balancing those investments with operational efficiency. So we are continuing to build on our considerable scale as we expand beyond e-signature into intelligent agreement management. Thanks for your time. Look forward to seeing all of you next quarter.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.