Earnings call

Docusign, Inc. Docusign, Inc. · Q2 FY2027 call

Call heldSep 3, 2026
Time2:00 p.m. Pacific / 5:00 p.m. Eastern
CEOAllan Thygesen

What the CEO argued

Thygesen argued that the platform bet has stopped being a promise and started showing up in the mix: IAM is 15.1% of annual recurring revenue against 12.6% three months earlier, and the company raised its full-year ARR guidance on the strength of it. His defence of the position was the corpus rather than the product — more than 300 million documents ingested through IAM's Agreement Manager, all of them private and consented, which he says is what buys accuracy that a general-purpose model working twenty documents at a time cannot reach. On distribution he was deliberately cool: the Slack, Perplexity, Gemini and OpenAI connectors are a way to meet customers where they work, they require an IAM licence, and by his own account they do not yet drive incremental revenue. He also corrected the record on the API share of eSignature volume, saying the company has never claimed 80% and has only ever said more than 50%. The commercial evidence he offered was deal size: the largest deals Docusign has ever done in the U.S. public sector and in LatAm both landed this quarter.

More from Allan Thygesen

What they said

The one number the platform case rests on
Our platform strategy is working, as reflected in IAM now accounting for 15.1% of total ARR, up from 12.6% in Q1.
Allan Thygesen · CEO, Docusign
Where the operating-margin beat came from
Operating margin was 31.6%, up 180 basis points compared to the prior year, and outperformed our guidance midpoint by 160 basis points. Approximately half of the outperformance relative to our guidance was driven by stronger revenue that naturally flowed through to operating profit.
Blake Grayson · CFO, Docusign
What the full-year raise actually contains
Our update to full-year revenue guidance includes passing through the entire outperformance we delivered in Q2, plus additional outperformance assumed in the second half of the year, partially offset by incremental foreign currency headwinds of approximately $4 million.
Blake Grayson · CFO, Docusign
Retention is no longer the only lever
the contribution from expansion is contributing a larger portion of our improvement in dollar net retention as we've seen previously. […] Now what we're starting to see is more contribution from the expansion side of the business, which is encouraging.
Blake Grayson · CFO, Docusign
Deal size, and the two largest deals the company has ever signed
One noteworthy thing, I think, this quarter is we're really starting to see deal sizes pick up. At the very top of the book, we saw the largest deal we've ever done in the U.S. public sector, the largest deal we've ever done in LatAm.
Allan Thygesen · CEO, Docusign
The growth rate under the currency and add-on noise
once you adjust revenue for the impact of both FX and those digital add-ons, we're actually accelerating Q2 revenue growth by just under 1 percentage point year over year. And our guidance also includes an acceleration year over year in the second half as well.
Blake Grayson · CFO, Docusign
Why 300 million ingested agreements is supposed to be a moat
the overall size of the corpus that we've uploaded just allows us to have incredible richness and heterogeneity in our data set. These are all private, consented agreements, not just what's publicly available. That gives us a richness, and that is, in turn, what powers our accuracy.
Allan Thygesen · CEO, Docusign
The installed base IAM is being sold into
we have around 290,000 direct customers right now, 1.9 million total customers. That is a pretty nice situation to have for an install base.
Blake Grayson · CFO, Docusign
What the company will not disclose about IAM upgrades
With regards to expansion, we do not disclose the level of expansion. We have said, and we will continue to say, that it is a meaningful expansion rate when you see people sign up for IAM for the first time.
Blake Grayson · CFO, Docusign
Whether the AI connectors are a revenue channel yet
if you already have Docusign and you go to, let's see, Slack, OpenAI, and you see that there's a connector, then you can pretty easily download that, but that doesn't drive incremental revenue. […] Now, you of course have to have an IAM license to be able to do that, and the existing credit model and so on applies for these calls.
Allan Thygesen · CEO, Docusign
A live correction: how much of eSignature actually runs through the API
just on a factual note, I do not think we have ever said that it was 80% of eSign volume that was triggered via API. We have said that it is more than 50, so just to clarify that.
Allan Thygesen · CEO, Docusign
Four years of headcount against four years of revenue
If you go back to four years ago, our operating margins have gone from the high teens to 32% or so. I think our headcount is down from Q2 of FY 2023. It's down, I think, around 10% for us over that period, yet our revenue is up 40%.
Blake Grayson · CFO, Docusign
What the company still thinks eSignature is worth
eSign continues to be the premium product in the category. It has better consumer recognition and trust. People tend to respond at higher rates and faster. […] We still have a very, very strong position in eSign
Allan Thygesen · CEO, Docusign

In the order they were said. Pick a name to read only that speaker.

On the call

  • Operator
  • Gary Fuges — VP of Investor Relations, Docusign
  • Allan Thygesen — CEO, Docusign
  • Blake Grayson — CFO, Docusign
  • Bill McNamara — Analyst, Evercore ISI
  • Speaker 6
  • Tyler Radke — Analyst, Citi
  • Michael Turrin — Analyst, Wells Fargo
  • Speaker 9
  • Chris Quintero — Analyst, Morgan Stanley
  • Patrick Walravens — Analyst, Citizens
  • Patrick McIlwee — Analyst, William Blair
  • Rishi Jaluria — Analyst, RBC
  • Will Power — Analyst, Robert Baird
  • Jacob Gideon — Analyst, Bank of America

About these quotes

Every passage above is quoted verbatim from Docusign, Inc.'s Q2 FY2027 earnings call of Sep 3, 2026, checked against the recording's transcription word for word. Docusign webcasts its earnings calls and keeps the recording, the prepared remarks and the earnings deck on its own investor relations site; the company also posts a transcript of its own once it is ready, and had not posted one for this quarter when this capture was made. The passages below are quoted from the call rather than reproduced from it, and the call in full belongs to Docusign. The transcription used here carries the speaker labels the provider assigned. Two analyst questioners were stand-ins whom the provider did not name; they appear as the provider labelled them, and no quote here is taken from either turn. Figures spoken on a call are management's own and are checked against the release before they are used anywhere else on this site.

WebcastListen to the call at Docusign, Inc. investor relationsThe company's own replay — the authoritative record ReleaseQ2 FY2027 results press releaseWhere every figure quoted here is verified NumbersQ2 FY2027 earnings pageThe reported figure set, Rule of 40 score and consensus comparison

Next call: Q3 FY2027, the quarter ending 31 October 2026, is expected in early December; Docusign has not announced the date..