This meeting was hosted by the company DocuSign, who announced its financial performance for the second quarter of fiscal year 2026, including both GAAP and non-GAAP financial indicators. During the meeting, the company reiterated the uncertainties of certain forward-looking statements and invited investors to obtain detailed information through its official website. After the meeting, there was a Q&A session for a deeper discussion on the financial status and future plans.

In the second quarter, DocuSign achieved revenue of $801 million, a year-over-year increase of 9%, and billings of $818 million, a year-over-year increase of 13%, through innovation on the Iam platform and adjustments to market strategy. The adoption rate of the Iam platform among customers has increased, driving investment growth from enterprise and commercial customers. On the product innovation front, the Iam platform has optimized contract management processes through AI technology, improving processing efficiency. Additionally, DocuSign has optimized sales channels and partner relationships, strengthening its performance in international markets. Overall, DocuSign demonstrated strong business growth and profitability in Q2, laying a foundation for long-term double-digit growth.

Q2 performance was strong, with total revenue of 801 million, subscription revenue of 784 million, both up 9% year-on-year. Revenue growth was mainly driven by direct sales and electronic signature businesses, with stable shipment volumes and a 7% increase in large customers. International revenue accounted for 29%, with outstanding performance in the Asia-Pacific region. Average transaction value per IAM customer increased, contributing low double-digit revenue. Non-GAAP gross margin was 82.0%, with record non-GAAP operating profit of 2.39 billion and continued operational efficiency optimization.

The financial status of DocuSign's second quarter was reported, including key indicators such as free cash flow, revenue, gross margin, etc. It also emphasized future strategic focuses, such as product innovation, market expansion, operational efficiency improvement, and capital return policy, demonstrating the company's potential for continuous growth and commitment to shareholders.

The discussion in the dialogue focused on the growth trend of enterprise core signature business, especially the outstanding performance in industries such as finance, healthcare, and business services. Despite the slowing growth in the real estate industry, overall growth remains positive. Key factors driving business growth include new use cases for corporate clients and the macroeconomic environment, with no significant signs of economic weakness observed in the past year.

Discussed the progress of major deals achieved by the CLM business within the quarter, including important collaborations with clients such as T-Mobile, analyzed whether this performance signals a positive shift in the market trend, or simply a quarterly timing advantage. Although the current results are significant, they are not believed to be sufficient to define the overall industry trend, and a cautious optimistic attitude is still held.

The dialogue discussed the progress of promoting IAM services in new markets, especially in the enterprise and international markets. Since the launch of the Enterprise version in December last year, several large enterprise clients have signed up successfully, demonstrating good market potential. The acceptance of IAM in international regions is also increasing. Although significant revenue has not yet been generated from the enterprise sector, its long-term market opportunities are promising. The rate of customers upgrading from the S platform to IAM remains stable and has seen significant growth, leading the company to be optimistic and committed to continued monitoring and expansion.

The conversation discussed the main drivers of revenue exceeding expectations, including strong contract business and optimization of billing payment frequency. While the Iam platform slightly exceeded expectations, it is still in the early stages and its specific contribution to growth is not yet clear.

Discussed the significant increase in value for enterprise clients after migrating from signing services to the Im platform. Emphasized the key role of the Im platform in accelerating company growth, as well as its performance in capturing a low double-digit market share as a new platform. Pointed out that the strong growth of Esani combined with the continued expansion of Im is crucial for the company's success, and that in the future, the economic advantages and contract changes of the Im platform will be further demonstrated through more enterprise sales cases.

The discussion focused on how the company has significantly increased the dollar net retention rate by optimizing operational execution and proactively engaging in customer renewal opportunities over the past 18 months, from a low point in Q4 of 2014 to 102% after adjustments in Q2 of 2016. Emphasis was placed on the huge potential in improving the gross retention rate of core product lines and driving expansion in the future, especially through integrated strategies to achieve synergistic long-term growth.

The dialogue discussed the significance of collaborating with the General Services Administration of the United States federal government, pointing out that this will help streamline the procurement process for federal agencies and is seen as a crucial growth opportunity for federal business. Despite federal business currently representing a small percentage, the company is hopeful for future growth, especially with improvements in efficiency and customer service. Furthermore, the company has already conducted business with multiple cabinet-level departments and plans to further expand into the federal market.

The dialogue discussed the market strategy adjustments implemented at the beginning of the year, including incentive mechanisms and the reassignment of sales regions, as well as the team's positive response to them. The direct sales team performed well in the second quarter, showing good adaptation to the new strategy. Although future plans are aimed at maintaining stability, the implemented changes are considered successful, laying a foundation for long-term development.

Discussed how enterprise-level AI platforms can build a large contract library by scanning agreements with customer consent, covering multiple areas such as sales, procurement, and hiring to provide high-quality data for AI learning, achieve risk scoring and processing cycle optimization, showcasing the unique advantages and huge potential of the platform in the industry.

The conversation revolved around the balance between revenue growth and cost control, discussing the three major challenges facing this year: high hosting migration costs, the lack of one-time legal revenue, and adjustments to equity and cash incentives. Despite facing a 150 basis point pressure, through effective management, some expected pressures have been offset, demonstrating a strategy of seeking growth while maintaining existing achievements.

Over the past two years, the company has successfully increased its non-GAAP operating profit margin from approximately 20% to 30%, achieving this growth through investments in marketing and research and development, particularly in the development and launch of Iam products. In the future, the company plans to maintain this efficiency while seeking new leverage opportunities to achieve double-digit revenue growth. The company is satisfied with the current balance of growth and efficiency investments and sees long-term potential.

Discussed the financial impact of cloud transformation, pointing out that this is the peak period of the current fiscal year, with the expectation that this pressure will gradually ease from fiscal year 27 onwards. Emphasized that although hosting costs account for a large portion of revenue costs, they are not the main cost, and future expected pressures will be alleviated.

Discussed whether early renewal rate increases are driven by IAM technology and the expansion of existing customer relationships, while also analyzing the impact of changes in search engines and SEO on the dynamics of the business front end.

Discussed the positive performance of companies in SEO optimization and brand building, as well as the attention to changes in consumer behavior and corporate purchasing behavior. The importance of attracting new customers through SEO was emphasized, while also pointing out that upgrading existing customers from ESI to Im is the main opportunity for business growth, which is also the current focus of work.

The conversation discussed the application of AI in the field of contract analysis, emphasizing the unique competitive advantage created by in-depth understanding of contract structure, embedded workflow, large-scale data processing capabilities, and integration with mainstream enterprise systems. In the face of fierce market competition, continued investment in model optimization, data richness, and improving customer experience is seen as a key strategy to maintaining a leading position.

The management expressed sincere gratitude to all employees and investors, emphasizing the team's commitment to customer promises and determination to provide value to customers through AI technology. At the same time, the management promised to continue optimizing company operations to maximize long-term potential. Finally, they expressed anticipation for future quarterly communications and officially concluded the meeting.