DocuSign Inc (DOCU) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's Third Quarter Fiscal Year '24 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded and will be available for replay on the Investor Relations section of the website following the call. (Operator Instructions) I will now pass the call over to Heather Harwood, Head of Investor Relations.

女士們、先生們，午安。感謝您參加 DocuSign '24 財年第三季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音，並可在電話會議結束後在網站的投資者關係部分重播。 （操作員指示）我現在將把電話轉給投資者關係主管希瑟·哈伍德 (Heather Harwood)。

Please go ahead.

請繼續。

Thank you, operator. Good afternoon, and welcome to DocuSign's Q3 Fiscal Year 2024 Earnings Call. I'm Heather Harwood, DocuSign's Head of Investor Relations. Joining me on today's call are DocuSign's CEO, Allan Thygesen and our CFO, Blake Grayson.

謝謝你，接線生。下午好，歡迎參加 DocuSign 的 2024 財年第三季財報電話會議。我是希瑟‧哈伍德 (Heather Harwood)，DocuSign 投資人關係主管。參加今天電話會議的有 DocuSign 執行長 Allan Thygesen 和我們的財務長 Blake Grayson。

The press release announcing our third quarter fiscal year 2024 results was issued earlier today. And is posted on our Investor Relations website. Now let me remind everyone that some of our statements on today's call are forward-looking. We believe our assumptions and expectations related to these forward-looking statements are reasonable, but they are subject to known and unknown risks and uncertainties that may cause our actual results or performance to be materially different.

今天稍早發布了宣布 2024 財年第三季業績的新聞稿。並發佈在我們的投資者關係網站上。現在讓我提醒大家，我們在今天的電話會議上的一些聲明是前瞻性的。我們相信，我們與這些前瞻性陳述相關的假設和預期是合理的，但它們受到已知和未知的風險和不確定性的影響，可能導致我們的實際結果或績效出現重大差異。

In particular, our expectations regarding the pace of digital transformation and factors affecting customer demand are based on our best estimates at this time and are therefore subject to change.

特別是，我們對數位轉型的步伐和影響客戶需求的因素的預期是基於我們目前的最佳估計，因此可能會發生變化。

Please read and consider the risk factors in our filings with the SEC, together with the content of this call. Any forward-looking statements are based on our assumptions and expectations to date. And except as required by law, we assume no obligation to update these statements in light of future events or new information.

請閱讀並考慮我們向 SEC 提交的文件中的風險因素以及本次電話會議的內容。任何前瞻性陳述均基於我們迄今為止的假設和預期。除非法律要求，否則我們不承擔根據未來事件或新資訊更新這些聲明的義務。

During this call, we will present GAAP and non-GAAP financial measures. In addition, we provide non-GAAP weighted average share count and information regarding free cash flows and billings. These non-GAAP measures are not intended to be considered in isolation from, a substitute for or superior to our GAAP results. We encourage you to consider all measures when analyzing our performance. For information regarding our non-GAAP financial information, the most directly comparable GAAP measures and a quantitative reconciliation of those figures, please refer to today's earnings press release which can be found on our website at investor.docusign.com.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。此外，我們也提供非公認會計原則加權平均股票數以及有關自由現金流和帳單的資訊。這些非公認會計原則衡量指標不應被視為孤立、替代或優於我們的公認會計原則結果。我們鼓勵您在分析我們的績效時考慮所有措施。有關我們的非 GAAP 財務資訊、最直接可比較的 GAAP 指標以及這些數據的定量調整的信息，請參閱今天的收益新聞稿，該新聞稿可在我們的網站 Investor.docusign.com 上找到。

I'd now like to turn the call over to Allan. Allan?

我現在想把電話轉給艾倫。艾倫？

Thanks, Heather, and good afternoon, everyone. DocuSign's third quarter operating results reflect progress on our initiatives to expand beyond new signature into agreement management. And our financial performance underscores our ongoing focus on driving profitability and sustaining healthy free cash flow. As I reflect on our journey over the last 12 months, the 3 key pillars of our strategic vision remains the same. First, to accelerate innovation towards agreement management, which we believe will further expand market opportunity; second, improving the reach and efficiency of our omnichannel go-to-market efforts; and third, strengthening our financial and operational efficiency.

謝謝希瑟，大家下午好。 DocuSign 第三季的營運表現反映了我們將新簽章擴展到協議管理領域的措施所取得的進展。我們的財務表現凸顯了我們對提高獲利能力和維持健康的自由現金流的持續關注。當我回顧過去 12 個月的歷程時，我們策略願景的 3 個關鍵支柱保持不變。首先，加速協議管理創新，我們相信這將進一步擴大市場機會；其次，提高我們全通路上市工作的覆蓋範圍與效率；第三，加強我們的財務和營運效率。

Now before we discuss each pillar in detail, let me first highlight this quarter's financial results. Total Q3 revenue came in at $700 million, up 9% versus prior year. We're particularly pleased with the improvement in our overall profitability this quarter against persistent macro headwinds and delayed at customer caution. Specifically, our Q3 non-GAAP operating margin came in at 27%, a 400 basis point increase versus prior year, and non-GAAP operating income grew 27% year-over-year to $187 million. We also generated record free cash flow in Q3 coming in at $240 million, up significantly versus the prior year. We're focused on strengthening our profitability while making balanced investments in areas with strong long-term growth opportunities.

現在，在我們詳細討論每個支柱之前，讓我先強調本季的財務表現。第三季總營收為 7 億美元，比去年同期成長 9%。我們對本季整體獲利能力的改善感到特別高興，儘管宏觀經濟持續不利，但由於客戶謹慎而延遲。具體來說，我們第三季的非 GAAP 營業利潤率為 27%，比去年同期成長 400 個基點，非 GAAP 營業收入年增 27% 至 1.87 億美元。第三季我們也創造了創紀錄的自由現金流，達到 2.4 億美元，比前一年大幅成長。我們專注於增強獲利能力，同時在具有強勁長期成長機會的領域進行平衡投資。

We're also seeing encouraging signs of business stabilization. With improvement in some metrics, notably customers with annualized contract value greater than $300,000. Blake will expand on the metrics further in his remarks. With respect to our first pillar, accelerating product innovation. Our focus is twofold. First, we continue to improve our core eSignature product capability. In Q3, DocuSign became the exclusive eSignature provider for Microsoft's Power Page integration, making it easy for website makers to incorporate signatures and forms without code, improving the client signing experience and opening the door to building pre- and post-signature workflows.

我們也看到了業務穩定的令人鼓舞的跡象。某些指標有所改善，特別是年化合約價值超過 30 萬美元的客戶。布萊克將在演講中進一步闡述這些指標。我們的第一個支柱是加快產品創新。我們的重點是雙重的。首先，我們持續提升核心電子簽章產品能力。在第三季度，DocuSign 成為Microsoft Power Page 整合的獨家電子簽名提供商，使網站製作者可以輕鬆地在無需代碼的情況下合併簽名和表單，改善客戶簽名體驗，並為構建簽名前和簽名後工作流程打開大門。

In November, we also launched a WhatsApp integration for eSignature. In an internal comparative study, we found that agreements delivered via WhatsApp are signed nearly 7x faster than those sent via e-mail. Given the ubiquity of WhatsApp globally, it's an important update to bring eSignature to markets outside the U.S. In addition, IDC recognized DocuSign as a leader in its 2023 eSignature assessment. DocuSign continues to hold the leadership position of IDC for eSignature based on having a complete portfolio of solutions for customers. And we're seeing existing customers grow and expand their use cases. Hantz Group, which is a Michigan-based wealth management firm is using eSignature to deliver a fully digital experience for its clients through a proprietary mobile app and is expanding their use of DocuSign products with notary, SMS, identity verification and monitor. Our APIs and strength in compliance made DocuSign the best choice for Hantz. And they've made DocuSign a standard across their entire organization which will approximately double their use of our products.

11 月，我們還推出了針對電子簽名的 WhatsApp 整合。在一項內部比較研究中，我們發現透過 WhatsApp 發送的協議簽署速度比透過電子郵件發送的協議快近 7 倍。鑑於 WhatsApp 在全球範圍內的普及，這是將電子簽名引入美國以外市場的重要更新。此外，IDC 在 2023 年電子簽名評估中將 DocuSign 評為領導者。 DocuSign 憑藉為客戶提供完整的解決方案組合，繼續保持 IDC 電子簽名領域的領導地位。我們看到現有客戶不斷成長並擴大他們的用例。 Hantz Group 是一家總部位於密西根州的財富管理公司，正在使用電子簽名透過專有的行動應用程式為其客戶提供完全數位化的體驗，並透過公證、簡訊、身份驗證和監控擴大 DocuSign 產品的使用。我們的 API 和合規性優勢使 DocuSign 成為 Hantz 的最佳選擇。他們已將 DocuSign 作為整個組織的標準，這將使他們對我們產品的使用量增加一倍。

Second, we're also investing towards broadening our value proposition beyond eSignature and into agreement management. In Q3, we shipped embedded agreements that deliver a seamless signing experience directly on our customers' websites and applications. In addition, we launched Microsoft Power Automate for the generation of personalized professional-looking documents. For signing directly from Microsoft Power Automate flows. We also launched foundational features and functionality that help us expand beyond eSignature into wide-scale agreement management. These features deliver customer delight and remove friction from all aspects of the agreement process. We see the success of CLM as a proof point that there are broader agreement management use cases to address the customers of all sizes.

其次，我們也致力於將我們的價值主張從電子簽名擴展到協議管理領域。在第三季度，我們推出了嵌入式協議，可直接在客戶的網站和應用程式上提供無縫的簽名體驗。此外，我們還推出了 Microsoft Power Automate，用於產生具有專業外觀的個人化文件。用於直接從 Microsoft Power Automate 串流進行簽名。我們也推出了基礎特性和功能，幫助我們從電子簽章擴展到大規模協定管理。這些功能可讓客戶滿意並消除協議流程各個方面的摩擦。我們認為 CLM 的成功證明，有更廣泛的協議管理用例可以滿足各種規模的客戶需求。

CLM continues to grow well, particularly with North American enterprise customers. And for the fourth year in a row, our CLM solution was recognized as a leader by Gartner in contract life cycle management. Noting our strong market understanding, product strategy and road map vision, including upcoming Generative AI enhancements. This quarter, we expanded a relationship that began more than 5 years ago with Veeco USA. Who's the leader in workplace innovation. Veeco began using DocuSign eSignature and has added CLM as part of this transformation into a digital services company. Our AI solution will help Veeco streamline and enhance search and review of executed customer contracts with actionable insights to better serve its customers.

CLM 持續保持良好成長，尤其是北美企業客戶。我們的 CLM 解決方案連續第四年被 Gartner 評為合約生命週期管理的領導者。注意到我們對市場的深刻理解、產品策略和路線圖願景，包括即將推出的生成式人工智慧增強功能。本季度，我們擴大了與 Veeco USA 五年多前開始的合作關係。誰是工作場所創新的領導者。 Veeco 開始使用 DocuSign eSignature，並添加了 CLM，作為轉型為數位服務公司的一部分。我們的 AI 解決方案將幫助 Veeco 簡化和增強對已執行客戶合約的搜尋和審查，並提供可行的見解，從而更好地為客戶服務。

Thank you to our partners at Spaulding Ridge, who are helping to strengthen our commitment and partnership with Veeco. As we look ahead, we envision serving similar customer needs not addressed by CLM via a broader agreement management platform designed for all of our customers in all segments. We are previewing with select customer now. I will have much more to share on our product road map and strategic vision at our Momentum User Conference in April 2024.

感謝 Spaulding Ridge 的合作夥伴，他們幫助加強我們與 Veeco 的承諾和合作關係。展望未來，我們設想透過為所有細分市場的所有客戶設計的更廣泛的協議管理平台來滿足 CLM 無法滿足的類似客戶需求。我們現在正在與部分客戶進行預覽。我將在 2024 年 4 月舉行的 Momentum 用戶大會上分享更多關於我們的產品路線圖和策略願景的內容。

Across both our eSignature core and future agreement management products, we believe our investment will lead to even further differentiation in a competitive market. We're encouraged by steady win rates and excited for the impact we can create for customers. This past quarter also demonstrated execution against our second pillar, improved omnichannel go-to-market. Where we gained traction across our direct sales, digital and partner engagement. Our international business spends all channels as an important part of our addressable market. It's really an untapped opportunity for DocuSign expansion. In Q3, our international revenue grew approximately 3x faster than our North American business. We also saw traction in the adoption of our identity verification solutions, which meet stringent regulatory standards in the EU and elsewhere.

在我們的電子簽名核心產品和未來的協議管理產品中，我們相信我們的投資將在競爭激烈的市場中帶來進一步的差異化。我們對穩定的勝率感到鼓舞，並對我們能為客戶創造的影響感到興奮。上個季度也展示了我們的第二個支柱的執行力，即改進的全通路進入市場。我們在直銷、數位化和合作夥伴參與方面獲得了關注。我們的國際業務將所有管道作為我們目標市場的重要組成部分。這確實是 DocuSign 擴展的一個尚未開發的機會。第三季度，我們的國際營收成長速度比北美業務快約 3 倍。我們也看到人們採用我們的身分驗證解決方案的勢頭，該解決方案符合歐盟和其他地方嚴格的監管標準。

And in Q3, we launched a Japanese localized version of our CLM product. The recently launched WhatsApp integration also highlights our international ambitions. Our digital channel once again grew at a faster rate than our direct business during the quarter, a strong sign that our product-led growth initiative continues to drive new customer acquisition and top of funnel activity. We continue to optimize our site and remove friction from the try and buy journey while creating a more personalized experience with improved localization. We're seeing particular strength in new customer acquisition in our international markets, as well as improved conversion rates in the trial to paid license purchase conversion rates.

在第三季度，我們推出了 CLM 產品的日文在地化版本。最近推出的 WhatsApp 整合也凸顯了我們的國際化野心。本季我們的數位管道成長速度再次超過直接業務，這是一個強烈的跡象，表明我們以產品為主導的成長計劃繼續推動新客戶獲取和漏斗頂部活動。我們繼續優化我們的網站，消除試用和購買過程中的障礙，同時透過改進的在地化創造更個人化的體驗。我們看到國際市場上的新客戶獲取特別強勁，付費授權購買轉換率的試用轉換率有所提高。

Our trusted brand and product strength continue to be assets for our direct sales team. Mountain America Credit Union, one of the biggest credit unions in the U.S. has reduced the time it takes to close a credit card application by 30% by integrating DocuSign with its proprietary loan origination system. Mountain America switched to DocuSign from a different electronic signature provider in part because our strong brand reputation inspires confidence from its members, but also because our rich catalog of best-in-class APIs. Give us developers the flexibility to create solutions that are customized to its exact needs.

我們值得信賴的品牌和產品實力仍然是我們直銷團隊的資產。美國最大的信用合作社之一 Mountain America Credit Union 透過將 DocuSign 與其專有的貸款發放系統集成，將關閉信用卡申請所需的時間縮短了 30%。 Mountain America 從另一家電子簽名提供者轉向 DocuSign，部分原因是我們強大的品牌聲譽激發了其成員的信心，而且還因為我們豐富的一流 API 目錄。讓我們開發人員能夠靈活地創建根據其具體需求量身定制的解決方案。

That is enabling Mountain America to deliver a seamless, minimal click experience that aligns with the standards as members expect in their financial institutions. An important pillar of our go-to-market plan is strengthening our partner ecosystem. In October, we hosted our first ever partner day. It was fantastic to meet with our system integrators, resellers and software vendors from around the world, sharing our commitment to growing our business together. As an example, the ISV embed pay-as-you-go initiative we announced in Q2 is accelerating and driving new customer wins. Before I pass it to Blake, I want to address some progress on our third strategic pillar. Our company's focus on financial and operational efficiency.

這使得 Mountain America 能夠提供無縫、最少的點擊體驗，符合會員對金融機構的期望標準。我們上市計劃的一個重要支柱是加強我們的合作夥伴生態系統。十月，我們舉辦了第一個合作夥伴日。很高興能與來自世界各地的系統整合商、經銷商和軟體供應商見面，分享我們共同發展業務的承諾。例如，我們在第二季宣布的 ISV 嵌入即用即付計畫正在加速並推動贏得新客戶。在將其交給布萊克之前，我想談談我們第三個戰略支柱的一些進展。我們公司注重財務和營運效率。

In the quarter, we delivered record operating margin and free cash flow. While we continue to invest for long-term growth, we will also continue to be strong financial stewards of the business.

本季度，我們實現了創紀錄的營業利潤率和自由現金流。在我們繼續投資以實現長期成長的同時，我們也將繼續成為業務的強大財務管理者。

We still have a lot of work to do, but I am pleased with our progress over the past 12 months. I am more confident than ever in the value we can create for our customers in our business and the scale and strength of our customer base. We're in the early stages of our journey to expand beyond eSignature into agreement management. But there is very concrete customer validation of the market opportunity and meaningful progress towards our goals.

我們還有很多工作要做，但我對過去 12 個月的進展感到滿意。我對我們能夠在業務中為客戶創造的價值以及我們客戶群的規模和實力比以往任何時候都更有信心。我們正處於從電子簽名擴展到協議管理的早期階段。但客戶對市場機會進行了非常具體的驗證，並在實現我們的目標方面取得了有意義的進展。

Thank you to the DocuSign team who's inspired me with their commitment to this transformation.

感謝 DocuSign 團隊，他們對這項轉變的承諾激勵了我。

With that, let me turn it over to Blake.

那麼，讓我把它交給布萊克。

Thanks, Allan, and good afternoon, everyone. As I approach my 6-month anniversary of DocuSign, I remain excited about the long-term opportunity. And our teams execution against the 3 key pillars we've outlined previously. Accelerating product innovation, enhancing our omnichannel go-to-market strategy and strengthening our financial and operational efficiency. We delivered solid results in Q3, demonstrating the stability of our business model. In the third quarter, total revenue increased 9% year-over-year to $700 million, and subscription revenue grew 9% year-over-year to $682 million.

謝謝艾倫，大家下午好。當我接近 DocuSign 6 個月週年紀念日時，我仍然對這個長期機會感到興奮。我們的團隊針對我們之前概述的 3 個關鍵支柱進行執行。加速產品創新，加強我們的全通路進入市場策略，並提高我們的財務和營運效率。我們在第三季取得了紮實的業績，證明了我們業務模式的穩定性。第三季總營收年增9%，達7億美元，訂閱營收年增9%，達6.82億美元。

We continue to drive solid new customer growth during the quarter despite the challenging macro and software buying environment, which is evidence of DocuSign's durable value proposition. In addition, I'm proud of our operational execution highlighted by strong profitability and free cash flow generation. While we have much work still to do, we are making progress. Third quarter billings rose 5% year-over-year to $692 million. As expected, expansion headwinds continued to impact year-over-year billings growth. These dynamics are also visible in our dollar net retention, which was 100% in Q3. Expansion rates continue to be tempered by spending optimization and IT budget scrutiny. We expect dollar net retention to trend downward in Q4.

儘管宏觀和軟體購買環境充滿挑戰，但我們在本季繼續推動新客戶的穩健成長，這證明了 DocuSign 持久的價值主張。此外，我對我們的營運執行感到自豪，這體現在強勁的獲利能力和自由現金流的產生上。儘管我們還有很多工作要做，但我們正在取得進展。第三季營收年增 5%，達到 6.92 億美元。正如預期的那樣，擴張阻力繼續影響同比帳單成長。這些動態在我們的美元淨保留率中也可見一斑，第三季為 100%。支出優化和 IT 預算審查繼續抑制擴張率。我們預計第四季美元淨保留率將呈下降趨勢。

That said, we are encouraged by a few early data points evident in our results this quarter. First, we saw year-over-year consumption stabilization or improvement in a number of verticals, including business services, technology and insurance. Financial services by contrast, continue to be more impacted. Although real estate also continued to be pressured by the interest rate environment, it improved on a year-over-year basis for the third quarter in a row with significant opportunity for further improvement.

也就是說，我們對本季業績中明顯的一些早期數據點感到鼓舞。首先，我們看到許多垂直產業的消費較去年同期穩定或有所改善，包括商業服務、技術和保險。相比之下，金融服務持續受到更大的影響。儘管房地產也繼續受到利率環境的壓力，但連續第三季同比有所改善，進一步改善的機會很大。

We're increasingly operating in a post-COVID environment, and I'm pleased that our weighted average contract duration continues to remain consistent at 18 months. Also, by the end of this fiscal year, we expect only around 10% of our book of business to be full contracts signed during calendar years 2020 and 2021. DocuSign's value proposition is broad-based, and we benefit long term by doing business with customers across a diverse set of sectors and segments.

我們越來越多地在新冠疫情後的環境中運營，我很高興我們的加權平均合約期限繼續保持在 18 個月。此外，到本財年結束時，我們預計只有約 10% 的業務是在 2020 年和 2021 年期間簽署的完整合約。DocuSign 的價值主張基礎廣泛，透過與不同行業和細分市場的客戶。

Second, we are pleased with the early progress we are seeing from our investments in the omnichannel go-to-market efforts. Driven by our direct sales efforts, the enterprise segment showed some early potential relative to performance in previous quarters. The number of customers of annualized contract values greater than $300,000 rose slightly to 1,051 from 1,047 in the prior quarter and was approximately flat year-over-year. This increase is an improvement after 2 quarters of sequential declines. Also, our CLM business grew double digits year-over-year. As enterprise customers continue to optimize their eSignature spend, we are seeing some customers taking advantage of our CLM product. Enterprise customer adoption is encouraging because CLM is the early proving ground for investment in a broader agreement management use case for our entire customer base.

其次，我們對全通路上市工作的投資所取得的早期進展感到高興。在我們直接銷售努力的推動下，企業部門相對於前幾季的業績表現出了一些早期潛力。年化合約價值超過 30 萬美元的客戶數量從上一季的 1,047 家小幅上升至 1,051 家，與去年同期基本持平。這一增長是在連續兩個季度下降之後的改善。此外，我們的 CLM 業務年增兩位數。隨著企業客戶不斷優化其電子簽名支出，我們看到一些客戶正在利用我們的 CLM 產品。企業客戶的採用令人鼓舞，因為 CLM 是為我們整個客戶群投資更廣泛的協議管理用例的早期試驗場。

In addition, within our omnichannel pillar, international revenue grew 18% year-over-year, reaching $185 million in the third quarter, representing 26% of our total revenue. This was a slight acceleration in year-over-year growth from the previous quarter. Most international markets remain at an early adoption stage due to regulatory history and cultural habits. At the same time, however, international represents the largest portion of our TAM, and I'm pleased to see continued success of our hybrid go-to-market strategy. Related to the investments we're making in our PLG and self-serve motions, digital revenue growth outperformed direct. Digital remains the primary source for new customer acquisition, and we added approximately 36,000 new customers in Q3 and bringing the total customer base to 1.47 million, up 11% year-over-year.

此外，在我們的全通路支柱中，國際營收年增 18%，第三季達到 1.85 億美元，占我們總營收的 26%。與上一季相比，年成長略有加快。由於監管歷史和文化習慣，大多數國際市場仍處於早期採用階段。但同時，國際市場占我們 TAM 的最大部分，我很高興看到我們的混合上市策略持續成功。與我們在 PLG 和自助服務方面進行的投資相關，數位收入成長優於直接成長。數位化仍然是新客戶獲取的主要來源，第三季我們新增約 36,000 名新客戶，使總客戶群達到 147 萬，較去年同期成長 11%。

This includes the addition of approximately 7,000 direct customers bringing the total number of direct customers to 233,000, a 15% year-over-year increase. Turning to our third strategic pillar. We delivered strong margin expansion and healthy cash flow during Q3 and highlighting our focus on operating and financial efficiency. Non-GAAP gross margin for the third quarter was 83%, in line with the prior year. Third quarter non-GAAP subscription gross margin was 86%. Also in line with the prior year. Q3 non-GAAP operating income reached a record $187 million, representing a 27% margin, up nearly 400 basis points from 23% and $147 million in the prior year.

其中包括新增約 7,000 名直接客戶，使直接客戶總數達到 233,000 名，較去年同期成長 15%。轉向我們的第三個戰略支柱。我們在第三季度實現了強勁的利潤成長和健康的現金流，並強調了我們對營運和財務效率的關注。第三季非 GAAP 毛利率為 83%，與去年同期持平。第三季非公認會計準則訂閱毛利率為 86%。也與去年持平。第三季非 GAAP 營業收入達到創紀錄的 1.87 億美元，利潤率為 27%，比前一年的 23% 和 1.47 億美元增長了近 400 個基點。

During the quarter, we increased focus on investment prioritization, hiring plans and operating expenses. There will be continuing opportunities for greater efficiency even as we invest to drive long-term growth. Q3 non-GAAP EPS was $0.79, a $0.22 per share improvement from $0.57 last year. We ended Q3 with 6,945 employees compared to 7,522 the year prior. And up from 6,748 in Q2. We will remain disciplined with our head count investment. Hiring will continue to focus on opportunities to drive sustainable long-term growth like those in R&D. Operating cash flow for the quarter was $264 million compared with $53 million in the same quarter last year.

本季度，我們更加關注投資優先順序、招聘計劃和營運費用。即使我們投資是為了推動長期成長，仍然會有持續提高效率的機會。第三季非 GAAP 每股收益為 0.79 美元，較去年的 0.57 美元每股提高 0.22 美元。第三季末，我們有 6,945 名員工，去年同期為 7,522 名。較第二季的 6,748 有所增加。我們將繼續嚴格控制人員數量投資。招聘將繼續專注於推動可持續長期成長的機會，例如研發領域的機會。本季營運現金流為 2.64 億美元，而去年同期為 5,300 萬美元。

While an ERP transition impacted last year's cash flow results, I'm proud of the significant free cash flow we generated this quarter. Third quarter free cash flow was a record $240 million representing a 34% margin compared with $36 million or 6% a year ago. Over the last 12 months, we've generated over $750 million in free cash flow, underscoring the strong fundamentals of this business. With regards to the balance sheet, we exited Q3 with $1.7 billion in cash, cash equivalents and investments.

雖然 ERP 轉型影響了去年的現金流結果，但我對本季產生的大量自由現金流感到自豪。第三季自由現金流達到創紀錄的 2.4 億美元，利潤率達到 34%，去年同期為 3,600 萬美元，利潤率為 6%。在過去 12 個月中，我們產生了超過 7.5 億美元的自由現金流，凸顯了該業務的強勁基礎。就資產負債表而言，我們在第三季結束時擁有 17 億美元的現金、現金等價物和投資。

This includes the repayment of $37 million of convertible debt that matured during the quarter. Our balance sheet remains strong, and we have ample liquidity to address the remaining convertible debt of $690 million that matures next month. Turning to our share repurchase program. We redeployed excess capital during the quarter and repurchased 1.8 million shares for approximately $75 million.

這包括償還本季到期的 3,700 萬美元可轉換債務。我們的資產負債表仍然強勁，我們有充足的流動性來解決下個月到期的 6.9 億美元剩餘可轉換債務。轉向我們的股票回購計劃。我們在本季重新部署了多餘資本，並以約 7,500 萬美元的價格回購了 180 萬股股票。

In addition to our share repurchase program, during the quarter, we used $36 million to pay taxes due on RSU settlements, reducing the diluted impact of our equity programs. We remain committed to opportunistically returning capital to our shareholders.

除了我們的股票回購計劃外，本季我們還使用了 3,600 萬美元來繳納 RSU 和解稅款，從而減少了股權計劃的稀釋影響。我們仍然致力於機會主義地向股東返還資本。

With that, let me turn to guidance. For the fourth quarter and fiscal year '24, we expect total revenue of $696 million to $700 million in Q4 or a 6% year-over-year increase at the midpoint. And $2.746 billion to $2.750 billion for fiscal '24 or a 9% year-over-year increase. Of this, we expect subscription revenue of $679 million to $683 million in Q4. Or a 6% year-over-year increase at the midpoint and $2.670 billion to $2.674 billion for fiscal '24. Or a 9% year-over-year increase.

接下來，讓我談談指引。對於第四季和 24 財年，我們預計第四季的總營收為 6.96 億美元至 7 億美元，中間值年增 6%。 24 財年為 27.46 億美元至 27.50 億美元，年增 9%。其中，我們預計第四季的訂閱收入為 6.79 億美元至 6.83 億美元。或中點年增 6%，24 財年為 26.70 億美元至 26.74 億美元。或較去年同期成長9%。

For billings, we expect $758 million to $768 million in Q4. Or a 3% growth rate year-over-year at the midpoint. And $2.835 billion to $2.845 billion for fiscal '24 or growth of 7% year-over-year.

對於帳單，我們預計第四季的營收為 7.58 億至 7.68 億美元。或中點年成長率為 3%。 '24 財年營收為 28.35 億美元至 28.45 億美元，年增 7%。

We expect non-GAAP gross margin to be 81% to 82% for Q4 and 81.5% to 82.5% for fiscal '24. We expect non-GAAP operating margin to reach 22.5% to 23.5% for Q4. And 24% to 25% for fiscal '24. We expect non-GAAP fully diluted weighted average shares outstanding of 207 million to 212 million, for both Q4 and fiscal '24.

我們預期第四季非 GAAP 毛利率為 81% 至 82%，24 財年毛利率為 81.5% 至 82.5%。我們預計第四季非 GAAP 營運利潤率將達到 22.5% 至 23.5%。 24 財年為 24% 至 25%。我們預計第四季和 24 財年的非 GAAP 完全稀釋加權平均流通股數為 2.07 億至 2.12 億股。

In closing, we're pleased to report a quarter of consistent execution against our 3 strategic pillars: accelerating product innovation, enhancing our omnichannel go-to-market strategy and strengthening our financial and operational efficiency. We have a strong foundation with well over 1 million customer relationships and improving product momentum. We remain focused on creating shareholder value by investing in durable long-term growth, delivering on our profitability goals and generating sustainable free cash flow. We look forward to keeping you updated on our progress as we focus on helping our customers accelerate their business growth, mitigate risk and enable customer experiences that are easier and more delightful.

最後，我們很高興地報告本季我們的三大策略支柱的一致執行情況：加速產品創新、加強我們的全通路進入市場策略以及加強我們的財務和營運效率。我們擁有堅實的基礎，擁有超過 100 萬個客戶關係，且產品動能不斷改善。我們仍然專注於透過投資於持久的長期成長、實現我們的獲利目標並產生可持續的自由現金流來創造股東價值。我們期待向您通報我們的最新進展，因為我們專注於幫助客戶加速業務成長、降低風險並打造更輕鬆、更愉快的客戶體驗。

That concludes our prepared remarks. With that, operator, let's open up the call for questions.

我們準備好的演講到此結束。那麼，接線員，讓我們開始提問吧。

(Operator Instructions) Our first question is from Jake Roberge with William Blair.

（操作員說明）我們的第一個問題來自 Jake Roberge 和 William Blair。

I understand NRR is a trailing metric, and I appreciate the color that Q4 will see another decline. But are we starting to get visibility in the trough for that metric now that you're putting those headwinds from the multiyear COVID contract behind you and maybe the new product investments start layering in more meaningfully next year?

我知道 NRR 是一個追蹤指標，我很欣賞第四季將再次下降的顏色。但是，既然您已將多年期新冠病毒合約帶來的不利因素拋在腦後，也許明年新產品投資開始更有意義地分層，那麼我們是否開始看到該指標的低谷？

Sure. I'll take a stab at this and Allan, if you want to jump in, feel free. So just a quick reminder, dollar net retention or DNR is our direct business only in greater than 1 year.

當然。我會嘗試一下，艾倫，如果你想加入，請隨意。因此，快速提醒一下，美元淨保留或 DNR 是我們僅在一年多的時間裡的直接業務。

Like you said, the trend downwards in line with our previous communications. And as covered in our prepared remarks, for me, we have -- we expect to see continued pressure in Q4.

正如您所說，下降趨勢與我們先前的溝通一致。正如我們準備好的發言中所述，對我來說，我們預計第四季將面臨持續的壓力。

It's a tough macro environment still where companies continue to scrutinize investments and leading to smaller expansion opportunities for us. It's a bit of a lagging indicator. So the thing that I'm focused on mostly and the company is focused on is what are the efforts we're making to stabilize and improve it over the longer term. And so -- like you said, things like the intelligent agreement management and the new product innovation, including CLM and pricing and packaging enhancements and stronger PLG motions that we're working on in self-serve, which can help us improve those win or renewal wins, if you will, over time is what we're focused on.

宏觀環境仍然嚴峻，企業繼續審查投資，導致我們的擴張機會較小。這是一個有點滯後的指標。因此，我和公司最關注的事情是我們為長期穩定和改進它所做的努力。因此，就像您所說的，諸如智慧協議管理和新產品創新之類的事情，包括CLM 以及定價和包裝增強以及我們正在自助服務領域開展的更強大的PLG 動議，這可以幫助我們提高那些獲勝或者如果你願意的話，隨著時間的推移，更新會獲勝，這就是我們關注的重點。

And as you heard in the prepared remarks, we are seeing some very early signs of potential, I would call it passive optimism, right? Like consumption up across a number of verticals. We saw sticky future adoption improve from last quarter on a year-over-year basis. And that's the percentage of our direct customers using 5 or more kind of incremental features that -- was at 58% in Q3, up from Q2, and it was up about 12 points year-over-year. So they're just -- they're early signs of potential optimism, but I think it's too early for us to put any type of a target or a specific time line out there. But focusing on those product management efforts and those go-to-market efforts, I think, is how you get excited about the future.

正如您在準備好的演講中聽到的那樣，我們看到了一些非常早期的潛力跡象，我稱之為被動樂觀，對吧？就像多個垂直領域的消費上升。我們看到未來的黏性採用率較上季較上季有所改善。這就是我們的直接客戶使用 5 種或更多類型增量功能的百分比，第三季為 58%，高於第二季度，年成長約 12 個百分點。所以它們只是——它們是潛在樂觀的早期跡象，但我認為現在製定任何類型的目標或具體時間表還為時過早。但我認為，專注於這些產品管理工作和那些進入市場的工作，才是你對未來感到興奮的方式。

Okay. Helpful. And then just a follow-up on those products you were talking about. When do you think CLM becomes a more meaningful part of the business where it actually starts impacting expansion rates instead of NRR just being really driven by eSignature consumption. It seems like you've been talking about the potential for that product suite for a few years. But what do you need to do to get that product to more main stage with customers?

好的。有幫助。然後是您正在談論的那些產品的後續行動。您認為 CLM 什麼時候會成為業務中更有意義的一部分，它實際上開始影響擴張率，而不是僅僅由電子簽名消費真正驅動 NRR。看來您多年來一直在談論該產品套件的潛力。但是，您需要做什麼才能將該產品推向客戶的更主要舞台？

Yes, I'll take a crack at that. So first, I'd say that if you look -- if you think about our broader vision, CLM is really a leading indicator or early instantiation of our broader vision for intelligent agreement management. It is very heavily focused on the enterprise. And I think we and everyone else providing CLM solutions have been held back by the required significant services and customization investment that the current generation of CLM products mandate.

是的，我會嘗試一下。因此，首先，我想說，如果您考慮我們更廣泛的願景，您會發現 CLM 實際上是我們智慧協定管理更廣泛願景的領先指標或早期實例。它非常關注企業。我認為我們和其他提供 CLM 解決方案的人都受到了當前一代 CLM 產品要求的大量服務和客製化投資的阻礙。

And -- so our opportunity is to make that significantly more lightweight and delightful, lowering the bar for companies of all sizes really to take advantage of that platform. That is a huge part of our focus right now. We're in early access on some important pieces of that. And so over the next few quarters, you will see that going to roll out to a much broader set of customers on CLM. DocuSign or any other vendor can address today. And we think that unlocks opportunity, as I said, everywhere.

而且 - 所以我們的機會是讓它變得更加輕量和令人愉快，降低各種規模的公司真正利用該平台的門檻。這是我們現在關注的一個重要部分。我們正在搶先體驗其中的一些重要部分。因此，在接下來的幾個季度中，您將看到該功能將在 CLM 上向更廣泛的客戶群推出。 DocuSign 或任何其他供應商今天都可以解決。正如我所說，我們認為這可以在任何地方釋放機會。

Our next question is from Josh Baer with Morgan Stanley.

我們的下一個問題來自摩根士丹利的喬許貝爾。

I wanted to dig in on margins and the margin outperformance. I was hoping you could provide a little bit more context on the source of upside in the quarter? And then how to think about the trajectory of investments going forward? Like the full year guide was raised. Just wondering if there's been sort of any changes in the investment philosophy pulling back in any areas or just letting more of the upside flow through to the bottom line?

我想深入研究利潤率和利潤率表現。我希望您能提供更多有關本季上漲來源的背景資訊？那麼如何思考未來的投資軌跡呢？就像提出了全年指南一樣。只是想知道投資理念是否發生了任何變化，在某些領域有所回撤，或者只是讓更多的上漲空間流向盈利？

Sure. I appreciate the question. So with regards to the outperformance on the operating margin, we made a concerted effort I would say, starting kind of like late September to inspect and rationalize investments across the business. It's really just about increasing focus on, what I would call, disciplined spending while we continue to invest in the areas that -- where we have longer-term growth aspirations. During Q3, we prioritize investments. And so that includes the rate of hiring, the value opportunities for organizational efficiency, but then also overall operating expenses with focus on leveraging existing resources where possible, but still being able to invest for longer-term growth.

當然。我很欣賞這個問題。因此，關於營業利潤率的優異表現，我想說，我們齊心協力，從 9 月底開始檢查整個業務的投資並使其合理化。這實際上只是增加對我所說的紀律支出的關注，同時我們繼續投資於我們有長期成長願望的領域。在第三季度，我們優先考慮投資。因此，這包括招聘率、組織效率的價值機會，也包括整體營運費用，重點是盡可能利用現有資源，但仍能為長期成長進行投資。

With regard to your question on the trajectory and the investment philosophy, we're all big believers here in a balanced outlook, which is we need to be able to invest to get the long-term growth and achieve those aspirations that we have. But at the same point in time, we need to be efficient and productive with the assets that we have. And so I really am proud of the team for embracing that. And so I don't think no investment, I would say, philosophy changes from our part. I would just say a little bit maybe kind of more executed focus on that for us, and we were able to show some pretty good performance, I think, this quarter, and I'm really proud of the team for that level of execution.

關於你關於發展軌跡和投資理念的問題，我們都堅信平衡的前景，即我們需要能夠進行投資以獲得長期成長並實現我們的願望。但同時，我們需要利用我們擁有的資產來提高效率和生產力。所以我真的為團隊接受這一點感到自豪。因此，我認為我們的投資理念不會改變。我只想說，對我們來說，可能更注重執行力，我認為，本季度我們能夠表現出一些相當不錯的表現，我為團隊的這種執行水平感到自豪。

Yes, I would just echo -- if I can just echo Blake's point that the entire management team, not just Blake, is very focused on this balance that he referenced. We absolutely want to free up capital and that is a team effort to look everywhere in the company to free up resources where we can then invest more, particularly on the product side. We did some of that earlier this year, as you know, but it's an ongoing continuous effort, not just onetime thing, and I think that's reflected in the results.

是的，我會附和——如果我能附和布萊克的觀點，即整個管理團隊，而不僅僅是布萊克，都非常關注他提到的這種平衡。我們絕對希望釋放資本，這是團隊努力尋找公司各處的資源，然後我們可以進行更多投資，特別是在產品方面。正如你所知，我們今年早些時候做了一些工作，但這是一項持續不斷的努力，而不僅僅是一次性的事情，我認為這反映在結果中。

Our next question comes from Brent Thill with Jefferies.

我們的下一個問題來自 Jefferies 的布倫特希爾 (Brent Thill)。

This is Luv Sodha on for Brent Thill. Maybe first, just wanted to ask, obviously, you're guiding to 7% year-over-year billings growth for fiscal '24. I guess -- I know you're not guiding to fiscal '25 just yet, but how should we think of the growth trajectory for next year, especially as you come through some kind of trough on the NRR side?

我是 Luv Sodha 為 Brent Thill 演講。也許首先，我只是想問一下，顯然，您指導 24 財年的同比帳單增長率為 7%。我想——我知道你們還沒有對 25 財年進行指導，但我們應該如何看待明年的成長軌跡，特別是當你們經歷了 NRR 方面的某種低谷時？

Sure. So I'll take a stab at that. I'm really proud of the progress we've made in a short period of time. When I say that, I mean across our business, both in just operational efficiency but also accelerating product evolution and innovation. In Q3, particularly, we improved operating margins, we generated significant free cash flow. And I think we're evolving our mindset across the company.

當然。所以我會嘗試一下。我對我們在短時間內取得的進步感到非常自豪。當我這麼說時，我的意思是在我們的整個業務中，不僅包括營運效率，還包括加速產品的演變和創新。特別是在第三季度，我們提高了營業利潤率，產生了大量的自由現金流。我認為我們正在整個公司改變我們的思維方式。

As I mentioned earlier on the question that was just asked before this, in terms of our long-term approach, we're going to balance driving durable long-term growth with operating efficiency. Top of our priority is to make the right strategic investments to drive business momentum and, frankly, to billings, which is, I think, what you're referring to in the coming years.

正如我之前在剛才提出的問題中提到的，就我們的長期方法而言，我們將在推動持久的長期成長與營運效率之間取得平衡。我們的首要任務是進行正確的策略性投資，以推動業務發展勢頭，坦白說，是提高比林斯的投資，我認為這就是您所指的未來幾年的投資。

And it doesn't happen overnight, especially at the business of the scale. But we believe we have the right product and go-to-market focus and we've got a good leadership team in place to make that happen. And you alluded to this, but given that we're still working through our planning and forecasting process for next year. We'll provide our standard formal fiscal year '25 outlook in our Q4 earnings call 3 months from now. But as you think about next year, I imagine you want to consider the Q4 exit rate trends as you think about next year and at the same time, we believe there's further opportunity to drive improved efficiency in our existing business and our operating expenses and then also taking into account historical seasonality changes as we go from Q4 to Q1 with fewer days in the quarter and things like that, just all kind of the basics that you would want to pay attention to.

這並不是一朝一夕就能實現的，尤其是在規模化的業務中。但我們相信我們擁有正確的產品和進入市場的重點，我們擁有一支優秀的領導團隊來實現這一目標。您提到了這一點，但考慮到我們仍在製定明年的規劃和預測流程。我們將在 3 個月後的第四季財報電話會議上提供標準的正式 25 財年展望。但當你考慮明年時，我想你想在考慮明年時考慮第四季度的退出率趨勢，同時，我們相信還有進一步的機會來提高我們現有業務和營運費用的效率，然後也考慮到歷史季節性變化，因為我們從第四季度到第一季度，該季度的天數較少，諸如此類，只是您需要注意的所有基本知識。

But other than that, we'll provide our full year -- our fiscal '25 formal guidance in our next quarter's call.

但除此之外，我們將在下一季的電話會議中提供全年的 25 財年正式指導。

Got it. And one quick follow-up, if I may. Just wanted to ask about your philosophy around stock-based compensation?

知道了。如果可以的話，還有一個快速跟進。只是想問您關於股票薪酬的理念？

Sure. So I mean I think the philosophy on stock-based comp is generally you want to be able to provide the incentive and the ability to attract and retain the best talent possible to allow us to reach the aspirations for growth that we want to get to. I know that -- I think our soft-based comp as a percentage of revenue in the current quarter, I think was 23%. I think that was up slightly year-over-year from 22%. I would say that the driver of the increase is really most about the new management team. So it's driven by the executive comp that drove that year-over-year increase, not necessarily the other part of the company.

當然。所以我的意思是，我認為基於股票的補償的理念通常是你希望能夠提供激勵以及吸引和留住最優秀人才的能力，以使我們能夠實現我們想要實現的成長願望。我知道——我認為我們的軟體成本佔本季收入的百分比是 23%。我認為這一數字比去年同期的 22% 略有上升。我想說，成長的驅動力其實主要來自於新的管理團隊。因此，它是由推動同比增長的高階主管薪酬推動的，而不一定是公司的其他部門。

I think that -- for us, it's something we're slightly above our peer average, and so it's something that we are paying attention to. But it's a balanced approach, again, right? We want to be able to attract and retain the right people for the job that -- so we can get into this next chapter of growth for DocuSign. But it is something we pay attention to and are looking at.

我認為，對我們來說，這是我們略高於同儕平均的事情，所以這是我們正在關注的事情。但這又是一種平衡的方法，對嗎？我們希望能夠吸引並留住合適的人才來從事這項工作，這樣我們就可以進入 DocuSign 的下一個成長章節。但這是我們關注和正在研究的事情。

Yes, I would just add, we have that. We discussed that topic with the Board and the Compensation Committee, and we will share our longer-term plans, but our goal, as Blake said, is to manage it down over time without fundamentally disrupting our ability to execute. It was necessary to attract a new management team and to rebalance our employees following the stock decline, but I think -- we think we're in a more normalized set now, and we should be able to manage to something more towards the benchmarks.

是的，我想補充一點，我們有。我們與董事會和薪酬委員會討論了這個話題，我們將分享我們的長期計劃，但正如布萊克所說，我們的目標是隨著時間的推移控制它，而不是從根本上破壞我們的執行能力。有必要吸引新的管理團隊，並在股票下跌後重新平衡我們的員工，但我認為，我們認為我們現在處於更正常化的環境中，我們應該能夠做到更接近基準的事情。

Our next question is from Brad Sills with Bank of America.

我們的下一個問題來自美國銀行的 Brad Sils。

I wanted to ask about a comment Allan, you made earlier in the call that I think you're seeing increased conversion in the top of funnel business. Would love to get some more color on there. Do you feel like there's some learning there? I know this has been a priority for you since joining the company and building that top of funnel. So any color on that end of the business and the conversion uptick that you mentioned?

我想詢問艾倫的評論，您在電話會議之前發表的評論是，我認為您看到漏斗業務頂部的轉換率有所增加。很想在那裡得到更多的顏色。你覺得那裡有學問嗎？我知道自從加入公司並建立漏斗頂部以來，這一直是您的首要任務。那麼您提到的業務和轉換率上升有什麼亮點嗎？

Yes. Well, so I think you all know, we acquire a tremendous number of new customers every quarter. And most of those -- vast majority of those come in via our website and onboard themselves. And then over time, we grow them. And as they show potential and opportunity, then we engage them with our sales teams and our support to customer success teams I would say that our digital motion has made significant improvements during the course of this year. So for customers that are in essence natively digital, we have improved that part of the funnel, not only you can buy more things, you can upgrade your existing plans.

是的。嗯，我想你們都知道，我們每季都會獲得大量新客戶。其中大多數——絕大多數是透過我們的網站進入並自行加入的。然後隨著時間的推移，我們會種植它們。當他們表現出潛力和機會時，我們會讓他們與我們的銷售團隊以及我們對客戶成功團隊的支持進行接觸，我想說，我們的數位行動在今年取得了顯著的進步。因此，對於本質上是數位化的客戶，我們改進了通路的這一部分，您不僅可以購買更多東西，還可以升級現有計劃。

All of that stuff is working much better now. We're adding more international currencies every quarter. So all of those things are helping improve the performance of our digital business. In addition to that, we are in the process of building out ability for customers who are currently serviced through our sales teams to handle a number of activities themselves without human assistance. And that is very -- has very high leverage, both in terms of providing a better offering to our customers.

所有這些東西現在都工作得更好了。我們每季都會增加更多的國際貨幣。因此，所有這些都有助於提高我們數位業務的績效。除此之外，我們正在為目前透過我們的銷售團隊提供服務的客戶增強能力，使其能夠在沒有人工協助的情況下自行處理許多活動。無論是在為我們的客戶提供更好的產品方面，這都具有非常高的影響力。

And in terms of freeing up our sales teams to work on higher-value work. But I think we still have some quarters to go on implementing that and seeing the full benefit of that. So the benefits of this self-serve PLG project continue to accrue and will accrue into next year. But we're seeing really good progress and that business is growing faster than our direct business. And it's improving on most performance metrics. So that's -- yes, very happy with the progress there.

在釋放我們的銷售團隊來從事更高價值的工作方面。但我認為我們還有一些時間繼續實施該計劃並看到其全部好處。因此，這個自助 PLG 計畫的效益將繼續累積，並將持續到明年。但我們看到了非常好的進展，而且該業務的成長速度比我們的直接業務更快。而且大多數性能指標都在改進。所以，是的，對那裡的進展非常滿意。

Great to hear. And then one, if I may on net revenue retention -- dollar based net revenue retention coming down next quarter, could you just help unpack that for us a little bit on gross versus expansion? Is gross kind of holding and this is mostly expansion related? I know it's a backward-looking metric. But if you could just help us unpack that a little bit on the growth side?

很高興聽到。然後，如果我可以談談淨收入保留——基於美元的淨收入保留將在下個季度下降，您能幫我們解釋一下總收入與擴張的關係嗎？是總持有量嗎？這主要與擴張有關嗎？我知道這是一個向後看的指標。但您能否幫助我們在成長方面稍微解開這一點呢？

Yes, there's not much more, I would say, a level of detail that we're going to disclose publicly about it. I think it's just for us that it's a metric that we know if we can deliver on the product innovation and the road map and the self-service in the PLG motions that we have in front of us, we really believe we've got a chance to stabilize that metric and then reverse that trend.

是的，我想說，我們不會公開更多細節。我認為這對我們來說是一個衡量標準，我們知道我們是否能夠在我們面前的 PLG 動議中提供產品創新、路線圖和自助服務，我們真的相信我們已經有了一個有機會穩定該指標，然後扭轉該趨勢。

Now -- for us, that's top of mind. Obviously, it is a lagging metric, so there's time that you're going to -- it's going to take to [SEDAR] occur. But I would say there was nothing that spoke out about Q3 that stood out that I would call it different than the prior quarter or 2.

現在——對我們來說，這是首要考慮的事情。顯然，這是一個滯後指標，因此您需要一段時間才能 [SEDAR] 發生。但我想說的是，第三季沒有任何突出之處，我認為它與前一季或第二季有所不同。

Our next question is from Michael Turrin with Wells Fargo Securities.

我們的下一個問題來自富國銀行證券公司的麥可‧特林。

Blake, I wanted to spend some more time on the consumption commentary that you provided. Certainly helpful. I'm just wondering if there's anything else you can tell us in terms of the shape of those improvements, how that compares to prior periods? And when you're talking about consumption for DocuSign, is that mainly signature volumes or there other attributes of customer profiles we should be considering as part of that commentary?

布萊克，我想花更多時間閱讀您提供的消費評論。當然有幫助。我只是想知道關於這些改進的形式，您是否還有什麼可以告訴我們的，與之前的時期相比如何？當您談論 DocuSign 的消費時，這主要是簽名量還是我們應該在評論中考慮的客戶資料的其他屬性？

Sure. And it's a good question. Thanks for asking. So when we talk about consumption today, it's primarily around the eSignature space, primarily around, if you will, the envelopes that are used. So what is the usage by our customers on a year-over-year basis. So those verticals that I highlighted at some of the stronger year-over-year growth in consumption that we've seen over the past quarter or 2.

當然。這是一個好問題。謝謝你的詢問。因此，當我們今天談論消費時，主要是圍繞著電子簽名空間，如果你願意的話，主要是圍繞著所使用的信封。那我們的客戶逐年使用情況是怎麼樣的呢？因此，我在過去一兩個季度看到的消費同比增長強勁的情況中強調了這些垂直領域。

So I think we're, again, cautiously optimistic about it. And just to be clear, too, there's still verticals that are more challenged, right? I highlighted financial services is one, and I also highlight real estate as the other one, which probably comes as no surprise to folks who are living in this interest rate environment. I think the thing that makes me -- I don't want to say happier, but you can see a little bit of light there is that real estate has improved on a year-over-year basis over the past 3 quarters.

所以我認為我們再次對此持謹慎樂觀態度。還要澄清的是，仍然有一些垂直領域面臨更大的挑戰，對吧？我強調金融服務是其中之一，我還強調房地產是另一項，這對生活在這種利率環境中的人來說可能並不奇怪。我認為讓我——我不想說更高興，但你可以看到一點曙光，那就是房地產在過去三個季度中比去年同期有所改善。

So that's good, but it's not anywhere back to near where it was I would say, prior to the whole interest rate challenges that we've kind of entered in the past year or so. But so excited about that. But again, that's also, I think, in the prepared remarks, I made a comment about the significant remaining opportunity. And so a lot of it, I think, you're probably seeing is that as the macro environment returns to more normalcy in certain verticals, then we believe we're a beneficiary of that.

所以這很好，但我想說的是，在我們在過去一年左右的時間裡遇到的整個利率挑戰之前，它還沒有回到原來的水平。但對此感到非常興奮。但我想，在準備好的發言中，我也對剩餘的重要機會發表了評論。我認為，您可能會看到，隨著宏觀環境在某些垂直領域恢復正常，我們相信我們是其中的受益者。

And I think that's relevant because we have such a broad-based set of verticals in such a diverse customer base as well. So it's something that when things improve, we think we're a beneficiary of that. And your guess is probably as good or better than mine on when that happens.

我認為這是相關的，因為我們在如此多樣化的客戶群中也擁有如此廣泛的垂直市場。因此，當情況有所改善時，我們認為我們是其中的受益者。當這種情況發生時，你的猜測可能和我的一樣好，甚至更好。

I don't know if any of us have.

我不知道我們中是否有人有過。

On that one maybe not. And I'll just add to what Blake said, I think consumption -- we think of consumption as an imperfect but important leading and predictive indicator of renewal. And -- so that's why we track it closely and talking about it. And we're seeing modestly encouraging signs there in consumption trends relative to the commitments customers have made. Maybe one other comment on that is we are also coming to the end of the COVID. We have a few quarters left of [COVID] renewals, but it is already significantly down and weight in our business, and so that's coming to an end, which is positive.

就這一點來說也許不是。我只想補充布萊克所說的，我認為消費——我們認為消費是一個不完美但重要的更新的領先和預測指標。這就是我們密切跟踪並討論它的原因。相對於客戶所做的承諾，我們在消費趨勢中看到了一些令人鼓舞的跡象。也許對此的另一種評論是，我們也即將結束新冠疫情。我們的[新冠肺炎]續訂還剩幾個季度，但它已經顯著下降並影響了我們的業務，因此這種情況即將結束，這是積極的。

That's all super helpful. And then maybe one more on just the leading indicator side. I appreciate it's noisy, but if we look at billings this quarter, it's down sequentially last quarter. You talked about -- it wasn't early renewals. It was just kind of the timing of renewals, having some improvements. So did that maybe help Q2 relative to Q3? Or just help us kind of square the seasonal trends and what can drive the volatility from quarter-to-quarter on that metric?

這一切都非常有幫助。然後也許只是領先指標方面還有一個。我很欣賞它的噪音，但如果我們看看本季的帳單，就會發現它比上季連續下降。你談到——這不是提前續約。這只是更新的時機，有一些改進。那麼相對於第三季來說，這可能對第二季有幫助嗎？或者只是幫助我們調整季節性趨勢，以及什麼可以推動該指標的季度波動？

Yes, you bet. So right, Q3 billings growth of 5% relative to Q2 of 10% year-over-year. So really pleased with the Q3. We came in above our expectations on that. But the detail like you're asking about from Q2 to Q3, it's really driven, I would say, by 3 primary areas.

是的，你敢打賭。沒錯，第三季的帳單年增了 5%，而第二季則較去年同期成長了 10%。對Q3非常滿意。我們在這方面的表現超出了我們的預期。但是，就像您所問的從第二季到第三季的細節一樣，我想說，它確實是由 3 個主要領域驅動的。

The first is we have a hard comp in Q3. If you look back at our historical results, I think our Q3 billings growth in fiscal '23 was up 17% -- around 17% year-over-year. And that was the highest in fiscal '23. And that was driven by a year ago, we had a pretty strong early renewals kind of momentum that grew that billings number in Q2 of the prior year.

首先是我們在第三季有一個硬比賽。如果你回顧我們的歷史業績，我認為我們 23 財年第三季的帳單成長了 17%，比去年同期成長約 17%。這是 23 財年的最高水準。這是由一年前推動的，我們有相當強勁的早期續訂勢頭，導致上一年第二季的帳單數量增長。

Now we're still doing well this year with regard to our renewals, it's just a hard comp that we're having to deal it. The second item is what you talked about, which is that on-time renewal impact. And as I discussed in the last call and my predecessor discussed on the call before that, the benefit that we've had in the higher on-time renewals in the first half of '24. It just -- you have a smaller impact as you go through the year in the second half. And so it's really primarily a timing issue. And so we're still doing actually really quite well on on-time renewal execution.

現在我們今年在續約方面仍然做得很好，這只是我們必須處理的一個艱難的競爭。第二項就是你談到的，就是按時續訂的影響。正如我在上次電話會議中所討論的以及我的前任在之前的電話會議中所討論的那樣，我們在 24 年上半年按時續訂的時間更高，這給我們帶來了好處。只是在下半年，你的影響會變小。所以這其實主要是一個時間問題。因此，我們在按時續訂執行方面實際上仍然做得非常好。

The team is doing a great job with it. It's just a smaller impact on year-over-year growth as we progress through the year. And then the final -- the third thing that impacts that billings number, frankly, is just lower expansion rates, right? I mean IT budget scrutiny and people that are sitting in my seat are asking the right questions, which is how do I do more with less, where are the places that I can manage costs well, it's -- I mean, I'm doing it here, frankly, in my role as an operational CFO.

團隊在這方面做得很好。隨著我們今年的進展，這對同比增長的影響較小。最後，坦白說，影響帳單數量的第三件事就是較低的擴張率，對吧？我的意思是IT 預算審查，坐在我座位上的人都在問正確的問題，即我如何用更少的資源做更多的事情，我可以在哪些地方很好地管理成本，我的意思是，我正在做坦率地說，這是我作為營運財務長的角色。

And that, along with macro impacts overall billings growth, and it's evident in those DNR rates. But as Allan mentioned and I have mentioned already, like we are seeing those consumption trends that we saw some marginal improvement quarter-over-quarter. And it's still early for us. We got to see that hopefully hold here for the next few quarters. But things are also improving, but that's just really the dynamics of the decel and year-over-year growth between Q2 and Q3.

這與宏觀影響一起影響了整體帳單成長，這一點在 DNR 率中顯而易見。但正如艾倫提到的和我已經提到的，就像我們看到的消費趨勢一樣，我們看到季度環比有所改善。對我們來說還為時過早。我們希望看到這種情況在接下來的幾季保持不變。但情況也在改善，但這只是第二季和第三季之間減速和年成長的真正動態。

Our next question is from Tyler Radke with Citi.

我們的下一個問題來自花旗銀行的泰勒拉德克 (Tyler Radke)。

Yes. I'm not sure if this is -- who this is for, but I guess as we think about the product set for next year, obviously, there's a lot of organic investments you're making on the Gen AI side. Can you just talk about how you expect that the product set available products and upsells to evolve next year? And with the launch of some of these Generative AI services, how does that kind of change the philosophy around still kind of offering an envelope base signature product rather than something more subscription base that's not [tight to] envelope?

是的。我不確定這是否是——這是誰的，但我想當我們考慮明年的產品時，顯然，你們在 Gen AI 方面進行了大量的有機投資。您能否談談您預計該產品明年的可用產品和追加銷售將如何發展？隨著其中一些生成式人工智慧服務的推出，這會如何改變仍然提供信封基礎簽名產品而不是不[緊]信封的更多訂閱基礎的理念？

Yes, there's several points in there. First, I'd just say, look, our CLM business is growing faster than our Signature business, and I expect as we launch this broader high intelligent agreement management platform to a broader set of customers that, that pattern of that broader category growing faster will continue. The second point you made about the envelope versus subscription basis. We are, in fact, already experimenting with should we say, unlimited envelope billing models for a variety of customers. So for very large customers, we have entered into some enterprise license agreements. And those have been, I think, quite helpful at one very large bank that we did one with as they -- after they signed that agreement, they proceeded to remove a competing solution from some of their workflows.

是的，裡面有幾個點。首先，我只想說，我們的CLM 業務成長速度快於我們的簽名業務，我預計，當我們向更廣泛的客戶群推出這個更廣泛的高智慧協定管理平台時，該更廣泛類別的模式成長得更快將繼續。您提出的關於信封與訂閱基礎的第二點。事實上，我們已經在為各種客戶嘗試無限信封計費模式。因此，對於非常大的客戶，我們簽訂了一些企業授權協議。我認為，這些對我們與他們合作的一家非常大的銀行非常有幫助——在他們簽署協議後，他們開始從一些工作流程中刪除競爭解決方案。

And I think we have that opportunity across some of our very large customers. And then in the commercial segment, the mid-market and SMB segment, we're now competing more directly with some of our lower-priced competitors who have offered unlimited envelope packages. And not surprisingly, if you give people a competitive unlimited envelope from DocuSign versus a lesser branded, less well featured product and they choose DocuSign. And so we're seeing really, really positive results and to the point where I expect that we will continue to broaden that rollout.

我認為我們在一些非常大的客戶中擁有這樣的機會。然後在商業領域、中端市場和中小企業領域，我們現在正在與一些提供無限信封套餐的低價競爭對手進行更直接的競爭。毫不奇怪，如果您為人們提供具有競爭力的 DocuSign 無限信封，而不是品牌較小、功能較差的產品，那麼他們會選擇 DocuSign。因此，我們看到了非常非常積極的結果，我預計我們將繼續擴大這一範圍。

So overall, I'm feeling quite good about our evolution and our response to competition on multiple fronts. As well as the broadening of our product road map that you alluded to in the first part of your question.

總的來說，我對我們的發展以及我們在多個方面對競爭的反應感到非常滿意。以及您在問題第一部分提到的產品路線圖的拓寬。

Okay. Great. And Blake, maybe a question for you on free cash flow. So very, very strong here in the quarter relative to consensus expectations. How should we be thinking about just free cash flow for the full year, was there any onetime items in that number? And as you think about next year, what seems to be kind of an increased operational discipline, should we be thinking about free cash flow margins expanding kind of consistently with operating margin expansion? Just any way to think about that medium-term framework?

好的。偉大的。布萊克，也許有一個關於自由現金流的問題。相對於普遍預期，本季非常非常強勁。我們應該如何考慮全年的自由現金流，該數字中是否有一次性項目？當您考慮明年時，似乎會加強營運紀律，我們是否應該考慮自由現金流利潤率與營業利潤率擴張保持一致？有什麼方法可以考慮中期框架嗎？

Sure. So yes, really happy with the $240 million cash flow that was generated this quarter.

當然。所以，是的，我對本季產生的 2.4 億美元現金流感到非常滿意。

It's a combination of just ongoing strong operating results. But we also did have some working capital improvements that impacted that number. When you look at the cash flow statement, you're going to see there the changes in operating assets and liabilities, and we've really had a strong improvement on the collection side on AAR. And so that's great. And so that it drives it. And then I said this in the prepared remarks, comparing to prior year can be a little tricky because of the ERP transition that happened prior year.

這是持續強勁的營運業績的結合。但我們確實也進行了一些營運資金的改進，從而影響了這個數字。當你查看現金流量表時，你會看到營運資產和負債的變化，我們在 AAR 收款方面確實有了很大的改進。這太好了。並讓它驅動它。然後我在準備好的發言中說了這一點，由於前一年發生了 ERP 過渡，與前一年相比可能有點棘手。

So we had a more muted free cash flow generation number. But regardless of that, really excited about the free cash flow we got. Now to your question on the yield, it was really strong. It was 34%. And while I'm a big fan of the working capital tailwind and I'm really proud of the team for the discipline and the improvements there, that can be something that's challenging, right, to pile onto every year going forward. There's always some good working capital improvements you can make.

因此，我們的自由現金流產生數字更加溫和。但無論如何，我們對獲得的自由現金流感到非常興奮。現在回答你關於收益率的問題，它真的很強勁。是 34%。雖然我是營運資本順風車的忠實粉絲，我對團隊的紀律和改進感到非常自豪，但這可能是一項具有挑戰性的事情，對吧，未來每年都需要不斷努力。您總是可以做出一些好的營運資金改進。

But I think that if you think about this business in the long term, it's probably fair to assume that your free cash flow yield trends a lot closer to your operating margin yield. So as long as you make operating margin improvements, you should be able to capture most of that right down to the free cash flow line. But then also in this business, the beauty of this business from a free cash flow perspective is that if you can drive operating margin improvement and you can drive reaccelerated billings growth because of the way our working capital works, your free cash flow generation can really accelerate.

但我認為，如果你從長遠來看這項業務，那麼可以公平地假設你的自由現金流收益率趨勢更接近你的營業利潤率收益率。因此，只要您實現營業利潤率的提高，您就應該能夠獲得大部分的收益，直到自由現金流量線。但在這項業務中，從自由現金流的角度來看，這項業務的美妙之處在於，如果您能夠推動營業利潤率的提高，並且由於我們的營運資金的運作方式，您可以推動賬單的重新加速成長，那麼您的自由現金流的產生確實可以加速。

And so like this is over much longer-term period that I'm talking about, but it is the power of this model, which is super exciting. And so I do think, though, like, I mean I think in the span of time, you would think free cash flow yield should trend closer to your operating margin yield that we've been. We've done better than that and free cash flow pretty significantly better than that and free cash flow this quarter, but it's mostly on the back of those working capital improvements or not mostly, but a large chunk of it. And so you have to be cautious about assuming that you're going to expand on those every quarter.

因此，我所說的是一個更長期的時期，但這是這個模型的力量，這是非常令人興奮的。所以我確實認為，我的意思是，在一段時間內，你會認為自由現金流收益率應該更接近我們一直以來的營業利潤率收益率。我們的表現比這要好，自由現金流比這個季度和本季的自由現金流要好得多，但這主要是由於營運資本的改善，或者不是主要，但很大一部分。因此，您必須謹慎假設每個季度都會擴展這些內容。

Our next question is from Karl Keirstead with UBS.

我們的下一個問題來自瑞銀集團的 Karl Keirstead。

Okay. Great. I'd love to go back to the comment when you were describing the puts and takes on the vertical side when you mentioned that FINS felt a little bit more pressured or impacted. Just curious, was that a comment about the more rate-sensitive mortgage-related transactions? Or was that a broader comment on FINS. And I'm wondering if your fourth quarter guidance reflects any anticipation of the FINS vertical stabilizing?

好的。偉大的。我很想回到你在描述垂直方向的推桿和推桿時的評論，當你提到FINS感到有點更大的壓力或影響時。只是好奇，這是對利率更敏感的抵押貸款相關交易的評論嗎？或者這是對 FINS 的更廣泛的評論。我想知道您的第四季度指導是否反映了對 FINS 垂直穩定的預期？

Yes. I'll just start, and Blake, you can add. Look, I think in terms of the mix impact of financial services, in that's mostly behind us, but we have experienced that over the last several years, both on the mortgage side and financial services industry. And we saw some in the smaller banks, for example, that IT spend froze with all the turmoil in the spring, some of the very largest banks have also had particularly aggressive cost management efforts. I'd say, overall, we've seen some modest recovery. It's still growing a little slower than the business overall, but trending better.

是的。我先開始，布萊克，你可以補充。聽著，我認為就金融服務的綜合影響而言，這基本上已經過去了，但在過去幾年中，無論是在抵押貸款方面還是在金融服務業，我們都經歷過這種情況。例如，我們看到一些小型銀行的 IT 支出因春季的動盪而凍結，一些最大的銀行也採取了特別積極的成本管理措施。我想說，總體而言，我們已經看到了一些溫和的復甦。它的成長速度仍然比整體業務慢一些，但趨勢更好。

And we'll see what happens with interest rates. Our current forecast assumes that macro conditions continue as they are. I recognize there's optimism they may get better. We'd love that, but we don't want to include that in our guidance.

我們將看看利率會發生什麼。我們目前的預測假設宏觀條件繼續維持現狀。我承認人們對他們可能會變得更好持樂觀態度。我們很樂意這樣做，但我們不想將其納入我們的指南中。

Yes. Just to follow up. My general philosophy is I don't make macro forecast as a team because it's just like I think we joked about it earlier on the call, it's a hard business to get into. And so we forecast what we see. And so if things were to change one way or the other, we would then have to -- we'd speak to that variance.

是的。只是為了跟進。我的整體理念是，我不會作為一個團隊進行宏觀預測，因為這就像我們之前在電話會議上開玩笑一樣，這是一個很難進入的行業。所以我們預測我們所看到的。因此，如果事情要以某種方式改變，我們就必須——我們會談論這種差異。

Our next question is from Patrick Walravens with JMP Securities.

我們的下一個問題來自 JMP 證券的 Patrick Walravens。

Great. And congratulations on the business turning here. It's great to see. So Allan how is DocuSign's relationship these days with Salesforce? Historically, I know it's been really strong. The reason I ask is during Dreamforce. This year, they had a session on sales force contracts, and we sort of laid out the road map for Salesforce contracts where they have AI functionality coming in the spring and then obligation management in the summer and then red lining the year after that. So I'm just wondering how are things with Salesforce?

偉大的。並祝賀業務轉向這裡。很高興看到。那麼 Allan 最近與 Salesforce 的關係如何？從歷史上看，我知道它非常強大。我問這個問題的原因是在《Dreamforce》期間。今年，他們舉行了一次關於銷售人員合約的會議，我們為 Salesforce 合約制定了路線圖，他們在春季推出人工智慧功能，然後在夏季推出義務管理，然後在後年設定紅線。所以我只是想知道 Salesforce 怎麼樣？

I think our relationship with Salesforce is strong as ever. We renewed our strategic partnership this summer. I was just over there in meeting with one of the senior executives yesterday. It's a very healthy relationship at every level. And we have probably more -- we have certainly a more Salesforce enabled business then with any other software partner that includes other very large software companies. So Salesforce has been a terrific partner, and they remain that. On the CLM side, yes, they certainly have a contracts often covering out. They previously offered that in their vertical products, and now they're generalizing it somewhat.

我認為我們與 Salesforce 的關係一如既往地牢固。今年夏天我們續簽了策略夥伴關係。昨天我剛在那裡會見了一位高階主管。在各個層面上，這都是一種非常健康的關係。我們可能還有更多——我們肯定比其他任何軟體合作夥伴（包括其他超大型軟體公司）擁有更多支援 Salesforce 的業務。因此，Salesforce 一直是個出色的合作夥伴，而且仍然如此。在 CLM 方面，是的，他們確實有一份經常被覆蓋的合約。他們之前在垂直產品中提供了這一點，現在他們在某種程度上對其進行了推廣。

I think that the challenge is that the market is moving to a horizontal model by which I mean 2/3 almost of all the CLM RFPs that we see are for cross-functional contract management. In other words, a single centralized contract management system across, let's say, procurement front of the house, HR, et cetera. And that will be hard for Salesforce or other even very large companies that are focused on one particular workflow or another.

我認為挑戰在於市場正在轉向橫向模式，我的意思是我們看到的幾乎所有 CLM RFP 中的 2/3 都是針對跨職能合約管理的。換句話說，一個涵蓋前台採購、人力資源等的單一集中式合約管理系統。對於 Salesforce 或其他專注於某一特定工作流程的甚至非常大的公司來說，這將是困難的。

And so I expect that we will continue to collaborate very closely with Salesforce on both the Signature side and the CLM side. And I'm not too worried about the Salesforce contracts piece. But never under estimate Salesforce. They're a fantastic company and partner.

因此，我希望我們將繼續在 Signature 方面和 CLM 方面與 Salesforce 密切合作。我不太擔心 Salesforce 合約部分。但永遠不要低估 Salesforce。他們是一家出色的公司和合作夥伴。

Our next question is from Kirk Materne with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Kirk Materne。

Allan, I was wondering you just double-click a little bit on the international opportunity. You called it out in the prepared remarks. Is that largely sort of PLG led right now? Or are you thinking about sort of bringing more direct sales into play over in certain geographies. Can you just give us some sense of how you view that opportunity, given you're obviously less penetrated outside the U.S.?

艾倫，我想知道您是否雙擊了國際機會。你在準備好的發言中指出了這一點。目前這主要是由 PLG 領導的嗎？或者您是否正在考慮在某些地區引入更多的直接銷售。鑑於您在美國以外地區的滲透率顯然較低，您能否告訴我們您如何看待這個機會？

Yes. It's actually a full omnichannel thing and it's very market context specific. So first of all, we have a substantial amount of direct sales teams deployed in some of the major international markets U.K., France, Germany, Australia, and we service Canada, obviously, Brazil, a meaningful size team there as well and is patterning of folks in other markets. So historically, that was our principal go-to-market model. We're now really balancing that across direct investment where we can put enough wood behind the arrow and there's enough return on that investment. And then a combination of a digital motion which we can obviously serve 180 countries that way.

是的。它實際上是一個完整的全通路事物，並且非常特定於市場環境。首先，我們在英國、法國、德國、澳洲等一些主要國際市場部署了大量的直銷團隊，我們為加拿大、巴西等國家提供服務，那裡也有一支規模相當大的團隊，並且正在建立其他市場的人們。從歷史上看，這是我們主要的進入市場模式。我們現在確實在直接投資之間進行平衡，我們可以在箭頭後面放置足夠的木材，並且該投資有足夠的回報。然後是數位化行動的結合，我們顯然可以透過這種方式為 180 個國家提供服務。

And then a partner motion in countries where we -- where it makes sense to leave with that. So you took a smaller developing market, let's say, it wouldn't make sense for us to put a direct sales team on the ground, but we wouldn't be able to fully exploit the opportunity strictly through a digital only motion. And so I think we have tremendous opportunity on both of those fronts. And we are seeing growth both in our digital channels, where international is growing faster than domestic and in our direct channels where it's growing fast and domestic.

然後，在我們認為有必要離開的國家提出合作夥伴動議。因此，您選擇了一個較小的發展中市場，比如說，我們在當地設立直銷團隊是沒有意義的，但我們無法嚴格透過僅數位化的行動來充分利用這個機會。因此，我認為我們在這兩個方面都擁有巨大的機會。我們看到數位通路的成長，國際通路的成長速度快於國內通路，以及直接通路的成長速度和國內通路的成長速度。

So we'll continue on that. Just to return to a theme from prior calls, as we looked at prioritization and where we're really going to put additional investment, both from a direct sales standpoint, but also in all the various supporting functions that are necessary to really have an effective go-to-market motion. We prioritized investing in Germany and Japan, which were markets that where we had some level of direct sales investment where we hadn't invested in this aggressively in marketing and back-office functions like legal and finance or in product.

所以我們將繼續這樣做。回到先前電話會議的主題，我們研究了優先事項以及我們真正要在哪些方面進行額外投資，無論是從直接銷售的角度來看，還是在真正擁有有效的支援功能所必需的所有支援功能中。上市動議。我們優先投資德國和日本，我們在這兩個市場進行了一定程度的直銷投資，但我們沒有在行銷和後台職能（如法律和財務或產品）上積極投資。

And so that has been a priority since the spring. And we're making really good progress in both of those markets. I mentioned last time, we opened our office in Munich. We have an office in Tokyo. We have launched localized products for several of those markets mentioned the Japanese CLM product that we shipped here a couple of months ago, a lot of the identity verification stuff, and were more stuff coming here shortly in that round. They're targeted at EU in general, in Germany, in particular.

因此，自春季以來，這一直是優先事項。我們在這兩個市場都取得了非常好的進展。我上次提到，我們在慕尼黑開設了辦事處。我們在東京設有辦事處。我們已經為其中幾個市場推出了本地化產品，提到了我們幾個月前在這裡發貨的日本CLM 產品，還有很多身份驗證的東西，並且在那一輪很快就會有更多的東西來到這裡。他們的目標是整個歐盟，特別是德國。

And so we are investing aggressively I would say, in a direct sales motion maybe our top 10 markets globally and then a combination of partner and digital throughout other markets where we can. There'll be some very long tail countries where we can only serve with the digital motion but that's how we approach it.

因此，我想說，我們正在積極投資，可能會在全球十大市場進行直銷，然後在其他市場上盡可能結合合作夥伴和數位技術。在一些非常長尾的國家，我們只能透過數位行動來服務，但這就是我們的處理方式。

Our next question is from Mark Murphy with JPMorgan.

我們的下一個問題來自摩根大通的馬克墨菲。

This is Sonak Kolar from Mark Murphy. Allan, can you provide an update on any changes you may be seeing in the competitive dynamics for the eSignature market, particularly towards the lower end market that you called out in the past? Just curious if there's a sense that DocuSign (inaudible) efforts are helping with the retention and competitive wins, particularly within those users of basic eSignature use cases?

我是馬克墨菲的索納克·科拉爾。艾倫，您能否提供有關電子簽名市場競爭動態中可能看到的任何變化的最新信息，特別是您過去提到的低端市場？只是好奇是否有人認為 DocuSign（聽不清楚）的努力有助於保留和贏得競爭，特別是在基本電子簽名用例的用戶中？

Yes. I think the dynamic is as I've described in 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.

是的。我認為這種動態正如我在前幾個季度所描述的那樣，我沒有看到重大變化。因此，對於較大的客戶，我們可能會在某些國際市場上看到本地競爭對手，例如 Adob​​e 等，而對於較小的客戶，我們可能會看到一些不太熟悉的名稱。我認為我們——我沒有看到我們在競爭性交易中的獲勝率有任何變化。我對我之前提到的新定價和包裝方面的一些舉措持謹慎樂觀的態度，我們在市場兩端都做出了相當有效的回應。

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.

最後，我剛剛提到，如果您願意的話，它真正嵌入到工作流程中，我們已經大幅升級了 ISV 的解決方案以嵌入 DocuSign，並且我們採用了更靈活的計費模型指即用即付，自第二季推出以來，這裡出現了一些非常好的加速成長。所以在多個方面。我覺得我們做得很好，而且我沒有看到競爭動態發生實質變化。

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.

謝謝。目前沒有其他問題。我想將發言權交還給艾倫·蒂格森（Allan Thygesen）進行總結評論。

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 eSignature into intelligent agreement management.

謝謝。謝謝接線員，也謝謝大家參加今天的電話會議。因此，本季度，DocuSign 在我們的產品計劃方面取得了特別有效的進展，同時平衡了這些投資與營運效率。因此，隨著我們從電子簽名擴展到智慧協定管理，我們將繼續擴大規模。

Thanks for your time. Look forward to seeing all of you next quarter.

謝謝你的時間。期待下個季度與大家見面。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Goodbye.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。再見。