Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's Q2 FY 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. As a reminder, this call is being recorded and will be available for replay from the investor relations section of the website following the call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I'll now pass the call over to Heather Harwood, Head of Investor Relations. Please go ahead. Thank you, operator. Good afternoon, and welcome to the DocuSign Q2 2023 earnings call. I'm Heather Harwood, DocuSign's Head of Investor Relations. Joining me on the call today are DocuSign's Interim CEO, Maggie Wilderotter, and our CFO, Cynthia Gaylor. The press release announcing our Q2 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. 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. 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. During this call, we will present GAAP and non-GAAP financial measures. In addition, we provide non-GAAP weighted average share counts 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.d ocusign. com. I'd now like to turn the call over to Maggie Wilderotter. Maggie. Thanks very much, Heather, and good afternoon, everyone, and thank you for joining us today. First, let me introduce myself. I have been on the DocuSign board for over 5 years and board chair for the last few years. In addition to my board service here at DocuSign, I also sit on several other public and private boards. I've had the privilege to serve on 51 corporate boards in my career, 36 public and 15 private, starting at age 28 when I first joined a corporate board. I also have 18 years of CEO operating experience at private and public companies, and most recently was CEO of a Fortune 500, Frontier Communications, for 12 years, retiring 5 years ago. I have had the privilege in my career to hire and lead great teams, define clear strategies for success, driving results through clarity of deliverables and accountability. I've also done so with a maniacal focus on serving customers, both internal and external. I am taking the same approach in my interim role as CEO of DocuSign. Since joining as CEO, I prioritize connecting with customers and employees around the globe through frequent town halls, office visits, virtual connections, and in-person meetings. This broad focus on listening, learning, and interacting has enabled me to move quickly to set a new agenda for success. We enter Q3 with a clear set of vital few deliverables for our people initiatives, product roadmap, and our focus on improving sustainable and profitable growth at scale. Six of our eight executive leaders joined during Q2 and are seasoned scale players. They joined Cynthia Gaylor, our CFO, that you're going to hear from after me, and also Shanthi Iyer, our CIO, on the executive leadership team. Our new executive leadership team and I have worked together over the past few weeks to clarify a clear strategic focus and define what is required from all employees for DocuSign to be successful. Let me start with our strategy. DocuSign is the leader in providing end-to-end digital agreements on a fully integrated platform. This starts with delivering simple, intuitive, integrated, and trusted customer and partner experiences that remove friction from all steps in creating, using, and managing digital agreements. To support this strategy, we have upgraded talent, launched retention initiatives to include a new employee training program that will commence this month, teaching our teams how to operate with excellence. Inhi Cho Suh, our new President of Product, has already put in place a clear product roadmap with mapped out releases starting next month. Steve Shute, our new President of Go-to-Market, has revamped our selling motion and performance expectations for the small, medium business, and enterprise segments. Our marketing team is delivering new collateral, messaging, and tools for Steve's teams, as well as a simplified digital motion for consumers and one-time users. Finally, DocuSign has also added two additional seasoned scale leaders. I'm pleased that Jennifer Christie is our new Chief Human Resources Officer and veteran Jim Shaughnessy is our new General Counsel. I am privileged to lead such a terrific group of executives who have all hit the ground running by working together with a single focus. Set the company on a path for continuous performance improvements in Q3 and Q4 and beyond. I'm optimistic about the power of our brand, our value proposition for customers and partners, and the renewed results orientation being embraced by our employee base. Finally, the search for our next CEO is a top board priority. All of our independent directors have been actively interviewing great candidates, and we are close to making a decision. Terrific candidate pool participating in this process has reinforced the strength of our brand and the shared belief that DocuSign has a tremendous future growth opportunity. I look forward to letting you know who the next CEO will be. With this preface, let me turn to some other Q2 results highlights. As you have seen in our earnings release, Q2 revenue was $622 million, representing a 22% year-over-year increase. We added 44,000 new customers during the quarter, again a 22% increase year-over-year, which brings our total global paying customer count to 1.28 million. We delivered an 18% operating margin in Q2 as well. The H2 of this FY, our goal is to drive operating expense reductions in order to meet the current operating margin guidance range of 16%-18% that we had previously communicated to you. We are reviewing all categories of expenses and will adjust our spending accordingly. These expected expense reduction initiatives will create capacity for the right investments for our expected scale growth. For example, our IT and internal systems development teams are focused on key automation and software system upgrades, including our planned ERP system cutover this quarter. These enhanced capabilities will enable us to eliminate current manual processes, resulting in lower operational costs in the back half of this fiscal year, and it will also improve our customer and partner experiences. I am excited to share that we closed a number of large enterprise deals during the quarter that include both Microsoft and Goldman Sachs. In addition, our focus on partner expansion includes a new integration with Stripe to enable users of both product sets to view DocuSign agreements and Stripe payments side by side. Stripe customers can also create new DocuSign agreements directly from Stripe dashboards. This is another strong example of taking friction out of the customer agreement transactions. Over the past few months, with increasing interest rates and inflation on a macroeconomic level, we also have started to see some softness in certain verticals like real estate and financial services. Despite these headwinds, our business model benefits from a well-diversified customer base across industries, geographies, and segments. Our products help all of our customers, from large to small, improve their productivity, be more efficient, and improve their time to value creation. In closing, I am honored to continue to lead the DocuSign team until a successor is in place. During this time, we remain committed to stay focused on our vital few priorities, driving profitable growth at scale, and delivering further enhancements to the digital agreement platform to delight our customers. We have a $50 billion global market opportunity with an industry-leading product and market share position. We will use this position to aggressively expand our capabilities through wise investments, focus, and continuous improvement in our performance. DocuSign cannot be successful without strong shareholder support. Let me end my remarks here with thanking all of you for your continued support of our company. We know our results over the previous three quarters did not meet expectations. We got the message. That change was needed, and I hope you can see that we are fully committed to build upon our current momentum to deliver for all of our stakeholders. I will now hand it over to our CFO, Cynthia Gaylor, who will walk you through our Q2 financial results and outlook. Cynthia? Great. Thanks, Maggie, and good afternoon, everyone. We delivered a solid Q2 and continue to make progress against our top priorities as we drive the business forward. We landed ahead of our expectations for last quarter on multiple fronts. Importantly, we further expanded our customer install base during the quarter and continued to execute towards our long-term goals, successfully balancing growth with improved profitability. Delivering our customers an unmatched and innovative value proposition will remain our top priority. Our mission is also uniquely aligned with today's macro backdrop, delighting our customers with high ROI products that are easy to use, efficient, and both cost-saving and cost-effective, all while helping the environment. Let me review some key highlights within our Q2 results. Total revenue increased 22% year-over-year to $622 million, and subscription revenue grew 23% year-over-year to $605 million. The strengthening of the U.S. dollar during the quarter resulted in a 2-point headwind to total revenue growth, though it was not a meaningful factor in the quarter. Our international revenue grew at 35% year-over-year to reach $154 million in the Q2 and was 25% of our total revenue. Q2 billings rose 9% year-over-year to $648 million, with a 4-quarter rolling average growth of 19%. Customer growth remained strong as we added approximately 44,000 new customers during the quarter, bringing our total install base to 1.28 million customers worldwide at the end of Q2, a 22% increase compared to a year ago. This includes approximately 10,000 additional direct customers to reach a total direct customer base of 191,000, a 29% year-over-year increase. We saw a 39% year-over-year increase in customers with an annualized contract value greater than $300,000, reaching a total of 992 customers. However, while we successfully delivered strong results related to key metrics, we too are seeing more measured buying patterns noted by our peers, coupled with generally longer conversion cycles within some areas of our business. This is more pronounced in real estate and within those verticals exposed to the lending market. However, with our diversified customer base, we saw relative strengthening in technology, food and beverage, and manufacturing verticals. It's also notable that SMB continues to show signs of durability within our direct business with higher relative growth. Enhancing our go-to-market effectiveness also remains a key priority to drive top-line growth and ensure solid profitability. While progress in our go-to-market activities will take some time to meaningfully resonate in our quarterly results, we have taken a number of tangible steps to drive future success, including rounding out the leadership team, stabilizing the sales force, aligning sales goals to current expectations, and driving accountability throughout the field. Our team is focused on ensuring that customers understand the many ways DocuSign positions them for success over time. Furthermore, innovation across our product portfolio continues to drive future growth and remains core to our differentiation in the marketplace. To share one example from our enterprise business, we recently expanded our relationship with one of Latin America's leading pulp and paper companies. As an existing eSignature customer, this client expanded its DocuSign footprint by purchasing CLM to digitize their forest department's agreement process. CLM therefore enabled our client to automate various stages of the agreement process, including contract drafting and automatic task delegation, which has since saved hours of valuable time and manual work while mitigating human error. We initially began our relationship with fewer than 50 CLM users. Today, this customer has leveled up to 500 users on our platform. This is one of many examples which underscores our successful strategy of landing and expanding customers who then grow with us over time in new use cases with new products or features to address their evolving business needs. Another example in core eSignature is a long-term DocuSign customer and notable clean energy fintech company, which expanded its use of DocuSign to address an important gap in their eSignature experience. Our team identified this customer's need for increased optimizations in their eSignature journey, as many of their customers signed via mobile. We leveraged our unique product and feature expansions to ensure that signers now have the appropriate functionality and security through their mobile device. This includes our Responsive Signing and Smart Sections viewing features with added security through SMS and ID verification. Now turning back to our Q2 results, we achieved 110% dollar net retention for the quarter, which was slightly below the low end of our 112%-119% historic range. As we noted last quarter, our customer base continues to expand, however, at a lower rate relative to the peak expansion rates. Given these moderating expansion rates coupled with the macro environment we're seeing, we expect our dollar net retention rate for Q3 to remain below the historic range. Total non-GAAP gross margin for the quarter was 82%, in line with last year, while subscription gross margin was 85%, also in line with last year. Q2 non-GAAP operating profit reached $112 million compared with $100 million last year. Non-GAAP operating margin was 18% compared to 19% last year. Non-GAAP net income for Q2 was $90 million compared with $98 million in the Q2 of last year. As discussed last quarter, we introduced a non-GAAP tax rate in our non-GAAP net income calculation as we reach consistent non-GAAP profits for the prior three years. We're using a non-GAAP tax rate of 20% for fiscal 2023. Q2 non-GAAP EPS is $0.44, which includes the impact of the 20% non-GAAP tax rate. We ended the quarter with 8,061 employees, a 22% increase compared to last year. We have seen attrition rates moderate with new leaders now on board as teams settle in with clearly defined priorities and against the backdrop of a changing macro environment. We are encouraged by the improvements we're seeing. We exited Q2 with over $1.1 billion in cash equivalents, restricted cash, and investments. Operating cash flow in the Q2 was $121 million or a 19% margin. This compares with $178 million or a 35% margin for the same quarter a year ago. Free cash flow came in at $105 million or a 17% margin in the quarter compared to $162 million or 32% in the prior year. We are in the process of implementing a new ERP platform, which will enable improved management of our business as we continue to scale. Looking ahead, Q3 operating cash flow and free cash flow could be impacted by the timing of collections related to our expected ERP implementation as well as by one-time lease modification expenses. Now turning to our share repurchase program announced earlier this year. We repurchased 400,000 shares during the Q2 for approximately $25 million. As of the end of Q2, we had approximately $175 million in remaining buyback capacity, which demonstrates our confidence in the strong fundamentals of our business and in the opportunities which lie ahead. We remain committed to opportunistically returning capital to our shareholders. Taking a step back, we have operating leverage in our business and are evaluating our investments against the vital few priorities we've identified with an eye towards ensuring sustainable growth at scale. We are committed to achieving our long-term target margins of 20%-25%. To that end, Maggie has charged our leaders with taking a careful look to ensure our teams are aligned to our vital few priorities and to identify areas where our business can be further streamlined and optimized. For example, we are reassessing our overall expense base, which includes a careful review of our people, programs, consultants, and T&E spend. Along these lines, we're also taking a measured approach to hiring. As we progress towards a more scaled model with improved operating efficiencies, investments will continue to be directed toward our systems and tools, specifically our ERP, as a foundational business system. Further, we're evaluating our global real estate portfolio to optimize for team collaboration and our physical footprint. This rigor and discipline will ensure we operate from a position of strength and fiscal flexibility. With that, let me now turn to guidance. For the Q3 and FY 2023, we anticipate total revenue of $620 million-$624 million in Q3 or growth of 14%-15% year-over-year, and $2.47 billion-$2.482 billion for fiscal 2023 or growth of 17%-18% year-over-year. Of this, we expect subscription revenue of $609 million-$613 million in Q3 or growth of 15%-16% year-over-year, and $2.405 billion-$2.417 billion for fiscal 2023 or growth of 18%-19% year-over-year. For billings, we expect $584 million-$594 million in Q3 or growth of 3%-5% year-over-year, and $2.550 billion-$2.570 billion for fiscal 2023 or growth of 8%-9% year-over-year. We expect non-GAAP gross margin to be 79%-81% for both Q3 and fiscal 2023. We expect non-GAAP operating margin at 16%-18% for Q3 and fiscal 2023. We expect to see a de minimis amount of interest in other income. As noted last quarter, the FY 2023 non-GAAP tax rate remains at 20%. We expect a non-GAAP fully diluted weighted average shares outstanding of 205 million-210 million for both Q3 and fiscal 2023. In closing, we delivered a solid Q2 amid a time of transition and despite continued macro headwinds. Our focus as a leadership team remains steadfast in serving our customers, employees, and investors as we continue to innovate, build, and position DocuSign for the unmatched opportunity which the future holds. This quarter has further demonstrated that digital transformation continues to be our customers' priority and that DocuSign enables the world to nimbly adapt to today's dynamic environment and once customers move from pen and paper, they don't go back. We will maintain our disciplined and focused investment approach across our top priorities as we further operationalize the business at scale. We are committed to achieving our long-term operating margin targets while driving sustainable growth with profitability as we navigate the current environment. The progress we've made thus far is gaining traction, driven by our team's commitment to delivering value for our customers and results for our stakeholders. Thanks again for joining us today. With that, operator, we can now open up the call for questions. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Josh Baer with Morgan Stanley. Please proceed with your questioning. Great. Thanks for the question, and congrats on that performance in the quarter. Wanted to dig in on some of the categories of expenses that you're reviewing to make capacity for those needed investments. I mean, it seems very broad-based, sort of listing people and programs and real estate. Was hoping you could dig into some of the specific areas of spend that will contribute the most to operating efficiency. Hi, this is Maggie Wilderotter. I just wanted to say that we are in the process right now as a leadership team of identifying what goes underneath each of those broad categories that Cynthia Gaylor mentioned. I don't have a list in front of me that I can say, "We're gonna do this, this, and this." I will reinforce that there are no expense categories in the company that will not be reviewed for where we can get efficiencies and effectiveness for the business. Okay. Got it. That makes sense. Maggie, wanted to ask on the new messaging from a marketing perspective, if you could, sorta expand on some of those changes from that marketing message. That's it for me. Thanks. Yes. I think one of the things that I'm most excited about, and so is the team, is to look at the creation of a digital agreement platform versus a focus on a cloud environment. When we think about cloud is a repository for a lot of different things that don't necessarily integrate or talk to each other. What we want is the end-to-end digital agreement to be fully integrated with each of the different capabilities of that agreement, as well as with eSignature. For example, document generation along with Web Forms or Identify or Notary or Monitor should all be integrated with eSignature, and that also includes our CLM product sets too. I think when you think about what we've been doing, the elegance of coming to this new way of thinking about the agreement creates an environment where customers don't have to go anywhere else for pieces of the agreement platform. They can get it all from DocuSign. Having that end-to-end approach to what we're doing is something that we're very excited about, and the customers we've talked to about it are excited about it as well. Yeah. I might just elaborate on that a little bit more. You know, I think it's really about amplifying the key messages that make DocuSign special and really serve our customers. When you think about our innovation and differentiation, right, we are positioned with customers across the agreement platform, but making sure we really stitch together all the different pieces of the functionality to make it really frictionless for the customer. You know, we also, you know, in today's environment with some of the macro headwinds, making sure that customers really understand the value proposition, right? We have a very high NPS score with customers in terms of delighting them. It's easy to use. It reduces friction with their customers, which is why they love using DocuSign. I think really helping customers understand just the efficiency and effectiveness in the belt-tightening environment that we're in, our marketing team is really focused on amplifying that because we have very much a land and expand model where we start small. You know, we serve some of the smallest customers around the globe and some of the largest, but many of them, regardless of their size, they start small with us and land and expand. The value is really there. I think also just really sharpening our focus in marketing around that so customers understand that out of the gate is one of those key areas. Great. Thank you very much. Our next question comes from the line of Tyler Radke with Citi. Please proceed with your question. Hey, thanks for taking the question. I wanted to ask you about what you're seeing with customer renewals. There's been some chatter about, you know, some downsells just given, you know, economic activity is under pressure and customers are optimizing investments. I guess two questions related to that. First, do you feel like you've processed most of kind of these renewals at a normalized rate? Secondly, how much of that, if you are, to the extent you are seeing, some compression on the renewals is related to macro factors versus, you know, potentially competitive or other factors? Thank you. Yeah. I'll take that one. Thank you for the question. You know, renewals in kind of our book of business is a very important part of the business. As you know, we've doubled the size of the business in a very short period of time, going from $1 billion in revenue to over $2 billion. That renewal piece of the book of business is very important in terms of continuing to scale it, but also it provides a lot of predictability to our business model because we have a large customer base who's using the product. We know once people get on the platform, they're not going back to pen and paper. Because of the land and expand, we really have a lot of operating leverage in that model. That being said, we talked about this a little bit, the last few quarters, you know, we are seeing smaller expansions, right? You know, during the peak of the pandemic, the expansions, you know, we had customers who bought conservatively 'cause they didn't know how long the pandemic would last, and then they had to expand, because things lasted longer than they thought. Also once they started using the product, they were using it in many, many use cases. I think as we got to scale, to the place we are now, we're seeing, smaller upsells and expansions as customers continue to consume what they bought, and the timing of those renewals also impacts kind of those expansion rates. You see that a little bit in our dollar net retention metric, that's kind of related to that expansion and renewal base. We still see a very strong base of renewals, expansions within the renewal base. You know, and of course, you know, dollar net retention also reflects any, you know, downsize renewals or downsize churn, but those are, it's more of a backward-looking metric than a forward-looking metric. Try to be comprehensive in that answer. Hopefully, that was helpful. Yeah, the only thing I would add to that, Tyler, is, you know, over the last quarter, we have not really had the leadership in the customer success organization because we had a fair amount of turnover. When we think about customer success at DocuSign, those are our teams that will work with existing customers to expand into use cases in other areas of the business. We're really excited. We have a brand new chief customer officer who's got great operating experience at scale, who has joined the company and just started this week. One of the priorities we're doing on the go-forward basis is really getting that muscle back into the upgrade land and expand motion, that we've enjoyed in the past that have really helped us take a small deal that gets done with a customer and expand it throughout an organization. You're gonna see a lot more focus on that in the second half of the year. No, that's helpful. I guess, would it be fair to say that you think the worst from a attrition perspective, in terms of employee attrition is behind you? Consequently, how should we think about that, you know, layering on of incremental sales capacity and customer support capacity to drive expansion rates over time? In other words, when would you expect that net retention rate to resume towards historical levels? Thank you. Well, I can say that at this point, we have definitely stabilized the attrition, again, by bringing in great scale leaders and having everybody focused on their people as a number one priority in our vital few deliverables. We wanna make sure our people are well taken care of, that they have the tools and capabilities to do their jobs, that they understand what's expected of them from an accountability perspective, and we're gonna measure that success and reward that success. I truly do believe too, that we filled in a lot of the blanks over these last several months of key management positions that were left open, especially in the sales and go-to-market, which was necessary for us to fill in order to get the coverage back out with the customer base that we needed. I'm cautiously optimistic. I also think that there has been some tightening in terms of job availability, especially in the United States and over in certain areas of Europe. That has also enabled us to have a little bit more stability with the current workforce that we have. Thank you. Our next question comes from the line of Rishi Jaluria with RBC. Please proceed with your question. Oh, wonderful. Thanks so much for taking my question. Maybe I just wanted to start out with, I mean, you talk a lot about some of the cost-cutting measures and being really disciplined. You know, while obviously I applaud the focusing on you know not wasting money, you're not a super high cash burner, and it feels like a higher priority might be sales execution, finding new use cases, expanding internationally. Why spend so much management time and attention right now identifying areas for cost savings, scrutinizing cost savings, and for that matter, upgrading you know migrating your ERP system as well, when you know realistically it feels like from my perspective it should be on sales execution and that kind of stuff, and then maybe identify cost savings later. Maybe some color there would be helpful, and then I have a follow-up. Yeah, Rishi, thanks for the question. It's Cynthia here. A couple of things. I think, you know, we've always talked about, you know, prioritizing growth, and we'll invest for growth. I think part of, you know, the initiative right now is making sure that, you know, the spend across the company is productive spend and that we're freeing up resources for growth. Part of that is, you know, we scaled really quickly in a very short period of time, and there were a lot of things we didn't operationalize efficiently. I think part of the exercise is partly expense, but it's also streamlining processes, managing complexity at scale, those types of things. When we look at the go-to-market specifically, you know, there is a focus on the vital few, you know, which begins and ends with selling software and making our customers successful. You know, there is a stabilization of the team there, providing accountability within the field, and importantly, aligning goals with the current outlook at the company. That is very much front and center because at the end of the day, you know, we're a subscription software company, we're growing at scale, we wanna continue to grow at scale, and we've had some speed bumps, right, coming out of the pandemic. The cost piece of it is really to free up investment to focus on top-line growth, but it's not top-line growth at any cost. We're also very focused on profitability. As you noted, you know, we have strong cash flow, we have a strong balance sheet, and so, you know, we would expect that to continue and something we're monitoring very closely. All right. Got it. That's really helpful. You know, just as I think about, you know, the guidance, right? You're talking about mid-single-digit billings and then your turnaround, and I get turnarounds take time. Maybe help us understand, you know, looking beyond this year, and I'm not asking for guidance for next year, but what sort of underlying growth rates would you be pleased with or happy with? What are kind of the steps to get from that mid-single-digits level, you know, which if we're looking at billings as the best leading indicator to, you know, a healthier, kind of more robust growth rate? Thanks. Yeah. Thanks, Rishi. I think, you know, we were really pleased to be able to raise the full year guide here, you know, for the year, at this point in the year and maintain our margin. That's really based on the progress that we've made to date and what we're seeing in the business. You know, that being said, you know, there's still macro headwinds that are really on a global basis. Our visibility into the business is still not what we would like it to be. That's reflected in the guide, but again, we were really pleased to be able to raise the guide for the full year, at this point. I think when we look into next year, there's a couple things that we're, you know, looking at. You know, one is, you know, we are encouraged by the progress. I think part of it is, you know, next year's growth will be a function of several factors. You know, part of it is stabilizing the business and the go-to-market motion, some of the things that Maggie was talking about, and positioning ourselves for further growth headed into fiscal 2024. Part of that is based on where we land for the year. Part of it will be, you know, the AEs and the reps that we brought on board. You know, they need time to ramp, and it's a multi-quarter process, so that's in process. You know, that will be a key factor heading into fiscal 2024. You know, and then as well, you know, the macro environment will be important there. I think when we look into next year, there's kind of the importance of where we land. There's the importance of how we set up the capacity model across the field going into next year and really operationalize some of the things that got ahead of us during the peaks of the pandemic and operationalizing those at scale. Yeah. The only thing I would add, Rishi, this is Maggie, is, we are also investing and shifting investments into the product roadmap and the product portfolio, not only to get the entire digital agreement platform integrated, but to add enhancements that improve our customer and partner experiences and simplify that. We're also looking at the modernization of our product architecture, so we can make changes more quickly and continue to bring out new enhancements with different types of use cases as an example. We really do believe by driving a product portfolio that can really expand into companies, in a very specific way, where you have use cases for purchasing versus use cases for human resources, et cetera, we can establish a better alignment with our customers in terms of what they're trying to do with digital transformation. I really do believe that with the ramp that we're doing with our sales force, especially with a lot of the new people that we've hired, in addition to bringing in people still into the sales organization that are seasoned sales executives, that combination will definitely set us up that by the end of the year, we'll have a better flywheel of anticipated growth that we'll see next year-over-year. All right. Wonderful. Thank you so much. Our next question comes from the line of Brad Sills with Bank of America. Please proceed with your question. Oh, great. Thanks for taking my questions. I think you alluded to a little to this on the previous question, but curious, now that you're, you know, several quarters into this effort to pivot back to expansion deals, it sounds like you're seeing some progress already. Are there any use cases or areas where you've seen some early signs of improvement? I know it's still a work in progress, but any areas that you've seen some progress so far, and are there others that we should expect could improve from here? Yeah. So we continue to see progress in expansion, you know, across the business. You know, in my prepared remarks, you know, I noted two customers. You know, we also have seen some long-term customers, you know, even in the financial services segment, which, you know, has seen more headwinds in various pockets. We had a large money manager this last quarter, who conservatively bought during the pandemic. They've been a long-term DocuSign customer, but they're experiencing faster digitization, and they're further expanding their eSignature footprint with us during the Q2. Not only, you know, do they see heightened demand across their internal business lines, but they have a very trusted relationship with us, with their customers in terms of our branded products for their end customers. They're really using DocuSign to strengthen their own relationships with their end customers. I think that would be a really great example of, you know, strong expansion rates, long-term customer, you know, land and expand a very notable global money manager, you know, doing a lot with us in that core eSignature piece. I think there's on CLM, we've also seen quite a bit. You may have seen, we announced the Slack integration with CLM earlier this week, which again, is really about embedding DocuSign in workflows that already exist. It's a key innovative differentiator for us in terms of the AI and analytics around those types of products within workflows that companies are using. I think that's another really big opportunity as we continue on the product roadmap and to innovate, you know, where customers, you know, will see, you know, a lot of value and we'll see, you know, further room for expansion. Great to hear. Thanks, Cynthia. One more, if I may, just on the guidance here for billings, it assumes it looks like a 9% sequential decline. You don't typically see that, you know, decline in billings quarter-over-quarter in Q3. You did last year, but that was also a quarter in which you were experiencing some of these expansion deal softness. Just curious, it sounds like execution's improving here a bit, as some of these changes that you've put forth are having effect. The macro is moving away a little bit from you. What's assumed in the guidance, you know, for Q3 and billings? Thank you. Yeah. Thank you for the question. So, you know, as you know, you know, billings, you know, there's puts and takes in billings. Your timing of deals, you know, billings can fluctuate quarter- to- quarter, around timing of deals, start dates, you know, when an expansion or add-on happens relative to the timing of the overall contract. A customer may have early renewals also impacts that. You know, I would say Q2, you know, was certainly a little bit stronger than we were anticipating. I would say, you know, Q2 was probably stronger, you know, given some of those factors like timing of deals and start dates. Similarly, I think Q3 just seasonally is not as strong a quarter for us. I think that's embedded. Again, we were really pleased to be able to raise the full-year guide range, you know, across that metric. You know, recognize that Q2 to Q3, you know, that dynamic we have seen the last few years, and Q3 tends to not be as strong. The only other thing I would note is, you know, we did continue to see softness in linearity within Q2 so as we exited Q2 and entered into Q3. That certainly is embedded in the guide, just given some of the softness, you know, related to macro and then as our field teams ramp. That's very helpful. Thanks, Cynthia. Our next question comes from the line of Kirk Materne with Evercore ISI. Please proceed with your question. Yes, thanks. Maybe two, one for Cynthia, one for Maggie. Cynthia, just on the real estate and banking side, perhaps the areas where you're seeing some more pressure, which makes sense given the macro environment. Do you feel like you have better visibility into the companies that perhaps either over-provisioned or you know, during COVID so that you just have a better sense of where they're at in terms of the usage patterns today versus maybe six months ago when you were sort of just lapping them and it was more uncertain? I was trying to get a sense on you know, just sort of your visibility into that particular part of the business. Maggie, you know, Steve obviously started you know, I think you know, four or five months ago. I was just kind of curious, you know, what he's been doing from a sort of sales organization perspective to try to help get greater cross-selling going in terms of selling the full agreement platform. I, you know, I think it's something that you sort of got, you know, people got sidetracked 'cause there was so much demand for eSignature and COVID. I was kind of curious if there's anything you're doing in particular around, you know, selling the fuller suite from a sales perspective. Thanks. Sure. I think on the consumption patterns and cohorts, you know, we do very detailed analysis on the cohorts and how they're expanding, how they're consuming, you know, with our new success officer. I think, you know, they'll be even more focused on some of those metrics at scale. I would say, you know, we're still in a period where we don't have, you know, precise visibility, you know, across, you know, across the cohorts in the way that we would like. You know, part of that is scale, but part of that is, you know, during the pandemic, which has really, you know, been the last 8-10 quarters, different cohorts have expanded at different rates and also within different verticals. The one thing I'll leave you with there is part of the beauty of our model is the diversification of those cohorts and verticals. Verticals that maybe were, you know, quite strong during the pandemic, we're still seeing expansion, but it would be more in pockets, right? Some things that are more susceptible to the lending environment, you know, may not be as strong now, whereas things, you know, related to, you know, like my money manager example, you know, might be showing more strength. Similarly, you know, sectors like food and beverage or technology or even travel and entertainment, manufacturing, you know, those segments, you know, have been growing on a relative basis relative to some of the other ones that were stronger. I think part of that is just the diversification of our customer base. You know, we'll continue to look at kind of the cohorts, but the cohorts don't show perfect information. I'd say they show directional because even within those cohorts, you have pockets of different verticals or size of companies, you know, that may be having, you know, different impacts depending on what's going on within their sector. Hi, Kirk. This is Maggie. With regard to your question on, you know, Steve Shute and the sales organization and their cross-selling and motions, I, you know, I will say this. You know, Steve has been rebuilding that organization, and part of that rebuild is to really come up with a list of areas of opportunity for us to expand, not just in the enterprise space, which has a long sales cycle today. One of the things that we're doing differently in enterprise and what we've done before is I have, you know, after running a Fortune 500 for many years, I have a very large network at the top of the house for big enterprise customers, and I'm opening doors at the CEO level of those companies, which also allows us to get in front of the top leaders of the company, i.e., the executive team reporting also to the CEO, with the CEO's help. That is an ability for us to accelerate going in and looking at an enterprise agreement that's end-to-end for multiple departments at the same time versus just to land and expand in one certain department. We give that visibility to those leaders and would be able to get agreements that have more use cases when we get started. 'Cause we also find with our customers, the more use cases they have, the less likely they are to leave, you know, DocuSign or to take business away from us. It really makes them very sticky. The other part of that is partnering with our product portfolio folks and with Inhi Suh and her team on making sure that we're coming up with the right capabilities for products for these customers and APIs for our partner portfolio. Because in a lot of cases with enterprise, we have, you know, SIs and ISVs that have to go in and really help integrate what we're doing with other capabilities that they already have in place at the enterprise level. We've been doing some one-off of that over in the past, which also slows down our implementations. By being able to get some standardization in how we can expand into enterprise in a faster way, has been part of the work that Steve's been doing also with Inhi over the last couple of months. Just the last thing I will say is we're also taking friction out of the digital motion. We have a lot of customers, millions of customers that come to our website every month, in order to sign a document and create a document. These are usually one-offs. If you can get more take rate of the folks that visit to do that, and completion, there's a lot of money that we can add to the bottom line by doing that in a more frictionless way. As Cynthia mentioned, we did have pretty strong small and medium business growth. That's been a heartbeat for our company for many, many years, we're gonna continue to keep our heads down on what makes sense for the use cases for that set of customers as well. Thank you. Our next question comes from the line of Karl Keirstead with UBS. Please proceed with your question. Oh, great. Maybe I've got 2 questions, Cynthia, for you on billings. One is, did the large deals you flagged Microsoft and Goldman Sachs, did that have any material impact on either Q2 billings or the second half outlook? I'd first off say we were very pleased with those deals, but I would say no. You know, we have a very diversified business, so one or two deals, you know, don't really put us over the edge one way or the other. I would say no. I would say more generally, the timing of deals, the timing of renewals, early renewals or late renewals and start dates can impact billings. I would not say that those two deals impacted the rate one way or the other. Got it. Okay. Yeah. Yeah. Karl Keirstead, just wanna add to that is, for example, like the Goldman Sachs deal was just done in the last week or so. Yeah. They're not implemented yet either in some cases. Got it. Okay. Just wanted to check. Thank you. Maybe Cynthia, just on the Q4 billings, if I look at your Q3 guide, look at your full year guide back into implied Q4 billings, it's $709 million. So that's $120 million sequential increase, Q3 to Q4. That's your strongest ever and much stronger than the prior Q4s. Is there anything you would help us understand, point to about Q4? Maybe you've got a better renewal base, or you're counting on something that might get us comfortable with that outlook. Thanks so much. Yeah. It's a great question. Thank you. So Q4 is seasonally our strongest quarter, and we expect this year to be no different. I think some of the actions that we've been talking about across the go-to-market, you know, we're expecting to see results from the progress that we're making as we move into Q4. Again, you know, we've stabilized the team there. We're making progress with the leaders. You know, we've brought in quite a few new leaders in enterprise, commercial, SMB, customer success. We would expect as we move through the year, that we'll continue to see progress as those teams ramp, in addition to Q4 seasonally being a strong quarter for us. Okay. That makes sense. Thank you both. Our next question comes from the line of Alex Zukin with Wolfe Research. Please proceed with your question. Hey there, this is Allan Verkhovski for Alex Zukin. Thanks for taking the question. Just a quick one for me. If you look at the ARPU for new bookings this quarter and how that compared to last year, would it be the same, higher or lower? Can you further tie this to the level of discounting being done right now by DocuSign as well as competitors, along with any kind of commentary you think is important to flag in the competitive environment right now? Yeah. Thank you for the question. I would say, you know, we don't look at ARPU in the way you're describing it, but what I can tell you is we do have this land and expand model where customers start out small and expand over time. We have seen kind of those expansions come in. That may be a triangulation on the metric that you're looking at. I think when we look at the, you know, the competitive environment and pricing and how we think about pricing and packaging, you know, we're always looking to stay competitive in the market, but we also, you know, don't race to the bottom, right? Our goal is to really serve customers, create value and innovate and then monetize around what customers need and the products and the innovation we have, you know, for customers and really reducing the friction there. I would say we haven't seen, you know, material changes in the competitive landscape or, you know, pricing from that, from that perspective, although our goal is, you know, we'll compete on the low end and we compete on the high end given all the differentiation. It depends on, you know, what, you know, what customers need, the features, functionality, and then how we cross-sell and upsell products as customers expand. I'd also just note, you know, I think our NPS score is quite high and continues to be quite high. We really think of that as a metric that's around delighting our customers. The ease of use of what we do, even given some of the underbelly of the complexity of the product, I think is really a testament to that high ROI and what customers get from using DocuSign. We think that's a big differentiator in the marketplace. Allan, hi, this is Maggie. Just to put an exclamation point to what Cynthia has just said. You know, with Adobe, for example, we don't see any real change in that dynamic. We do see at times lower end use cases are the most vulnerable for us. We are actually in the process right now of putting in differentiated use case and use case pricing based upon high-end premium use cases and then sort of medium and lower end use cases. We also think by doing that, it helps streamline for our customers to do business with us and get the benefits that they're looking for from that price value. Thank you. We have reached the end of the question and answer session. I'll now turn the call back over to Maggie Wilderotter with closing remarks. Thank you again, operator, for facilitating for us. Thank you all for joining and for your continued support of DocuSign. I think you can rest assured that the leadership team here in the company will continue to keep our heads down and focused on delivering enhancements and profitability for the company, as well as expanding and delighting our customers on a day-to-day basis. We also look forward to providing you with continued updates on our progress. Thank you again for joining us today. Goodbye. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.