DocuSign Delivers Strong Q3 Performance with 8% Year-over-Year Revenue Growth
DocuSign, a leading provider of electronic signature and agreement management solutions, has announced its third-quarter fiscal 2025 results, showcasing strong performance across various key metrics. According to the company's CEO, Allan Thygesen, DocuSign delivered powerful new innovation for customers in Q3, highlighted by new capabilities for the Docusign Intelligent Agreement Management (IAM) platform.
The IAM platform has been enhanced across three fronts: launching several new capabilities, expanding availability to more regions, and enabling department-level deployments for enterprise customers. These releases aim to help customers of all sizes cut into the staggering $2 trillion in global economic value lost each year to inefficient agreement management. Within just a few months of closing the Lexion acquisition, DocuSign has built Lexion's AI capabilities into the IAM platform.
One notable example of this innovation is the addition of third-party document imports from partners such as Box, Dropbox, Google Drive, and Microsoft OneDrive and SharePoint to Docusign Navigator. Navigator acts as a system of record where customers can import, store, manage, search, and use AI to analyze agreements from multiple sources. Furthermore, an upgraded search experience was launched in Q3, featuring predictive typeahead functionality, more filters, and the ability to export results.
DocuSign also reported significant improvements in its core business fundamentals, with dollar net retention increasing to 100% in Q3, up from a low of 98% in Q4 of fiscal 2024. The company's sustained momentum in new customer growth was also evident, with an 11% year-over-year increase to 1.6 million customers.
The company's focus on gross retention and increased customer usage and utilization contributed to the improvement in dollar net retention. DocuSign's strong profitability was another highlight of the quarter, with non-GAAP operating margins reaching 29.6%, up from 26.8% in Q3 fiscal 2024.
DocuSign has set its sights on delivering transformational value for customers through the IAM platform. While it is early days in the multi-year IAM journey, the company believes it has taken strong initial steps towards achieving sustainable long-term double-digit growth.
The Q3 results demonstrate continued progress across DocuSign's three strategic pillars: accelerating product innovation, strengthening its omnichannel go-to-market capabilities, and increasing operating efficiency. The company is committed to improving efficiency while making the needed investments to reaccelerate growth.
