PLAN - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Anaplan's Third Quarter Fiscal 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

to Tichepco. conference like speaker to now Edelita today, would hand over the your I you. Thank go Please ahead.

Edelita Tichepco

quarter financial Good us call third on and today's year morning, thank conference to you discuss results. for joining fiscal XXXX Anaplan's

Joining Executive our and Chief Calderoni, Officer; the me Officer. Dave call on Financial Frank our are Chief Morton,

strategies, will and future forward-looking our call, statements, events These and quarter On materially. operating fourth differ our based guidance financial year financial best product and results we or on known fiscal this anticipated customer including statements reflect be factors may making actual XXXX, technologies. to and performance, for demand, and judgment expectations us currently

today, documents cause contained in the to refer including today's X-K to those the contain documents our or If differ other These from statement. is during Form forward-looking as Those with made disclaim the risks that information factors actual filed current may Please of and to results forward-looking may this statements. these we with revise presented SEC, call filed obligation are our release. not statements this we after press or today, be and any accurate. reviewed being call update

accepted not the on We a prepared otherwise Unless and non-GAAP are results to basis. expenses which operating all financial with our generally non-GAAP will references also during measures, accounting call, in discuss are principles. accordance stated, gross margins,

remarks is permits. on do press accommodate XX provided approximately time today's For historical best our we to for the periods, planning financial our questions of and following will a We're call in reconciliation minutes, results and non-GAAP prepared your to website. as in and release GAAP supplemental our information last

Calderoni. it And over turn to now with that, Frank I'll

Frank Calderoni

quarter. celebrated enthusiasm of a everyone. first I'd this our one-year and by to York our had shareholders company customers. Thanks, IPO we as congratulating because an the our public Edelita. from Stock year start at Exchange anniversary as employees, We New outstanding partners and the Good first commitment morning, like

in a Planning topline where which year demonstrated also position was the Connected for our leadership consistent was us category, our It historic growth. we established by

continue We industry partner also received expand and overall. ecosystem from our base, our and community to analysts, customer recognition we

able will to and impressive we elevate leaders us to continue attract talent who were further. innovative addition, In

and finally, company, about are I And the look most I getting am am another more ahead accomplishments have year trend, that pleased of and excited delivered I us. have we a proud most what we back this just quarter. past am of is a our continuing at momentum to public I report as When this started lot teams strong

year-over-year revenue grew $XX Total XX% revenue XX% year-over-year. was million, subscription up and

today's in imperative an impressive Planning, We economy. in continue the for and the challenges see digital meet of to it of competing companies growth Connected has must who value become

data to change In know way plan are where a decisions continues companies to we the and leaders stay to best world analyze competition, a in on one marketplace. the of make seeing order can that further better within accelerate, connected in platform across companies decisions pace enterprise. must another chaotic one business be massive of The their that make shift a to ahead their easily better

digitally report research that who very Forbes recent companies tough. transform, realize that it's A highlighted

the transformations, to over one XXXX about digital report of in able are capture were transformation As successful leading those in measurable and in and their the digital mentioned, only sectors. the Global XX% positive at CEOs the are journeys changes four succeeding

this ability agility are products, the and company's digital and The to people their research factors key shows the success change leadership their a in approach to for that manage age. customers

initiatives. their industries digital spend in the continuing this must types a organizations breadth experienced, companies transformation shift. across variety increase have of of see As of We to the make on we these

steady our of of X,XXX industries. acquisition continued total wide this a customer pace range with quarter customers ending new across over We

platform unique functions a can which single, provides operational carry environment all centralized, out in seamless as planning. it is Our their day-to-day

This and are annual customers $XXX,XXX XX% XXX also of platform recurring serving footprint a revenue, were growth we of that to with a quarter over differentiated for larger now This drive our deals aspect of seven-figure record the year-over-year. number was in continues closed.

XX,XXX our broad this deals of comprehensive development to over our industries, our with most employees one the platform demonstrate different To countries. of XX was companies large with relevance many quarter one over drug in of

decades This of to require hundreds projects a volume multiple can drug up company technicians efficient research insights world. more XX projects. and entire this development customer way clinical to in last years, expertise span throughout from manage of largest of lab the life has that countries needed With key of delivering the data scientific the input

platform delays Our for and is cycle. inflation. project This X,XXX throughout cost project forecasting, over Anaplan leverage drive to better enable to and consistency gain will in accuracy researchers entire the reducing planning insight to expected

in the flight Anaplan planning airline of staff their in the for load XXX operations to globally planning Connected scheduling issues. potential in chose customer for clock, operations value the us key flight customer choosing In their the example, days platform another a This the other carriers onto of around the year. runs of team business future. dedicated with workforce largest center, bring the and of One factors parts globally the Planning which to was of one and controls hundreds

with and for meeting Finding with well as to different levels the delivering as predict a able and and required customer staffing becoming solution accurate staff plans sets complex optimizing key labor costs. staffing predictions customer service the for operations was manage to accurately complying their and chose workforce skill while us Being staffing to to scheduling regulations. This center. manage scalable center increasingly FAA was

planning, deal in has goods highlight chain and multiple goods Their of needs, consumer Connected customer planning. is of global great with assortment platform our use cases the has This this pricing a and a Planning $XX expand honeycomb revenue. as finance quarter subsidiaries across led an In effect. and the all in areas this journey industry, they Anaplan existing on standardize To-date, customer XX have supply seven-figure example deployed and to consumer such billion different a businesses this their company. production in XX for key over planning is

An running specific this impressive in in effect was with manufacturing a the initiative. industry. year for implemented quarter deployed had this and deal a time, short company-wide such us This customer expand seven-figure customer the in in Planning and initially Seeing the Connected last finance platform months. was one our area up transformational in has two customer a

comprised leaders across exciting a planning, me functional planning. vision XX and customer really through the this is Anaplan all of across of with now resource inventory business departments, that to prioritization is What use council finance, value single cases the logistics across has driving an of entire

are These placed we and that platform on recurring processes million highlights up have our evidenced business number analytics over significant was revenue, critical customer now by driving change are which with XX% across underscore The we annual the of in being Planning. as enterprise the Connected mission $X through customers year-over-year.

on the We enabling end and intuitive most technology. best focused are users with our

an of functional a platform enterprise. within range broad serves areas Our

strong are and demand planning. sales, workforce to We finance see continuing supply chain, in

events, hundreds chain on and the how chain were between outcomes. the demonstrates held and Planning to where This multiple Many in past current commercial functions, supply better supply met Supply power of in and the quarter, to bridge Denver, of we focused shifting clear the other customers. Chain including we in participated Connected which Gartner and potential Summit them effort interest deliver

impacts platform due leaders our Our to and commercial supply new customers mobile help like available tariffs From continue all regimes. experience perspective, regulatory user chain to ask uncertainty, app navigate a about now Anaplan’s to particularly capabilities are or changing to customers. product

edge. enables our over app released last mobile the at month, new We which the planning

and As secure is Mobile and Anaplan uncertainty, real-time tool. changes a navigate businesses intuitive

with go intelligent capabilities user makers the interface allows app mobile to decision and Our the increase new on planning access productivity.

ecosystem, we continue traction. make great Anaplan Within to our

and operations, them need transitioning the decision-making. finance, chain, supply are working move that more to sales quicker, skill to allow employees Our addition impact set, in business customers, more employees dynamic with feeling HR developing in marketing, companies These their silos analyses limited to running impactful empowered. are from

of level over few Our had completed. been Anaplan creating focused has and more with and courses have been XXX,XXX past individual have online early we a learning as this courses that Academy thousand certifications on delivering quarter,

provide Within business and and ecosystem, capacity, customers. to our to deals capabilities is percent industry planning they Partners doing the Gold rise. world-class and our deliver our partner originated GSIs increasing continue with expertise enterprise is of capability, also mix to steadily best partner we are of partners practices The on helping by the

we had of increase At year, top Conferences as partner and quarter, partners. the the Advisory our showing attendance XX in User partner our New past held in ecosystem growing from are leaders. the Meeting we maturity and Inaugural seeing we our London in Paris, This the our Partner York with our an Council partner this Xx engagement commitment

standpoint, Deloitte's recognition for was Anaplan a on America XXX in the consecutive year. From third North Technology ranked Fast

unique well Demand the our We the We and also a reports. Planning shows our ecosystem planning the and were vendor breadth player as Operations strong named opportunity separate recognized exists as recognition continuing and Chain Chain gain are Supply quarter, platform we of IDC within that assessment Planning the this industry Sales in in Worldwide customers. to in reports. This Supply the two major were in Worldwide

prolific. and consistent remains momentum continued Our

for more we sustained With This the customers. Planning. Connected becoming are the is with for market apparent our and platform significant shifts in it's the the choice digital economy, more that reinforced demand

we our platform that decisions the the about to one the journeys with can industries market. new is features feel them on continue customer-first with I way confident capitalize innovate all working also better to approach the help excited to bring digital how transformation make we feel quicker. I and that trying navigate

Dave, fiscal to discuss for and me XXXX. turn the quarter the let year our over financials Now fourth outlook and will quarter call Dave? who third

David Morton

Thanks everyone. Frank, and good morning,

Connected Our progress for momentum platform, our results position our with coupled continued growing leadership demand in in and QX Planning. demonstrated steady

this, the million sequentially up $XX third $X we deemphasize $X.X continue for revenues XX% the subscription million, $XX of Within services. were XX% quarter revenues Service to and year-over-year. up million professional revenue. comprised grew and revenue as year last was revenue in generating million, total from quarter from Total XX% down

grew Calculated $XXX million billings XX% of year-over-year.

growth or $XXX over year. last the Our third XX% is the XX%. RPO million, This of quarter was remaining performance quarter we up consecutive third obligation balance as exited above RPO

XXX% a was this Overall, expand to net seven-figure and the record expansion a expands. for with NRR Our ongoing our earlier, or we we track number rate customers. success quarter as was mentioned XXX%. above very deals And existing and demonstrating continues strong of have traction dollar-based had

customers have ARR of approximately average million, an Our over year-over-year. top up XX XX% $X.X

$XXX,XXX customers up XXX customers was customers this year. to also in serve time quarter annual recurring a base from We continue last of with growing revenue, XXX which over this

of use the Looking platform customer we expand our ahead, a opportunity significant and growing within have our to base.

Our and operations, our unique managers and platform planning encompasses finance, a professionals of supply capabilities enterprise-wide wide frontline marketing. and operational chain range approach of the sales to across areas;

our profitability to metrics. Turning

gross For XXX the points gross Within XXX was gross were margins quarter, up year-over-year this, points year-over-year. non-GAAP third margin X%, XXX margins total XX%, basis and approximately services year-over-year. points were XX%, up subscription basis basis up

Total year, expenses up primarily operating million go-to-market driven by from prior million, $XX the were non-GAAP in $XX investments.

model our in the XX productivity financial is period XX.X% of operating to over the investments and approximately past in This margins We evident percentage improvement last our same quarter continue year. negative negative to of the drive in made X.X% we've this compared XX leverage months. and points through

of financial productivity We progress and profitability. are demonstrating objectives significant our towards

be to continue Our payback focus cost as contribution our business on margins continue and economics acquisition, we period. unit healthy of to specifically

less and negative working with Net primarily million quarter quarter stock for in flow, which third impacting cash of the was negative million shares. capital. was $XX.X cash per We weighted average flow the timing expenditures $X.XX is negatively $XXX $XXX third operations cash on by capital the cash from equivalents. Free third share our loss in tax-related ended driven million, payments quarter based

outlook. our to Turning

Weighted total margin be million average XXXX, operating share to For is to approximately quarter range the quarter expected in count of to fourth $XX.X XX% fourth for and non-GAAP $XX.X million fiscal the of be negative shares. expect to be to range revenue XX%. the we million XXX in the

quarter For the our our performance strength third are we see the raising in and full driven operating we and margin revenue business. fiscal ongoing XXXX, outlook by

and calculating For to transactions. stated, fluctuate $XXX be by timing full-year, to million. renewals range as expect impacted $XXX total of previously the from the revenue in And can quarter-to-quarter, million billings we of

However, we and line dollar in overall believe growth billings remain above to with rate net expansion rates track our XXX%. to revenue

to share XX% Weighted Non-GAAP approximately count be for average is operating range expected to in XX%. the margin full-year is be expected the of shares. XXX now negative to million

our we've to provide high we momentum year capture to view remain yet fiscal and customer as to from value continue our level our and to to a cycle, confident preliminary in While transformation digital we planning like the conclude strong XXXX we'd the base. ability bring

for we XX% to $XXX approximate such, currently million fiscal year-over-year million, $XXX are to As XX% XXXX planning of an representing revenue increase.

thank closing, entire In their team to the contributions. I want for Anaplan

We are next set with up strong to year year well and the momentum. into head close healthy

us Thanks questions. it turn I'll for for over And the today. now joining to operator

Operator

Instructions] [Operator from first Kirk from And of our comes Materne ISI. line question the Evercore

is line open. Your

Kirk Materne

of are Thanks had? Okay. around functional just those follow-up maybe, question. wanted just you on deals to across all of some about detail a just those how then are bigger I maybe in very Frank, have some other expanding congrats I bit units? any a seeing? And the Thanks. Maybe of you and really quarter. terms people little much, ask expands been honeycomb, across more And expands nice commonalities have bigger one whether it's their there

Frank Calderoni

Kirk. Thanks Sure.

expansion So the be with really go go examples and start – so an Planning, that we're in it supply see pervasive whether sales, companies the some platform performance finance, the start start, an I the look of if value I the sound have in pleased down start chain, customers think to you'll to from that – kind – and we quickly HR. strong see And provided, across route. we highlight the all of that functions regardless is comes we different and where platform that expands Connected of our enterprise, you back if you of to

is I on we transformation start finance with there's or what specific on, what path. do chain is continues digital formed, evolve. supply path start them working them we And to the they're wouldn't on like. a or needs how honeycomb to if really journey early out And a say and What with that's it understand customers transformation looks are, journey. with we transformation their map early the to journey especially

things years do take two the I a that within on to last expand. of the mentioned it over finding, call, years, us One the to that last couple probably this we're year of an mean we would timeframe

we're expands Now seeing and expands the we're seeing larger. faster the happen

they're XX identify magnitude. kind our million. That the average the customers, of market we're we're across with looking said you look talked ARR now deals, just of millions our like to and the same want the if I've time, in getting the about with because and in before, it also But the at stages early top top also being and size I I these of $X.X ARR at the we XX we're the stages into early the is leveraging If customers in some so at platform this think shows average $X.X stages, top early But customers. customers we're product multiple. million

Kirk Materne

for about all advise we seasonality for anything Dave. in quick quarter here, normal bit just models, in the around trends maybe to patterns you're are say, one out you anything Dave, our just sort a you'd little of the building mode follow-up but terms I thanks especially fiscal as that. of sort look of or deferred XXXX. for maybe I'd first through and growing helpful. know And initial That's investment very much think

until out just understand. next there. it punt But to want you to throw want that If quarter, I

So if Thanks. that. you have any quick on thoughts

David Morton

this I on to overly and being prudent thoughtful thoughts seasonality. place. engaged any relatively respect We think really haven't and initial our just at time been

that of the this pace performance continue I continue guidance on at we lines year we the for as be gave preliminary that fiscal rate tell of the kind mode. to and in next So us we within would for would growth this you year.

Kirk Materne

much. very Thanks

Operator

Our Bellini next Goldman question comes from Heather from Sachs. the line of

open. line Your is

Heather Bellini

you Great. partner gave Thank bit a you. I engagement. to on Frank, thank you that comments focus wanted for the the little on us And meeting.

top it, at just partners in how us, I of that are late. And the of follow-up. share those practices And year? wondering of kind approximate of large the had base. their top said with had have You from with us might percentage if have how and growing a XX and I start I'm you could those just the partners XX of if quickly then kind terms, you could now you been business where the missed maybe but share was with

Frank Calderoni

thank Heather, Yes. you.

So the I'll they're continues And and showing really that also we have said answer that mentioned business, at the practice firm the work that their Anaplan. XX%. especially as to it's value And increase. it's and they to that the think partners within global that I coverage within last consultants We with you part the over I their first. if that look earlier, with, partner expanding seeing

them platform solutions Some that taking are as market. they're to and a Anaplan of developing specific around

only and but the I opening was had the ago with as months just that especially also it we quarter work work They're firm a during to in up we – couple with identified consultants, Anaplan and we consultants the not to others, Anaplan. specifically Asia large of a are firms.

the connecting if and extremely of and exciting larger all Connected practice, so which about others, selling I they points. one Anaplan to that consultancy was that they're found of other actually up wanted is Planning to to aware start Anaplan things are platforms what And even open the see the

of need look with ways of our So that as they we're find seeing within ecosystem we're customers this partners our mean, some I to partners you openings out to talent the And as of there. continues that. well more working can expands. helping number as increase. of The job also to our develop whole

Heather Bellini

XXXX, I on growth if and the of us I rate the XXXX growth pretty I where aggressively. bit quota-carrying Can you I have given be quota-carrying you the would follow-up gave think if guys mean, reps, been as share stands you for we that also reps to we Wondering guidance, adding little color you All it's accelerate bunch kind fiscal guidance in can right. could of the give a this initial with accelerating And of the again that then expect, your year. fiscal in mean know a expect the should adds it been front. well?

Frank Calderoni

up know for we're we're before, transformation Anaplan said I mean, this been around right in key on this what's pleased saying for I've as thing January. us the been as years And now, early we've and in the with I Heather, thing with So coming going progress. us, now, especially the of Connected Planning. key three whole

we to continue in to so And great. especially the invest have and go-to-market, it's

investment of different Our couple is a areas. in

the think First, in it's forward, and continued about guidance preliminary we with say reps, XXXX, that. we the provided – even invest so some as And investment to we the in as continue that that's for quota-carrying you expand growth. showing full-year going

we growth, And to with expand. kind of so have to continue and that invest

certain The do together bring can more looking in more with various second, has their as solutions to get the practice, looking – specific around that chain, are partner certain them with partners, about, them we Anaplan. at at ecosystem, that marketplace I the on more expand and right, and verticals that just around working talked with more solutions they specific working supply helping around

well. in we're that as so And investing

about really not think I to go lay year but the several of growth, years. only new XXXX to foundation think And as is as be to continue we into important next going that the the all we for fiscal

Heather Bellini

you. Thank Great.

Operator

And question Scott of comes Needham. Berg our from the from next line

open. is line Your

Scott Berg

Hi, and thanks taking on great Frank for the and questions. Dave. quarter a Congrats

terms into Are and whether office selling, chain you're mix the of making. investments the shifts CFO or off steady, some wanted of I that supply apps review Frank, your all the or the for and growth the it's of to last IPO investments as the seeing since year with the recently? remain you've relatively that business of the partner even made you any mix in First, you're that start

Frank Calderoni

look of this mix at even the the I – yesterday. and looking if I at investment the So again was business

XX% kind we're finance As been in in finance, supply seeing as primarily the chain, all much an chain. supply that and think XX% requirements three within resource back, outside sales of right. in finance. sales it's also about of stayed XX-XX, as increase planning in together, guess Outside within And ties I – I that and well It's the and of we applicable range, go it finance, pretty resource around planning.

us is significant on years. make that, especially strategy, of talking has think about One the our this with And really most we to about going the where office the strategy things impact Planning. It's of point like, had the of been CFO. our couple Connected for the your and back around over we've and partners working important

broader in the when at use cases across we Not the just in looking CFO, she there's of as the to seeing lot purview a Connected demand that sell because where supply I think organization. finance a And connect about you CFO to the planning. has far think as Planning but the power of chain, he follow supply role and of that that's say into lot we the or through back the are has, that that

SPM, And a is have true right, territory quota. connecting same Different within into like sales, things finance. that back forecasting, sales point the with

with partners especially Growth is executives are office years sell past with we we to Chain, – the that, include team and of working of CIO do cases, CFO, Chief C-suite Revenue of two of our our the transformation. in broadened Head on that the kind on kind or So over the Officer our Officer, the the the strategy the or and we individuals digital Supply Chief but some

Scott Berg

didn't be helpful. guess, I Dave, continue if remised somehow. Got I'd the XXXX fiscal it. Quite And theme I

third from seen? services look to push might believe coming in the mix deemphasis to have trend starting there look not with we that does at of the revenues year, that year is As reason there to partners. next down obviously percent Is you next the here the similar to revenues quarter any that

David Morton

theme laid to well be going our continue year You're to perspective ago, IPO that assumption. we've even correct your in portion framework and of cusp. out a deemphasize the less long-term XX%, to on back that the we're than we'll from a that within And

deemphasize you model would beyond, that to continue to I portion. as So continue out and XXXX

Scott Berg

That’s have. again. Thanks. Great. all I Congrats

Operator

Our next Jaffray. line Brent from from question of Bracelin comes the Piper

Your open. is line

Brent Bracelin

for back number from to this this probably record best Thank seven-figure you. here and want you, me, If And of the Frank. is question I quarter. expands go one to geared

You've been public seeing large if talking about strong over as a these this now? is The most external enterprise a for adoption vision. have question now, What's Planning But Connected they vision well kind a customers? you're of risk year but were factors my company year really, you resonating with will ago. the than why increased, really kind of of today

why So customers? these me, large enterprise What's with now? for resonating

Frank Calderoni

talk as different with our from Great can many question, been having a so question. companies. kind talked I executives lot And planning over working roles to and customers. different of I this XX and I several years in answer experience of

past June. back, years this If XX for been have around think about you spreadsheets

that change make I'm you decisions. couple back If about to been that around walk decades, talking I are information door processes last couple look planning about, use decisions the applications, time you that of not that challenge a and talk have about every archaic at and when been that to really the company to, and standpoint, even have. the decades much in the having is that budgeting that evolve. are in organizations in they can And over there available point they appropriate they just also and last don't really talking people the tools, to a think for of provide hasn't really from continue I'm And

and not in multiple to being their business to into provide a the get point. being analysis directly the effectively organizations able needs then having decision People what sets working data, silos, not of tied and in really really really good

XXX publication want just And so And do within you has yesterday, Anaplan Sleep it so example. a States the can a They very and called customer with out great Supply It's It's been been resonates. this Chain the that's was to of there's to who's Brain. growing. business look their Number, stores United past I it's the have I ours our looking And it, there quote in and at is where actually at customer. year. now I think if effective. over retail

back lot are that lot very of time it and therefore see And really They with. of if article, talks that of and different have dealing what spreadsheets are able have demand right and they go a their heavily and manual. predict right this process at needs It's saying about a retail and is really you the look forecast use at they're that level of they the not sensitive errors the outlets. the supply amount to companies not

demand And talk really planning. hours take from to goes do about in to they to leaders Anaplan the that process organization with able quotes to article with a and streamline really used it that were the what within really bring down eight from

do time minutes. Connected most going that's a really so I example. decisions of can forecast Kind in appropriate. to real back today your great make And they to companies and are trying why everyone, they and Now can think that's Planning is question,

Brent Bracelin

Frank. Thank so Helpful much. color, you

Operator

Raimo of question line next Lenschow the from comes from Barclays. Our

line open. is Your

Raimo Lenschow

a well. terms me and you organization, UI basically the from congrats user able questions. quarter? Anaplan And impact quarter currency. kind remind this you. last Thank kind you the what question make Two of users to mobile to Can can of talk more Dave, called of – out then into the Frank, [indiscernible]. Hey, much us connect quick then was to pervasively new the as you more out it you importance for a for interface are and the in bringing

Frank Calderoni

most Anaplan. customers would And I get probably sure this about can from listening around of and UX feedback each what was we at two so back to needs. years especially important goes opened philosophy we and a our that customer-first back product and on customers a make to hearing would is we prioritize mobile. lot have doing want, What give they on So ago. lot us you And better far want. that our side a real better as you as the year can And because and what so we when on that engineering their around insights new what they customers I to the loved them, we're as say,

UX was organization. one can to of flexible much some doing pivot, in they certain with and of analysis be that various the more ones give within about the so that collaborate us their started came ago things faster can to two getting dashboards, they up they help that then requirements easy years

and we a incorporated lot built into we of feedback that So it UX. the

us UX kind adapting got effective. is a And we basis thing way so of of from regular The a also now real our the a other of on really continue in rollout to time. state-of-the-art to that customers, more that's great enhancements about can changes lot

think perspective So customers. us a us lot features things do a allows to enhance allowed for from customers. of that we of at to an want It we and efficiency couple it’s I things for our how look

think, having fingertips pivot in and I in which The and back other able your to the emphasize ties being previous importance is thing, the real of answered, at I time. to information question that

flexibility because a this to application mobile can and UX to new It's a look example, that it allows you that go your it at customers you of retail we can very look edge they through also the able – back like allows whether or like flexibility on in gives retail think stores, to different headquarters feedback more Number our about a and you planning have creativity that the deploy Sleep I you planning, the information chain. phrase more have impactful. go the And UX and to outlets, can my you be at where capability supply at actually

David Morton

productivity of well. pace and rate The as

Frank Calderoni

exactly. Yes,

David Morton

And show an still currency a it – from deterioration not then event up quarter FX, conversation true above. And of Raimo, but se. We're called print look GDP into we it yes, good momentum really we're respective slight year-over-year, impact the our foreign the USD, quarter getting was regards how out currency. all to to of in manage So But is on was points of here. if in a how morning. versus some more financial it the the last to on as at you constant any a of throughout episodic specifically able per our there impacting

Frank Calderoni

go want want I Initially point go, mobile. well, that's about we rollout mobile, to nice. – up one bring when yes, just I people to back more

mobile were we kind on not large of month, past questioned accelerate had the a use customers I had the expand, questioned an across working just just their they other great A they day, since actually various actually which to We've expand, they was days. rollout going the use cases, can had happy take one that but about. what we've through a app. they You is which doing customer, XX large were with or And they not it. mobile. out couple have over mobile the it or deployment to on couple of whether really We We've rolled decide it see. of a are

Raimo Lenschow

Congratulations. done. Well Perfect.

Operator

Our next of the from Alex question Zukin RBC. line comes from

line Your is open.

Aleksandr Zukin

quarter. really strong question Hey for congrats and taking guys. on Thanks a the

deal we sales I've this seven-figure to so enterprise reflected in planning platform, towards I of growth, the of a as follow-up. around kind expansion dollar-based operational see motion kind productivity got and organization, So we ask of kind to the will along? go-to-market the and And go continuing then leveling net sales how maybe the continue numbers given to quick it wanted again, just start, pretty extraordinary. just of up you, the And

Frank Calderoni

about Well, the this we've the past so more I that get you're in year much because investment think you talked productivity leverage making. by over getting

customer. the talk about So let's

at lands couple look right increase. significant of a to increase you where continues were seen a they it we've are our versus ago and If now, where years

sooner I a larger. And ago, expands expands the also minutes mentioned and seeing happen as few be we're the then

to as organization projects a them partners. as We goes Partners transformation we're is get few allow underway. that enterprises on to the are certain and work men that encourage which with, higher to concentrated that the working with are think basically closely that in are well kind of deploying accounts. us into and strategy that connect we customers, work I with our enterprise sales, women

you that's This when been faster start And larger start is where to year what last points lands that than focused the been far start on. year. And productivity. as make those drive you connecting to to we've you larger flywheel see and and has and all better as expands then

that be will better it than on. year that's plan And Next year. this we're the kind multiyear of

his a Anderson, even to growth This with the is continue it's path. Mark level, great amount experienced Mark rapid Mark the connection to previous now see months continue the of now down have. some think, that next join. have how is of things, tremendous I continue Anaplan. continue And a with this two process, through that comes in one four to is as helping we we'll that of gone and do he experience we partners going which the productivity, having us companies, through these large go continue benefit we And of kind

you want productivity? that talk about some metrics Dave, the we've of discussed to around And

David Morton

Exactly.

worldwide as only And just force, the altogether, march, Anaplaners through also, the not success beyond payback our the and that lifetime refer our our from just really to about about it's think continue this our one then rest to of not to build enabled our acquisition, well only quarter so more we And we'll team partner that. past a cost it's overarching productivity, of respective as the our but out XXXX, that sales as not the value, from economy, but direct infrastructure quarter.

Frank Calderoni

I an work that all know, to to we continue And a you It's it's process. through. not mean It's process. one easy have

and been forward. progress formula to I continued going got that's strategy, able the right we've and I the think and objective also been we've demonstrate think

we're enough same partners mean, give of they provide how – many And some emphasize we that's doing I why for metrics the these go do can't attend, we us around the do week. partners, importance this to. what the events I around and

we've the some initiatives of Dreamforce and with is later underway and I today several customers meetings along underway. got got some with prospects. partners our

opportunities we too, can and of they partners the So leverage all we customers. connection with do look that for

Aleksandr Zukin

growth at And should on takes some as how it and I'm curious, and waterfall I the a to billings growth subscription there trajectory year-to-date puts Dave, billings just level. the the of kind type what quick numbers? And about growth revenue? subscription year-over-year. think the look we RPO of into if some that then And Perfect. long the follow-up. in numbers, take then those I are mid-XXs at look of

David Morton

the see waterfalls. I think you'll

to continue get less. proper word continue even you something to around gain I'll that's the it's is because the call out-of-quarter. I don't into scale. it We in-quarter RPO orient Clearly folks a if a because seasonal,

XX%. And so clearly appropriate above wording even year-to-date, their

years, see thus know, contracts standard far. near-term of in approximately as And you you'll some revenues rate yield And waterfall. sustainability seen as well so are the three our does subscription you've term that continued performance pace so as and longer of as

Aleksandr Zukin

you, Thank guys. Perfect.

Operator

the Our line next Canaccord. from Davis comes from Richard question of

Your line is open.

Richard David

with that saw thanks. the just And maybe partnered follow-up. notion automation? on on robotic you also Frank, more a of have you relationship, Salesforce you topic of Salesforce, Thanks. hot guys could then broadly, machine mentioned your maybe talk particulars kind the and Hey, I Einstein. but topic, learning quick view that about process of of I And

Frank Calderoni

Yes.

for with been So working a if about – closely Salesforce we've while. you think

and talk publicly about about it's talked we year we're to more things Einstein. able think great some engagement at I on the last Dreamforce, that

it say couple ways. I'll of mean, different I a

think you Salesforce comes of is organization. would I Anaplan. you especially that kind of we and it a think have a your say, and leverage customers, sales First, about CRM when customers a extension, great Anaplan to about lot the if of lot

a a are Salesforce tight connection there tight for And connection and – Anaplan. there's therefore so customers, between and there's

even to and The to especially journey quarter say, Mintigo, closed are get further things trying of in as this Connected the as their that other more thing more that they along as would goes and we're we back intelligence. customers, they're far this seeing one where from interest Planning I more

can in but want only have to outside many data their customers where chain come leverage they supply other not Number, Sleep organization, also examples, but so with that up example, I organization. the My data especially within

to the looked not all with capability also some Mintigo and technical why team That's bringing ourselves. we of But at looking within us Anaplan. it we're for that do

how able We with of also our customers they work leverage for see number of develop there’s ways, like to that been where Salesforce want behalf they've and now Einstein both. to partners to things on can years with see a

And on it's think is example, so a example, but we'll great that to going and continue not an I that about of one one that only very forward. pleased we're example the focus

Richard David

And just yes – robotics? then

Frank Calderoni

and open also great area, not clearly that only mean, some then we about on connectivity APIs our just but here, within of think we I things Automation, a how platform. will utilize the

how lot you a being is operator the see can utilized. so And core platform skill packaged of a complimentary back sets and itself, and going data forth this of and

just about. vast as friction of everyone that out more and a there's more so talk middle we office opportunity of And that continue is take amount tries to that to

Richard David

good happy. Got they because that that's And really job, doing make then lot about that way looked and you people your customer a and do margin I hiring realize your it. I are to don't on companies that I've a don't customers job of drive think good success because guys a you're board think

– does call company it one-third two-thirds your evolve does and and over whatever, people time? it there right and farmers, mix? a like mix there is Is to them hunters, how Is is that quick a or how the of tactical farmers, XX/XX, get think? Thanks. inside what hunters question do on it but of that, look there Or you does

Frank Calderoni

specific but not. I wish formula, there's there a was

think complexity their getting customers I depends trying at – they're figure to better trying what out all right, the on to the of the we're what it where the accomplish. journey, in

of rapid cases numbers much more seeing we're where use course, of going Of forth. so and and to provide those we skills more are expands

partners implement. first success we to and they we success our them land, this customer journey work their only call then continued in partners. closely not call And expand. out between, business account in on to customers executives best our planning with and but what up the how and on to also that business They're bring also the critical you But as also working

them on really some with So have no been side In cases, if I it's works to tight journey. customers do their not the all ratios even identified because success give We have want identified have a don't CS customer most that – customers, we somebody on alignment. specific. there's

we're are getting with tell get they from they're make we signing along to the value have success value the sure the that And that account platform make the that the to executives and sure the and that for. customer customers from here throughout beginning up customers team

Richard David

super That’s very important. you much. Thank

Operator

Zlotsky from of question come final Morgan Stanley. for Stan the today will line Our

open. Your is line

Stan Zlotsky

for Perfect. kind quarter congrats macro a any just that it and of you Thank strong quarter, year. a the level high strength guys, gave just you or quick saw there's very sound check, concerns the sanity especially is very the macro, it certainly, like so guidance on that a of doesn't next in the of and anything you end, one my much questions, couple quarter. From from

commentary So maybe on – any have that. if just you

sales Anderson me. And are then little how on you. into also, organization, organization heading any Thank any Mark changes That's as bit, for far it you're from guys as that being or thinking fiscal XXXX, with you're your as your board now a sales making thinking you of about tweaks?

Frank Calderoni

So Stan, thanks.

any macro seeing over cycles changes First or deal anything macro. on within environment not that. the the We're like in

So I we've would recently. that nothing observed say, more

expertise to he where This situation the fortunate mentioned on it's where Mark that is brings. in a Mark, in far with great market. early we're have board as as we're the before, As I

about the great they the look is of as work and have opportunity months, with to necessary and our about board, As out Mark I the expand we talked we've scale. there. talent view we're to long ahead on the what continue has continue as continue because is focused to the significant we also to of investments right he road a to us, to see we been continue before having partners as got thing the Mark skills said first ensuring investments, clearly on you that, couple before, in and has because making

about think He’s to want beyond that. billion we he's done even to before, a there or getting If been it.

we've move he's and level the as get over that last the developed XXXX. of that's couple so that to next helping we for team insight And great have up to ready years

Stan Zlotsky

Perfect. you Thank much. so

Operator

presenters turn now remarks. the for to closing I'll back

Frank Calderoni

We everyone today. to continued thank I us appreciate want support. joining for the

thank for all, our of customers, and Anaplan. our from and of also employees we course, their partners, and investors First of our support continued

on and out Thank for with we today, all as to XXXX. you the again fiscal next forward joining close you. us we the you year Thank meeting quarter look

Operator

this Thank conference for gentlemen, call. and you participating. concludes today's Ladies

may disconnect. now You

Anaplan (PLAN) 21 Nov 192020 Q3 Earnings call transcript