PLAN - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Anaplan First Quarter Fiscal 2021 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] As a courtesy to others, we ask that each participant limit themselves to one question. Please be advised that today's conference is being recorded. Instructions] [Operator

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

Edelita Tichepco

call for XXXX year results. on Good quarter financial joining Thank Anaplan's first you today's morning. conference to discuss fiscal us

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

customer revise and be are second demand, release. financial to guidance be financial for our current that as from those press quarter, On statements of today future our including Those performance, and factors reflect this and information our results not product this statements, best strategies, the call, statements. risks may technologies. factors forward-looking being refer currently differ us Form to These and or to today, statements our or making call forward-looking known contain today documents including we These after is and to Please presented other anticipated actual SEC, events results will operating judgment based filed materially. with on and X-K actual today's we file forward-looking If the documents expectations obligation we during the made or disclaim contained update differ call reviewed cause may this these any with accurate. in statements. may

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

on and provided GAAP in results release in press a our periods, For reconciliation is of non-GAAP website. historical supplemental financial information the and

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

Frank Calderoni

joining and Edelita. thank you Thank morning Good us today. for you,

impacted Revenue changes and which last discussed had in we fourth Chief introduction the including I quarter As departure the the of of Americas, our our talent performance. in sales new Officer several leadership, quarter,

value. specifically performance, on the to priority who and sales around opportunities and pipeline Our customers improving quarter execution related first in propensity to was the have in focus optimizing top highest

progress as have in talent made sales focusing sales we larger across customers, do we to such and confidence our retaining team. more key with our the enterprise efforts have in great While we execution, and have still stability our good driving teams,

first not For some in We closed a our strong that we convert deals results, were had February. quarter. quarter our had start last to QX of able

deal delayed While And our much seeing a were to on first budget of traction impact more result, quarter, we good as related the COVID-XX customers. through decisions to projects. customers half flows substantial as affected our spending a the this became new

year. billings, perspective, is up million, up XX% in XX%. a This QX over XX% grew subscription revenue quarter the revenues evident our revenues were prior From only and first were $XXX which year-over-year total

million, balance RPO, XX% year. obligation, or over quarter was Our remaining $XXX last performance up the exiting

To top-down large enterprise-wide a customers, with focus recap on motion. a operates, with selling with business how our investments transformation enterprise deals we digital predominantly significant serve

variety of project monetization these a stakeholders several this deals. will cycles the different be sales can lengthy, drive of on Our and typically the depending and transformational timing variability scale across functions data deals in the of involve can

booked on result of volume of delayed the a was which COVID-XX, as absolute quarter new this of decisions The lower deals impact deals.

could through working investments COVID-XX, their pause As refocused such work immediate to or teams remotely, disrupted as manage operations. expect, ensuring projects they of you would began to customers the as on impact

expands, on what saw with this were similar a We in logos the heavily more we to last versus is deals which year. first quarter new entered late-stage where quarter pipeline of weighted

all these deferred can uncertain were digital environment, take most deal the with cycle. quickly, COVID-XX, through projects. get which to these to make a as impacted, deals, stakeholders began to that on can it decisions to large especially transformation longer customers get to new means this As due new deals customers pause the decisions In project be logo challenging

was where In While types cases, care vertical to due COVID-XX, essentially virtually a demand retail impact greater of with travel businesses constraints. and health every other to to came companies a in impacted standstill. deal unprecedented and hospitality and in capacity we certain had saw

Our cycles environment. were sales of this reflective

Tier had For as In safety gas initiative both European systems. chain enterprise and the an automotive In a financial example supplier constraints. oil to the project airline in sector, a large sector, and travel automotive in suppliers decide on planning a the the saw energy and to sector, later at year. supply European due such a delay placed global budget we hold we had to X hospitality manufacturers customer deals delay automotive we multiple large for

impacted quarter, change same business in COVID-XX where dynamics. the an been we no competitive continuing for to time execution. to this delayed were our summary, while In improve customer have continues remain us as our at there be Deals decisions sales opportunity

into states and interest This impacted. our in planning significant see of recent six new level over finance of pleased type not its the projects analysis will planning also capabilities that Connected projects in other core to tells become and by are the the analysis demand financial and agility our that which market has and and Planning. areas been generated weeks new solutions underscores that We Gartner to longer-term FP&A and XXXX, us its opportunity platform four weeks, essentially, beyond cloud extending planning pipeline report drive XX% to

our What's environment seeing responded always to relevant our our me has are quickly. solutions impressive customers' uncertain is mission-critical, teams makes to more most which this platform our how this Our to helping even customers, but adapt been have me our needs. brings customers been to how

tracking. certified expense last FEMA-type address Master hospital bed Anaplanners Anaplan redistribution use models downloaded customer. cost of production-ready These no the quickly by our experts can at specific community models two by XX PPE deployed and months, creating responded cases; Over COVID-XX be that planning, any and like

visited The free Dynamic challenges related seen on a most urgent their We've on them the Anaplan met COVID-XX. platform a about with number interest organizations, Clinical in to up the higher platform. our built in Deloitte's website average. XX-day page to of launched also downloads Model non-profit XX% help trial Staffing was and increased app various address our with monthly customers and We April than governments

our Our revise platform has high updated existing and generate helped customers scenarios at speed.

past communications XX or For cost over used Anaplan brand example, our and times revenue one without several the of client in to customers weeks and need add media detailed scenarios costs. incur the to has reforecast level additional for resources different the at

to to the focus community. to need advancement Another companies trend now. be their our reskilling professional the of is contributing on for workforces we're We're seeing proud

the This now grow quarter continued year-on-year. Master of to Anaplanners we certified XXX% number up over

people surge there been focus addition, training In a this on has the developing during sessions skills their completed number as time. of in

their Our to of know advantage for drive these value give for the Anaplan and skills them future this will to ecosystem are employers. continue users also high in demand company and

a on Moving few to this customer and highlights deal quarter. large

legacy customers modernization In automation is insurers manual new The faster our U.S. of to the broader of implementation, of technology the initiative customer with enable analysis, highly be Anaplan of processes. part in key largest of Anaplan this modules. will insights coupled particular the selected one the flexible our decommissioning One involving a what-if through

helping also larger winning how digital case, example of large-scale served in deals. Anaplan this upcoming simplify the solution This an a complementary transformation system we is In to is upgrades.

our forecasting one quarter customers. company XX strategic using care commercial capacity Anaplan was Another large with was this Fortune long-term supply health deal of chain existing already This for and management.

planning, different platform we expand across extended use within products the across a and functions and engineering Anaplan biomedical planning of the areas their deal R&D mix CapEx different finance channels. This the such price/volume project company. and supply The includes chain planning, to signed as businesses within quarter in analysis use

and a is and indicative experience variability be can of type example require types on, take significant modernization to of solution in major deals which close more focused typically we was data dollar implementation This platform top-down of This sponsorship. longer accounts in the are in are can used an projects. of our These timing. how size

quarters. pivot larger number transformational have for partners In seeing inclusion and our to our the steady past increased toward pipeline progress of more contributing building seven we're deals. more of The continued ecosystem, pipeline has in partner the we

Genpact as global consultants. finance with XX,XXX driving leader in over partner, onboarded transformations new also We a a

XXX-plus cases, pipeline. intent we many pleased I'm partners resources certified of share ramp of are the in to to our Anaplan another into their schedule added Anaplan seeing ahead building indication the Finally, new And them market quarter. during an continue

customers, Looking of to we do predict the disruption year. activity new our anticipate slower through we the business ahead, while cannot extent

that on may We uncertainty the deal quarters. aware new economic the several of volume near-term the are over impact next have

proposition. value sheet, we customer are with strong and However, balance solid well-positioned a base

changes critical need Finally to we and demand differently related supply new adapt real-time know reality. and business forecast to will to every

are our growth once confident pipeline are our in demand this seeing we We reopen. in long-term trajectory and budgets

the Dave to call who quarter. Now first address for let over Dave? me will our financials provide second quarter and the outlook turn our

Dave Morton

and Frank, existing good multi-quarter conditions expand results obligation ACV Anaplan's business COVID-XX growth. pipeline customers. our quarter and line top first deal top impacted momentum new ability our and remaining challenging morning, net new to close everyone. and performance were you, line by negatively billings and Thank business calculated These affected

XX% year-over-year. for year-over-year. quarter recognized and XX% the up last million, we quarter RPO up lesser the QX next Due $XX first was revenue Total in the Within revenue up be expected million, ratable months million, Service F exiting million first over last model, the to RPO $XXX revenue revenues of nature portion year. Calculated results. revenue that was comprised XX% to is subscription is quarter million, first year. million, of over XX the were first revenues last revenue. our quarter $XX $XXX over were to XX% up The the this, from impact down XX% year. as our XX% of $XX grew SaaS saw for total $XXX billings

XXX quarter, The $XXX,XXX than in year-over-year. up number greater with XX% of ARR was this customers

was from where from major of churn net was a control XXX% expands this above dollar-based account NRR XXX%. rate has due booked percentage as coming quarter, this lower M&A. deals of the Our been reflects, there change as or quarter. Historically This expansion this resulting one to well

up Within profitability XXX gross was approximately gross year-over-year. were percentage point’s XX%, XXX XX%, to non-GAAP points margin services Total year-over-year QX gross metrics. margins were Turning our this margins for points up basis XX%, year-over-year. subscription F basis and up five

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

we Given through hires spend as and reprioritized in companies, variable projects many travel, and within environment prioritizing core quarter back on like engineering. sales entertainment contractors developed the outside and we've business the other that pulled facilities,

a financial on improved have basis. Driving we model in quarters, consecutive eight And consistent Anaplan's operating past has been year-over-year the focus. leverage margins over a

to compared points quarter on margins negative XX% XXX same F were share Net negative based per $X.XX, average of improvement first shares. operating approximately percentage loss an year. the million in QX last in weighted XX%, the XX period was

quarter quarter cash negative our Free We was million. capital million $XXX first positioned. and with in cash $X exited well the equivalents the cash flow remains and structure for

global the the months. business cannot and our and opportunities extent certain Turning in on impact to will what pandemic economy COVID-XX our is to future coming affect unpredictable, long outlook, of how we this be the

highly our guidance trends long-term are operating annual confident conditions, remain the uncertainties of margin year of withdrawing due and to industries we all of While platform the relevancy and global transformation XXXX. our digital market fiscal the revenue across for on we

time internally uncertain managing assuming scenarios business, through companies, conditions our lines. we've in most recovery demand several reviewed variable economic Like business

under customers for most provides year-over-year our our the us of of assumptions, Even nature revenue double-digit XXXX. a conservative existing subscription growth baseline with FY from recurring annual revenue the

well long-term strong us positioned sheet, The our gives will stable to our market balance be that confidence capture and revenue opportunity. we

be million our range anticipate revenue For $XXX to quarter $XXX guidance, second we of million. to in a

$X expect in to the to of Within range revenue $X this, we services million be million.

annual withdrawing guidance, $XX we provide second for baseline million As we billings, we'll in range quarter expect the our to which to be million. of a are $XXX

business platform will the support targeted in expense our business in and growth drivers continue to the in with remain investments control and in functions. go-to-market Variable place technology hiring

margin to be range quarter XXX XX%, basis midpoint. represent which to Weighted expect be approximately the improvement to share year-over-year second non-GAAP our in expected average shares. the is We approximately XX% count point million at of XXX negative operating for the

requirements. market resources and of serve the even demand an In summary, manage near-term planning the and capabilities conditions ecosystem the in next customer opportunity greater long-term has Anaplan to the global phases to

now operator questions. I'll to for turn it the over

Thank question from Barclays. you. Raimo of Lenschow [Operator comes Instructions] Your first

Your line is open.

Raimo Lenschow

Like, through sales you. reorg journey. Frank, a Thank of this and taking Hey. or you process, in question like, where kind the baseball that, are one-off always things. it stay of and think of fully for game question you. one-off want all being take you hope not or a situation, if situation Thanks fully where getting the healthy. like that track if do my it's you Thank go a on you like, on to are kind I of you in analogy you was we be? The back It's like had optimized kind

Frank Calderoni

your Raimo, question. thanks for

say I minutes And a this ago, as work would I you. progress a real good It's journey. I that we So we're few agree would I through said think making as past quarter. with

their customers on we pipeline. on focus that of able focused the I talked Americas. especially in retain across I is key now go-to-market some optimizing focus quarter. the been efforts we've been about, to enterprise that really right continue that We've The driving the laser on key thing really really know the and team to stability, talent highlighted last

I mean for as you of well an be Anaplan. in focus us execution things to we the that sure right that short-term the works around in really now that which if as future the the successful long-term, to well can from it's making about opportunities going is think some enable perspective, and

And It's partners making also we're said that data it's own our as working enterprise, strides modernization. And but with alignment of those perspective looking mostly kind with from team at that sweet having a together. our has work platform we transformational, and only not spot. where

excess opportunity we that just that about No, time. it's ideal we year of in this go mean our with there an of making are. we if maturing that in keeping part organization and to the and ability people where strongly after takes but Is an now? have of good back to So, which the right make sure of it's it know process in thing really a think maturing company. out I the feel XX%. feel I important. that's our the And we and the can you confident were last I up very investment growing

We've activities we're So, continue current inning I We're like good want but going underway said making progress. the really various with an pipeline. again quarter. think had going into efforts that to good I so I quite progress. few don't already pick to around or a

well it past -- getting from indication an opportunity four the think see saw six and As pipeline that's is of generation I perspective more the that over sign. we the it mentioned, everyone of again out there. in some about results. good of weeks a good It is increase also aligned of so we're which We some seeing it as we to is not but later is -- is the but immediate, of year how

Raimo Lenschow

Okay, perfect. you. Thank

Operator

Your Markets. next question Alex comes Capital of from RBC Zukin

Your line is open.

Alex Zukin

and deal assumptions in pipeline delays about new and those of thanks Frank, second a the some later of guidance did questions. Hey underlying taking you what can for morning quarter around Good what are execution that velocity the the the of inform both you growth existing billings some see of deal And kind guys. for my talk maybe, from exactly quarter? creation?

Frank Calderoni

put the of it's initially hold everyone deferred. of with perspective And mentioned, I were they that for first of and of into certain down much put were projects of we across to going where all, directives and even were kind where from some pausing started top-down new out as really board got there decisions the those projects as when went just was decisions pretty into things from quarter sort on on lockdown headwinds figure making some being April decisions the get toward Boards, where middle CFO, we customers them. CEO, is to were then So, coming secondly, the as the like of were

within fairly And that weeks was consistent all lockdown. across was of first that really geographies and the the few

So, kind of that. through seeing we're

So, that. we work to had through all

and This this others, normally in said more some weighted the about but -- than see of a we quarter I do new more tended heavily into we between towards As accounts. heavily pipeline beginning weighted split see QX quarter which new at of kind expand. clearly more was pipeline were coming XX/XX the we industries

and accounts companies. Of a require within review new approval course more extensive

decision are a have the pause would further companies if say the for lost. working this QX. I was situation. We're continuing more is of But that the bit as through So, news some been been still that none good been some impact. the through are work They've of projects them. to into Others -- COVID as of rescheduled on have

work So, through to we'll continue that.

we pipeline in we expand our April have And as close which know the time at higher pipeline. and as as been continue QX in have since weeks now deals. even look May, and the new well on in to same we we as But propensity QX coming is at projects projects the expand work generation into focus several a to

Our pipeline towards much in that's oriented expansion is rather than new so helping. QX and more

technology bit let's our And at of say we've projects. chance through to really a working customers more quite of work with planning have done look AI those also that

with we're spending customers. time so those And more

Some have like front to with COVID the of line. them more do on related

months. and COVID have of to all just certain we've to others and some us with you've agencies over two with less seen the program do are susceptible initial to put past seen from perspective of that in traction. then got And of industries that a which some the them challenges that focusing working government on have place are companies Some

Alex Zukin

appeared were they flow Can we about just a some And billings what there's higher -- a perspective, be Perfect. to look from flow they think go you sheet. quarter if you second curious difference any there little the were I if I'm well? balance follow-up how if for just were Dave. think FX a could the on as cash through at the there adjustments? differences you than there billings major cash one And going And for -- maybe talk about should

Dave Morton

Yes. coming Thanks the into previous Alex. the some in FX, with which different headwinds we've a quarters We the some of point past two. will got a not is minor than so play or tailwind experienced anything from that always of

As our to things around. the this in activity Frank just we're relatively hand and of quarter FX focusing on really oriented specific next coming operational key kind guide, at we and regards flat about think what into as keeping

Alex Zukin

safe. Got it. guys. Thanks Stay

Operator

comes question Your Goldman next from Bellini Heather of Sachs.

is line open. Your

Heather Bellini

the was, you have Great. it. talk due Dave control been us a that's control question. question I'm could mentioned and change about? as what would if Frank, it Thanks M&A for expansion if Frank your wondering that one to rate. share Appreciate just that something with taking you could -- excluding in net impacting you

also kind just And question. on then Alex's of following-up

of And for first of your and conservatism versus close first you rates what a quarter month you. how in just quarter? The just of the kind rate the typically close Thank this might well. tell about as us could quarter month are a anything be tracking they assumptions

Frank Calderoni

Sure. Sure.

part of back kind maybe I'll the then jump in NRR, Dave the and can second first as and come on take to So well. question I'll on that

the So, I quarter, we mentioned, Heather, quarter far strong. as as the into half as of the first came

about out at the really so our of had kick for everyone beginning laid we course, excited Of February, the off year. what we was

good as some quarter from I a more for and we heavily coming kind the And pipeline couple both so deals helped. expand. new think into And that well. good really of had quarter a towards of the came new, as we I also had but said, the QX of we pipeline skewed were in of -- also then a that with

of the fourth we had some February I was first the say, combination closed which the of XX% from So, QX. of from did close in -- deals deals quarter February, from month about a that. the We healthy. all would

some also good we the a our started and out expand worked that Second, of partners. to got And move I start think business on with well. we

some energized very with and us forthright also up, in not So opportunities. working they in closing but also really only were teeing

in We So it the February business well. a year-on-year had kind month really February growth month actually of in was as going of actually good to on than a the of last and the February month, basis year. better of and kind rates close March was

Heather Bellini

to was quarter. I share Yes. -- first sorry, And I'm month if us referring May more month you with first this of kind the of of Frank, could

Frank Calderoni

sorry. sorry. I'm Oh, I'm

Heather Bellini

No, sorry, wasn't about that. I clear.

Frank Calderoni

Oh, my misunderstanding.

was closures. the looking May. April that and as said of first through is deal and -- I so building That's So, generation we're pipeline also we've May in May, three continuing weeks had

I of So about perspective, I as is now from the looking traction we're good mean, the right backdrop that May So the -- of with May I'm I'm right? a guideline. would COVID, understanding feeling okay. say a using

pipeline bit future as again as stability a more seeing want generation NRR? would generation well say, we're I you into April. from I'm for say, and And seeing to as of, do Dave, said, let's And pipeline quarters. jump I build this quarter that the

Dave Morton

out clearly we The that Yes. events On been of And from always item that as NRR, happened. past you item, closer excluded one articulated that. to XXX%. change would if of really we've called the as rate normalized come churn it side that a unfortunate it's NRR in and has our have a a control due such to lot

Heather Bellini

Thank Great. you.

Operator

Bruce Piper next comes of from question Sandler. Your [ph] Bracelin

open. Your line is

Brent Bracelin

wanted drill pipeline. call I is here. optimizing taking just you the of Thank to the This down guess Frank Brent. for Hi. kind into

the the pivot go-to-market, side If direct mature around specifically walk maybe field just would on changes through the Any you given sales sales you're restrictions. Thanks. of travel be making direct just just could on to given the certainly the kind environment color helpful.

Frank Calderoni

Sure.

pleased to very all quarter in would how have companies middle globe. of like team dealing for pivot home, a was from working with lockdown say, the we I with our around the I us, the So – did cycles with the one customers about able through of good part well news as platform we're The that respond the even work quickly. is selling the Anaplan remotely, able implementation. pretty and was to

able and we that the quickly be to were and quarter well with pivot remotely. able selling the implementation our motions perspective from do to with in So ourselves the as pretty that partners, as

always One – things not course, of came that of the it's up ideal.

benefits the Anaplan we usually selling of One and our a members customer. including doing partner with as we're from with as when whiteboarding various perspective have at an that the a team Anaplan is well that

that is challenging through more Doing but little working bit remotely we're a that.

the that we of is just thing to, significant just to not around appreciate all but other April, were did month in of understand first outreach customers much really and a The and what our even offering engagement so COVID help. they and facing selling

of our some time amount near-term That's budgeting. programs kind their situations that we're good to of free some especially in did certain models cash helping did, still some April modify the of in We of where of some on month zero-based Anaplan spend to and as relates it available of customers we where needs, Helps, management, to doing in models meet hackathon of work that tried this we their a charge. make

in These more environment. the we're be up are some new existing and charge. of customers the of with to working opportunities we're customers also customers current teaming with free These things that then existing tend with

For new of nature in customers allows us smaller be they to to it but plant the some seeds. start tend to

over past the prospecting as new that's of I relates work weeks. time number for execution around certain environments our the perspective, certain to as said, and spend customers industries, us effort And types an opportunities. we pivoted more well it more and as time, to it's allowing quite most that again From focus us effectively, expand using to as in the tended in well as in discipline to well of

Brent Bracelin

Thank you. color. Helpful

Operator

comes question Taylor from of next Bank. Your McGinnis Deutsche

Your line is open.

Taylor McGinnis

anything expectations XQ for might Could XXX% normalized rate near how expansion question. my could mentioned share on that you the at that taking maybe just seeing and you're if for in can rev the XXX% the what about Thanks that quarter? or compare to or rate today. the guide? there's you talk And billings in low that's embedded go And expansion Hi. net how that net you term least

Dave Morton

Frank, off start can and I then

Frank Calderoni

Sure, Yes. sure.

Dave Morton

some appropriate churn. really with did sense. so it both output took forecast an billings that not actually So Taylor we for within measures specific billings for and how is if The some assumed cohort a our NRR will that more makes that solving we NRR expands much specific then number bottoms-up our it's be from

So that quarter. examined forecast we've as we the and went solid we for where forecast off that bottoms-up up with came provided this did that's and specific

to here continue XXX% In the of the NRR that all term. level place about in said still provide and tick we're looking fair to think of the or that say but as near in are next churn the given. some even the navigate that rate coming and as this we've could There if as of we kind levels some that uncertainty as that and quarter things prudent you see I to as at regards kind bookend very is were with uncertainty, moderate shelter a expand think of if see to up as guidance a and little But into bit would going two. low things floor new continue cases we you of I it's things of some

Frank Calderoni

where focus more see to is able then now of we're And of going on we're expand working the the more expansion of kind that follow-through we can as on of be kind better said kind right higher which the mix on the of capabilities I that to NRR. and

Taylor McGinnis

it. you're that Got idea and tends towards new any split how between look? follow-up like said expecting split XQ then, business expansions expansion And and more this to bit a a that for quarter, be the just to pipeline that because said quick on before you weighted being you little the maybe XX-XX

Frank Calderoni

in toward is on more that expand XX-XX even right So on months the we And now objective. to new it our to challenges building the that or that's of -- over now focus more next of back closure based the and pipeline if number see QX, creating that showing is the we're to we it business is more shift. like can like get bringing the balance skew again as to

Taylor McGinnis

Great. Thank you.

Operator

Your Walravens Securities. comes Pat from next JMP of question

line is Your open.

Pat Walravens

very much. you, Thank Great.

that whatever was hear have night. your be be? billing the much and going much I you amount you your is that would competitors was, to say, of that internally wanted of because to was love Dave, of to say that given miss Frank because it at if sort sales have reporting So of would COVID-XX? thoughts on, to how And going where And look you would your you isn't additional context, how would execution tomorrow one we're

Frank Calderoni

quarter it's in It's We I backdrop it's said diligence really said -- hard have. to processes further to as QX coming a the of transactions, as getting I was long the quarter it closing about made some the term more ideal as maturing part in early in on mean said also with fast I Pat, the our situation think everyone of the before. like we this time not of of spending to say. the I of and focus as the best of start, sort but

the So, working said take we through I not through this that, before and time. frame these as -- that. that there time QX in we're February I back was said closing when out were

we're that. quarters. now as get the about to top COVID again, But next came continue on of so, we'll progress that. think And And through of we working couple right

through that say whammy And we so, And it. want double to if from work had we perspective. that you

and the Anaplan right of think as pull decisions mentioned that Most budgets I far typical work contracts decisions that a were spend, environment And somewhat through the made on of The so to like kind the it lot of some some able right? those is on especially contracts put new earlier were back being through we were some COVID-related deal of working procurement Dave companies of of of within that. things toward the more of hold skewed activity kind tough, and as that.

if replicate U.S. the closed They do across get been front deal COVID line to the helpful models one to I the before we and -- mean the highlight We're to customers. we're are can and looking that Northeast. available develop this. of were are to see this states the we I've now developed want the pandemic. at leveraging in specific But more ability a to having other had also again the briefly XX hackathon that. I some that that now through on make mentioned that the from more that then now has were and right working leverage very And available states models

to those So, important both environment helpful higher see our how this getting the from Anaplan. can have could also And working drive and pandemic continue is emphasis we're well drive value, value. we honing process process where a a on be Anaplan's we higher of as customers. make that's and we're to highlighting where we them the to If again from opportunities the as to bit there is chance And a that. putting most for platform as both mining the efforts as challenges budget buy propensity a through well through thing more and

Pat Walravens

Okay. Thank you.

Operator

Your next from ISI. Evercore of question comes Kirk Materne

is Your open. line

Kirk Materne

going on for just very the terms and terms a taking have Thanks functionality of that of clients vertical in provide? how on thanks much, with questions. Yes. Meaning, Frank, might your things sales budgeting planning. Can changed maybe the you little in kind focus get what's conversations was you bit more maybe now, curious. imagine sense? I I'd helping and like a of you us imagine give versus companies just deferred just that. save I right money

So of approval. going is to make a pipeline is what maybe us budget then saying. put a to assume your clients from right I just one that's kind and just comments? you're bookings give on of can finer I want the of sure biggest earlier to sense that bottleneck just on point you now sort

hopefully bottleneck like that business a feel So little as out confidence you Thanks. better, spin bit. gets will

Frank Calderoni

sure. Sure,

finance over So my was conversations I more myself if I did finance business I from really pivot. various home last for a included look of of were the I say looking because executives, and back members were trying dealing organization, CFOs several the lot weeks to change, within that our and in talk this of more to ways their to this and customer two outreach for sudden change months, they think to with will again back they

give would time some offering spend them of And And more my organization. models ability but perspective, again and only assistance modify from or so again to them, intelligence. say have that's their the I redesign help them across helping on with where we to not the that's some

expect different to started of budgeting. was things. companies at out and their of as would the before, figure that on solutions you because zero-based to point said liquidity, as start workforce, I specific also So look Part workforce

and making who talked them. related aggressively for shifting very CFO they had couldn't hiring And volume other things just one were were to keep decisions had to I with. talked I to where CFOs was they reductions. of workforce therefore of how tough one they dynamic, Some deal the And to with up hiring, were then the because

CFOs has say would conversation organizations. predominant the I with So and finance been

supply the again Pivoting in supply say equation agile visibility involved, being chain, side that, more I was chain. supply a transactions of quite and personally was I still month chain would modifying in supply from in on this with few other the chain.

And a to kind much move chains of much can process in perspective. agile on to analysis a talk more get able information supply allow value a we so from make -- that for again, to the them deeper and we're and about provide that decisions

pleased I And -- what actually was really deals month supply. April of really -- was of working on the to we midst technology come this I in was one but in in that see critical that through had actually in was that And the didn't going the mention company together that of closed deal, of the even modifications a one April.

But solved say as -- be of transactions. the now your most budget that's these can't think everything. yes right of going been the Now to as point heel last in far Achilles that's approvals, somewhat I I

now. the So expect lifted. recovery how how be to that into trying -- that start be on companies fast a it's right as when somewhat will are dollars. to a to would will of environment, investment yes, we some budgets again, recovery free really But to and start recovery their an hurdle we're fast things unknown relax, We're and free up of up situation start I all

prudent. projects through hold the from sales again going on still in said we're considering put being critical still We're investments. got as that and perspective also hires We've making We're had us. I been other and that engineering. for But

kind of So it's through working balance. that really

Kirk Materne

Thanks Frank.

Operator

of Your from comes Yun Securities. next question Kim Rosenblatt

line is Your open.

Yun Kim

Thank Quick question. Great. you.

of spending ones? faster deployment and there on traditional more out the rather a plan environment is opportunities focus current smaller larger Given there than status to the your

Frank Calderoni

I for pivoting like can mean answer The we said help before, where is we're customers. that the I yes moment. at

models. sometimes And modifying it's existing

it's creating that new week models or they Sometimes can deploy within two. a

hackathon. XX some created our leveraging models that the it's were of Sometimes through

it in of some Those to to kind some an in of from of did we're you anywhere kind $XXX,XXX well. -- as smaller them indication that of And May gives business. opportunities idea seeing more It's just we an worth $XX,XXX can give just that. of we ballpark be that and of so a see you April

that's take But bigger in for yes budget decisions seeds of do looking of transformational the offset the down opportunities all some hold. and being and close we're -- the to enough that plant midst longer also not are other those to But further ways deals again for to on road.

Yun Kim

If more. I squeeze Okay. can Great. in one

with to So in top-down the embracing your and are approach somewhat you well offers addition trial such approach? the as free bottoms-up sales

Frank Calderoni

whole different -- yes. a Well that's

start but levels let's selling lower to It's the data but help, potential So projects yes prospects sometimes just transactions There's some much buying require on. trial. you're also that consultancy platform other levels be top-down at it's around the approval. of provide can or more making in these start that. is of goes during when for they some that transformational also organization not say, future. you're the the available monetization higher to the again executive to When Anaplan, important doing because

we've I more we as learning through announcing been of COVID-XX Hub on is about App us And XX-day free the than strong. mentioned call said we very are extension for not getting seen the helpful and that feel the over. has And likely of activity in it the more pretty just that an interest amount be we're going that to again, be trial because we

And beyond that can those work and continue of so we make to opportunities. we to through want sure extend it some

Yun Kim

Okay, much. great. you so Thank

Operator

next Needham. Scott Your comes of from Berg question

Scott Berg

on Hi, QX Dave 'XX? partner partner Frank. how contributions for us today. -- One 'XX Thanks get you for partner you what to question in kind saw what as give maybe that and fared or maybe to or And color of fiscal contributions quarter or can year me bookings? you Frank, two bookings maybe taking some in contributions; of just assumptions to then are my the next you. Thank kind relative for through your on

Frank Calderoni

environment quarter increasing. I on others and again of standpoint from that is team one, contributions as to about has base XX% some partners similar the from planning. what the partner the with to working in the touch the customers. with well So partners jointly very for also as outreach which GSIs us helpful been others: hearing we and as well, did this outreach past but of were Over them, clients to they the had

tremendous Helps, that to getting was Secondly about a as think pivots mentioned the where far joint I Deloitte of offering some amount the the traction. Anaplan as of before that's through I about talked

we that. how like do can So things

because ourselves but the to in I've third, out on this $XXX XXX from about objectives on heard new really as kind then couple we helping I also drive creating think and we there with quarters. partners of been working days know to partners it, with that's And also million immediately, objectives and some through with opportunities have comments put working joint the of standpoint the not next about

then It figure helps investment sides, us the making for we're that also, that out better align on joint And with opportunity. them. both

forward. those in saw alone, a which quarters. in -- quarter we consultants just what So, what over with increase previous I all this partners saw of has COVID an is despite the partner we in second dealt the of continuation moving we've prepared And been mentioned XXX the in with remarks,

value that for do agility good the they Anaplan scenario was in in that So do longer see planning see the And need term. they planning. and

helpful. And so that's

Operator

Stan today with Morgan Your from the question Zlotsky comes final for next question, Stanley.

line open. Your is

Stan Zlotsky

question. my taking from for for my for end, Perfect. Thank so Dave. one Two questions you one much Frank

the of year. and for expectation double-digit the key for redoing the hiring hiring How sales growth it the sales Maybe areas. your for the plan in strategic versus compare year? rest some you your, thinking for mentioned sales still you're planning the revenue are headcount you about year, rest you're of As

in billing on spreading any And if and going are maybe payments quarterly those changes your little annual had the or for into, changes terms out to to billings On of asking or prepayments quarter, bit Thank reported maybe typical seeing annual an question. headwind -- you it then, me. you. a billings, semi-annual for That's explanation maybe concessions, that number? their customers from

Frank Calderoni

first the take I'll one. let Dave, concessions. you the take I'll

it's to sales And So we side, feel is stand side. the And technical the that now. say that at again there's then year, in on mostly only moment. the on opportunity, make ones at we're investment that the need the critical let's where specific looking areas the on we hiring hires later in engineering

environment for We year, so It's are more based than not balance see a the spending. plan of opportunity. this more that hiring under reflection on the else, lack just our trying now of anything we a to

back. that well. So the we critical some doing in again in But U.S. as hiring still regions pulled other we're but

can bit when so up continue everything. feel again we stop based we'll of And to that we see longer see kind strike open term. right balance, little just don't that balance, more. a we we and potential -- to But on how want that And that growth that monitor we

to And I back said, have allow in on that, travel two critical other some and areas. and that, been procurement things to spends as like some forth that the to capability, these investment we've pull able there's so offset of us been clearly

Dave Morton

Frank's And on just the --from pullback spend. of on some dovetailing, comments on

customers can we procurement same doing their imagine commercial other the the just thing. are on that enterprise just the You various organizations that engage with aspect,

well. upfront. our there concessions regards limited as why we are normal close value into this or We've split really the some some as request, our keep But to been is there've for billings. its one-year with whether had quarter to quarter some last improving But moderate to coming payment payment should and things try selling assumptions in into extension opportunity

Stan Zlotsky

you. Thank it. Got

Operator

final closing I day. the our the of question that and Ladies was presenters, for now our return call to comments. will gentlemen,

Frank Calderoni

Operator. want quarter. we you you, to today. our support. continued day. for And team our our partners for just forward a Thank I our all customers, of and look shareholders, everyone thank to next again thank Have joining members I want our to and call great talking the to

Operator

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

now may You disconnect.

Anaplan (PLAN) 26 May 202021 Q1 Earnings call transcript