PLAN - Earnings call transcript Q4 2021

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Operator

Thank you for standing by, and welcome to the Anaplan Fourth 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] Please be advice that today’s conference is being recorded. [Operator Instructions] Thank you. to of conference Investor like Tichepco, to now President Vice Relations would hand over the Edelita I for Anaplan. Mrs. ahead. go please Tichepco,

Edelita Tichepco

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

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

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

non-GAAP release with in to Frank a information our supplemental and the provided And Calderoni. turn periods, in is reconciliation over results For website. call of will financial on GAAP I the that, and historical press

Frank Calderoni

our disruption become part of We and future. this over past year. need finished we customers planning with on solid throughout growth an execution X,XXX business. the are Good have and us helping now thank new We challenges deals. fiscal the a key bookings on to steady We fourth address coming value deliver from pivoting in best quarter. focused morning, improvement plan the demonstrated for them have new healthy linear unpredictable where XX% new for into you There everyday this an new course-correcting of execution, how scenario-based this and And year to transforming environment now with uncertain this was ongoing today. and quarter. and rapid progression with joining their normal approximately expand customers continued for also continue and to We customer growing

of XXX customers $XXX,XXX. the Billings exited last million, balance of have performance also the We obligation, quarter remaining $XXX ARR or we XX% RPO a XX% year-over-year. with up year. fourth over grew with And

areas finance emerging outcomes. xP&A. the good business is business adjacent chose They planning of As need with to FP&A the flexibility the U.S. of and our of to unique which business. away implications platform, financial has breadth structural that in there’s core customer highlighted what highlights requirements, by as and compensation. continue a cases, and we well of where was level to systems. solution on-premise built that impressive a suppliers They operational ultimate reporting within workforce required to to for an into Anaplan planning This their changes lacks our financial as incentive legacy the the of the example customers, from an connect beverages both flexibility other the address accommodate such of it’s see to move been extension a This Gartner largest new the as wanted use land, and modernize one looking planning trends to of example to beyond the was

we revenue example and supporting customer a developing vehicle not over moving the batteries, treatment. chose also finance were This very protecting new revenue a addressing platform growth. since they scalability industrial solution. enterprise see billion detailed materials users offered customer a our approach digital They as They smart they complex air planning customer many appreciated and embarking time This company medical that centric. selected budgeting usability being of great product objectives. short was to water sustaining potential in volume, require in global was advancements generates needed devices, on a in other transformation and $XX connected capabilities. high effort by and in while Zero-based chemical from embrace customer environmental this multi-year manage who a a Another because on more to and products transportation, challenges developed to team with as based for anticipate finance. based European We focused is X,XXX those leader the expected similar The to than flexibility large by users they areas initiative critical as more data. achieve and market

this employees units. scale. I’d needed to expand They R&D like revenue customer with who use their and across planning HR, finance, to and to highlight their an our integrated has at quarter existing Another include of is deal business over platform XX,XXX

IPO. their their on their they and as So plan improving focus for operational business profitability of efficiency they could

enterprise to This Amazon help now allow conference our fall. to platform platform platform able relationship continue This with year customers builds capabilities relationship share Web cloud an been serve and our productive past announced they on deliver their Services From excited a wider innovation integrated I’m tools user our to Today, Anaplan our last Amazon market on perspective, quarter. and also of that platform leverage our seamlessly will AWS. Anaplan’s this we range AWS. us systems. to existing strategic by and storage announced other CPX This customers been provide upon data and we our Anaplan planning which and services, will with expanded opportunity. extending with we has analytics embedding core have grow has Our overall foundation from this collaboration PlanIQ integrate Forecast, their been ERP that to this

product As and a testing generate the customers automatically Anaplan learning to strongest by in for delivers before a reminder, pulling model by several optimized our forecast accurate more unique case. the selecting to predictions algorithms data this use customer’s from

past on e-commerce customers positive has Anaplan and goods healthcare, have PlanIQ and with have customers product analysis. And AWS, will available data leverage through partners several program. closely scenario been third-party received several allow in for customer and feedback. we months Now it in with forecasting working our This first and early major and their consumer access been the mining, to

building ecosystem We to to partnerships choice are of our a customers. strong technology and increase value

also commitment demonstrating CloudWorks announcement past this also During AWS go-to-market motions, to Cloud continued us. our that Anaplan opportunity ahead our large year, platform. will Today’s on diversify relationships to with a the Google the perspective, and Cloud providing necessary Anaplan scale up of opening announced Google of a of innovation. on AWS we and From selling our address the part is market

with their go-to-market AWS be team. sales joint Our supported by will

a lasting critical SI strategy cornerstone customers. Anaplan’s to delivering value ecosystem go-to-market of Our our and in is partner is

last innovative to prospects and now our I’m brand has new access industry. The partners. McKinsey functions by possibility solutions of portal designed launch for our customers showcase. a planning use catalog partner support help Anaplan business Anaplan This their key the corporate XX to official prospects, to XX see we by management. has announced partner of will customers named customers from extending for and single At were destination needs partner quarter existing to pleased of Anaplan week, the existing by which geographies. our sourced been announce new performance to their our function sales their also allow top and across This and showcase solutions solutions deals for kickoff that our partners

was digitally the recognized is customers We three leading by a for backdrop, out talent IDC Magic XXXX fiscal this Gartner global by cloud continue four by to MarketScape. to a grew the their Quadrant. leader capabilities. our employee transform also choice Adding EPM to Anaplan quarter, this Anaplan XX%. in be we pandemic already In leader named planning as of year against recognition looking

community world-class backgrounds. certified Anaplan’s our functional the expanding of completed as The prior excess of levels of connected as also XXX% longevity over This and and to year. element that talent partners, own professionals includes in ecosystem Anaplan continued well one employees. of at our sustainability delivers our our certification talent variety a vital grew number building a is total customers, of to We of customers. across The Anaplan people experts, planning Anaplan

of he fully realized another broader Bill we staff past, of impressive led expansion through propensity purpose environment, penetration drives deploying the pipeline stability our that company’s to month, the net next the an our global share Anaplan a increasingly our while focused have take be and drivers scaling He have Officer self-sustaining. importance COE. company. delivering we execution, rate the of greater to in where is Anaplan deal opportunities customers in ensure This go-to-market Revenue key Bill and an an discipline internal our half on thoughtful year. well-known year, strong we customer will operational navigated center uncertain environment. Bill first and the customers this of to team drive adoption Prior COE help are for discussed longer-term. I’m track past growth the this to the platform, of and are fiscal focus had scaling also on is customers global and in planning priority who Within excellence performance. operational that last highest number welcome as in on industry recommended effective, driving the use our leadership record business doubled to as and transformational sales us, is As a customer optimizing to or Reflecting teams and business dedicated customers of to XXXX our challenging with leader of during the These with level. go-to-market around skillful engine go-to-market the Schuh excited with to continuing buy Chief growth to the strategy to turn manage and as sales understands over go-to-market the back past capabilities. was implemented the have which joining organization

with collaboration and existing Anaplan their digital on successful are pipeline planning have partners efforts to the drove And our driving customers. healthy expansion opportunities tighter with they We been joint in customers. largest our transformation processes, into leveraging a account driving we connect building

progressed of efforts, fiscal a we As improvement in billings these growth as the through year. steady result sequential we delivered

of free non-profit both trial another helps partner. manage now is connected Anaplan implemented XXX of and and new hospitals, pharmaceuticals the to our As control aid announce the government a community help for true organization. with Anaplan health agencies, in solution testament together available We healthcare vaccine which impact requests This with to to work values, quickly We as planning organizations I’m customers. we navigating and our to our also one solution, platform for every systems, aspect received and a through COVID-XX excited COVID-XX. planning our has our vaccine organizations, in distribution distribution. new adopted been marketplace public over

the Looking by COVID-XX customers, help impacted transformation ahead, goals. achieve their continue year we to to our value optimistic by backdrop, for XXXX. to that them execute With I pandemic delivering remain an digital environment in fiscal ongoing

we and prioritized. a multi-year need are have for said before, for most companies I capabilities modern being opportunities ahead journey planning being the As incredible

like for runway other to investors, and tremendous a In as their growth. provides I’d we thank trust our value stakeholders this partners, and employees, partnerships. closing, strategic of key customers, All

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

Dave Morton

points sales everyone. revenue. million, XX% year-over-year total X quarter billings and sequentially. a growth Thank XX% million quarter Fourth bookings related $XXX and subscription Billings revenues by fourth revenue strong upfront Total to million, year-over-year. Service point were were from comprised reflects the grew X was execution net this good for in driven XX% for year-over-year. Frank, quarter new for quarter million, year-over-year year. XX% a Within foreign and fourth large $XX contract. up billings revenues multi-year you, tailwind and payment up higher last was up growth XX% currency rate also $XXX or morning, XX% and XXXX Calculated the revenue for this Total $XXX fourth quarter. the improved approximately a of fiscal

would rate growth of of is billings impacts, which these well Excluding XX%, to been ahead XX% guidance approximately our have XX%. still

XX% dollar-based fourth XX deals year churn compared prior as to line exiting broadening current over the of XX% and million, the rate quarter enterprise as Anaplan’s or months is million, last billings quarter. portion XXX% the this $XXX X,XXX rate be For full over with million were revenue reflecting We RPO demonstrated retention over existing the and fiscal growth this $XXX growth is recognized $XXX of growth no the to NRR expand healthy quarter. year-over-year We net There’s year. overall RPO delivered next up of up ended is customer a was in customers. quarter new within year. the XX% year-over-year. expected that levels. customers. A is our platform in change result of And historical volume been with The expansion

deal the NRR impact of reminder, volume quarters. reflects the cumulative lower several a As for past

fiscal we begin expand and we improvement As growth year. will the our see to deals, in through NRR continue

X gross subscription gross margins year-over-year up points year-over-year. roughly total metrics, were X% percentage profitability X XX% percentage approximately approximately margins our services to gross point roughly were up margin flat was this XX% Within and Turning year-over-year. non-GAAP

was year, the year-over-year. percentage gross non-GAAP up total point For X margin approximately XX%,

quarter, For year were non-GAAP product Operating fourth up the million, and for XX% $XX $XXX from $XXX due go-to-market were the the up total prior primarily in year-over-year million from engineering. year, operating investments and $XXX to in million, expenses million. expenses

margins points leverage drive period improvement in continue go-to-market compared and quarter product We in the XX% Fourth year. investing to key were to in within of while same operating last financial Anaplan’s basis development. XXX an X%, negative negative model, areas

quarter flow million. was with negative shares. year in management. million $X.XX year, demonstrating XX% from $X based equivalents. Free the of and loss for substantial cash fourth progress Net X%, average We improved productivity our For operating and good improvement negative working on $XXX executed million was towards weighted prior the the full per the cash capital objectives were in cash fourth profitability. the and demonstrated financial $XXX We quarter quarter share fiscal margins in representing

across of transformation new While customers. existing around and there remain for investments continued pipeline within our priority significant continue industries an top platforms a the may be world a expansion building economic broad-based opportunities uncertainty, creating to digital Anaplan healthy customers of and drive

a to of Within $XXX the ahead a negative XX%. range first range of we range million. XXX to Billings to expect be year-over-year to count range growth of Non-GAAP in are of quarter This expected first revenue for the first of range $XXX.X XXXX, to for to share $XXX in be XX% XX.X%. operating be in million to $XX.X million. million in to we approximately a X.X% of anticipate Looking services in the implies expected expected quarter for Weighted this, million million rate be the million. be average margin the fiscal revenue $XXX.X to $X.X to shares. quarter is is the

$XXX in XXXX, we of million. to of guidance For raising to a revenue fiscal full $XXX million the are our be expected range

Weighted In expected large intact. average to for be runway We flat year-over-year. XXX to be shares. X% approximately non-GAAP closing, count range expect and growth share our million remain negative margin approximately operating market opportunity of in to X% the is

our market We over profitable extend drive investments, will operator to for continue business to now through our turn and this questions. scale it towards leadership growth. I’ll strategic in the

Operator

[Operator Instructions] with Sandler, Certainly. is Bracelin line Brent open. your Piper

Brent Bracelin

the that, one in you the improvement and follow-up. Or improvement the buildings there’s a in above Thank driving the here that – internal what’s and think be of improvement like conditions you. highest level then just kind driving do a this quick we’ve broader the into you billings just industry year. is digital some trends are interest drilldown here XX% improvement seen of bulk drove would execution Frank, sounds the Could planning.

Frank Calderoni

you, Thank Brent. Sure.

probably quarters, about at opportunities, have that I’d and and focus go-to-market our capacity. summary, look working to go across were together this team. our customers I fiscal and in pipeline, so they as with has throughout, ensuring that really been investment, say, past on we expansion, last build building partners, talked our current the they two on making back really we year, as down can And stability So aligning it’s on focusing

year out was of progression. all the itself fourth our linear that So played in I the focus throughout think on quarter, fiscal including

throughout of was as So number we’re we were I acceleration a That of did with. see focus aligned which making the the partly billings we that customers. continued the the and pleased sure year, our with on growth said pipeline

I think we’ve digital all talked about transformation. the importance of

for think basis, they for executives can I transform be talk organizations, digitally. leaders on need a to about talk in and the they whether best other how regular CFOs, CIOs, agility I flexibility, all they

past a I we’ve to continues build year. that pipeline, a throughout been out that to deals. year So able good the feel closing this accelerate quality healthy

As digitization were really But areas and good be in agility, is one We the companies our these were about were areas fiscal true see the the unique planning think the in plays to investing targeted in market to address year investing. the Companies struggling there year. where But I on forward again, the early have businesses the feel of going of scenario continuation did platform, felt opportunities a based focused on to they we where think to there focus a continues in you some was the know, a XXXX. that opportunity. marketplace, COVID. mix we flexibility, needs as continue we we we and that I of strengths, out and

Brent Bracelin

kind stabilizing of of pipeline, good factors do internal you that stabilizing kind start that of XXX%, appears it’s be can and slowly the here pipeline, see on you net see expansion recover? Based think you for to external here. kind well, XXX%. both improving to we’re Dave, on and Great, to on the

Dave Morton

overall and is provide and this in where about of specific through FYXXXX. translated coming XXX% speaking increase that’s Hey, deals. pipe prior, kind our and a into narrative, points you one guide obviously been NRR quarter, terms it but somewhat kind metric, Clearly, thesis coming if we think on good of a don’t a quarter and metric that lagging morning, XXX% what of future into would as of that Brent. pivoted into that this that we’ve a of and there’s lot a Obviously, converting

Brent Bracelin

hear. guys. to you, Thank Good

Operator

Needham your is line Berg & open. Scott with Company,

Scott Berg

good I Dave, the and my hire. to thanks Frank on start with off guess, congrats new CRO taking the for Frank question. Hi, and quarter,

you now to continue background opportunity going individual I that think the I couple attractive in new guess this hire Anaplan? to sales was timing And a and to what ago the why quarters assumption a to up report while. was to is for at his the

Frank Calderoni

think I focus coming yes, this know Scott, mentioned we pipeline, just year. off the is of partners the have itself mean the talent geographies very this talent over our that on aligned and with stabilize team focus the I build really in I’ve on drive the the is that with around couple the think talent. year proved stability strong quarters. I and that of last So they last I’ve had can about I world that And team, the execute. throughout to And past really team fiscal talked QX go-to-market opportunity, all the this I

So that was great.

making go-to could But the right talent operating track brings, spent Bill there an I and do that overall, joining is that the XX prior also found listen, learn, with meet effective. he’s do was plays I experienced mentioned the to what questions say days, like vast that no very would about that he the of maintaining lot being his how many focus really experience the think team and he sure was now market. His I to performance thoughtful of he and in in impressive on important, critical. from allowing in of highly new we had good, to the but think to nicely, we at within came with organization it questions, some well-known I’ve time, that in was year think we executives, talking within operational I as going he but that to which us standpoint execute ask an source of and companies, skills first we’re primarily the in organization is impressive, skillful I I my go-to-market from to he’s really of kind of just about a as throughout CRO, the the But fiscal organization, part we said that he’s continue over growth getting invested record our was But I the Anaplan, Bill XXXX. clearly As I’ve to far he I Bill is and delivering talent, good several that continue forward. R&D. built in good standpoint, that We as not how make think really Anaplan, of I Bill part finding right had a saw, in business that stability, what need it I at can time, some able input adapt think scale in of model, I half to urgency other view, always felt feel you doing from added only last lead said. year, in XX%. the because also you, as

job that a did with So allowing great help to Bill last and forward. the that had a investment now scale us sales our team. kickoff going take kickoff just week, We us really

start. to great a And so off

Scott Berg

even And a of the has CFO in the landing quarter what to Does of had forward. pre-pandemic. recently? going thesis I from a Or office pipelines that of been in lot Wonderful. recently or a the last the then out? emphasis maybe guess in follow-up, the there or success higher kind CFO outside is company continue two, And seen you’ve know from of maybe the office the I play

Frank Calderoni

everything in and more which I is to in looked resides and I needed companies planning, started also past plan is but relates about planning finance, planning that is finance realizing you from know background think is the important. and operations. are as We was in prepared process, the and anytime the way more in perspective right planning. I a the that really starts from I at mean in what in But not finance. that financial remarks, So having ends that think future. process. in I finance enterprise mentioned have now this I think the well as different And a it an it

many in we we’ve in the the finance of whether so successful a – in whether year workforce that supply with with back out able sales planning. that’s that’s is strength HR, planning, forth. enterprise now really the been planning, that had leveraging in we has category we’re and also past and and the called whether that CFO And of right were into other chain, as Gartner the performance in to finance a organization having we extended new organizations, demand called sales organization, out have what aligning executives have. management planning planning And that over in lot planning and that’s that’s conversations in their strength It’s supply

the across with customer, making the company two-day And possible of art here talk even on current topic more real So sponsoring some kickoff, of where one I just week. the could that. meetings which two-day of their this executive had with had the was for summit and had I CIO more the I the of them, summit week, was business right. the part they their started Anaplan a CIO. of CFO the and we’re and about I the CIO, was seeing this in a specifically the finance summit

what out continue finance how enterprise. in expand, So across to the achieve they’ve able to been they

deal as And see examples. I that’s great where we’re to of continuing with we’re have be And when only because us think not many able a play across these kind that. having financial deal to working success partners well, enterprise, reach especially the opportunities. broader organization, into the our they’re of come on but to accounts transformation in to So some with some they allow more

Scott Berg

on the Hey, good again congrats quarter.

Operator

Morgan line your is open. with Slotsky Stan Stanley,

Stan Slotsky

so and everybody. Thank Perfect. you much, morning, good

structure the specifically been the end, sales quick if about my So QX? imagine maybe I finish thinking of potential any but couple you. a questions Frank, to of How sales productivity through this how on Bill how organization been are moving improving then year, has the in would it’s you changes? and for from trending? And organization, the maybe sales forward, the

Frank Calderoni

couple Hi back and hit with I last say goes We year. the of Stan, put over so of some then in last COVID. We in quarters. this again QX would changes got

of go-to-market that as organizationally fiscal the the that and had So year some focus And well as of as both had The XXXX the I we’ve I on think has change how the I’m I start proud before, the environment. throughout. weathered really said has execution the organization with just pleased at team stability. think been

whole to Bill with anticipate going the I We’re in Bill continue Bill, focus. go-to-market. When change the don’t that well. There any fully we agrees that has announced as organization.

do we to, focus it’s did So organizational all those nor then pieces We intend have opportunity. him. to not announce the continuing execute as scale and to far any just individuals that changes to is the reporting of and that on me, now as report

year well. to productivity and far Now, you in productivity, continued you also as expect, improved QX as as improve mentioned, the as would as throughout it

note far it as throughout trended as how would a high So say FYXXXX. and our productivity we finished, on I

Stan Slotsky

mindful then revenue a guidance, revenue XXXX product on there And follow-up that is Okay, be in we as far quick of? the like to perfect. Dave, fiscal maybe mix subscription any and need as for expecting services that change you’re

Dave Morton

that up because the Good that had fairly very and subs, lining the morning, well is as specifically then going total pipe the than similar of right, from ratios. bottoms just aspect nicely lands No, the be less those up. as conversion use continue the narrated I so we’ve expands build productivity a both the based. emphasize professional would And services, to as we’re to not assumptions think about Stan. Frank continue to as whatsoever, on on, our historical of views very, gains revenue our pretty we will just are expect to always XX% at on narrated

Stan Slotsky

you, awesome. Thank Okay, guys.

Operator

Brent your line is open. Jefferies, Thill with

Brent Thill

terms morning. just of you enterprises some of seeing larger a us if sense larger with transactions, curious in give good in what bigger commitments. just Frank, back could these coming Hey, the of you’re

feeling the getting year? they’re Now kind commit decisions going bigger toe that to as simple and later and well back again trade doing and this in their seen, seeing some are getting and some back make you they’re year. of to still Are hasn’t the wanting up transactions opening in you then and dipping

Frank Calderoni

still – I a with the think dealing environment. we’re COVID

continue and in been, our has from new I as from we focus kind well said improved in have to prospects. perspective. effort putting customers, that’s as strength industries the And that perspective, year as think And where where I we’ve the so of been be things that both throughout been current proven there’s our

in those technology, that’s I had. digital those financial industries transformation services, of say some question, the say to I they’ve continued answer I have that the So efforts companies or would healthcare, to also would your that, accelerate would

think why I our a partly as just expands overall the in that’s far waiting. we as saw QX, in strength

mentioned in to and us That that another Anaplan. chain was NVIDIA, more these more that We cases see with they’re which and IPO. continued toward have technology now they is value extensively extensively. had that year can it a mention, has with that had they several continue that benefits I to the We’ve that some continued it now had companies example. The earlier, working look company worked at looking the a They’ve this realized scale one and grow. as supply that – technology which a they company, across customer is organization their how to was value I great of earlier do in

a strength, that so year some really of the of companies, business this Anaplan through great with perspective. large had infrastructure couple a that’s has forecasting, suite. their incentives planning, And replace areas a in and that working example expansion performance very again, where and a out old was had in from continued past compensation, management replace their build extensively sales sales territory and XX-year and We’ve entire

quality ebbs that want the be it the throughout FYXXXX, of step at want different want We there COVID past But world feel and started seeing make So those a sure, continues flows question, this industries yes, kind too. and your of time. but answering about I’ll we out pipeline, to around again, that at to take good as we’re the I also geographies different with and as be year. we of look to knowing one we in having a we opportunities to types build healthy end prudent

Brent Thill

Great. Thank you.

Operator

Michael Turrin Fargo, Wells is line your open. with

Michael Turrin

Hey Good there, morning. thanks.

delivered upside quarters, still billings the is lagging some of of past growth couple the You’ve but impacts. revenue showing

QX you’d year maybe all touch given to visibility can what the all lap It But wondering expected top a as us wondering guidance the well. there the as shape way you Just be line on assuming perspective, that starting you remind if – the the world could continues for from and certainly rest and recover. trough at expect to well. looks how much of if you’re here, have

Frank Calderoni

had gave – revenue guidance as from I we For a the as well full – modeling standpoint. for purposes, most we that would QX, we for year the

standpoint, throughout that I from think FYXXXX, of know to it we a model on lagging booking revenue. as have impact based you the has relates a that the all with performance that

As But we said far pipeline fed the there’s quarter as this strengths. the quality at the have, to we a I be with want as patient pipeline, focus that good of pipeline time. to healthy where as business it that recovery, in about relates COVID the previous the again, industries just I how the take feel one we response,

the us the is the progression we want throughout think it that the they allows good, I that conversations balanced answer we opportunity. fairly Anaplan. platform that kind want makes and to way approach, ideal we only question more feel feel I better and to leverage they the we a see that And the continued how to execute of to to With business While objective is see of have, FYXXXX. do, have being it me I have in products where continue a feel how what as our to they it opportunity for plays each is your our we to and significant out about executives marketplace do with week see think can

Michael Turrin

can from anything billing those, there help on to makes like X you. us to we the X can points second for be Understood. right. pre-pay. add sure that go helpful. just a quick Is from sale FX one, points larger we It follow-on Thank you characterizing, just and would in Maybe a on Dave, just back sounded have that

Dave Morton

that. pay or have as free I think you included customer that. correct. with year as had a It’s it No, Michael. that large Morning, a and large our Yes. We simple two a year three or or involved

call specifically don’t we out those as we so normally And to that deals. wanted have

we just so information provide wanted that transparent more about well as and as sequential quarter, talk we as as than nothing comps that to we can, when year-over-year simply. so And

Michael Turrin

that. Thanks, guys. Appreciate

Operator

open. your Materne Kirke with is line Evercore,

Kirke Materne

yet areas hopefully the meaning, taught really actually demand Frank, back more see into Hi, in year earlier companies earlier that well to have have pipeline and where upside you’re were the you’ll fiscal you comeback and obviously quite I’m pipeline as of the saw, gets comments economy of that I your and at in your of about but is wondering just world in maybe much. just sort the so as you industries ahead you that hasn’t coming parts into wondering the the to the back Could in if look many there’s in market or thanks head there’s what you normal. some – the economy been still obviously impacted potential or maybe seeing that not you’ve COVID and impacted all, XXXX? back for or year very beyond come was opportunity start impacted, the build

Frank Calderoni

to hard say. Kirke, it’s

wouldn’t started traction some a started are future. gives will I sign conversation deals, far yes, that say that say which as the I I I think about – if certain them, you’re the we think I that verticals they’re question, to as we have more still thinking you have have to with some of the pipeline. the those impacted. deals as But closed have asking a don’t had been in near-term back,

right, is and our we’ve back well we as investment some made these can a see on And tried and in thing own The So then customers. in provide model our help. empathy, improvement that is that about in way, with thing I that always we’ll that key the respond opportunity… team how see us, stay goes business, continue. with good long what there they do with think as to go connected work want The customers start to and with to our come to both early as an we to also all their we show some they the that’s so partner team is

Kirke Materne

you sort next COVID seen travel quarters. just sales, actually yield, think selling, all the partner had, I then and terms as follow-up few away serve that And your just serve and like or about of maybe a this to, building about market channel. obviously sales post-pandemic think have how virtual progression, maybe hopefully your out Thanks. meaning more you’re of companies great. Dave How that’s but serve you you Okay, operating beyond over maybe are just want bigger of Frank, this most going things we expense for are that and on lower benefits big year thinking a from impacting margin, just all how And sort in some enterprise thinking you about that. go-to-market and

Dave Morton

Kirke. morning, Good

Go Frank. ahead. Sorry,

Frank Calderoni

ahead. No, you can go

Dave Morton

economic to think and this from respective where also to further I gain the investment but say, value plus immediately you’re near-term implementation the to sell is Anaplan. longer-term delivering going but upon of things do that been access obviously has savings modernization, the was just net data going index a I not that the have on the spend, teams you’re then trying thesis you’re into only and to positive,

near-term we the obviously out, that into net further you’re so absolute as I online. savings, productivity you back just much everybody think then you’ve gains down road. of positive, the when else, but we’re reinvesting business obviously think like about and the those But And putting a a it’s met lot in near-term, seen capacity some

so. Frank, Sorry,

Kirke Materne

That’s great. Thanks, guys.

Operator

Beck line Josh your is with open. KeyBanc,

Josh Beck

it as there back priority. that You some of the big it that front I’m really now, taking for around digital a through said earlier stands a pandemic, I And to remains on maybe Thanks office. was shifted went question. commentary the level obviously year. we the where go curious think What in it transformation? just the does top focus higher

maybe And so us I do, to it to just perhaps be pre-pandemic realize priority can. about where stands to the list help versus it it’s on but think tough

Frank Calderoni

what that From a and Dave a in had CFO the And that I on I’ve the way part think it group priority a our exactly just with even CFOs say just dialogue that few on ago the this forum with some the participating list. also and list, it’s I that forums I with have with – of partners based from topic. weeks moved answer this would higher up they of the

his jump can he so as well. And maybe and in perspective get

even CFOs. from So I CFOs, extensive especially moved with up a the think the topic standpoint, think prioritization than but significantly has I more

going you up know that something to from have that the an are don’t organization XX% to more by then more all transforming, whole in year. where think opportunity. but their is, going function, a indications recent add far research an it’s innings, to show for bring CFO came amount forum. some in and of of you into Dave, ramp organizations enterprise. And planning of start where extended kind very XXXX it And relates solution aggressive planning also like that picked it As XXXX, FP&A early, as did this they April transforming I where Planning their of saying also they’re reference goes report as perspective it Financial forward, are same out again it’s the Cloud a they Gartner or I to predicting extensive the FP&A in up some planning want if to I but going of in say enterprise, across were still early

Dave Morton

a There’s I be it’s to top very points. lot would mind. of friction just continued add of

are we the ahead about lay think but importantly, more value Anaplan it systems not so the for opportunity or with keep navigate kind able to through when on. fits just evolving the up then legacy brings, opportunities of that just you that whether going greenfield a again everything And that times creation as

CFOs. operating of center center front the a it’s – lot just I for think

Frank Calderoni

to with it, higher paths lot and business, also take on happening the They’ve out do allows through their how work on executives only transformation. prioritization to to again increasing. figure a the moving what as thing got And they as of execution are start of it list been They to dealing got that’s but best in the right. things them

Josh Beck

Really as So helpful. other But well. through of in composition just really the the some expansion deals maybe potential the we next towards you these you’ve follow-up us bookings, the shifts start two, that’s larger year in way purposeful then shapes of could there years? or coming could if think worked maybe return? the made a really on and obviously And activity, see swing that a curious the help to perhaps new maybe

Frank Calderoni

we really is far to XX hard that see. expands think like yes, best it and I It’s predict, as mix the did XX, I mean, it’s can model but as our new, probably of the of shift which QX to see. new that Anaplan brought same time, also customers more very toward expand QX, in at but the into amount a strong had great portfolio, were

making. more of I think have the that’s comments to I and indication that Dave an extensive interest of some going back now been

see customers initial now good use number customers, far working with continue. partners as then to XXXX of was new cases and Anaplan, further exploring potentially XXXX that with know and as as working expanding So you and

Josh Beck

guys. Thanks, great. Okay,

Operator

is open. line your Barclays, with Lenschow Raimo

Raimo Lenschow

Hey, congrats from me and thanks squeezing for well. me as in,

quick the new like do where just of are customers benefit what usage what to working how relationship, that’s margins? run does – a I And you. geographies, with the what do the them. it about in that, from you question it gross and kind AWS expanded think clouds and you guess Thank Just that from on long does do initially

Frank Calderoni

further I agreement Google as do quarter, It that. have to with of of some AWS, – us last partnership this public ability cloud. the with helpful. to with with about as enables This we that which innovation them to today access we to customers do to and globally and in allows have expand the opportunity us other and provide far want have we to talked well availability Anaplan we Anaplan like don’t things to extending Amazon segments and – strategic really availability the more us also mentioned didn’t market gives as to that. cooperation it the enabled Forecast, the the continue access Cloud, about want as with of again also we course that global footprint, too. today We is we So that expand innovation, know enterprises announced back September, which the or also

we’re mention next we implications I margin as about that’s margin year. part I this is really the excited implication, of don’t So And joint far as more to this year the not – the – just latter into be opportunity as that to want here. minimal have And far should existing. go-to-market, the as

Raimo Lenschow

done. Okay. Bye-bye. Thank Well you.

Operator

time We one have Tillman is open. for final Terry question. Truist line with Securities, your

Terry Tillman

you them these kind could playing Frank, in and question, make and world. my a a nice wanting progress. out quarter had was some particular they in consulting seeing Edelita. with of you just and then I’ll Frank, it’s and/or relationships like pretty see where go-to-market standardize their a how this Hi, Maybe one to compared Thank Yes. with Dave in CPM Thanks some all McKinsey, the I’m had prominent AWS? name taking that’s were you. actually vendor. easy. And job curious it for to the past this one engagement On the of other questions, the bake-off like

Frank Calderoni

Yes.

Anaplan, McKinsey McKinsey. for we So working the four with had of with years I’ve part been a I’ve been that a relationship

want a further is in of they’re to corporate they leveraging Anaplan do think confirmation the a forms especially standardize, success for really with management. their seeing I where clients this

it’s had value further wanting other been to able Anaplan great So they’ve it examples even that think just they’ve to I of extend that some and clients. with create showing leveraging

to partnership. So to continued that. to look forward And it’s we see great the

Operator

back call closing I over would for management now like to turn team Anaplan remarks. the to the

Frank Calderoni

that results XXXX. today talk fiscal often running we’re continued quarter here the from join the I year us want our everyone next we as support QX Anaplan. to again Please of thank about for us joining with and

So again. thank you,

Operator

for participation. today’s We thank This your you concludes call.

You may now disconnect.

Anaplan (PLAN) 25 Feb 212021 Q4 Earnings call transcript