TLND - Earnings call transcript Q2 2019

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Operator

Good day and welcome to the Talend's 2Q 2019 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Lisa Laukkanen. Please go ahead.

Lisa Laukkanen

Thank you. Investor to Talend year Talend's call. Laukkanen, to I'm XXXX Lisa you welcome second is Relations and for pleased conference This quarter fiscal me CEO, are Adam With call and Meister. Tuchen; CFO, Talend's the on Mike today

the make statements will federal laws. within our the forward-looking of course of meaning During presentations, securities Executives today's the

or other performance known and performance unknown statements to events to future actual involve Forward-looking achievements may or future our uncertainties from and by and factors materially generally relate financial that cause or those operating forward-looking these differ risks, results, contemplated statements.

and this but periods, related to future and expectations our Forward-looking presentation statements market. benefits statements financial and to, expectations not our related expectations in and business performance their and the include, initiative regarding are regarding for limited our guidance our product strategic

Our could these expectations materialize, and results in may to actual periods forth from These and cause our filings issued uncertainties those Exchange materially results actual in include not described projected. risks and risks well are fully the differ those more in those Securities today subject regarding future that the as Commission. matters earlier beliefs and with that as we release press set to

based are us the The in this the date forward-looking statements presentation information to of available on as hereof.

rely except required by as of not future obligation statements, forward-looking events, on predictions should them as any law. You update and we to disclaim

GAAP. the on or be for to financial intended financial Please note a a in are non-GAAP to that The will accordance prepared revenue considered in isolation other basis. measures measures than be stated on specifically with results substitute non-GAAP this otherwise discussed or call as be not

comparable or do advise selection the in these measures endorse products, to not services GAAP of press today any of Talend name product, are referenced any reconciliation vendors. non-GAAP We release. and not company have service do use most a that technologies, of customers measure vendor, or provided by our financial directly on

turn the me Tuchen, let CEO. now to Mike Talend's call And over

Mike Tuchen

and us Thanks all for Lisa joining you thank today.

cloud results quarter We momentum. are strong our pleased continues to build to second as business report

increasing their foundation We adoption, future Talend. expanding an for at are landing use growth cloud and new customers as of both for customers customer laying as existing pace well a

important drive The majority is of win, continue as data cloud progress most made the cloud market in market to growth their in positions the business to and market the cloud we will to future integration have us market gain share. the

quarter, million, second achieved we the year-over-year. of XX% In revenue up total $XX.X record

the million or Some highlights revenue XX% year-over-year additional from and currency basis. $XXX quarter on annual include; a grew XX% constant totaled recurring

subscription basis. XX% Our revenue a currency on grew XX% or year-over-year constant

the Talend more than consecutive Cloud, year-over-year for new our represented up from quarter. offering grew XX% XX% and in XXth XXX% of first the SaaS quarter ARR,

of from well target of coming having ARR by set are way year. new the QX achieving we cloud on to of this We our half

Our which customers. are total customer count over cloud X,XXX crossed X,XXX of

held And She finally, the is has cloud appointment growth President digital our of expert marketing, fastest companies. Silicon Lauren at is Vice addition SaaS growing at a trajectory. executive I'm formally Marketing as an in Chief Marketing of the Talend's Lauren of Officer. Vaccarello, as happy Box. served modern announce to and demand branding continue high Lauren leadership positions Talend's generation, and we as to some team, valuable Valley's

a tremendous a cloud was grow our rate. QX quarter at solid to continues business as

that revenue. half year our of the we will three full we as However, look second factors impact year, see to the

result the quarters. the First, will the accelerating services cloud to less in business move coming in

in more continues Europe previously cautious in macro EMEA to business our the makes for second us and political about environment the moderate. business discussed, our as growth half. And the Second, third, overall premise

market, in today are which the we is largest our in history and cloud. point the believe we than headwinds, term at opportunity to integrity address other near these the better growth Despite positioned data any integration

to As several hybrid data volumes, adoption. The broad secular in we driving with a explosion come growth trends cloud rapid integrity transition cloud greater are trends environments, in a the modern data and in global have and previously and need increase public integration noted, powerful market suite for innovation Talend privacy these Fabric. complexity technological significantly and and regulation like evolution, an and complete Data

analysts recognizing shifts these Industry our strategy. are in reinforcing

position a quadrant, our is of In vendor XXXX vision. to Tools. fact, XX% Gartner their and during situations Stitch Magic In multi-cloud hybrid captured Talend our featuring investments appearing Talend integration execute and ability in recognized support. and and noted for Talend's firm calls report, The also has momentum, leader Talend's competitive very fourth innovation market our at Quadrant frequently strong data leader's week for strengths was review our include in this In words, consecutive including contract the portfolio of strategic for recent Data saying, This iPaaS the praised driven over acquisitions. existing just capabilities the by integration and calls. Gartner along in Integration strategic as well also with placement our completeness the Gartner Restlet in investments inquiry tools the Mindshare these

step Data of most discussed we As unveiled customers to overall Fabric, an that frictionless easy around time data describing a the value of our to way solve and and number Talend in and past This Snowflake, today us, and our and initiate the illustrate for pay-as-you-go will our again In of Talend recent their for introduce as complex trusted the support unified with is enhancements of and will customer the shortly then scale and release the environment market Azure our of providing an designer. with land strategy, Talend we with aspects in the cloud data projects in we forefront Fabric, the grow. includes needs summer Databricks chain. pipeline pricing expand at shortens some Talend wins, Data have which is important QX,

by driven for Cloud the integration, deployment model adoption cloud data cloud the data and of is increasingly analytics choice warehouses. of

innings in integration of we data believe that the Although still adoption, cloud. we time over be cloud early industrywide will through predominantly managed are the

be We average cloud adopt line companies continue our are deal sizes in with to size. deal seeing overall larger the and

a Cloud. By vast Talend who migrate will in easier majority in As are will I process on cloud of the our the these the the customers we migrating the most beginning are ultimately, using Talend others, our to coming our aren't believe We the small conversations the cloud have customers customers premise existing of to customers cloud of have of of well past, than new focus and number path majority yet. the years. to the on-premise mentioned customers with today, far Talend, using

term, emphasize we with that stable a to base it's of premise In however, have important customers the near solid expansions.

Data expansion to fact, dollar basis. Cloud, constant points solutions QX. enterprise our net QX, of in constant Big for capture matter Big overall this migrated was Talend in which was from business, currency rate actually currency customers Furthermore, higher Data including net expansion XXX% of few who a a customers, As rate than on-premise the on Big Data doesn't based premise

an As a a of with a cloud, one this record biopharmaceutical won major customer multinational cloud example premise quarter firm. deal migrating dollar customer, the multi-million existing to we

and the reducing Our on ago several focused company initial point years management. with optimizing data with the financial landing cost associated was

to enterprise we and that of our and to decided as the wide catalog products data provider all company the success the map, support integration road on us compelling strategic to business cloud. the of divisions Based their move project make

standard. Informatica, are displaced because largest it with who deal our vision we large believe the cloud and is It this was validates excited our about on-premise We enterprise as particularly win, ever market the incumbent, enterprise we forward customer. a go also

you me with a in Splunk, an success analyze through search, quarter. mix visualize enterprises a We a wins of saw QX, second we In generated stories. strong company expansions that agreement new machine and other Let walk data. healthy customer few signed and helps the

to Technology it's and companies Splunk Talend improve program, strength will major we our discriminating believe corporate quality Cloud when support business. the solutions, improve and will testament service earn data buyers productivity. governance and marketing we customer their using of a the Lineage is are data sales, most to a

in sector a they XX specialist operated on lake an AWS to data Travelopia pioneer gain portfolio Redshift. the more in leaders as helping data a of many move and sector. is Travelopia brands, travel are optimized their speed is independently of trust, which with than Talend

this unified view transformation, a emerging to data their and part of the of company's a As from personalized gain systems reservation customer range drive legacy data of interactions.

business Moving up-to-date quality, Talend run governance in the a our forward, lineage Travelopia power real-time our built-in AWS. won the on Talend end-to-end data customer. to based data will enterprise, using natively approach ability to data with maintain be Travelopia's view and and integration of suite and precise

introduced company of account Talend's delivery. famous this partner arm supporting equipment the Harman the in International, consulting into a Talend audio

was multi-billion quarter the with for significant Another manufacturing company. win dollar a

analyze analytics the support first is of the scientists. new firm to and to and create cost as large AWS revenue The a expect team uncover in to see to alone. business Talend impact They an will in $XXX sales opportunities on lake operational team year data measures. using cutting data data million This

and of our Talend Talend won the flexibility seamless Fabric and Suite on based AWS. connectivity agreement the breadth Data with

help won the companies a APAC in cloud. also number new to We agreements move to of

platform largest a flybuys collects take Talend also improve now themes process flybuys accelerate from in improve service they seconds. point-of-sale to batch and Speed cardholders. throughput its five platform It company higher XX of trust to to and for Australia's powered its manage of hours just partners like partners. program flybuys and performance and help business the won robust, member selected to data by flybuys more loyalty governance. complete major data Talend the the million task The Talend same over our largest daily point. over XX used from wanted were new as to its information With data retailer. with retail Snowflake, data can

in the selected supply warehouses manage looking to Coopers flexibly In logistics slowed key selecting and been Talend, of delivery better current brewery this its equipment. latest and Brewery operations accelerating operations. reducing automated QX, due growing experience. with and consideration Their world's This an operations, Coopers fit architecture to ability demand to manufacturer or integrated complexity. a chain The Talend's Coopers partner tech and transform technology Talend. is system, inventory Cooper's and and largest crashing in With without increased solutions by by the help cost powered home their API use changing customer Limited demand ecosystem largest the has Australian-owned to increased which disrupting cloud costs. Talend increased was optimizing for is

with demonstration, our and marketplace. Technology marketing our development Talend Alliance cloud to Microsoft relationships data and deployments and creation and also help to Talend for Program Cloud continue access introduction Loader Marketplace AWS the partners the the of for Azure in for a is Data of technical and on of our to customers. Engines have new value-added, The expanded toolkits, and assistance accelerate aim new a We Remote provides ecosystem strengthen partners testing with unveiled Stitch overall data program with the licenses program The customers. integrations product speed integration support. to connectors partners for reach

our of that look to cloud to the we we transition the As momentum. confident to are the year, second half gather continues

Our XXX% in our quarter XXth the ARR cloud XX% for grew QX. consecutive represented of new business by and

with We XXXX of continue see exiting of are us. opportunity expand on solidly cloud to and the ARR track the for new in goal ahead of our half

year midpoint revenue However, EMEA, causes as premise of anticipated us than with the I by combined and full the services to lower slower professional impact lower our on slightly outlook our business the earlier, $X of million. cautious growth a guidance mentioned from

growth the that QX. translates to impact year, see year. from can the will full business our throughout overall lower the revenue cloud services in professional revenue You on ramps our continue This impact for and expectations as

reducing less and duration QX transactions this both faster been annually strategy ongoing QX. or transactions expected build year, pre-built of as greater our renewal were portion and Separately, than a has new for working of than

integrity for burn and You can billings of We to This increasing the the million ARR our with year. largest leader remain in integration first the enduring see value the global effect our quarters. in last divergence our growth full in to the as a $XX this of guidance and contributor create calculated cloud cash in is the two an continue in us in see innovation. market our to opportunity platform confident position cloud strength to

results QX Let second outlook and of half to now Adam the discuss to over the our and QX XXXX. financial turn me the for call

Adam Meister

as Today, Thank review for for second as our quarter provide results year well and financial quarter the XXXX. will you, I fiscal Mike. the outlook our XXXX third

of As are this filer became year. under a reminder, beginning QX required results we as U.S. reporting when financial a the GAAP, at domestic we

were which by We quarter second cloud business. continued driven pleased with momentum our results, are our in

as and FX that year-over-year the differ meaningfully grew of basis. XX% active the year-over-year, value of XX% a point We end Annual XX, will to on constant ARR subscription contracts result, recurring from up measure annualized as XXXX, define or this revenue this strong as ARR at or Cloud $XXX a million a all currency June contributing The time growth. of Talend revenues. period of impact in demand of the for

XX% QX. XX% up in represented new second quarter, from Cloud of Talend for ARR the

a We of are as our is Cloud reaching that. XXXX. ARR that excited rapid on-premise and in solution the customers would Talend with our to cloud toward We new half increasingly progress anticipated evidence slow prefer of exiting rotation growth cloud

up was constant rates course basis. to foreseen since small XX% was cloud the attached over for or second currency was back discuss the will our half for the As XXXX last particularly our of Total a on year-over-year, year-over-year. Most the revenue Subscription this QX, million, FX to for second the up headwind with changes impact with due quarter with services guidance. to I expect $XX.X of shortly, XX% revenue outlook XXXX, a million, quarter XX% incremental due professional we transactions. lower impact of $XX.X dynamic changing

for Subscription the grew revenue Talend year-over-year more from Cloud consecutive XXX% quarter. than XXth

Customer quarter of over them with additions we strong now customers have were customers. over in cloud X,XXX being and X,XXX the

in of XXX,XXX of XXX customers customers, versus reached also Enterprise as We subscription or enterprise revenue XX% customers revenue. in defined QX with XX% more subscription contributed annualized QX.

was our again quarter in constant ending rate dollar-based expansion XXXX, XX, the June currency. XXX% net For

We with during result adoption to of are this ASC related the XXX. the pleased given pressure downward year this

down course fully new was of over standard. XXX As this measure based metric revenue the year, come a gradually four-quarter to and reflects reminder, the due XXXX this bolstered during rolling expected the as ASC is revenue to

few customers. continue dollar-based net the base. overall higher dollar-based and big we expansion expansion to the our has few retention net rate expansion for existing The for of speaks quarters. data a install This on-premise points noted, from data on-premise than Mike big our healthy rate As and data see on-premise big was consistently been average last stability

to requirement second was was related This QX. Cloud, in expected is Professional flat largely moderation year-over-year. the services $X.X anticipated, in services the average Talend impact more revenue million which quarter, for lower than although the was professional pronounced

X% professional quarter of on well can expectation revenue for growth existing resulted revenue for momentum guidance. to on services a Accordingly, we timing to customers impact the QX. in cloud and overall in based Professional current expect in of remainder the growth drag XXXX, our prior both best growth of our services the Professional fluctuate to is with overall of due new to the services revenue our as but ARR X% our project trends, indicator shifts. similar the impact during revenue versus X% to as cloud mix, be

our we've of EMEA perspective, geographical revenue the QX. a on economic from year-over-year for We're some region XXXX. taking outlook macro EMEA from in the noted, Total Mike given backdrop. seen XX% Europe cautious remainder in a of softening As demand grew

the items, Investor to I be point release Before moving expense profit like and A reconciliation will non-GAAP press can forward and issued is on GAAP our are Relations discussing earnings I which unless profitability our non-GAAP out posted going website. loss otherwise of that specified to results. be would today, full in portion found metrics of and results all

quarter. the Professional X% second was period gross quarter the from XX% was XX% Our same quarter, total up gross margin margin for this to last compared services XX% in year. last

drive as marketing were for expenses inclusion million, also $XX.X million, year-over-year. our for most continue million, in XX% quarter up expense. were expenses R&D the It's the cloud XX% quarter operations. $XX.X of to expenses second for $XX.X up and products Stitch accounted for the year-over-year. was investment XX% particularly impacted up Operating quarter and by year-over-year, R&D the we of operating for the Sales

to an reflects ongoing this our to of of quarter performance $X.X G&A quarter QX. last $X.X to XXXX. the in to during guidance were also initial versus our year-over-year. relative for operating at drive allocating This began the incurred the that year expenses loss expenses benefited we the in XX% or overhead million, up business, beginning some efficiency but million, focus due XX% X% for of G&A drive an efforts reflects The We primarily operating million, loss quarter compared to or the year. of efficiency second $X.X

for $XX.X March. $X.X of cash loss the year loss June period. the for equivalents as was compared million. $XX.X Net $X.X XXXX end million was the XX, million quarter prior and net at $X.X Free million quarter in of totaled to million, the cash a Cash flow versus of

business We position our us we are believe continued around a cloud be opportunity products our focusing the and strategic shaping in data innovation. investment integration, leader the cloud to on in will

will We flow negative. be cash flow to The for the from roughly is versus increased shortening negative expectation now year free of the cash contract $XX anticipate million the million prior impact our burn free duration. largest contributor $X

pre-built X.XX saw calculation of growing a an our In impact business. to of duration monthly XXXX. Stitch, X.XX the pre-built compressed exclude duration including QX, our of billed is customers, that contact average we part much versus which of Note over

and difference with duration worked in is XXXX. long-term impact the of flow. in growth the Our free larger transactions first goal for and half of than end decline helpful XXXX. billings between the of and cash impact since our pre-built expected to deferred revenue shortening had Analyzing growth both the ARR duration calculated the renewal understand a on new This reducing has is of evident

our XXXX. for to and full-year turn now QX I'll outlook

XXXX. XX, a rates similar of and business assumes our guidance conditions exchange July reminder, as As foreign

be range million quarter to million. expected total third the in of to $XX.X revenue $XX.X XXXX, the For is

to $X.X is to operations the $X.X in the on million expected diluted Non-GAAP basic from loss million of expected This range loss based be of expected weighted and to Non-GAAP is to shares. range to to of net is net average per a of million. in $X.X million range be in $X.X count million. share loss $X.XX. the Non-GAAP XX.X be is $X.XX share

is the million updating from $XXX full-year million. million in for net Non-GAAP be Non-GAAP $XXX is in guidance of be XXXX of We are range to Total follows. expected $X.XX. as $XX.X loss net to average operations million $XX.X the million. loss million. range a to is revenue expected expected million the to loss to range $XX.X count diluted on of based is This to in to the the basic is and of XX.X $X.XX be range be Non-GAAP share per in $XX.X of share to shares. weighted expected

Our revised of two, one, cloud; guidance moderation of lower the the reflects growth. services for our on-premise for conservatism for to and professional the regarding three, Europe revenue full-year related continued expectations remainder year;

about We will are made relationships term. ecosystem and and durable our largest that cloud over exiting the progress growth excited drive in as we business. We remain to the have cloud-first customer Talend and to enable the with continue market strong to leadership, our us contributor advancing new confident long Cloud, strategy XXXX innovation

I'll questions. Operator? With open that, call to the

Operator

with We'll Suri Instructions] Blair to & [Operator you. go William Thank Bhavan Company, first.

Bhavan Suri

about Hey just touch clear. that average on one just to deal for Mike, want get comment. a the that I cloud made, And, was want start the, guys, of, toward job size? you I on to there business. questions. I thanks trending sort Is the sizes. my deal obviously, taking which cloud great guess,

Were sizes, there color they have historical So, the helpful. quick would initial And what are follow-up. just size? be toward on-premise then headed deal I some deal a cloud the

Adam Meister

Sure. Hey Bhavan, it's Adam.

the we're now in in large right are -- average seeing. cloud deal line sizes with overall So,

with we max big So, bit back to very that. related of we're below in that's data, kind but the XXXX still a peak comfortable saw

seeing that this in-line deal Now deals point. overall are trend the expect and from much don't cloud we're to sizes and diverge at this we that the

Bhavan Suri

adoption I Got strategic, a product of or the some and it. follow-up. understand, a happens pretty that? It's sort follow where got And I'd not governance that's is these and I It's to guess love data of that? helpful. the up. part of of data governance two-part transformation quick a around, challenges it's obviously One, where

guys seeing in Is Europe, that new of guess And then verticals? to what some sort people UK? specifically, willing it EMEA, not guess understand I you it that deals or two, projects, what Is do you. new trying concerns. that caution? I gives to you start the Thank has guys Is

Mike Tuchen

a the to investing enterprise across with strong strongly. a our business governance that is our a conversation. and of it's We business but customers. growing part sales as -- Today that very and from An we're enterprise don't separate of Bhavan, sales out a interest break remains it engineering part of the key area board area so it's our in and strong services area,

demand on -- going slowing macro-economic is going In terms there, environment the the, of on there. to be business moving barriers in though to seems a bit what's is overall cloud the the Europe, right due interesting is really and what's a political We, fast.

premise really what's the softening. happening is Europe business so And seeing in we're the is where

we And matter we business than the expected, running the talk about That's cloud particular, that when picture is seeing right is of is so, we're Europe moving worldwide lower in as where softening, premise really fast. the now. really business a it that's fact,

Bhavan Suri

questions. Thanks for it. That’s Got guys. my taking helpful. Thanks

Operator

We'll go with Jack to Needham. Andrews

Jack Andrews

customers to now? context you're the mean, provide right that wondering really about and thanks an around Mike, an acceleration I talked and number you actual Good things as of growth like increasing more at my if taking afternoon, me. pace. question. sounds rates and some was landing just experiencing for you customer cloud could I

Mike Tuchen

which at cloud. around we in February had to of which X,XXX we the announced X,XXX in to were X,XXX are our end of we Yeah, up were so That customers, And just customers QX X,XXX QX of cloud. on announced -- we the that call, at call. and

around we've to been two uptick cloud that. we is added significant a in quarters, where the last clearly which prior customers XXX So, from

Jack Andrews

financial customers, you on-premise example Great. Talend Cloud. from or or data scenarios? behavior enough of ramifications do what But expand that migration us think their an the gave -- is the in change such potential Could customers for terms this are as migrating company of for then you to in you an with help opportunity might those through to that how have your

Mike Tuchen

Yeah.

So, now, What is the cloud, kind finding we're we of they buying little the as and uplift pricing premise way seeing date are works, between of is to they to make exactly pricing situations cloud. cloud, that our easier. bit up a right just leveled into that, more end customers a as typically the as modest to is moves expanding do the these

And we in this see is still for us, migration. the, very cloud days early the --

We bulk of several expect years. the that to happen over the next

Jack Andrews

Great. Thanks taking questions. for my

Mike Tuchen

bet. You

Operator

We'll Goldman now take a question from Chris Sachs. Merwin with

Chris Merwin

just helping Thanks questions. taking my go-to-market more business? is cloud Great. you I Okay. a to that I the about And was drive of for follow-up. Stitch had quick a the if higher wondering, and velocity then talk bit integration how

Mike Tuchen

Stitch, is as as land. the to were velocity, new customer that's Stitch a that really through hope about Stitch And talked new anticipated very see, a we've acquisition initial lands Yeah, lot and had we driving vehicle. the high of cloud

to parts now from Talend the on work and expansion land that. nice we're We further progress starting Cloud Stitch are of into on a seeing

Chris Merwin

of as Great. maybe contract this shorter influx higher like then that's in I at cash of due we guess point duration. a to fully down saw bit, a as guidance, came terms call And duration shorter deals. receive build I to Okay. that flow just feel even you out de-risk little

at end about the year? the how as will particularly of should Just cushion curious, that, be to it and the come we thinking relates cash

Adam Meister

question. Yeah, good

So, fully yes, de-risk it. we've we think

prior shortened duration about we our talked we quarter, on call. in that first saw The

got trend through second we realized here. is a As quarter, there definitely

helpful, the ways. And in indicator. grew be one state. growth between billings, potentially at half calculated the steady in we that of prepared ARR as people same X.XX a billings looked be in my at and basically comments, I would as so mentioned a look just year. ARR, at difference of million the first rate the And you this $X.X if different calculated it And about as couple

if most If million, end you revenue, look I And in is importantly, of a that's at the just RPO plus the decline billings then, in of QX. to defer, about relative $X.X think since you long-term change look at calculate just million. difference $X.X there

that give impact guide. those around sense the efficiency ensure what the first of But it's for second some think was well. of year oriented will million for the kind go you triangulate into large of factors all So, done what that basically, the true those a half of business that duration and as the in not big half. $XX the are we've the We

Chris Merwin

Thank Great. Okay. you.

Operator

We'll now Murphy a question take from Mark with JPMorgan.

Mark Murphy

very Mike, that Yes, just the in to quantify on-premise in growth be thank do you decline or half? revenue able business think that, to if you year-over-year, mentioned expect moderation the you on-prem to of stream is overall feeling the to rate wondering is that there much. I'm moderate. to continues you'd it you second And begin going your would continue grow?

Mike Tuchen

that Data that part, the expansion premise rate XXX%, at mentioned of piece that. actually premise Big and actually even a Hey, Mark. slight overall is do of We talked above we net being our about tick is

that So, right us a stable we see for now. as base very

a on very to business current outlook our premise continues That's the low as overall moderate, double-digit think grower. I it. ends up

Mark Murphy

double-digit grower Very the half? second in low

Mike Tuchen

to seems it point. at forward, be going And this Yeah. stable

Mark Murphy

Okay.

Adam Meister

Hey, add that. I'll it's on Adam. Mark to

of covered of in the growth seeing moderation now, still predicted low we last probably to I end be on And based our that that what shorter think We that this four range. we're but double-digits right the on range, call. quarters. it's to would six in

Mark Murphy

the engine, that remains a it's evolve fully And cloud remains on to roadmap integration work continue data to be has environments? think adapted there? so as to Mike up, What on-prem you and Okay, architecturally, done your modern do great. what for what follow been done

Mike Tuchen

investment And it from then, to take about the in the just make we you did took couple and the of the cloud reason containerized I rebuild to and get re-architected the all answered products was it elastic it years We've the off really to sure kicked why make us Well, benefits the when multi-tenant and years of cloud. back a we really advantage of and five question. reason half ground the why, the ago, the up. project

have ago. best-in-class now. that And bringing, our look forward doing that so we're engine, to at further as making investment but a is, cloud I is right we we I at move investments five because modifying years the enhancements the that to we're don't continuing promising we're number took of look the we're way What

is there we've support to the September. that probably model. that quarter, engine designer we're get by announced things billing And in the to bunch now is pure this doing biggest And pay-as-you-go Azure behind up right the a one end pipeline coming our a of pay-as-you-go give of us

term our very things, cloud architecture. further and our are to old It's So, two new on-premise modifying anything expand but there architecture. continued about there near about aren't

Mark Murphy

Okay. Thank questions. Got much my you for very taking it.

Operator

take Bracelin question KeyBanc Capital from Brent now with We'll a Markets.

Clarke Jeffries

Hi, on Brent. Jeffries guys. Clarke It's for

cloud assumptions it As of kind the beginning at about guess acting year. revenue XX% putting have revisiting built in of XX% you've of are nearly safe like IRR being that we as comments only year of cloud, that that the were of seems new this big on-premise made. assumptions now the entering the I from XQ? big data XX% ARR potential the And say you've together terms and seen some nearly double-digit to in performance you low could on the but cloud a are for Is in the same business new being it relatively that think still of driven by of just grower. on-premise data and

Adam Meister

of the the that guidance that a Adam. has Data. Big in we the by had provided. than been growth It's counterbalanced little faster slightly And performance bit that's underlie cloud deceleration anticipated we expectations I'd Clarke. say the Hey, exceeded

into and rest So, in guidance of I year. the it terms the you're on how you're going really for think, spot the of what's framing

Clarke Jeffries

those migration the terms conversations infrastructure And it Or they're of to are are of from product another those really another cloud happening that's in purchase platform they decision? ahead you. discussions Great. efforts, that a And willing core or Thank in infrastructure alongside other making? me. decision cloud

Mike Tuchen

strategic of Typically out It's figure in level to are equal the to them conversations -- cloud single that a they go and in strategy, conjunction it's as be conjunction on relatively with and two tend with move in happens with or at with a want they're multi-cloud hybridization whether great that to customers broader parallel. larger a going customers those their to starting And happen cloud cloud what question. through. primary one, clouds they a

smaller if infrastructure keep near prop even With a in finding their what on-premise value is, we're cloud analytical the the superior that term. such they customers, is

Just gives moving benefits. of of near-term infrastructure portion Talend immediate the cloud the them some

So, in advance we're of customers, it's conversation. larger strategic cloud of seeing smaller migrate the just ahead that infrastructure their But larger part and to migration. overall with customers go

Operator

from with Citi. Instructions] next We'll Radke [Operator our Tyler take question

Tyler Radke

mentioned little you net it expansion to that Can Hey, moderate originally like thank about customers Data a expecting than your you – the you're bit among afternoon, the you. premise Good and were faster rate talk the you low-XXXs. sounds Big expected. growth -- guys. in Yet, had

net are there. of faster guess going falling expecting through -- I off kind just Or forward? new a is than is that expected? expansion you If the less So, there dynamics you you robust rate walk business the could

Mike Tuchen

little the expect rolling very expansion it's for Remember, do four-quarter had net premise decline. are be our I rate Data the big things a to those for And expectations true. lagging proved that average. Big a product happening. metric, We new in customer both because -- data adds to know, business and You it's

So, yes, decline to do expect over time. I that

Tyler Radke

that having of for the it Head deals meantime, thinking kind maybe of sounds the the how sales of update Revenue force of Okay, some between And in velocity kind like provide larger about models Stitch you're just Sales? great. on of managing an with these kind higher Officer And how pay-as-you-go new search you're here? versus some the Chief and and success the

Mike Tuchen

Yeah.

don't seeing interest right position. seen now. to candidates. anything strong very the have we're We in strong announce We've some So,

transition team the, we're now terms the managing of right and the that frictionless the making and how of expand to from there. In kind lands

and on such We have strong leaders that's doing cloud why they're we're seeing cloud growth job opportunity. great leaning the into three And very the regional of a side. terrific

to accelerate cloud Lauren as think that's to experience important the related Officer, forward. Marketing and continuing And our world. Chief with -- team a in excited in I'd we say, of that modern us to going we're area part digital motion And marketing the her frictionless given be introducing going an our

as now we're to well. already high that extremely lands starting work it from expands and well customer with happen the velocity seeing see We're just

Tyler Radke

you. Thank

Operator

to next Lenschow go Raimo We'll Barclays. with

Unidentified Analyst

to Stitch. go-to-market force to Hey [Ph] I Stitch searching quick on want fell Talend Lenschow. started is David having had a this to sales on leveraging the the suite, I of for understand question if full impact Raimo the has cross-sell yeah?

Mike Tuchen

Yes.

it So, And proactively, to starting customers now that expand the from as rest mechanism. a that of now, started seeding also starting their we're force Stitch. use the with is sales Talend journey to

start Stitch solved, now you're simple why If a problems customer with that are to starting live minutes. be suggest, you don't a will with you working has in we

you're we And the you problem, that. solve part when of can your solve problem, then next done with that that help

tool for to sales just a So, frictionless separate us toolkit motion. another as our that's giving -- in not use, the a force

Unidentified Analyst

All right.

that fair that we're to then? still opportunity So, say cross-sell early in

Mike Tuchen

sure. For

our designer refining is into part of in I important -- and the next couple think that's bringing years. mix -- the evolution us for really the of this pipeline most over the

Unidentified Analyst

larger deal final Thank they're up par Do future? see Do you being cloud your question cloud than sizes. the sizes. I ending in that actually on on-prem? you. surprised the the those on with see deal deals changing the was And deal hear sizes to on-prems you just

Mike Tuchen

Yeah.

cloud year. So, we've improved over sizes seen nicely our last the deal

I but the nicely is, percentage those current the over think in improved about it's really last year. growth

in my we surprised larger as are We if from cloud that ultimately that how the expansions, and working. And question the I seeing perspective, is continued. and business be blends two we're that ends happening larger things countervailing have up wouldn't

number some higher phase. cloud are a have now aggressive also we And velocity expansion in were high that happening young with lands But very smaller expansions lands. of velocity larger cohorts and seeing we larger

is a the math question is And and with if so, one. the yes. question out But that more the good are definitively, very engines, blends is how seeing we answer bigger cloud -- is

Unidentified Analyst

Thank you, right. guys. All

Operator

your and answer And session that call. today’s you concludes participation. and Thank for question concludes today’s

may You disconnect. now

Talend (TLND) 8 Aug 192019 Q2 Earnings call transcript