AYX - Earnings call transcript Q4 2018 | Alteryx Inc

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Operator

Ladies and gentlemen, greetings, and welcome to Alteryx Fourth Quarter and Full-Year 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this program is being recorded. It is now my pleasure to introduce your host, Chris Lal. Thank you.

You may begin.

Chris Lal

operator. you, Thank thank Alteryx's and joining today us Good quarter you and review fourth results. full-year to afternoon, for XXXX financial on are today Executive Rubin, the Chairman Financial me Chief Chief Kevin Officer; Dean Officer. and and With Stoecker, call the we question-and-answer up to a After prepared open call remarks, will session.

of business performance, to laws. call, are These we our not statements and but statements subject forward-looking risks guarantees related make this are variety under future rather statements a are During to of may that uncertainty. federal securities

Our could any materially expectations forward-looking from statements. actual differ results reflected in

For the a EDGAR actual SEC's other could and discussed factors risks filings discussion earnings results, of factors our the as and on system the other important and SEC material affect today's our available important in risks our please website, release. to refer well that as

later effective XXX Form As adopting call, report when later we the this noted are on our week. annual XX-K we ASC in file

our on our We provides financial have on in impact presentation disclosure. on a information XXX additional of posted section and the release. also The website impact ASC our presented is details financial that the of adoption of earnings investors

measures on call. refer earnings these measure. over that, measures this call to the directly GAAP Stoecker. be non-GAAP most Please comparable our our will Dean? I'd investors financial Officer, the Dean release With tables a conference in section our the reconciliation turn of Additionally, to in like of financial for discussed Chief website Executive to to their

Dean Stoecker

QX to us our to XXXX joining today results. everyone and Thanks, thank results you Chris, and discuss full-year

finish a January, in pre-announcement to our represented on based know, an year. amazing you strong As QX

and brand call. provide continued improved please transformation Kevin analytics is the results my for clearly from as our the global that an up in are revenue initiatives, the of million. stellar and industry XXX details on XXX our positive QX advanced investments company heels year-over-year associates more benefiting to grew around through We XX% execution and go QX ASC world. QX many will full-year on in million international QX year-over-year ASC the our all were was comments revenue such increasing XX later note XX% results new by demand XXX million. Alteryx $XX.X XXXX. I trends the more Alteryx awareness in in in of XX% billings detail, Alteryx basis. to set for more year-over-year Before than up XXX records digital to

to XX% growth full-year, we margins Gross year-over-year to improved we flow generated XX% XX in from million year-over-year. international $XXX For XX% saw operations. growth the revenue and cash up million with positive

model net XXXX. land-and-expand new well. quite customers Global we in including Our now our XXX to community, approximately of XXX added the QX, In count we X,XXX and worldwide customers perform growing continues

included welcome we Pfizer. XXXX QX and in Global the the of Crédit Some Alteryx Agricole Hewlett to CenturyLink, Assurances, Colgate-Palmolive, community Enterprise, Packard

XXX,XXX We expanding recurring their tripling than in of saw value. a in than annual doubling customers of than with their million revenue $X greater our organization Alteryx transactions of evidenced also more throughout annual a by and customers contract foot greater print

strong transactions with rate fourth the Oracle, from and Additionally, based Atlassian, for Microsoft, us very retention [Snap]. our net at strong in technology revenue dollar particularly was quarter The sector Dropbox, remain XXX%.

healthcare saw of and monotonous continued factor healthcare an established data In go-to-markets manually get of regulatory efforts analytics requirement XXXX, because finance. and address and and key bellwether, with In Alteryx CFO’s Adobe’s as Alteryx task, users component technology prove team the QX. intensive processes Another they chosen a and companies in through we engagement to end would their our otherwise technology serves these has been back part Adobe our significant globe. around in robotics with this time iterating amounts that better as of Alteryx. expanded and RPA, business their initiative of unique be could by strength. was we our another enterprise these footprint QX opportunity what modernization automating deepen spent process to Verticalizing transformation

to result health of in for benefits quarter. for six-figure advanced experience a organization open advanced with After This of had “very to company company’s the many its Alteryx”. easy a customer deal tools. in ultimately a its and and chose efforts, its using expanded evaluation, to of As due of another founded a of users Alteryx trial in its these simplicity and a love analytics, via be This tedious, use fourth simplicity, the hard, with first analytics, Alteryx with was “fell like platform of implement”. source formal legacy the but words expensive they free one support

are stories companies hearing enterprise. as We increasingly Alteryx across leverage advanced analytics more similar for the

of America across as Tokyo, by international We now XX% XX globe increase continue to evidenced expanded and North America. of revenue We XXX and total opened or based XXXX, the In outside outside offices, added now XX% full-year, have North approximately workforce revenue. associates strength see we our representing our Dubai. for the including of Paris, XX% in over of

have customers. XXXX, agencies in on culture agility year. scaling that makes strategic accomplish private with are Africa imperatives focused to we Kenya, out Specialties our even in for doubling South in of in as Internally, did we believe preserving pleased XX more a Development QX. Dubai with and organization and Africa, Trade As with Alteryx a of in to UAE, that world-class global we separate Bank while In into which head company, the and we’re Standard XXXX now still the number government I outlined build a this and continue I Group Electricity extremely East in for count accomplish quarter, speed am XXXX, Saudi-Arabia, unique. operates able Al-Futtaim, plan in what Water global can with Saudi-Arabia footprint. Authority the Limited we and Bank, revenue Geographically, stood Commission Middle business and to Abu the Islamic Saudi Bank Dhabi Health and a

We to company our However, the to and social associates what impact the the real this and positive customers, worked Rise called enable help XXX,XXX of programs event, about January, XXX I’m this we back task in are of Good to to good a Alteryx We For energy of time pack using brought align At being Asia teams call that, including proud support to XXXX. QX Hunger. At together For that With entire associates, for making about, organization communities. give in Alteryx in global are and me together their partners educational XXX, most the Southeast meals sent the charitable demonstrating outlook power is to passionate our of to and over our hour, encourage adoption over strategic in is let Kevin approximately volunteering Alteryx event our that our Kevin? our and accomplished financials, initiatives. Against our ASC an to Good platform kickoff they effort. discuss Alteryx community. imperatives, on the XXXX our turn

Kevin Rubin

Thank you, Dean.

strong As Dean a and mentioned, we had full-year XXXX. QX

provide through adoption I'd go update like to ASC on you of our an I with results XXX. more our in detail, Before

filed and one the to subscription quarter, no ratably ranges longer week. growth ASC this we are which years. from last our Under XXX, we qualify we term typically XX-K effective status when over three mentioned adopting company later emerging recognize ASC XXX, As for revenue

recognize term. will ASC our remainder of With recognized the subscription over XXX, the upfront. we will adoption portion And of now a be revenue the

with customers We total will derive the our value upfront the of be amount time or from recognized contracts to the revenue of and over TCV.

we Since As billed. contract but receivable. XX% of but TCV The we our on our average term recognized term. ASC remaining a This the XXX. The our customers Under customer. customer XX% estimate we advance, ASC will Therefore, sales other customers to direct unbilled will costs contract is to bill booked yet commissions of is amortized want This means typically are also for we incurred two previously as in XXX and commissions sales revenue annually, not that similar emphasize, bookings obtain our business term. multi-year configuration a a to revenue XXX TCV our subscription and the nor recognized, previously I regardless we includes making ASC between to we portion of customers reported years. over revenue we changes to of under how in subscriptions, revenue recorded is XX% contract XXX. than our our ASC across is be deal mentioned, annually deal, we as revenue and approximately based unbilled subscription that capitalized means subscription the Under will to our however, adoption in over vary recognized we XX% we to do capitalize it contract our product our advance, of quarter XXX, an under not the of with in-quarter of recognize asset a ASC bill the higher booking. will how ASC result XXX, continue amount each base with continue term. to

track time. expensed amortized model expense over the the with closely revenue our upfront will and to However, model portion recognition a remainder

more rate to performance we measure our XXX. and ACV. reported by on as is Additionally, the are dollar metric metrics continue impacted revenue measures strategy. report recognition or report view the The customers contract net based meaningful We our in expansion Instead, to rate these to expansion not performance. revenue net longer our which value metric retention base our net view, of believe rate, to of definition given our of land-and-expand is metric to total dollar-based this net number under measure ASC new XXX, appropriately historical of the XXX%. our mechanics dollar-based QX, no these intend we as We ASC previously a In a performance. and metrics intend amounts additional was customers annual

presentation ASC presented financial on a the and section provides investor information on on disclosures, the impact details and our of that adoption in of also financial posted our is have our additional impact We website of release. the earnings XXX

ASC QX XXX revenue million. Our $XX.X was

million, XX% XXX an revenue increase year-over-year. of Our $XX.X QX ASC was

noted, areas our across saw strength we all As of Dean business.

year-over-year and expect made to million. The globally. our both in markets international growth reflects international strong Our across revenue increased we growing our QX business ASC and U.S. have make the XX% XXX continue $XX investments to to

full remind release of results. want to otherwise moving I unless a I reconciliation Please our GAAP everyone results. non-GAAP to refer non-GAAP press for be that Before discussing on, stated, to will

QX XXX Our was gross ASC XX%. margin

XXX XX%, of XXXX. from Our XXX gross basis was margin an improvement QX points QX ASC

higher reported support under to ASC to While for in invest were global building expect QX XXX margins our organization. gross our due reported revenue, out we higher to continue

So, margins over expect modest only we in time. improvement gross

slightly commission sales treatment the of expenses XXX I operating expenses $XX.X XXX earlier. impact Our over to our ASC increasing QX mentioned ASC operating million, were due

Our million compared $XX.X $XX.X expenses QX were ASC million XXX in XXXX. operating to QX

profit margin was of operating XXX million $XX.X million ASC QX compared a operating operating QX Our Under reported ASC or XX%. of XXX, $X operating million, to QX an we XXXX. an of loss in profit $X

million loss shares Our of million XXX outstanding. ASC based million share loss million weighted ASC basic $X.XX non-GAAP net a income QX XXX, was based a we net non-GAAP $XX.X or on and of average reported diluted on per $XX.X QX shares Under net $X.XX per $XX.X average outstanding. diluted $X.X or share weighted

now December generated $XX.X Turning sheet, as QX, and XX, had $XXX the of cash $XXX operations from we million, of GAAP investment we as $XX.X cash, million the to million long-term full-year. cash and In compared for equivalent to December balance to of flow XXXX. short-term positive XX, million

XXX quarter the QX XXXX. ended at from end end of at the Finally, with and XXX associates XXXX the associates, up XXX we of

reflective Our continue the are to meaningful we opportunity headcount in to make globally. of we increase the investments capture see of will pace is and making

full-year results. our Now, recap I XXXX will quickly

revenue $XXX.X Our was XXX million. gross was our XXXX XXX ASC ASC margin XXXX And XX%.

based ASC $XX.X Net our non-GAAP XXX income million weighted diluted $XX.X operating $X.XX share on million. was was XXXX shares was income outstanding. net income average And per $XX.X Our million.

ASC was $XXX.X XXXX revenue Our up XXX XX% year-over-year. million,

was improvement ASC XXXX full-year XXX to XX% gross an Our XXXX. compared margin XX%, for the

$X.X million, was to million loss Our XXXX operating loss $X.X improvement in compared an ASC XXXX. operating XXX

based of outstanding loss XXXX, XXX compared ASC million, net $X.X non-GAAP million Net $X.XX diluted of net in and in loss to XXXX $XX.X $XX.X to million year. prior loss XXXX. Our and is million the $X.XX was compared loss in respectively. $X.X a per per share share This was basic shares on net a

growth we In believe to drive we increasing. the as is turning we Now, increase strong the for company need in-quarter remains expect years. investments of of remainder subscription beyond, TCV build ASC globally deal seasonality XX% expected a we our the the to solutions booked for scale. our the Under to to in at revenue XXXX and what of XX% date. our please we quarterly ratably following: guidance, And so ASC note XXXX. recognized today, upfront we our considers two is, latter that being revenue XXX recognize experienced is longer consistent to the be or Also, will with on report an guidance XXX, average time. After no results ASC close at duration provided subscription will be our constant date over basis, basis. guidance recognized XXX our terms we will a on approximately therefore, start an Approximately

in have renewal X. the ASC being these This XXXX a QX. evident start in December our quarterly large portion XXX recognized percentage results on in of We upfront revenue that with results. expire in dates This January contracts QX of is of XX seasonality deals

posted results ASC the our historical on materials For XXX section website. investor reference, our of we supplemental details have on provided XXXX in more under

XXXX, million representing to range growth approximately expect we to the revenue $XX $XX of XX%. QX For in year-over-year XX% million of

loss be $X.XX weighted $X average and expect our million in $X.XX. non-GAAP million outstanding This diluted the million diluted. $XX to of and We and assumes shares non-GAAP share operating to basic of $X basic loss range non-GAAP per to net

XXXX, of of range revenue $XXX million million, $XXX representing XX% XX%. to full-year the to in we year-over-year growth the For expect approximately

finish our the per million strong great to and a year and million close, an assumes to the XX%. up shares positive in diluted that, non-GAAP $X.XX. and continue with operating expect outstanding To range million weighted $XX a fully And rate of non-GAAP to XX average questions. had of $XX non-GAAP be income share XXXX. a to expect net in our we'll to basis $X.XX for momentum open we tax effective on of This call Operator? We income

Operator

Thank a from Citi. question you. from first Tyler of the [Operator Instructions] line Radke comes Our

live. now are You

Tyler Radke

questions. afternoon. Good Hi. my for taking Thanks

talk might this roadmap. about then science I need bit products and you XXX. you some you're with Connect curious And on to HXXai. emerging the you where all go. one And you XXX a could, do maybe just partnerships I there, My if to some question, you. think could was we first Alteryx There I what's Promote, the Thank the and little on believe announced the data expand as if community traction of have with you've DataRobot well. Dean, seeing

Dean Stoecker

Sure. Thanks, Tyler.

our of part actions. go-to-market important an is innovation So,

fluid. their the be cataloging platform, mile Connect moving of the analytics both and still data, traction made that year assets, first models, fast. in acquisitions early We're rolled ago. and our very data science, about to indicated service We would find them that seeing assets, people on going that the are instrumental allow assets, to sit data would analytics algorithms never to a this half a and part products of We world. We Connect. that reporting It's help rather journey. relevant It's as visualization an accelerate analytic end-to with end We both out last year. good

learning organization a We're anyone about data's that than organizations more the out finding imagined. strewn we're that have. lot that across think I ever the demands

So, we're We're servers add work with we Connect. prospects that to to in lot large number of that metadata have a the there of for or connectors We're to mile customers about doing customers. with excited our the loading. working up stand for many first of

probably was couple that may I think I Promote, indicated a it early calls ago of Promote. for have on For on

to salable are eking biggest weren't people $XX out risk realize they the think in $XX trillion to in is now the models if in a to I the world way. around to enterprises science actually beginning value execute governed, that able data

doing Promote very so, actually And well. is

for to We gym customers it best next who organizations drilling algorithms. action learning of on work it number do for down. to of predict doing IOT all rigs clubs, are to for kinds models rigs shut a have when example, using We machine using see

and And platform. end ahead, done And letting that pipe be to the cases across analytic is get bring mile all analytics as able that entire last more well. way to end algorithm. the would being of so, those that quarters beginning particularly of used we'll through that's in board the prep us first that have expect blending mile we're some promoting to I in important to Designer that customers in difficult And from to

Tyler Radke

I quick And if Great. follow-up may. a

about – there? just data one a that I'm see talked SAS? prep there. competitor you are deals sounded saw it another curious like Or the of competitive you've You it unseated that Or to started in pickup is tool displacing you if a displacements. you

Dean Stoecker

Well, before people go platforms, I And myself, guy, so in last I'm lots indicated I forklift these very, their analytics large is it sales I typically of for VLOOKUP’s quarter help primary customer citizen have us had ask is of we've last And scientists. generation on living a accelerate that generation them enterprise. a competition the out use data have calls. Excel the number to think Or in SAS. customers and last across we either of SAS the very the Alteryx

staff, prep we and to those of with who things, a to time compete we preparation wide is bringing the blend science them around entire of on including across the of data do as and analyst uses rarely So, the array our blending a or accelerating and standpoint. either of outcomes to Ultimately, of the analytics algorithm. spectrum result compete meaningful necessary evil all use get analytics. the back product the capabilities Excel, actually productionisation against a And the data

Tyler Radke

Thank you much. very

Operator

you. Thank

of Mike from next Turits James. Raymond question Our the from comes line

live. now You are

Mike Turits

Hi, very job guys. this the and And Michael on thorough thing. clear by Turits. Good way, evening.

the into have But basis. XXX is growth So, would year were year you're rate. words, a In there a – next guiding anything to? the not as versus XX% guided know we growth have different than the to this obviously that I [indiscernible]. a been billings would or that strong relationship XXX changed you other of growth on the revenue If next XXX maybe that for could you quarter also, as extremely the And that any XX%? in between for question, bridge far growth us had you high-XXs

Kevin Rubin

Yes. Thanks, Michael.

mean, first under it's I And the question, guiding XXX for really So, compare. just we're the mechanics. are to hard XXX. the not forward different Both and XXX

the think for that hard just if guidance, XXX business. be that correlation the draw would When in to we're other you it that you So, say to look our seeing at strength reflect than calculated should about because – are now of good in measure be longer be disconnected to TCV. billings going billings little that momentum revenue a booking sense no for on going revenue and the is purposes to probably me a bit we're

So, subscription contract revenue if cases, the more some actually in the than And than the total value billed. more year, our contract is has a with reflect of customers. it'll been

So, mechanics look to we of some use file when Form what see think the week, that later disclosure the those to answered this able you be dynamics and XX-K those at expect unrecognized has momentum. been debt forward some I of around get you'll in to

Dean Stoecker

And fact business the the the important for add changes. in to recognize I'll everyone with that it's nothing to transition that XXX, just even

playbooks Our change. don't

don't change. motions sales Our

contracting don't change. vehicles Our

So, you can expect the the of in future. same kinds of performance us out

Mike Turits

get see see margins that pressure been that think might Promote. believe saying Great. Kevin, you some you you I and gross would Thanks. increasing moderately. And just if Connect they I clarification, I for as one increase could mentioned, you've

XXX/XXX it a issue? Or a that is chance? is just So,

Kevin Rubin

a I Yes. XXX/XXX more phenomena. as it characterize would

still aggressively front guidance, investing by opportunity evidenced As the of us. after are we in

about there the upfront, aggressively continuing more still to the of dynamic think we is in revenue taking So, as business. invest us

Mike Turits

Okay. Thanks very much. Great.

Kevin Rubin

Thanks, Michael.

Operator

you. Thank

Cowen of comes Wood the Our from Company. line next from question and Derrick

live. now are You

Derrick Wood

your mentioned think so remarks demand congratulations. And you analytics. advanced increasing of I'll Dean, Great. echo global I my in prepared

to continuum spatial on seeing you if moving You've of Is land-and-expand moving descriptive analytics do evolves, starting typical strategy? the then Or And still talked predictive the side customers that about starting the the and evolve the your process cognitive. into the see go-to-market you and on cycle? historically along the customers analytics need side? this are

Dean Stoecker

rolled the science been is are since forefront, land. our Well, we models What for land-and-expand the iterating our data coming we've of XXXX. the to QX more XX last seeing playbooks in on even quarters we

recognize us a knows use the result, So, no in every around transformation everywhere is front. particular, in horizontal it's platform seeing And analytics every world. refine seeing that from have around particularly is And sales vertical the important digital phenomenon, to what helps we're that with almost probably a as selling it functional we're is boundaries. this in the investments X,XXX. our And accelerated to happening everyone global we're motions, a ultimately this large case, world global that

today, XX% the more bigger. those We're of global science little seeing X,XXXs we bit seeing expansions. so a We're the cycles much happen lands So, even customers. more land orientation, data on as the and on have

customers I of think advanced of indicated that some functions. involved XX% our I were in now analytic form

year, some we'll that year the It new support. now it's out conference. because, one at be with will Our numbers of tool the suspicion inside of in rolled report platform. Jupiter tools considerably most likely June June Notebook this our we've And since the is of popular more last higher Python

growing appetite It's we say this a advanced analytics when of predictive algorithms. it's We around world. across bunch analytics, things. whole advanced It's models. complex It's the And learning. machine also see for

facial analytics. is heritage Our

platform but of nail bunch be so, is continue breed And cases digital in of think to a a plain transformation, a best to a this there. technology, variety also wide that solutions. requirement to of use I no There's longer we whole see

this haven't and XX% everywhere year now thrill We've it changed as And awareness. we've course, the in experience. the And We evidenced problem done We emerge by growth put see of starting unified think analytic marketing. job our of globe, around the we're [international]. at a back great to solving. brand art the in last

service world, growing around complete they recognized And breadcrumbs the their consulting engagements. globally. in dropping helpful firms more large we've in because particularly becoming brand got the Our of brand analytic is global that's many part the more and when

Derrick Wood

That as in or up Kevin. actually you, specific going was acceleration. a was know But I that And spend marketing rep you marketing don't us XX% either around your sense investments XXXX. give and is to be my Dean, how you about to much big guys of that? or give was and how for something next sales question or capacity But headcount. sales or expanding a the like like channel other in sales growth can was SEs much investing

Dean Stoecker

Yes. Thanks.

investment, we've in marketing, first when in talked So, caring starts and prior as with sales think it quota specifically around we quarters, priority about reps.

so, those where the foreign the markets, drive we have And obviously, look And at around professionals in we put would need the them. put that on put demand in as infrastructure world to reps you ground. do then you have to

So, outside investing there revenue. caring in we're just certainly where is But investment in that of quota directly terms reps. our first terms priority the is occurring of of is driving

Derrick Wood

again. Great. Alright. Congrats

Operator

Thank you.

Bank comes Our from the from Lynch. of Merrill Sills of next line America question Brad

You live. are now

Bradley Sills

Hi, It guys. plan and to go-to-market is oriented potentially Is with my cases to but applies berry taking seen there fruit healthcare a to here the Wanted other Thanks vertically success going used financials. solution. Obviously, of after the go verticals. Are some about low-hanging you've sweet Oh. forward? question. many different there? Alteryx for horizontal ask more verticals, and obviously, there

Dean Stoecker

There is.

the sector the think both as budgeting regulatory challenges year the in water put reasons, our healthcare for cycles different toe and government, data difficult cycles with as I the perhaps, healthcare. we last public well selling into very, and issues and from

to our of it's that number year. more get to consistently, order $XXX,XXX accounts we're to last north million-dollar of do we if that going doubled and more the require $XXX,XXX customers domain our mark of to recognized to $X million more going expertise. also In mark, We

the on And still been of to We're even Nothing solutions. The prosecute has so, a healthcare, yet. the for the within of analytics particularly really help brought folks vertical in contemplating sector. us done now healthcare market's we set ripe opportunities. creation

use great everything for Global, to south BioBridge and blood banks And example, lives. in ways Texas. optimize amazing cases. body is to for tissues We of collection have save things cadaver non-profit lots from a identifying to parts healthcare doing they're around

report RXI sector genetics using And working that provide so, effects in. FDA. an is we're information Alteryx to it's A delivers company back really to important that Seattle-based

But so, some work of within year of and and us And like compliance vernacular motion the space A the the tax verticals. we're a lot things different space. in space. most this venture see will because doing likely within regulatory and just selling perhaps the requirements the audit other you into

Bradley Sills

And Dean. more then Thanks, great. That's one I if …

Dean Stoecker

still But horizontal largely, because cases we on focus imagined. use we're platform that this never uncovering we'll still

Bradley Sills

And little Thanks. Maybe You Obviously, That's there. more Can just of presence on That us then partner you makes there? one hiring of have in sense. of I seeing you if you the countries. some you're you. first? these real international. reps? some may Are a approach color that. great. already momentum bit remind Did go-to-market now a on Thank

Dean Stoecker

Sure.

We of direct what understand have helps or for markets ready us ones which leading partners data that lots are sales indicator folks. those active, are

what And We as start partner So, trial. with partners. lead you we us activates trial. the that in. come opportunities. trials pre-trial. know, know We in with We the a happens XX-day know who We know to where leads those

markets Europe business way Some partners. just is that based way. to of conducted. way are leverage Brazil are Parts more more inclined the that on is

in to to further, our the selling ground own to well efforts. on And data way the as to a when scenes on there's But awareness. typically market, So, partners. ecosystem start us leverage We actually start easy start help moment to to describe to we brand the get out putting some It's Alteryx as behind time. feet direct here. it the tell with in an build we we understand for and hiring won't us need the

there'll to And that leveraging around it more Paris. fairly year, expanding a approach. offices in this and XX Tokyo, year be or opportunities probably us So, led for the last approach. programmed us it's Dubai, adding And world, this including

Bradley Sills

Dean. Thanks, great. That's

Operator

you. Thank

from comes from question next Our Kidron Oppenheimer of & the line Ittai Company.

are live. You now

Ittai Kidron

congrats. be? some good, on but performance talk how down business why execution. maybe the that to you quarter them Great quite on, Again, double you don't Dean, the can some is maybe quarter, are maybe you from – about things very light – to guys. Hi, that couple not the me. shed clearly this not need A that things you about where think do you you still about were so happy Thanks. want

Dean Stoecker

with across generally our I'm pleased Well, team. board the

up I have more the growth as scaling are think that to need I recognized think we support infrastructure quickly, we've rapid very, the very to headcount. our of

Some going we're of to more doing pre-planning our budgetary with lot I spend anything. And these end-to-end time I'm with and cycle. a in science be see my in can front current the stop keep to doubling platform things And things. But billion part data this business to likely pleased be personally improving with analytic every not corporate I of But see for It's we we're the that We seem culture. only opportunity advantage And we're player we to are a as around be of only us. greenfield And going an corners. down work as lot of generally, I'm difficult $XX the very unhappy space. us thing much in of and opportunity. on really our with building can. that that's taking never the this state. satisfied to think

Ittai Kidron

numbers here. retention net based make on XXX. it that because XXX. then right? And now to it's the two you, expansion I for you're sure understand I rate Am just make That's sure just to rate follow-up I comment getting on calling I Kevin. And just I great. guess a want there want net dollar were revenue XXX

Kevin Rubin

basis. it's ACB being is under was you XXX, computed And on under are. it a XXX, on the computed being basis. Yes, And only difference revenue an

Ittai Kidron

I and my very stable Okay. were XXX. then question that some it's XXX% about that figure downtick Well, – previous I to on was at from mean, a time. I based quite which XXX, remember want the quarters, ask small in significant decline would more the is, it in-quarter way the guess if it's because correctly, very very for then a has been low-mid-XXXs only the I'm expansion suggest much retention like actually if stable, an the previous And saying calculated, being quarter, pretty that that it quarters. correctly. for rate four in flattish much in remember very was rate, more I the I

me retention anything materially standpoint? a from in help understand. So, Did rate quarter change

Kevin Rubin

Yes.

expansion in-quarter the So, I with I don't know that to share respect view rate. the

XXX% when the in is if The deals revenue that within I business. very influenced only stable current the seen rate would basis, actually thing deals is have And on based expansion linear comment We period. the on tend of those close and that basis close evident get by bit a little of get quarters. at less the And the tend quarter, to looking an later on you you in is where the a in benefit ACV revenue. to recognition deals

happy So, trying same with And to were expansion has how you running. we're I wouldn't corollary draw. very the I very, draw that think been

Ittai Kidron

good. Very

you Thank that. clarifying Okay. for Congrats.

Kevin Rubin

investor just that see page, – say, in them deck quarters also similar. for last be you'll I the you'll I was to the relative think you'll and very the on the that's going two numbers see very, recognize several

Operator

Thank you.

from the DA of next Our comes Davidson. Rishi question Jaluria from line

now live. are You

Hannah Rudoff

today. nice strong Hannah you Hi, about taking could currently is This actually for It's talk my if growth see from questions guys. Rudoff different on international. what today. the was to environment Thanks for if it see And I competitive brought Rishi. the that's in you wondering and

Kevin Rubin

environment standard their Excel might to analytic exceptions competitive statistician. be the And globally. headquarters. There in citizen of have a the The players trained is the No. generally, is of couple the the smaller be exist global SAS and the some But space for for tends standard the where much scientists. pretty data same

the there's difference So, environment little I would that very to really worldwide. say no in competitive

Hannah Rudoff

return were government the the was if on want wondering I if you Okay. to Thanks. public team, impact any there And verticalized we could the if highlight to and sales shutdown? had you'd deals, then in quarter sector secondly, any

Kevin Rubin

from We in and well people the to local. couldn't federal, were of actually state, government because both quite doing I we're went their see the shutdown, doors impact Washington saw lot closed. But no when during I a other than shutdown

information And more and off dollars number to kicked Defense actually beginning traction a modernize beginning a to continue data efficiently. working – taxpayers' of various that and science of have with group promise intend provide people will you firsthand in hear government track to more the to real of successes what's get our number And have the our Department we to help government's around federal across the so analytics to with user we're spend sector user’s we're We're We Washington. be intend able on conference the agencies. January in June. We in agencies. this but government a excited happening government, at of good

Hannah Rudoff

taking That's good hear. for my questions. to Thanks

Kevin Rubin

you. Thank

Operator

you. Thank

of from Bhavan comes Our the William next Suri from line question Blair.

You are live. now

Bhavan Suri

look you. and international how an business, you prep the A that's data perspective pretty Dean, it are at it advanced questions actually some the it's into trajectory guys. the was it from you fiscal international it started. You've adopting given way? analysis. as Or seen to on Congrats, advanced Thanks. the upfront? is When drill like when with wondering internationally, growth I'm all, and side, still in And early couple the business wanted what business piece I expansionary trending it Maybe first look people the might at then there. grew initially, in nice U.S. the piece of really stickiness that look U.S., same

Dean Stoecker

Bhavan. don't actually it different. is geographically question, I Yes. Great think

example, to it of predictive Multa, that think – or larger Online so, Nordic. in banking sorry. Multa tend from think the for I'm all think different. places I in online is see, everything vertically for gaming cases We for banking used –

some So, tend more science. there data are sectors to with that lead

just I cultural it's thing. a think

front think almost I country run and get every to begin a see click drag company environment every to prosecuted continuum entire more you'll put at as of start in and and people, drop, the world. the around people

Bhavan Suri

slightly go is spend. the breadcrumbs a don't handholding parts And with And do as need the the marketing dropping have consulting need executives to the partners, it. early? where it part a And speaking to But a you've they're but sales that's here. on partners, the bit, partners the and still switch worked with or question then is with second so, obviously, Or two then on much? level your CX guide. that? partner hefty And still it. Got touching when pretty One, partners technology in salespeople the seen you different the little obviously

holds of side, it. saying, leg RedShip the out, they're like sort data are to tool"? where the but the what do warehouse, warehouse Are value early to is and is holding, conversations of you On something you worthwhile to add actually that Snowflake object? pretty seeing really attach you guys pushing for happening? at attach guys to data it seeing think great It and this still those be pull any that can And data. it Or at rate rates powerful with extract data a is data is it are as stuff the point we're about you technology problem out infrastructure. the "Hey, to So, value extract

Dean Stoecker

revenue Well, the – about sales have custom first team partners any provide. we don't custom that integration. that our any do services Most partner would of that in sales, modeling. traditional the revenue. question services our attached services do We very charge with a we to engaging remember, even for cases. aren't are some It's services low-single-digit don't that We enablement

is So, our with team partners. actually very engaged

because behooves during because or us consulting digital those I of from of our XX% from think reseller There's to around transformation. influence manage businesses well actually engagement. and as we like as modeling It we have to from those run our partners probably coming the something services this in consulting don't resellers, still revenue to – firms jobs provide have day they'll coming partners. XX% revenue analytic customers bring

So, win-win board. is it a actually across the

in solution-based they're of It's process, Regarding seeing have I of platform whole it. to yes. changed we've we're been unified the to the we've a ecosystem There's that this be before, all the analytic like recognize people experience, is pretty of tech interesting. need ours. part – the legacy part think involved a the of haven't bunch all said point relationship, beginning that we analytic What who

relationship So, formal the with yes. actually seeing no We're folks. great with There's traction Snowflake them.

rep in three customers to layer, a the recommend. because choice or to who partners customers I other think two we're basis let it's And have. we more typically bring almost customers asking layer, rep make or the touchpoints field engagement agnostic to the we and by that might all persistence on visualization the

as within – a in channel we're good program, it to a for it you. Switzerland So, the frictionless space. And with be makes spot honest call I'll

Bhavan Suri

Congrats. Helpful. you. guys. Thanks, Got

Operator

Thank you.

Jack comes Needham next Our & from question Andrews of the line from Co.

are You live. now

Jack Andrews

if wondering down I taking regarding drill deal bit question. Great. my your large Good for was could the sizes. afternoon. you on Thanks a dynamics

learning very applied mentioned those base? rates sizes, are broadly $XXX,XXX that perhaps sizes there common You particular at strong the more some $X be that you're million to your growth you're any seeing lessons characteristics that deal and in customer contract could

Kevin Rubin

this at or of it a beats as typically same start – in the chief critical have CDOs X,XXX. the land That the The model It's officers happens, of XX-day mid-market global land, hasn't Well, I is typically days proxies global day. cycle the sale And think that. of a It's organizations, X,XXX is on particularly to a they the data all. the still designer. changed when to $XX,XXX mix. sizes side that all a handful or couple give dimension tend company It a deal of same. take for is well, tend or for a happens that to either

productive. the that can in terms we more firewall size. digital big analysts CDO in footprint in get the processes them the access location so, there for CDOs is expanding got you're where all industry, organization, data dollars regardless out and organizations degree the of that wild algorithmic reps a simply But of And large encourage big to playbook see productive the and of to potential a our same transformation, be who tranche of with and the And part behind and the we to deploy your harness of run technology all the users. big their to higher if effects they because people in a company, of both make actually of the your bit need is lot to and a collaboration mantra, have you've of faster need PhDs networking a it to, who sales the

accounts so, our case, company, leads the million-dollar the the are well, to, accounts of the million dollars. half of north the CDO And a in tripling number bigger a that that doubling of of of existence and

Jack Andrews

Great. Well, perspective. appreciate the

Kevin Rubin

don't We changing that see Yes. the in either. future

to world beginning data-driven open is up. this think I just

Jack Andrews

be there eyeing are on be features you I think you M&A, your ask regarding thoughts from be follow-up, inorganically? Sure. that platform also as latest that specific that your might added could could could Well, just a missing

Kevin Rubin

Sure.

additions can that is Python to think some infinite just hundred quicker. year. cases, to to And opportunities. the that acquisitions platform you that and get an prior so two to tools, horizontal number of We it platform. see there's, in those we create a made IPO three race Well, of have last a I with market to were recognize new the we very couple tools a

I – didn't asked fact, answer and actually Tyler had In the question.

they two it we marketplace some a see see have surfacing. of the and for that see I'll And of We today. advancing been to need of because bunch actually what scientists as in to We a through data to box need skillset an So, choose the answer the just with the data needs now. partnerships just citizen choose was algorithm. black to opposed get around to understand algorithms what that digging approach, a an why apps algorithm

it. but also just what have productive to go to citizens need PhDs companies, actually – pick. They want they to we skills don't see be So, the their amplify their to know algorithm to for they build who

auto-modeling an thing. interesting so, becomes And

to of the we've next to and on for convertible cloud auto-modeling the the we partnership. partnerships it. folks on-stage HXX with it. And with Azure World of price just can doing AI Alteryx learning been of compute out. at working And our a They've did without lot associated be availability so And at I experiment HXX And other in free. auto-modeling. about competition their talking that prepared pressure Alteryx integrate how with any ML executed help customers pretty ML. for intend out within is was these We work who costs recently the lots One with the doesn't. couple who of a this They've ready and We'll put assets also up market's that environment be having our fluid. in on rolled see driverless Azure we're machine to over the would for bubbles years. scientists We're some

Jack Andrews

appreciate taking questions. Well, the for Great. it. Thanks

Operator

you. Thank

comes Walravens line Our the question Pat of Securities. from next from JMP

now are live. You

Patrick Walravens

you. Oh, great. Thank

congratulations. my add me Let

then easy an one question and So, maybe harder. little that's a

we're for XX-K filing sure good the Kevin, later, on right? So,

Kevin Rubin

We do intend week. later file to this

Patrick Walravens

Okay.

you know that So, of. no issues

Kevin Rubin

We week. this file intend Yes. No. to

Patrick Walravens

That’s a pause. long

Okay.

Kevin Rubin

didn't I response. know My no. bad. required same it no, That's the No, all. that

Patrick Walravens

Okay. Yes.

any know you about good then me some a For way how thought it see I that there's from think employees if for it? Alteryx a is way this, from answer pilots. and to? in Google being companies you've to something And bad? of the given listening but Is Microsoft used tools do do their and don't there – you Okay. Good, to protests You to certain are or these to involved And talking about occurred there any preventing when is

Dean Stoecker

protect implemented And etc. harder around Obviously, of lots wrong we even given But can't a internally, from for bunch nefarious our how with platform things the Well, deal people people it in these We've we kinds done be GDPR to compliance, we it use things. make Excel. do It's kind powerful the with nefarious software. have, doing can platform. probably internally, with data, things data things. very could our for right to policies of of a features people of

need we protect you that software we the of so, don't we with platform challenges already out to we and the recognize data, address data allows own cat's don't what data ways. that understand interesting And to things in to our bag the we of any while privacy we host And But any that and of very powerful data. users. is do like do

Patrick Walravens

you. Thank Okay.

Operator

Thank you.

question Our the comes Mark from line Murphy JPMorgan. of from next

You are now live.

Pinjalim Bora

have? think Mark. Thank as one into places taking you that you and pushing to you. where for roadmap, the few questions. your there you Dean, toward, Well, two beyond, innovations the is look is not on XXXX and because This want things on guess, of XXXX and I my behalf gentlemen. or product Congratulations broadly speaking? just customers Do about you are thank they Pinjalim a focus any they, may

Dean Stoecker

have user groups. Well, we

We have customer boards. advisory

advisory executive have We boards.

the general security. tell are the really that from people scalability depends will what say on list customers list bubbles pay common are wants up there's we what platform and their theme. would greater IT that so, I to on attention say platform, [governance] a higher It to themes I in the the you us. And not more doing itself. with

And so, think don't big a But from we I of on have focus those any the server. things customers. particular doing roadmap around there's kinds

is have cases. improve processes to such of all innovate broad our use Our and development we goal address to so swath time that more platform customers entire because we of the across a

Pinjalim Bora

looking is I'm what is to I it. XXX, I'm it's Got looking are apples you downtick there investment? look at from those being at marketing are across but and at, under XXXX mean, Okay. apples, to a is I like And operating when seems guess XXXX proforma lot numbers is X% way which of prioritizing to And essentially – of to – margin think a XX% I if some just R&D is that how incremental big the math a correct. investments international? my there Kevin,

Kevin Rubin

Sure.

So, to we hiring. continued talk have on about continuing previous accelerate calls to

to As an first. I think how our earlier of go-to-market mentioned, I investment we in about terms question, priority think is

and is combination of domestic caring infrastructure both the in them. international and so, reps And that investment quota to of support terms

investment, terms we think in of R&D. is Next, about how

a guidance, for of backend lot comment investment would that that the that loaded. so, just implied XXXX, regard. also were in in is continued in And we heads I the brought in XXXX

in effects XXXX as the full those the with along well. seeing XXXX you're so, of And expenses hires

Pinjalim Bora

it. Got Thank you. That's all.

Kevin Rubin

Thank Perfect. you.

Operator

from comes question Securities. next the Instructions] Steve Wedbush line [Operator Our Koenig you. from Thank of

now are live. You

Steve Koenig

to following Okay. answered. I call. to many finance you question Great. for me My just Thanks, And gentlemen, look for come. including got your quarters on forward

[indiscernible]. have here and I about So, more one question HR just

comes competitive question? move the that this as both and is well talent, retaining as executives to operating in really especially as really you're to question in pretty meet try build you my to onto, And that here there. attracting, DNA things the of acquiring, into How high-profile pretty is, ring, so, hold when you talent do up you kind challenge the down space. scarce. And it really like Predictive, talent And a your want you is is

Kevin Rubin

hire We've actually work of knowing done becomes unemployment, world, around particularly our analytics That's Yes. low this this year. going up lot building that it people we’re to difficult. great versing a a teams more question. so in many With

the We have as is them in market which because benefit. global we've phenomenon, well got this

American two how having Most the people enablement team up them We've process, have how but actually over are KPIs side. my continue bring customers coming APAC We expansion. our EMEA, calls, importantly, we LATAM of net I coming previous net now we time. not and But the and improved not retention. other heard in also XXX North our scores you've to my to employees. from know modernizing been recruiting some sourcing of promoter net our It's scale if hiring on scores process. I from just global don't challenge have that's three net to has under promoter revenue

the and part So, of And sure that make seriously. find, Culture we we it. important this an doing we're take to can is what we hire, retain best.

Steve Koenig

And thank Well, that. that's all you for have. Right. I

Kevin Rubin

call the on joining today. us Okay, Thanks folks. Thanks. to again everyone

to journey on analytics continue our synonymous Alteryx the with We make across enterprise.

As throughout we continued sustainable we into on a to forward growth believe the have progress long-term profitability. remain Thank that head business updating look revenue we will year. XXXX, strong on our focused you. building We you and

Operator

conclude teleconference and ladies today. our you, gentlemen. does Thank This for

time. You have wonderful Thank at may now disconnect your for line your day. this you a And participation.

Alteryx Inc - Ordinary Shares (AYX) 27 Feb 192018 Q4 Earnings call transcript