AYX - Earnings call transcript Q1 2020 | Alteryx Inc

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Operator

Greetings, and welcome to the Alteryx First Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded.

I would now like to turn the conference over to Chris Lal, General Counsel. you. Thank begin. Please

Chris Lal

Chairman Good today operator. results. thank for Officer. Dean you me Kevin Officer; Thank Chief Rubin, review afternoon Alteryx's us Financial Stoecker, are today to the financial Chief first joining Executive on and you, call and and quarter With XXXX

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

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

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

be in will these GAAP today's measures found be measures financial release. their call. of financial most to non-GAAP discussed directly comparable today's A can reconciliation on Additionally, earnings measures conference

With that, Dean call over Stoecker. Dean? like Executive the our Chief to Officer, to I'd turn

Dean Stoecker

on and safe call time. Chris, challenging during everyone healthy We the everyone to thanks today. this for joining and hope that Thanks, us is

by their to thanking associates Let me impactful world the for X,XXX begin the incredible COVID-XX around crisis. our response and

Your your our help most ability challenging fellow in first to help and rise inspiring. rush to affected to times workers, to to the occasion is responders provide assistance customers

we we stronger of those recover all we not have will that get is And to Our negatively prayers this, we when of who through humanity out thoughts be will do. genius go and that but will while been the impacted.

Kevin environment results the provide then brief we'll walk our and overview me Alteryx into quarter outline quarter. navigate uncertain plans then first through Let and to current the our is times. second performance these dive adapting through outlook you of financial our our will how for a QX to and give

value, operating in billion X,XXX more revenue, $X up customers net total than exited year-over-year. million XX% the $XXX quarter approximately and the than $XXX XX% year-over-year. the flow including million XX% we posted contract positive now more million in cash customers equivalents. added in We $XX up Global QX XXX booked the In generated with XXXX. We including Global around cash XXXX XX have of world new in and of and We

customers. net expansion as the XXX% we and engagement at to strong strong overall see larger XXX% GXK Finally, remains continue levels within for our

process transformation the for applicability in imperative the Our believe We QX company digital the workers remains broad globe. The platform. bookings activity with Alteryx upscaling most vertical every focus of a on strategic reflects across is a importantly nearly analytics, the businesses. of and many automation

Hotels, hospitality For Royal Caesars QX and Corporation, Country and Airlines, Choice example, Airlines. Sun in did Cruise Caribbean and we the Copa travel segment, heavily Entertainment, Kurtz Leisure Hospitality, Australia with in Six Circle, Graham Lines, business impacted Hotels Continents

and Standard in the the did energy business with Health We Oil. Bank BNP Allergan, Pfizer, of USA, services, with Eli Charter and business biotech Thai In Gas business Energy bank. Electric with Paribas, United Mid-American Hospital Canada financial and In and Services, Corporation Pacific Chevron Company, Dominion Energy of sector, health we and Royal Group America did Lilly care segment. did we

top and with the customers. as in count analytics In prosecute business to continues Company, the did platform Telecom we now in XX Saudi Vodafone. Our challenges companies We telecommunications sector. telecommunications Telstra globally QX, the SoftBank, U.S.

times In a customer and and analytics enterprises foundation decisions in times, analytics saw accurate ourselves base. timely a let and economic data analytics reminder we survive now is decisions within for critical how to to be data leveraging healthy find to uncertain and culture the data In make on alone rely and competitive. our action better we pandemic COVID-XX The paramount. is the this operating provides thrive of

example, to started announced. those to quickly cycle the Alteryx weeks of and the existing aid March situation COVID the in effectiveness to programs measure For as purchased and licenses public completed two additional sales adapt program. needed analyze was This last sector that of an client multibillion-dollar aid were

another In need equipment understand models leveraged quickly their and ICU supply adapt and hospital for a workers frontline example, additional chain source built personal Alteryx predictive to their responders protective to beds. to for first the

in our March an customers and the prospects conditions. globe changing results responded rapidly abrupt have of change our realities customer buying QX observe strong, we and did and around as place shelter were of While the significant in macroeconomic directive many to in behavior

while lengthen fully light doing a remote spending cycles customers logistical environment. the to sales Some they in challenges paused business in uncertainty, its adjusted to of increased related

XX locations, adapted different quarter Despite closed in work-from-home different our these remotely. last with entities XX even the own team institution Alteryx environment and different quickly having coordinate XX of the located despite all European challenges, transaction with seven-figure in a a signers buying to week and done to financial the

to finish, ones pandemic follow as as this and business necessity. data myriad asset, as process analytics an it challenges upskill data prowess present and that to start From a leaders may and see and a analytic requires global to automation of subsequent a their workforces

personal supply managing manage of modeling products an the the crisis From enormous from virus this chains to the trillions for need needed the to protective their genome dollars banks to and to predictive anticipate spread the equipment sequencing alternate of identification from logistics data of for monitor the its geospatial to at shuttered the food analytics to and deployment to presents central to manufacture stores redirecting problem. of start restaurants analytics for

who with COVID-XX never continue transformation has data-driven at The see conversations their digital greater. initiatives. culture organizations to need for meaningful a have global accelerating been executives We also

can the to see We are transformation. help platform success analytic the confident Alteryx and processes people in data unify digital organizations

we most me a of we work-from-home taken as and health our to environment their in actions mid-March, the customers we've conduct the shifted associates our protect Let address to business. partners and our for and the model protect countries business current In now to steps mandated shelter-in-place well-being. manage and employees,

as possible. Alteryx help be technologies work-from-home productive has associates many as to our

home allow and to associates until is feel work to at to return to continue Alteryx safe they so. will We doing comfortable offices in their it

To to center hundred additional customers Alteryx for customers, directly have launched already with solutions solution this customers connect few ability partners the and To giving a virtual we support offering. a provide experts. leveraged date,

ADAPT launching the world jobs around resource We upskill ADAPT. due and that a program current Together to the free have help otherwise lost as are environment. workers the Advancing Analytics Potential Data known to is their

nanodegrees should certifications software in in Alteryx being the environment, we business be solutions program, way individuals In to free help access Community and and that to we that are available in lives analytics with an the analytics Udacity, help learning. offering we to digital providing even are that licenses, reminded and a Under believe this collaboration made are improve challenging up these a thrive path, skill learning important software and science we can create people's century. XXst around this can leader in data

fortunate global to be able to this analytics are support way We provide the a program community. as to

better deterioration, and and with functions. COVID-XX actions hiring immediately the a resulting until pausing although will understand offers forward As we customer-buying response any number move critical in macroeconomic the took will and in behavior, we including outstanding a hiring roles of near-term result continue of we for

most on areas those curtailed to focusing drive our recovery. that are are this continue also investments through the spending nonessential have important believe We we and to business

We of rescheduled our XXXX to XXXX U.S. European leverage and both continued conferences digital our to users and events.

and ourselves leveraging to Alteryx and is continue but priority partners all development travel preserve our to operational innovate. We focus make of to not also and have much will process maintain our efficiencies, including on unnecessary headcount care employees, is eliminated highest resources continue allow only customers easier. us our to Taking our support, current capacity customer-facing maintain levels. in functions customer plan to This to this

XX-day our of creation, and with we monitor sales duration, activity, pipeline to continue deal our average trial our sizes, so We appropriately align line levels the cost discounting investments renewal top can performance. that contract including marketing our cycle, rates, sales and overall structure productivity

important much there either is permanently, is answer fewer What to these are in is workforces help We questions. have and leveraging not or analytics we when more unknown. and uncertain And reduced, are do that data equally resources in if is know times unprecedented temporarily that been there times.

when compute. Every you modern imagination speed of Alteryx which amplifying outcomes in day, better customers. combine happen the the Better humans, intelligence of the and and power delivering turn human results data the our is world, of for is around enterprises

crisis uncertainties the business well our stronger of to monitor is to And reasons, with platform, the operating unfolds economic out this come before. face. own of that positioned continue effects to For we Leveraging we adjust the we'll continue will coronavirus closely. business our we conditions than as our ever plans these believe

to financial let outlook QX. that, to performance and call With the QX over turn Kevin our our me for discuss Kevin?

Kevin Rubin

of product range with slowdown an being I at portion million, increase by a consistent upfront of in periods. further resulting in prior revenue two of solid. and was in saw you, Revenue a of results duration high-end $XXX Thank recognition were QX the March, year-over-year contract the abrupt the favorable Dean. the XX% we an which will Despite driven mix average approximately moment, discuss years,

XXXX. XXX now QX expansion customers XXXX XXX the of have customers in XXX%, added for XXX%. the expansion while for net new XX% Overall or total was Global and net quarter was including We net Global the XXXX

crossed in have the recurring key milestone now ARR. over another first we revenue million and Finally, or $XXX annual in quarter

into to continued start impacts of got we have and Coming far. our on, that in a business QX, off discuss experienced saw year. to the Before XXXX I want we to thus the momentum moving that the on briefly solid COVID-XX we

opportunities However, opportunities levels a customers with was with in considerably. that slow to new evident March, were activity renewal. particularly not and saw This expansion we attached

mentioned, in hospitality, verticals difficult and verticals expansion and retail, operations decisions transactions travel lower we a rates these to close in did from to and manufacturing with macroeconomic these Dean companies as on did such focused companies the number highly their response experience as of as slowdown. we COVID-XX realign Although, impacted

our rate Europe. experienced we increase a moderate in notably Finally, in churn most

impacted our approximately previously these verticals. on XXXX of X% To give our About from and today highly customers. our mentioned, you who one-third from within customers in is of medium-sized only of most ARR verticals, more from to XX% color Global impacted is ARR is our I small the ARR businesses our are business,

in committed our especially times. We customers, working are to through these these verticals challenging with

to turning revenue. Now back

year-over-year was $XX.X Our of XX% an increase revenue revenue million, was international increase year-over-year. an of U.S. $XX.X XX% million, while

performance U.S. Our demand, continued specifically strong robust driven was strategic global customer our segment. customer by within

Asia in Internationally, Europe previously strength like Japan, increased but discussed. regions impacted continued most particularly in moderately, in including verticals we the churn saw rates

we as efforts end have productive environment. activity work-from-home seen quarter, We a both customers. continue were into and levels conversations have transition the existing able to to we Since quickly new with the adapt to of improved our go-to-market of customer

In that business as April, we even view and activity resume in levels an remains XXXX. saw new and data times. activity this indication challenging consistent critical in April analytics We with was

We remainder invest for us to affecting or We will continue and unit to profitability activity key levels monitor to the future if on growth economics how balance appropriately. to continue inform we intend productivity the of year. and

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

QX QX consistent XXXX. XX% Our was gross of margin with

level. the expenses were is headcount $XXX.X year. increases to The primarily in million attributable in same $XX.X operating expenses our compared last in increase operating QX overall to Our period million,

$X primarily were meeting held respectively. user in our October and and one-time expected our and QX which of expenses, recur year. originally this rescheduling Global associated costs not June for Kickoff Annual These one-time with are February, Included EMEA conferences, approximately were U.S. to and in expenses and expenses scheduled operating seasonal to related our million seasonal

$X.X or $X.XX of shares negative loss Our negative share XX.X million on outstanding. per QX was Net million loss non-GAAP fully based diluted $X.X operating operating was an million average X%. weighted or margin

sheet the to now balance Turning statement of and GAAP cash flows.

at equivalents, short-term XXXX. ended quarter the of million associates, exited ended million the compared at with $X positive the the QX end X,XXX billion shy cash cash, flow For from of of XXXX. the and and operating X,XXX quarter the as end long-term March just XX, associates investments up $XX QX generated $XXX of We cash associates of XXXX with in QX XXX we quarter end of with and of

to macroeconomic The expect a in turning outlook. turmoil, will is our continue state and current Now our of clearly business. we to impact environment it negatively

full the evolving results. the increased present year Given the and for COVID-XX the globe, financial we XXXX situation cannot on businesses our uncertainty has it with impact at across reasonably created predict time the

our withdrawing at financial year provide XXXX time. not the this are full a for guidance to As we previous result, intend year and full do guidance

that ratable revenue, of to believe QX the guidance our recognized provide income coupled have However, and will operating we activity based QX on EPS. portion in visibility revenue we be with QX, quarter-to-date sufficient the for

of recognized quarter. and For nearly the from the generated business billings will from revenue our expected deferred closed XX% is QX, and approximately multiyear contract two-thirds net be revenue renewals new remainder be in will scheduled from

historically have XX% of XX% in-period in coming what existing We we which first from seen bookings saw in the between generally and is quarter. line customers, with

are we are expected overview our also retain high-level to a financial monitoring we closely As of the business sharing cost our position, strong structure.

as the our Dean is the earlier, short-term Our majority maintain headcount-related staffing and to levels. primarily noted fixed in intend as are structure cost we of expenses current

approximately million, included and expense QX operating recurring we so expenses by of QX previously, believe expect which seasonal these to in of $X decline We recur levels given not expenses highlighted expense are I see our proven as revenue. levels sequentially. base QX strong Also, will definition onetime

will metrics we continue profitability generation. However, to and align performance. to economics with to the our line committed cash top monitor remain long-term and We unit investments productivity

business, and As a result in current macroeconomic following. our the guidance assumes greater the our of variability environment

for our impact the in more for higher are terms, renewals, We verticals. the uncertainty rates potential expanding impacted flexible payment to of to churn timing revenue guidance and slightly business, account highly new of especially range increased customers of

will the will to be years. agreements TCV with levels average XX% current be over the of The time quarter in ratably and subscription the headcount Approximately to maintained. upfront booked of the contract our recognized approximately duration recognized our of continued XX% remainder two be

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

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

In summary, the significant given low with given operating strong market, cash times, positioned capable while powerful business $X addressable and into Alteryx fit our total on market and of believe levels well balance our we cash we position remains delivering opportunity sheet. approximately of are strong profitability product billion solid model, of in flow penetration the unprecedented market our financial

dynamics to with profitability. on based growth to We while have manage maintaining demonstrated the cost in investment balancing profitability. line financial historical of We plan our discipline for of structure continue levels top line

quickly these I the associates would also customers like to my Finally, add support times. thanks of in all to the Alteryx across globe adapted uncertain who our have

the we'll with open questions. for Operator? And that, up call

Operator

Citi. Thank you. proceed question. of question Our [Operator At Radke come a has of this session. the time, first we’ll line Instructions] be question-and-answer Please your Tyler from with conducting

Tyler Radke

in given the lower better was lot staying with a where the lot April wanted I on for a seen quarter, the second year, safe so came you obviously I have of questions. here that maybe taking I trying that mean, Thanks than kind Hey. in for healthy. hope and people guess, my were are because expect be what's to in severe? all And you follow-up -- to the were just you think I why line guidance I pattern that bookings last expecting. business trends things reason I to guess unpack guess,

I the know but quarter better the help the to expecting could revenue could moving better about you're duration? the pieces around to with better a so is said framework what then, And maybe love years us just we understand associated be in -- you any Kevin, guidance? understand would duration understand you more I second headwind if just two if understand

Dean Stoecker

reminder at just kind two as we call subscription-based a really follow-up Hey, Kevin Tyler, of is, the while with I'll everyone are one XXX% are on not there's factors some play, comments. Dean. to But let we completely ratable.

of the have out. in don't rate. run XX% the perfect analytics sheet. visibility so you roughly an And the second we into into data company XX% you We've bad as part entire if put And get from bad visibility is, balance data this got

us. on And give change so still all KPIs all will that visibility. own we the information when don't us might for our leverage indicate platform better that We things would the of have

even is in It you think always some XX% verticals, of turns performance the Kevin? hope lining fairly been I of some that the as them seen brought-in of know, actually conservative. April. been conservative And April in April though we've impacted We've strong. this. glimmers in we've actually were highly But logos fairly out that's also in we the silver

Kevin Rubin

Yes. Tyler. Thanks

couple a of Just things.

to our environment I to point, heightened the front a think impact there to Dean's is we have current that. that given don't portion in revenue,

sense our in do early in seen back-end the third quarter than also the typically have quarter. do We the to business quarters month we more tend of in loaded that the we

as is reasonably sit see based our here So today. visibility what we can on guidance we

then to material not your in of shift actually respect either QX, QX. duration nor really with finally, beginning in And the question in duration, we've seen a

So a at duration headwind moment. the not as I would describe

Dean Stoecker

that add is guess joined a impact having of false a who be their around QX. case verticals. organizations us comment I one a impacted positive me Let or highlighted and what customers talking impacted may on in Most number are as in additional the negative I negative of the verticals about in verticals the business. false a

for To absolutely times those when critical. important. -- may illustrate always us good verticals are when that, things turn are that bad, But impacted are to analytics said better are we've out perform analytics when

kinds us happening I impacted we're in this are have silver of space another And joining and the what the think lining. verticals is very and so optimistic that about customers

Tyler Radke

if then follow-up. just a sneak And I could Great. in

hit time there's know ARR. release talk that's heard ARR disclosure press ARR I and this the the think you about And the $XXX the you I lot various first we've I mentioned around been that definitions. both opening a you of of questions quarter. really and of think million Dean the in commentary

kind So books that? you what's going end something that was that is on forward? kind maybe definition the just And of quarter provide of that of help of us to understand, the And the inspiration what expect giving around is ARR?

Dean Stoecker

everyone Well, I I to don't if think I since. we provide on hit we'll we've the again. the the actually it ARR when given of comfort And given business. million number. give know think wanted we've ARR don't we health $XXX number that some

understand XXX important of As I we think guise great there under these drive you metrics of are milestones that Alteryx. the hit that it's lots that

may some comments ARR the Kevin so on additional have And number.

Kevin Rubin

have I would the milestone and Dean made. and thought the I felt we a mean the through key those. these crossing on same We're period. to the our going of we In the continue we way essentially was as important your double $XXX an forward. milestone guess Yes. totality milestones not the then going also is provide important very it did million necessarily our view question, just the last I $XXX was in we'll down active end which the key business. going of points we provide the QX it million at of milestone of XXXX, Tyler, But do release. in to was definition press going to all But contracts communicate through And QX actually

Tyler Radke

Great. a Thanks lot.

Operator

with question. of the Piper Brent from come line questions next Bracelin Our your Please Sandler. of proceed

Clarke Jeffries

is This on Clarke for Hello. Jeffries Brent.

If XX% -- was disruption I I that could just it the seeing or if adds net question unpack stood any a net of is April the few a have even to frame? typical was time the land about growth One around not strong wondering out in First remained rate. March me that. not was seats adds. thing you

Dean Stoecker

change a new haven't XX%. Most seen we was which the net it those XXX XX at in Obviously GXKs customers. good No, quarter new impressively said was we the really a new adds.

is our think business frictionless. to is I know what's fairly important that model

you our self-service XXX, begins changed designers. really is cycle couple XX-day cycle That $XX,XXX As XX-day-or-so land always frictionless with at trial. land a know with It land on hasn't $XX,XXX, typically a all. $XX, a the of

was an itself weeks In two fact excited halt environment. And there abrupt just different doing there the to abrupt halt It business. we on wasn't for in teams pretty all as moments last through teams done agile a in the we working really prides into were fortunately support the to even a when office new onboarding turned was this being who company our customers. and -- new ready have it being including work-from-home to on and those business we systems like

the many investments value the the up virtual customers that give the quick engineers they stayed centers of we on to with just ROI opportunity solutions So to experts, new to made. and time that solution engage get and

So, adds. really excited the new net about

Clarke Jeffries

commentary All it. just And the helpful. attrition. the Got on unpack maybe Really to right.

about to Just you see churn potential the contraction. be versus clear for

budgetary commentaries happening For we've the scrutiny heard about -- that business I think that's is and typically the one level. of line the at

you're of churning of between was maybe there's contraction more certainly or just an corporate will the you more that budget, overall rate? whether than I on that So off just think kind contraction wondering, trends if are be contemplating fully any churn rather than wall-to-wall seeing so more customers possible rather And solution?

Dean Stoecker

question. a great that's So

have seen react actually smaller Europe slower growth far more that. didn't Kevin that quickly resellers the haven't of change had the in lot higher in big of are in part, in resellers Europe relationships. those customers. prepared mentioned to in ability churn A by Europe. to remarks to we We driven reseller is So any a keep

do the it we implementations of churn was really a in tends single-seat expansion. be of get where more of lack Most to

pause better. more absorb seen number other the but things even when QX trued be -- adoption of a that are I them Alteryx we for it's terms future can had we expand that actually that where license And for QX, the we licenses, part adoption that I people model up at certainly easier record an haven't was In exciting of that people think a we've punt. have, -- seen haven't particularly under seen number is we a record to think of of date

on big major their customers most risk believe we have we a the So pause spend. not we've put seen of mitigated, but

Clarke Jeffries

Perfect. Thanks very much.

Operator

of of from your question Cowen Our Instructions] with line next the Company. Please Wood [Operator & question. Derrick proceed comes

Unidentified Analyst

Derrick. to have the And virtually? looking for deals? you’re on expansion Andrew It's And playbooks or closure selling on Thanks. Hope particular? anything to expansion in forward all well. in rates Maybe this just yes, looks? adjusted motion do touch larger reps Great. wanted How maybe any how

Dean Stoecker

Well our playbooks well are established.

work-from-home it's up I we largely whether systems we right collaboration plans, put on-prem it office enterprise own access a in local people to into When We're or place in think jurisdictions' are and they largely running through away, with our work got environment. portal. be organization. regardless of by shelter software place There cloud-based requirements, our are but business some accessible VPN. things that driven

part think that advantage. I So our was to

dealing I work-from-home. deal think was the of of illustrate part last the the more complexity challenging financial large the weeks it work-from-home management. in the European illustrated quarter -- was institution We particularly two with to

all or even If different working remote, in differently all it's signers office offices you than single locations. that the XX in a home have are a in from signers getting bit little

frictionless -- fairly of solution on-site. we over do and accounts a Much motions think by benefits turned actually seen they're registration driven in as seeing the expand days are just XX on the is not in don't we've platform. Yes, our We've in well. driving but record attendance I expansion community. last to our go excited that our our getting the actually So customers center virtual

the about of talked long We've Community on expansion. impact

involved than Community. who of customers of people we've who times are customers are think on not who three said ours occasions a for have that in Community more I number registered expand

unique for number Community days. we in the And of registrations record a last saw so XX

that accessible the and And of so platform. the Community in -- UI is

So again it supports work-from-home pretty environment nicely. a

many pivoted of have user world. the also our around We groups

this off-line online Our But next The have our pushing our also you world groups we with the user year. off-line conferences year Community virtual. both about is made community. to up talked around and of users' component, gone

them see if them care Community go you to join you'll them. So can and you to see

them and You'll LinkedIn. Twitter see over all

who pause we've trying is it expertise to course get is bit. up they they easy are the of So challenge there greater for the for expansion. to themselves need The a figure that end pretty made and drive out need to support short may organizations only that what things customers

Unidentified Analyst

sounded Great. internationally, results good. Thanks. And then pretty

reopened? here out are for could touch be Maybe U.S.? have that leading APAC you Japan. just And -- and seeing how of much You What regions indicator that called a for the on there?

Dean Stoecker

Yes.

saw So I but made we around break last to with in April business didn't going that was fairly just activity the with the rather year. respect being region consistent We globally. down comment, April just we of by comments to what

Kevin Rubin

Well, see our We all out call we specifically really of do growing continued or engagement doing APAC strong from Japan a did in Japan team well. teams.

the Northern in think renewal base Europe. spot the soft only was I

Unidentified Analyst

Great. Thanks.

Operator

from Our Goldman question. Chris next with question proceed is Merwin Please Sachs. with your

Chris Merwin

Okay. Thank you one had very much. for Dean. I just

of unprecedented a deployment times Given Or should more analytics, of the just Alteryx? even existing we leaning obviously, examples Are times, even circumstances I as adding these imagine good adding Because there any some the -- you they the importance of and that the bad deployment? -- mentioned customers unprecedented how in seats sense in facing business? customers have? with many think are doing to their either for that brand-new about in curious and of urgency customers about have

Dean Stoecker

organizations. around a Yes. analytics deep not we've long created and then No, I transformation call and We're is think and talked the there fact never the wide that and will it's fabric to get great can transformation. If we digital about the accelerant the question we've trying COVID-XX digital a transformation. not to of digital their become wake-up arms moat large the be

with out. day bit not whole our quite world around employees spent the talking this just executives figure around have of personally my I world, who the but a thing are to trying

with them being the trying generation. of the IT next the that in got developed and There's complacent Disruption; it's need new realizing different leverage they're and reimagine in around systems world. to record ability set think Creative systems to that C-suite think implementations the called kinds skill deep in in yourselves not that's great It's get I are a I a to to the you of great begin being fashion.

it. of you thing take either wait to define this can You or for control you can

large most X.X in And to to data, in think, an we're thing not digital that's impact prosecute their not organizations the is X.X being seeing that's just but missing the business. everything analytics And transformation around upskilling to been effort democratize that's automate I have happening pronounced and missed workforce. in importantly,

will last think calamity this sense of public a have financial to or or these the it's the pandemic face organizations. know and I the that this. to repeatedly have next next organizations heard where years that collapse we Otherwise We many heightened three the do since going now could next they over destroy

as tailwind this for a coming. see huge we a time So long

Chris Merwin

very right. much. All Thanks

Operator

next your of of comes Sills question Bank question. Our America Please the with line proceed from Securities. of Brad

Brad Sills

Thanks, guys as have in have maybe things might impacted verticals taking catalyst as that business you've of COVID seen in to as would my a ask even pandemic, question. other the or classify for usual by kind XX% those the been from that industries? those if Wanted seen you not you

Dean Stoecker

becomes did buy the bets thought oil there. a verticals, even anything. Well, And talking gas to off. change were QX are I critical I said in I we're and are hope we've well in it's as the seen even But probably People actually think territory quite don't analytics about nobody the in significant when situations. beginning impacted in XX% encouraging all glimmers before people hit that we think oil because non-impacted mean in though would negative of those more verticals. I see

it's It's early. a April. seen change, not key have but We

seen number that still non-impacted -- last positive had logos April about we year, in sign. we're or While we in are haven't QX in of the really GXKs of about a same in excited a verticals that April that we of the shift. fact landed obtaining But the we've the is fact

Brad Sills

Thank you.

Operator

next William Please of David comes with the Blair. proceed question question. from your Griffin line Our of

David Griffin

for Thank you afternoon. Good Hey. taking questions.

wanted little pricing to So I about bit talk a the environment.

prior much you last think quarters. since the over the pricing several hasn't there kind really of suspect added you've capabilities I changed you least at the there know, been the pushback. the XX% increased of was reflection -- the You at server price a know list incremental and the price list or of by that beginning given haven't of to IPO I that of I all about year And

given customers payment update it looking the alluding macro just I like an to be change on But and to current the to more seeing some potentially just environment terms, about would earlier the customer great things think your bit get there a helpful? then response pricing what would that be could in uptick? talk And if you've the to you're maybe seen that environment little just generally price out you comments

Dean Stoecker

value. pricing that get went pretty X,XXX% ROIs of Well, improvements, customers the remains than in price we gains, gross back that changed seeing Server you server at because Designer years. still we're $X,XXX million we haven't in raised and are for in automation. operational this of other to meaningful margin There are million the XXXX yes, many, as efficiency value many improvements We our $XXX we're price. seeing And it price know returns $XXX

had So kickback any we haven't really servers. on

impacted furloughs the in automate Now or the were they because the to has if particular get slow even done. questions layoffs, come work don't now in well said -- verticals that having in rather can are said, to have server they customers did to and April back The -- they fewer begin there in I'd down. have and that have Designers still if

might fewer The In but larger, It get fact accelerate. continues to slow the have those down. questions. answer questions people you to data doesn't

essential customers in over absolutely transformation the a all the So of because to automation Server. with us. seeing digital servers success we with up of GXKs success mainstay big from A long-haul for Server that eventually is digital have We portion end perspective, will is transformation. seeing our still our have believe

haven't big we seen in changes Overall, really pricing.

I early probably discounting. even think of in April, less seen stages we've that

about in. we're place the that excited we're So

can that think it see points we're other gather. just we I data to what pausing

David Griffin

Thank great. helpful. That’s Okay, you.

Operator

line comes of the Please question Company. Andrews Jack & next Needham proceed question. your with of from Our

Jack Andrews

taking for partner late, wanted if question. more Thanks mechanics afternoon. call or touch a the apologize deals historic I But Good cadence to business? to on of of with are my I partners you've deal could How that duration your just addressed on they're the what's this. little the And any customer I'm if base? happening your bit your in the side things? are wondering terms than joined you of different you sizes leading see Thanks. I engaging of also so

Dean Stoecker

questions. Great

but is haven't that today's we've so. addressed think opportunity on -- this to good do I call, a we

our of them A value-added on few them about These coverage. been XX% vertical-bent are very resellers. international, the country has actually by of expertise local subject know they have As few are of Most international. business or driven you typically historically reseller market side matter are partners. maybe based U.S. are some focused, are

us, ecosystem strategic up we And higher value last of order alliance who program take drive into fall. people to in set a for an could platform the

PwC our employees signed we agreement kickoff the elite. before I call, days as earnings we our brought February, year-end of in a was together. of about think right joining That couple us first of where all global talked global

we we inbound too time I you end-to-end is around we're about tell to global these built, transformation. And I much processes be the that although allows alliances. to of think to analytic starting processes be for platform I global consulting be analytic see activity building tell And the to that, that a the have automated. these We're that digital what vendors you right this that that can pipeline. lot recognize data is allows allows that know can't particularly democratized,

models, as drives revenue us, it to particularly workforces. these but And go have and organizations not just tremendous services it departments, build drives global in value retrofit now upskill for

perfect on And like so global for elites timing PwC having side. our

Jack Andrews

color. Great. for Thank you the

Dean Stoecker

you. Thank

Operator

your of Our proceed of with the Turits James. Raymond line next question. Please from question comes Michael

Eric Heath

of how those takes And could and puts this maybe on Eric some is throughout to rate, net on This expect you assumptions? guys. trend some you the Michael. the for the Kevin Hi, on on provide going Heath expansion color year? metric forward

Kevin Rubin

some public XXX color. true. that think Yeah, to to that over thanks. don't so of you We directional I went be we we when I'll I believe we and still expansion, long-term guide north mean, net out felt sustainable just we indicated was give the

expansion said quarter and with gotten Certainly, pretty pleased we're impacts that continues have over how XXX% on does go the as larger net to being That GXK. still on naturally time. we've XXX% the within

continues significant largest I to in that think investments customers demonstrate make our to Alteryx. continue

Dean Stoecker

we the those exist And be the to remember million the million in their after, who that hate to that are who XX going upskilled of data GXK. disgruntled be citizen want analysts jobs XX scientists market

so that And of X% audience. we than less penetration have entire

continued expansion. So, there is for massive opportunities

you when this let's Server there's knowing a upside just that key look call begets model created. roughly of and penetration it we Designer to whole at XX And that we've rates automation the is or Designers a significant XX

for -- the that we've ordinary customer our we base XXX believe period is to or extended our GXKs that the overall we the for think and with numbers continue posted strong. So, will certainly along be

Operator

question comes Oppenheimer. question. Ittai Please of your next from Our Kidron proceed with

Ittai Kidron

all the the thanks on for helpful. breakdowns. color Thank Kevin incremental you Very and

comment of the Just improved XXXX. same follow-up first in April April again your level the on it which or called want as it you've and to Q&A on question to was as activity defined

the the level we -- from I'm that June Help assumption And to of that an the second trying really way is me what think do And for the quarter that the continues assumes the here? stays that your understand pattern? How revenue expansion Or does that new From what customer target give mean when XXXX? it kind April about acquisition underlying quarter as the assumptions same? in you pace? for in improve? understand is to a April level is the guidance same

Dean Stoecker

happened we with in Well, are actually comfortable April. what

post-shock of post-work drive were COVID. from we I from think excited we logos pretty we number did that could to home the continue

able verticals XX% or like those and good new bad the to not analytics thesis they're around change for is The our logos an whether to fact impacted or that get beginning platform of ours. we potentially highly were

a on highly I'm is Kevin? the savior sure analytics have these We're pretty to lot I commentary convinced not organizations that. of who be that for going are adaptive. any other

Kevin Rubin

Ittai. Look Two-thirds of buildup as kind and backlog mean assumptions essentially QX quarter of being the expecting provided is RPO. in we coming it's question. It's what the or thanks contributed. a the we're about No, great I terms from where and think we Yes. of

or will I commentary be generated the from business. then XX% coming in-quarter was from so bookings. of around and got think April The totality renewals really You've that's the rest the

So, Dean terms seen we've new net on what very touched similar. of and logos being activity that in

And this did provide respect with detail to quarter. revenue a comment general was build quite we did how the expect our business. then of overall to so at we're to the looking we -- see that the buildup and guidance bit And the I in up

Ittai Kidron

Good luck guys.

Operator

Wedbush next Koenig comes Our your Please Steve question. question of of proceed from the Securities. line with

Steven Koenig

what if in in maybe of outlook qualitatively three outlook thinking months apologize your this reduction maybe QX for discussed about Hi thinking the taking compared kind But advance you already. maybe gentlemen. Thanks you've my And question. I on were color the to in ago? just

of to about factors Kind the and -- attrition what were versus base of in that expansions what between down the impacted you expansions if are non-impacted affected important verticals lighter outlook? versus break think versus kind of the the as the you kind most your

Dean Stoecker

Steve. Thanks Yes.

gave the seeing in we perspective. to things obviously went to as -- kind for and bit the a are through of I lot that guidance the I I -- up described be So, a by impacted what through regard. from being as able you prepared a mean of We expanded remarks, it's some mean variability range right? I built went we we accommodate color in

rates in moderate on commented churn in increases We Europe.

at aspects obviously and look go as business through is growth so And lower rate the of we various the we the than QX. saw different in

the having and around point, how and Alteryx transformation on kind optimistic with those platform ultimately to customers still a conversations Dean's fit focus can into we're we're the initiatives. But of digital

Steve Koenig

And doing like that terms on payment in giving guys the especially impacted things easier contract? the kind are terms you anything of customers of most or

Kevin Rubin

can. mean, customer-centric a Yes. with we we're and organization flexibility I certainly customers. providing working obviously We're where

we customers are having and And and those with conversations that are working so are impacted. most accommodating we

Steve Koenig

very you much. Thank

Operator

from next Jaluria Rishi of of comes with Our D.A. question. Davidson. question your the line proceed Please

Hannah Rudoff

today. for on you guys. Rishi is question. for Thank Hannah Rudoff my This Hi taking

lead postponing XXXX about to talk the you expenses to year then conferences first is you rely can how how going one-time on beyond your conferences generation? you this And do much mentioned? So for impact

Dean Stoecker

we year one-time much year the have really not community conferences aren't conferences. throughout business, throughout are together gen just very It our offline. that we show year impactful with events that to engaged online prospects the Well, get a activity. for lead face-to-face, but the up customers. and but We're of is our There is

behaviors. Net pretty of a because but incredible of our overall not Score have our Promoter conferences, We customer-centric because

them could not disappointing get off, it's while planes to And the no air. push one there with in

things to the overall know in doing so key There's times machine for sector see when data of the going to you actually to science consolidation space. be we're one we're with our and this change happening Analyticon, because that it this a continued we it conferences, learning. comes renaming And as in like

air, We confusion science there's about analytics. because much wanted data the clear so and to

open ecosystem. to conference broader a much we're the to going So up

for So prospects time, in have that perhaps we XX the million -- have the people we'll technology will adjacent with clear transformation. alliances conference. exist Python year bring all the coming for to ecosystem know like digital the the The world that actually first we next the developers analytics and and HXO critical folks for let we'll and into that to real, science people it's these data and the Snowflake, air to it's

next So we're the out we go-to-market whole weeks. that great coming over bunch we disappointed but pushed of really few activities have it, a

early you them hope them. and next we attend week start You'll to about hear

Hannah Rudoff

Great. Thank you.

Operator

comes of with question Koujalgi Guggenheim your Please proceed Taz the next question. Our Partners. of from line

Taz Koujalgi

question. guys. for Hey, taking Thanks for Kevin I have a you. my question

sheet, part of balance If deferred, from that renewals the years two from about you have you from are I deals some look guess that at still your some gets your then the and revenues revenue model, you coming maintenance signed revenue ago. that's

are bag If that is would safe that versus -- you mix? in new the the down, generate you from What of look have like? to they renewables mix revenues revenues what your break are deferred that that you are the the were them How to quarter? have in much versus of sense in how coming revenue much basically already and

Kevin Rubin

That's question. a great Thanks. Yes.

that in So my remarks, actually went prepared I through unpacking.

is from coming XX% from renewals. coming So two-thirds so revenue backlog, or the about of is

the still I guess we speak. from business the in can that that So consider the And then you actually be of close so that to a balance will period. revenue in-period

Taz Koujalgi

very That's Got helpful. it.

jumping I have missed between was must that. I Sorry, so calls,

Kevin Rubin

No. No problem.

Taz Koujalgi

Any think you more April on details new April look how customer strong. then color in said trends versus looking pretty And I acquisition? are the upsells

Kevin Rubin

similar that in of we April to Well, again, last year. year I speaking this comments saw we our what April saw think is generally of similar activity

is commentary that adds. to the aspect the net around reflect to so overall new business intended And in just addition the of

Taz Koujalgi

helpful. very Thank you. That's

Operator

Our next the JMP with proceed question comes Please Securities. of line Walravens of from your question. Pat

Joey Marincek

market help This some ahead? fit? frame question. us can perspective on Pat. is Joey to for Thank give Dean, long-term on the product maybe us opportunity Thank your that then you for you you you. see And

Dean Stoecker

Great and question this and digital are losers that people an the important winners believe one made focus while, of us. We this. we like see of in front being on impacted are times right in lots in transformation times like

earlier, this wake-up said I if up. will executives is As wake not world, a nothing call them to the around

digital said, three attempt We deliver that IT in from a last we recognize hiring of the Chief to at that was I've Data of record seeing the more them weeks. didn't transformation talked number over and we change had success. And thought four Officers systems last now scientists. We're and of a digital what many or transformation. about actually of buying have clear

are citizen the data XX analytics data is a those turning asset an you're seeing it upskilling really real. in the X.X, routine digital tasks, while humans mix, automating that importantly, as an potential most organization, transformation collection the in in of believe And into And prowess. million we scientists

organizations. opportunity. want as huge They see this value this a do provide to They do we And to want work.

over category that software own. In intend see two we that emerging, the weeks more a start to we or of about a you'll lot to three next fact, hear

be creation ITSM of the that intend ACM And category. in tends was past you've the to the a the that cap get category or we And category or entire winner Alteryx. it market XX% looked at to whether in SFA, of

the So we and long-term. short-term for, not believe just positioned we're but the well particularly the medium-term

Operator

closing the Stoecker, over We remarks. any hour. top of I back Dean to now reached call turn the for have will the

Dean Stoecker

Thank you, Operator.

Alteryx my the express way for flexibility and and Finally I continued their once in time. dedication through work again appreciation around moment world, to gratitude for want our associates the this while, we

of work us for and to ultimate your analytic your putting thank the fabric together Thank for our people this to no than to and are allowing joint We you commitment in analytics and customers deliver there's of you current be better the group prepared here. part global your to believe that, better trust And for address customers. our to the partners analytic challenges, output differentiator trust to Alteryx organization, our community.

you. from for #togetherwesolve, Be well. this stay our work hash today. remarkable by You Thanks following social can media. find tag And Thank community some time on strong. of your the

Operator

This concludes today's conference.

your great may for Thank participation. at You time. your And a lines, you disconnect evening. this have

Alteryx Inc - Ordinary Shares (AYX) 6 May 202020 Q1 Earnings call transcript