AYX - Earnings call transcript Q2 2022 | Alteryx Inc

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Operator

Greetings, and welcome to Alteryx Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ryan Goodman, Head of Investor Relations. Please go ahead, sir.

Ryan Goodman

Thank you, operator. you Earnings us Conference thank Second for and XXXX quarter Call. afternoon, for today joining Alteryx's Good I'm Ryan Goodman, Alteryx's Head of Investor Relations. the Kevin Officer. With Executive on call Mark are me Anderson, Officer; and Rubin, Financial Chief today Chief

XX, Suresh quarter Additionally, Paula and session us Chief announcing President XXXX. a Hansen, after joining results ended prepared Officer, be the the afternoon, our Vittal, we press Officer; will issued Chief Product for our Revenue our June and second question-and-answer remarks. for This release

like would the you you of If a our release, can copy on online Investor access it Relations website.

performance. will beyond forward-looking XXXX. are statements year the our variety a we are call, this and subject business, guidance quarter our third related These including statements During some to our for They financial of risks make which future of control. statements are full to uncertainties, not and about of guarantees

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

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

Mark to call. measures turn will the A comparable directly that, non-GAAP to like in over With on Anderson. I'd be Additionally, these today's measures call financial Chief found be financial discussed their can reconciliation measures today's Officer, Executive most of GAAP earnings to release.

Mark Anderson

the year-over-year range. of and of end delivered guidance of recurring million, Ryan, ARR, and thank for revenue, us We annual XX% both our XX% a million, year-over-year, $XXX you, Thank with today. all revenue up exceeding up $XXX the QX high joining on you great call or

by generation. trends our seeing as high pipeline solid and a are for We year-over-year growth in demand multiyear healthy rates renewal evidenced

motion be continues Our environment is sales current market strong. the resonating to and sales in value-driven execution

asking visit Companies meeting, areas much this traveling the realizing committed viable only fact, closed automated deals every solution. last ever. access fully needs third-party in all spent ACV to democratize processes our of X be customers, to to and are use was can manual that answer. and geographic and knowledge apparent. of Across our the priority our data leveraged. business. be we governments only Having must short-term At Data their critical this largest people. and partners, is customers I workforce need to help of the all Analytics In for are QX, high a Enabling one's be across to analytics prospects quarter X do long-term a theaters,

our As forward drive in businesses analytic profitability updates solutions then will financial more of streamline then the QX to face I'll their begin our strategic chains some like automation quarter initiatives Alteryx and from provide and increasingly look with the uncertainty, highlights optimize provide results. innovation they details to and looking are the initiatives. platform supply and leading go-to-market market platform opportunity, on the momentum. Kevin to on

so was Inspire navigate are hosted environment. over table partners It growing now current stakes of effectively and We with community User our saw users with Conference we May X,XXX to to validation energizing highlights. enhance well some macro in attendees. performance Analytics Data strong engage and compete, that First, our where the

by analytics the early frictionless cloud June. a with On Alteryx will provide we've We our opportunities introducing in front, new this success seen the to more believe on extended ELA with the platform. strategy within cloud we broadly a go-to-market path ELA leverage companies

opportunity in core by And to mission with new Trifacta breakthrough. data every processes. innovation cloud person with a enabling version engagement. large quarter focus a for of sector. with We this partner empowering announced Conference. with at global driving aligned out introduced expansion our advanced automation operational productive powered scale Processing cloud, rolled our a up our Federal ties also designer We on Standards, a to of opens of ecosystem we the well analytic as This governance. public all which transform to a addressable on scale or Designer FIPS, is for on field-based Information which We having already program, a a updated both and We're back low-code, into no-code us impact positive had of and Inspire committed democratization User workflows Alteryx particular

innovation underlying use our large think business us support users, tangible strategy of cases new addressable the and enables demand. across customers our market budget We is go-to-market for capture opportunity creating new ahead this personas, X components: market and our effectively Our to us. rapid to ability and scale of potential

potential from commission benefit and On roughly who indicates citizen with the advanced hours This analytics pool creates are item, IDC users, than potential automation that and of a our data tasks. would capabilities. on manual scientists repetitive Alteryx's wasting first advanced spreadsheet million XX XX users data growing study annually there low-code analytic more billion

it business today. opportunities transformation priorities As over amount solutions of to that business and number for by per today, require on masses X empower budget, increasingly increasingly this employees hearing Digital third, unlocking I'm analytic XXXX. leaders is top $XXX analytic that customers according And demand, vast billion tangible together. tools is the data brings to all to that roughly expected data. of from spent $XX is billion all enablement the and is X a IDC, leverage grow and data budget to which

and we opportunity, market customer for across enterprise, As address how defined our strategy we've go-to-market this X success. pillars: partners

Aramco, MongoDB coming on a amplified our QX than Suncor, enterprise-focused We ACV speaks tenured including million-plus name QX reps more compared Orange, with customers, force decade marquee well for effectively itself. Motors our which had many experience new Global XXXX success adding software for larger multibillion-dollar and a a that quality added our enterprises. bring to of of enterprise from last record over few. see number a The deals, sales to sales wins We by sales We've doubled Lithia upscaled $X year. focus companies. continue many to We of

up seeing is Global with decisions. management, Our penetration such points users leveraging models major Alteryx machine long years added into With data XXXX management addition expansion supply modeling had Designer pharmaceutical more platform pricing believe And the in XXX%, This large with effectively opportunities existing more X impressive cloud-delivered QX. to with year-over-year. XX%, Alteryx business win of to provide the a X,XXX net enterprise ahead. our these leveraged The licenses runway explore suite of increased and a hundred across new predictive machine as chain We ELA now by and the with a Global a of rate believe to fantastic flexible use customers and at for path embrace us we ELAs company expansion for be We're We explore the calibrate broad-based can XX% now learning, strategy. for orchestrate provide a can wins company to also over that they Alteryx intelligent implementation new and multiyear optimize merchandising designer more users momentum customer plus organization. learning. analysis is implementations. their XXXX several cases, customers

transformation We sets already us momentum garnering prioritized, and believe for expansion we Now accelerated near automation are end interest. for this cloud ELA customers' of for the coming our meeting strong We of introduced it's are up and being the that agendas. the year. positive our renewals needs digitization quarter, the

This services structure to business comprehensive of with a ROI multiple a ELA more Our ELA professional BDO a with a to Alteryx across led lines win a ultimately analytics BDO, strategy. construct enterprise-wide of enabled great leading realization firm. allowed potential better drove quadrupling of their and The implementation. approach capture

Alteryx to our user updated it's solutions saw to which reach. program We empower rolled and market second subsequently markets, partner-sourced our for of joining marquee scale out partner partners services including deliver global partner to our organizations new As and elevate Presidio ability our in contributed growth engagement, new in rapidly partner strong increase the early in pillar value-added this to like bookings. community program, the the effectively ecosystem, to an engagement. QX We better go-to-market, bring enhancing

We continue partners of see solutions embracing many as customers. to our the

now in renewed view a across strong We dropped by was their user embedded partner. hires a use I this partners Alteryx of by new partner roles of and customer come it's this leading our up day-to-day value in this breakthroughs We our hire as offerings. important implementation to endorsement anyone. orientation XXX Alteryx additional the June, engagement in for designer Alteryx where larger new curriculum. partners trained deepening over provides, One quarter from can a that and with this multi-thousand for a into training Canada, the validation

to contributors pillar, also of go-to-market is one key community customer partner Our our success. third the

automate pervasive designer In with and seeds examining customer enhancing ultimately The opportunities of of and cases up A nearly leverage management our company, fully their to over are some new chemicals business and is plus a groups weekly more global upsell workflows with began one future ensuring return use prominent we with example inventory companies The users Chemours, with Active with a enterprise magnitude specialty in processes user collaboration opportunity forecasting, and We to smaller implementation great with a XXX and teams with customers more Suite. often Intelligent on personas. came of partners, hosted new a exploring of investment. ELAs. positive our even XXX resulting with designer. in committed sessions large our solutions is optimize unlock this Alteryx. innovative engagement enablement ELA this and which

well-established the cloud Inspire, rapidly is and portfolio on progress industry-leading focus powered Designer making user parallel, key innovating Cloud scaling of go-to-market and and capabilities. solid While Trifacta, a Trifacta's integrating by platform road announced which are our in Trifacta of interface At our offerings our cloud accelerates we we capabilities. we are architecture. Designer's onto innovation integration reach our map, with offerings

are an offering so quickly We of after available of proud customers have close the acquisition. this to early the version to

embracing with addition to new traction our leader global Analytics finding and early many our embracing significant in plan customer in Insights. It's our that as been of and thrill Machine expands solutions days, and we they we're both cloud cloud enterprises. wins experience. flagship our Alteryx offerings quarters, cases, customers incremental our designer designer layer to A secure Alteryx see empower cases. coming customer cloud solutions, customer with adjacent It's the a and is new platform We're Over to and ability Cloud. users the such new with Auto Alteryx a Medallion, functionality Learning employee with pleased use the integrations in larger also in

to We're with real-time finance, early adoption seeing insights cloud renewal. designer upon Alteryx across optimize leveraging existing also of Auto analytics sales with organization. across will users Insights provide customers to marketing, addition business ops In AI-driven and the several

and such implementation X with designer For leading example, its recreational By stores. retailer, store its district leaders, insights Alteryx capabilities leveraging a the Auto solutions the on as business AI-driven sport key customer insight workflows, added together, managers trends expanded managers inventory sales and management. both across empower will fast and

validation and along In we the of public and workforces. leaders Databricks our for the to Snowflake, to I'm with and onboard FIPS a As coming and sector and prioritizing data turn I'm experiences a I'll build us. solutions, momentum that is in of This quarters. UI embracing a people, with flagship introduced analytics, Google. and security Also, to of to solutions. designer very strong our to the enhancements scale this what their we've urgency demanding call To Kevin? market solutions announced compliant. was and creates of that it with automate decades. and been last their upskill and excited to our over new and commitment macro that Business have greater proud to closing, trust And expanded that, as partnerships analytics take the opportunity democratization increasingly in governance ahead keep can't new function great people are wait coming of with analytics are confident with is advantage businesses uniquely reality, within the at several will right Alteryx partnerships train With Inspire, we core and opportunities the hard competencies quarter, our to fortunate is us positioned environment the to is a working has for so accomplished the team in optimize Kevin. serving provide. and the up

Kevin Rubin

strong end exceeded million upside impact of $XXX of with slight Mark. Thanks, board profitability also driven was falling $XXX the multiyear our QX. the range. guided approximately than XX% $XX the opted exceeding key since end year-over-year, renewals. across was million a of entering quarter with of a been upside metrics expectations X by larger grew Revenue our for ARR some in as uptick ARR well better incremental and growth currency QX XX% guided growth the of high much was Revenue range. higher duration revenue and the as our financial of rates through of loss year-over-year would grew operating contract as points strong have excluding high customers quarter. million above of end renewal the guided profitability. our the to Non-GAAP of

to to for global We positive share enterprise from TAM to This led customers organizations, cohort. the of growth continue ARR with and in come. a ARR sizes was the the contributions addressable win in our us years benefit ARR provides our market by trends ability to is lion's million-plus $X with of our our large growth across customers. lives demonstrates increasing believe which In we grow where large all QX, substantial growth

with customers QX, above to ARR growth. growing total saw growth ARR and with driving in greater well an traction organizations This XXX,XXX track is customer positive in to a sequential strong year-over-year net increase rate expansion in Our acceleration or the continue large in bringing QX. ticked trends. per our ARR expansion per up ARR XX,XXX contributing net customer, XXX%, ARR to to average In

a As to team that is you use leverages through solutions. across Alteryx my Alteryx tell organization, the ways of I that finding my meaningfully constantly performance platform business improve the can CFO

enabler go-to-market growing and we in scope across analytics base. demonstrating to better the need, customer are and strong deliver the With business on to key is With we our data performance platform getting of company at efforts platform volume a front, of execution. of the growing our Alteryx our the the analytics best-in-class the broad better value

predictable who These example, driving multiproduct For seamlessly enterprise. to strategy platform, larger flexibility to the expand pricing deals. the access is ELAs our resonating ELA and especially our value substantially with bigger throughout customers are Alteryx's

approximately New ELAs in ACV. million closed $X averaged in QX

trends leveraging burst with used. We of capacity are leveraging positive customers of burst flexible seeing ELAs, being volume customers a and total number capacity

starting vehicle while land-and-expand healthy now an of proving cadence forward-looking just a ARR. improving benefits converting are excellent incremental are our capacity to to in the to customers with We visibility. terms be usage see nurturing of also burst ELAs go-to-market our

of engagement in QX. are also partnership higher seeing expanded of partner influence tailwinds approximately ACV We our XX% Partnership positive and generated coverage. new partner from ecosystem bookings business growth

path our into success we've for initiatives. We continue to customer market only just are also to markets meaningful reach growth. scaling see an partners tap to and as growth an International rapidly opportunity for efficient important driver enterprise the as our begun business

impressed strong our a EMEA, and designer increase with expanded with are durable company as and project part QX, rates ERP transformation capabilities. to record to who ELA establishing a their and initially growth, lines size engaged in track Alteryx Alteryx new In in of hired a spent great with and both opportunity I've bring UK, and customer a sales EMEA we had we mobile in opportunity new coming this win have of business in a the expanded we of the an operator, XXXX. both with market remains APJ, business where with We to user position. and renewal to The catalyze growth In quarters. XXX of saw is additional meaningful customers. strong Three sizable British with see a QX, the We capabilities. an focus network them differentiated and foothold leadership given in new continue for executive win time

outperformance high return end in We by guided better our flexibility in profitability us generate range. of is coming enable QX believe model to to are This path $XX a this the can the operating accelerate selectively we to will while demonstrating million also profitability. and our rigor providing We where than additional non-GAAP profitability to ROI. invest our demonstrated financial also discipline on favorable

ahead. We in drive also years incremental to see several efficiencies model in the opportunities

year-over-year and increase double-digit we further hires productivity expect to QX productivity to recent saw rep continue ramp. example, as sales For a increase we in trends,

our cost the profitability. partner flexibility with positive back leverage multiyear of the retention in perspective, half have pacing ecosystem And high, we with provides at in In a high level a company executing is from our Our growing motion. trends XXXX. the summary, employee at go-to-market growth greater and us additional of a improving

model subscription-based solid Nonetheless, has on of business environment. us the well-diversified Our second entering footing current half. are mindful macro the we

opening performance We cycles saw are metric Mark closely are in seen indicators. With a leveraging saw key let's year-over-year in a we us Alteryx a help to outlook. a data finally, is mentioned, And where we key breadth analytic And growth in years. the was multiyear this track and closely. as demand. generation Pipeline lens We many now clear a high navigate on in slight QX highest provide metric of are current market QX. macro the solid pipeline QX, rates Sales that environment resulting backdrop, QX. to capabilities the we've at turn another improvement renewal the monitoring in this

remains visibility the are we into our in outlook. our remains demand While dynamics account prudently robust, high taking macroeconomic and

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

at Our current ARR assumes the FX remain levels. guidance rates

duration expect at roughly of million, $XXX tracks XX%. in $XXX representing million growth We with range more be to XX% the revenue line year-over-year X.X This to recent in of to assumes GAAP years. contract quarters

loss range be million operating non-GAAP $X of the million. $X our in expect We to to

non-GAAP effective weighted range This XX%. outstanding of net in of $X.XX an share shares million loss assumes our and the to rate per expect $X.XX. tax average be We to XX.X

to million, growth representing range $XXX to from the to we This year-over-year million XX% our growth are XXXX, year of increasing full range prior up XX%. XX% of is to XX%. $XXX For the ARR

million, of This XX%. growth million year-over-year range range revenue increasing XX% to our $XXX to We GAAP from the XX% to $XXX prior growth representing is up to are of XX%.

the expect improvement million. $XX $XX a million, loss operating from an non-GAAP range to our in million be of We loss of outlook $XX million for $XX to to prior

mostly flow bonuses. reflect we will with linearity payouts a profitability trends, cash be historical to to consistent While employee our QX expect shift semiannual for

XX.X Finally, effective of range shares $X.XX, and which to rate to per non-GAAP we the be in basic $X.XX assumes an XX%. outstanding loss tax of expect share million

growth in non-GAAP an profitability. quarter. balance impact. strong nonoperating durability incremental great was to We our closing, Our line FX in incorporates QX outlook with demonstrated EPS path top discipline In our a and metrics

motion the successful are to the of growth becoming call in incremental thank that, we with environment. the the half With the company. to way back prove with tailwinds ARR us sales value-focused you macro continues well year on current Our We believe our for the joining We've momentum entered second and strong $X and Operator? all Q&A. for to today, a turn on billion-plus I'll horizon. operator

Operator

Piper [Operator we Instructions] question Brent Sandler. is from first The Bracelin from have

Mark Anderson

there? you Brent,

Operator

Apologies. not It we seems do Brent. have

question we from first The is Citi. Tyler Radke have from

Tyler Radke

on a So maybe motion. just ELA couple the

opportunity you where biggest coming? percentage as this could surprise motion about the far you sense? on in potential through the about if a of kind is ELA your kind make first, how call, base, little do I of terms you are look at the number the then capacity So just customers upside or upside maybe, of talked that how in you burst the you? bit that And installed most Paula ELA where is ARR, what's to of converting secondly, know motions? these but surprising think in And

Paula Hansen

for Tyler, those that as the question. Thank well in results. about the really We're the has quarter's role played excited Great. you, ELAs as results

couple to accelerated it that desired of products just easily maybe is or capacity the the opportunity, customers burst for how think our getting users, more their in with it's a past. the our different whether in more expanding of expansion newer I worked whether haven't So is supports they through ELAs it's the One some experience in areas. upside with with portfolio

increased that broader an quarters. that in high and just today very We X/X So of of both number more that's customers well see a as as with the X sold, last we capacity access well set over the of even users new burst the ELAs we've in portfolio. them utilization are in increase it's ELA across added the already to

our set use, They access So candidate They broader broader the first the the to in to a wouldn't our be and like the that totally honest, a any onboarded we're validated like customer had more an the And pipeline. great I launched and excited for love that products. and be a really don't about that. have cloud we we've conversations that ease June, in the -- pricing. percentage now they have ELA ELA several customer predictable see customer of of already

Mark Anderson

Tyler, likes deals. And them Kevin much because they're bigger

Tyler Radke

he's likes sure that that. only I'm one not the

a Just -- quick

Mark Anderson

ahead. Yes, go

Tyler Radke

a quick just follow-up Sorry, Kevin. for

contract way of recognition. talked seeing you're a some I pieces dynamics you next but give moving just and growth accounting XXXX, on know upfront year, think obviously, ARR about think You duration. just premature could how thinking this the revenue -- to of you're on about And sense higher versus we're about it's some revenue year? a us about durability the we should how

Kevin Rubin

Tyler. Thanks, Yes.

that like So quarter some anticipate seen to provides, somewhat to quarters likely time. around ARR durability service. quarters, fluctuations to with only as The as next, we ratable which think, be providing always ultimately is hosting over thing would larger going customers to long cloud that There's X of stabilization further I we've a into continue recognition minor multiyear see electing quarter-to-quarter to going we're this 'XX caveat I saw to would contracts, revenue. the and to more I to I and that get 'XX, we respect so continue the would is inputs into several in over we're X on say, that

time that would over be anticipated So I only that would the change anticipate.

Operator

Brent we from Piper from question is Sandler. have next Bracelin The

Brent Bracelin

me hear can now? Mark,

Mark Anderson

Yes.

Brent Bracelin

second improvement, little exceeding know hard momentum, team the this much. I customer be for it go-to-market overhauling quarter that straight in a some the at growth to part success last a work tougher you've the better of ARR the been I macro XX% guess, pace layering of the in of Mark, strategy, for year. the surprised see

QX feels So the much the execution term? in analytics? enterprise would change for to your love what's like of momentum material you view driving internal, company-specific here some here, my question maybe productivity having momentum just but It to it's data for get you're versus internal how and near sales around it more attribute demand

Mark Anderson

can't I on appreciate I I all the the I motion the customer disciplined X really gosh, I spent sales Every mentioned the the the good upskill across at that in level. really of meeting. traveling and rigor every democratization need last organization feels people And all the analytics that was that and their coming prepared kind forward, Brent. in to really and focus with their us they going comments you question, for of outfitting on a on telling addition is was driving the analyst Paula done geographic chart like quarter to around has the felt and job of across X workforce. Alteryx. that's levels But executive at theaters. it relationships to weeks, the strategy Yes, board the deny really road it that we've building been data

it's But of us. it the think market things. a both combination feel to I is does a question, like coming So without

Brent Bracelin

follow-up. And just Kevin, a then, as

seeing now public have space valuations reset think the whole valuation in and M&A As further appetite the potentially just here appetite product entire to leverage come the an kind are you obviously, broaden of your markets any privates? portfolio. product expand sort to given have about the reset the thoughts valuation of you in continue to What's in portfolio, the across to

Kevin Rubin

know, behind Yes. as private follow the Brent, Certainly, X, markets, XX X, public months XX, you ones.

we're certainly watching So that.

and do busy product I starting Trifacta have that functionality to add from given And they us powered is that the Alteryx to today. Insights, user into Trifacta Alteryx to the is fewer And Trifacta us together I platform applications, be hear platform. in than that [indiscernible] by this better who consolidation that customers, able engineering learning point more more base Designer to want for continue think with really the Auto the the that we team and the to side Cloud now vendors, our complexity, back-end and less go community on because think machine it exists knitting platform we the space.

work and add to busy eye now, certainly capability, going be more organically markets, always looking right to inorganically. we're an and So on the keeping both

Operator

Capital The we KeyBanc is from Michael have next Markets. question Turits from

Eric Heath

This And I the is Heath Congrats on results. question and guess Mark for Paula. Michael. Eric for a on

curious guys on mean, it the points in -- sounds geography laid either field -- much I and either what positive pipeline kind like data so both seeing budgets I out the insights lot seeing you're on know of from So just But a you Kevin aren't your group? to base, sales macro. and a forth. get your of cycle by customer that or customer comes the to

Mark Anderson

they're careful clearly, Yes. Eric, Thanks we're for the enterprise to very be about you’ve think, I Michael kudos, that to and hearing customers, say going hi, in talking for us. spending. Yes, their listen,

if an to use chain, your that that's get you're need around handle looking tighter business. able Alteryx believe I should to you're environment because to think looking if the shift, a I if to to streamline refine you margin, run you're to be and data that looking supply a your of in Alteryx thrive swirls recapture

They're And sales that's that's how, been business because so buying the licenses. we've team today. and kidding X seats sell not frankly, -- They're buying are and go outcomes. our what and buying CFOs out over CEOs years last to

any comments. know how the don't have if And I so very But that's aligned you additional much running field. Kevin, been has Paula with

Kevin Rubin

right. I think that's

continue what job about organization more That's and have internally, and beat we've done certainly perform we my has conversations. very of think substantive that good to level, an business think leveraged we better. their as giving a how opportunity customers I to kind higher Alteryx of for orientate drum Alteryx can

Eric Heath

I have follow-up And one then --

Paula Hansen

and you add in to, as to to just the customer bit the We're see having data We alluded it spend top the might little in coming conversations on well. surveys CIO field, feeders current having executive from that environment. that X with now more out in CIO globally we're the addition conversations conversations analytics feels the respect to good I macro having. as business, even a routinely X perspective our in or categories, we're that X is

our that So up showing in all conversations is the pipeline of we're and having terms of with that customers.

Eric Heath

impact the and in to And relative ARR Kevin, both and Is quarter? And and the it's guide assumptions to revenue duration on relative to then, if I appreciate to XXXX? color clarify, are on your and Great. ARR it then then having any on quarter. year on Curious just revenue for what duration FX your the FX, year? full

Kevin Rubin

for the question. Thanks Yes.

I I So went with as respect to through commented FX, guidance.

guidance FX today. where see that consistent Our we assumes stay rates them

not obviously, in is material So any assumption today. the deviation

terms see back of was in in year we which a consistent guidance kind rest settle X.X%, quarters. the slight QX. direction we've expect my see last the to of of that back several And the In duration, to about we'll with or did seen is tick what

Operator

next Stanley. Instructions] [Operator Morgan Our from we from is Sanjit Singh question have

Sanjit Singh

impressive QX. Really

on the what congrats in imply question So in to particularly and to reset a the landscape When at around sort portion look we for related I actually around could the sort the the pick market environment. team. private competitive focus is wanted cloud. of terms that competitive of on the up of of of guys start-up some to community, Brent's Alteryx, valuation that the

all cloud grab growth could opportunity where on terms reset rationalized? sort for a what guys and spend you solar opportunities In with of to and be land into costs, slower less heading that for may have that valuation that of some of in environment mean a kind of the battle of macro focus like sort

Mark Anderson

Trifacta out as be really se do thanks we're the because lot business architecture cloud a land don't Sanjit, the in can question. it think building we that cloud for Yes. I so a the easier Gosh, in to grab of per with.

to easier from eliminate lot from driver anywhere a the the fingertips it it's and to So set to to keyboards data. an provision simple having to use friction that's Alteryx And in world. with to make dead idea get on just go Alteryx getting go of breakthroughs really any keyboards

more years very allows of competitors. got the cash been private to our of more successful half leverage second there's installed companies think in tough have and sell so going go of annual from as can this standpoint, long to far runway the great that very, goes, ton last Paula don't already a the of couple environment at I plans a honestly, a don't really looking and predictably is why giant them of competition out these has capabilities We're it out examples there, are we upon, and base listen, have to quarters competition renewal yes, stuck get see So renewals time. But be of in the to that's as services of that. And building we sort this. because a fundraising few year like it's and pretty in a expand and that going us markets we've a next cohort and year

Sanjit Singh

over at up in show category. and on for to is at you analytics BI as How last downturn plus looked I sort strategy typically slowed market. of then appreciate my whether X down the the parts And the question the And mentioned, space guys entering pandemic. thoughts. customers I guess justify sort Tableau seats, least of been main mean into a I does it's expanding entering a Paula the the a downturn. hard sort beginning has sort of decade downturn, the of as of just going you Top a

as why for deal sort of trying ago? of environment? incentive that much the fact, do it a pricing understand seat in of you're expansion into ELA as budget might you not wanted a sustain why So going slower customers the Is I get will it the per Just things demand a of strategy? tougher years environment to because couple be were different? to because, sense entering Is to

Paula Hansen

place that think of a it us new in expect both can Sanjit, customers continue give past. confidence few customers. Yes. factors to make existing us I done from the and there's a that things to with that we for see this We've market weren't in the from easier expand our to lot to

is example manage have closely licenses makes easier They So them when the were cart. to ELA at for buying it don't people construct a they expand. an nearly as to had as commercial they them a of manage that to

that And our it impact references the value up. We we've return Another quantify investment, customer our invested on back for is now in and thing are engineering. success. line can bottom-line driving then example the customers the business, is top that their customer that last solutions on for

quarter just we platform So onboarding turned the global last digital in customers. a on for our

So up use the platform software make running where that proliferation. of purchased, and find can drive to a adoption guided license is to resources and minute immediately they and and they're get and on automatically activated the digital this are

has demonstrate they expand approaching the weren't value, is answer time. that reality think all for I it democratization to easy different that the a the with quite this necessarily drive and to becoming with opportunity enterprise. So is agree levers the been We customers there data-driven our that them make for some market the

Mark Anderson

of one on to focused X likely And different different completely different that and years kind small Yes. before a tag very that just We of the very, different Sanjit, the I'll were ago, we're very was certainly pandemic. on to a fall of leadership, people in say, lot business over-rotated first company, markets ways. and medium

you So the that our the but the think team, confidence have we voices, can we not in I have. plan hear only that operating in

Operator

Kamil we Mielczarek is The from Instructions] William question next have from [Operator Blair.

Kamil Mielczarek

strong on quarter. Congrats the

how achieved reps think rate as years, reach productivity? growth XX% forward? sustainable changes I know full Your in sales marketing given quarter. the rate years the should marketing we in new going can up nearly about the some and about outer are ARR sales the more organization, quarter, acceleration investment the comping potential you sales prior the and sales talk than double growth the on but investments in it's year-over-year X for And this June in

Kevin Rubin

Yes. I Thanks, appreciate question. Kamil. the

a of just So couple things.

in keep mind, all, of First seasonality.

in do think and have we we sales second as at quarter, So marketing, about the least Conference. Inspire

We have the for we load the lot hiring of year. typically will quarter Trifacta. that full We a do the of front

the and think seasonality growth the of certainly much year of look that the then business And year. is first stronger in by the about when than us so the for at gets more second implied we And of quarter. the burden half guidance, the half back

the marketing and over continue see by last quarters, So perspective, the obviously couple relative at business sales to to guidance. we levels to been of as from a consistent evidenced expand and relatively expect has

the remainder of see should we year. So in improvement this metrics those for

Operator

Joel is Fishbein from next Truist. have The question we from

Joel Fishbein

and just some if I your remarks Mark, us on I prepared follow-up, of Databricks the helping and of color some some to you've success had deal how for Snowflake see of a more good could with a and and guys may as been recently? that drive around you be sizes regards partnerships. the to channel that even wanted you some GCP having the give

Mark Anderson

Yes.

-- we many and And along in the cloud one in themselves. And I particular, make Azure companies become us very a ago can Snowflake. any partners recognize been Suresh? much had so those by Snowflake, one Alteryx Alteryx partners in I X.X and I'll important what clever do like anything previously forward. kinds for and that You is on Google, partner customers question. a stewarded is Databricks and very he's Databricks, very bet, some AWS, providers that important company for in bringing career, last distribution the technology to very Vittal, partnerships his become this for integration Suresh was momentum of second. great down of We think really those technical Microsoft to last ecosystem will Joel. become Thanks things ecosystem set we both the heads we pass share brought with it to him on building quarter, of years, in easier out this partners. that quickly who very But will the knew going do a years because we couple think world-class for bigger out the Yes, this than to

Suresh Vittal

focus sure benefit from the We've on of some our these integration. a partners intention of making deliberately customers joint with Mark. got Thanks, these Yes.

Databricks, some Inspire, if heard share Lake. integration to you for and Delta to on VP of So the the Databricks excitement Product between you hit going and were of Alteryx

bulk about data So of innovation the past you talk around loading Cloud We support Fetch. as technology, and Lake the of Similarly, you Snowflake. in a delivered quarter. the previous strength our heard equal us of now quarters, integration talk heard Databricks this connectors Delta lot Snowflake as into well

gravity We integrations exactly continue a to cloud are that. cloud and as accelerates, of a us data those believe our get cloud opportunity for help we lot users designed access to insights see to to that business data and great the do

Paula Hansen

blueprints our understand integrate to how different with that implement perspective, to X financial show that awarded go-to-market so technologies up services, vertical that quarter a continue and we from competencies many were these Snowflake across shows then the of make in customers our And how way by they care health up invest We we'll support together, We're partners, cetera. et building customers. best practices, our to things retail, our customers. value these And to sure last to as industry media. understand

Operator

have next Mike The Co. & Cikos we from is question from Needham

Mike Cikos

on on had what stronger we much, Congratulations a quarter anticipated than our was side. much

ask going If Kevin. to could question that. I on here, kudos a X-part primarily So

And call, it for size the deals The to closed there I remarks Is year question, possible ARR? obviously the think ACV a component had, that next you impact up on and X your of record. XQ start you open to comps prepared in guys first question it largest as for then we from not as guys to will act for to second think Mark's the about revenue headwind I was since that a [indiscernible]. comment the

in flexibility provided think -- said in Kevin, actually that you actually, in I in the upside remarks, projects. your XQ high investing ROI for increased

I you're $XX.X $XX the full if guys beat you at So million. XQ the million, taking look, midpoint up year by by

are or being can about projects think help So those are where elsewhere, being those just you that dollars invested accelerated us where are those taking redeployed place? incremental

Kevin Rubin

the for answer. to questions, do I'll Yes, my Mike. best thanks

how can't deals but ACV able our we've be to to the talked and history I really in deal of orders largest quantify sizes in in magnitude the this X the deals, quarter really the of it So ACV about close particular pretty past sure. team with the how impressive. field And value has that to backdrop, was thought, Paula on engage put for they customers saw and they with does I and go this

we forward, invest we going the disciplined where how to are we're trade-off to selective going and make going of the beat terms investments. about In very between think

look those -- at go-to-market does a you we improvement and at have to to to we from provided it going we primarily a portion But you continue into through beat focus teams. product significant are that the and If profile, the is the to guidance, profitability we committed where go the profile year of work to look profitability. imply go in if continue profitability and to as are we path today, started where that

Mark Anderson

that products the existing And Yes. of last product, of more of these but these more we've deals new customers -- also selling them years just of were X.X both deals, expanded that designer by years. in expanded. the added the couple we them just large them in our selling we've on dramatically And last

So and that's every a monitoring every big all motion that I'm we're I'm deals big expecting quarter, quarter. the deals. expecting

we All execs a Paula maybe built. have And in. has and of focus involved us that deals that it's big motion said get the of go-to-market

Operator

from JP Morgan. The next question from have Bora Pinjalim we is

Unidentified Analyst

Noah on is on This for Pinjalim.

some you deals? driving help can ELA any Just how revenue curious, unified cloud Trifacta is just cloud ARR? And the of or contribution from partially

Ryan Goodman

drive the and they with machine that but enterprise they to can platform to they cloud so and powered what Alteryx their they We our June. to ELAs auto what only the It's which insights announced across with mix talk get get with adoption by as of received we benefit across they flexibility virtually early ELA, that is on-prem only is they meet different for very fit. well with play But not customers. cloud we ELA learning. still in match this customer like and every are in the and those cloud cloud similar provide and being see like that. the about about consume about assets Designer So very Trifacta, cloud expansion We them

to and more been with they there focus we So us. ELA, customers it's the forward has you great the a continue on on continued sharing cloud quarters as big to from what very our encouraging it progress look about response the for expect and be

Kevin Rubin

results. the about the In just into expected contribution ARR in really Trifacta, the for respect on the we quarter, them any overall that to question to acquisition commented the is with material add Noah, went $XX year. not we and Yes. million to given

Operator

is question America. next from Koji Ikeda of from have we Bank The

Koji Ikeda

me, Just wanted guys. before for with and ask market one guidance like really And commentary the the question you here. end on thoughtful for sounds the me. answer it good the all questions all these is I a pretty to to

You we've companies even elongated were mentioned other cycles. sales talking When That's software the cycles heard sales improving. clearly about excellent.

macro the walk walk macro guess assumptions in So baking worsening me sort any I the just a are for worsening kind maybe through of any maybe question assumptions in us of you the low here on -- the for guidance end? of a guidance? is, for guide, on the Or sort

Mark Anderson

We that to to going execs and down by Yes. Koji. customers answer very watch low really help across business. us it we said, the weekly forecast a all company And we've on or we've got it on individual reminding sales you the disciplined question, a predict -- does this and to macroeconomic Monday chain afternoon, uncertainties supply up proceed territory Thanks granular I pretty want we business. to for got or to hawk. take that we corners, us around just controls business hawk. how about very predict we've on in that strong, this do come if I'll see our use the but the the those to seriously, want it That Designer And just their a of in able to around talking like table called let some have Kevin when the granular to to a this, watch a controls our cost controls very environment. much right to I like be inflation rolls like And this is built to hurt every get of forecasting process much tool

think I in we reflect our so And guidance. that

And for has demand most stronger. we we're I we but get the pretty do. doing the here of market good have assume say been that a never might what worse, reputation to macroeconomic built of going think us our innovation

Kevin Rubin

Yes. Mark. Thanks,

conservatism of which top remarks. prepared the only thing, the will in some I the on that guide, I take did guess, So add prudence and I we into is commented

we're So a to in expecting different in the than we're macro not going environment. be that operating others

Mark Anderson

the the we really Koji. government there. years, as Yes. been focused enterprise really focused on X,XXX We're we're And and primarily on X,XXX, out SMB roughly low-end prior largest not in have customers

Operator

have Our Donovan James. from from next question we is Chase Raymond

Chase Donovan

help just unpack heavier $XXX kind half future to on into we of should good level. durable kind It about a a as up the the continued the of to from I tends the can was improvement? net year how back actually of think one uptick little those retention. be the Kevin, or stabilization into just back million had the you we drivers of and head bit And drivers revenue the perspective? real the see that

Kevin Rubin

of also obviously Thanks, future of lot Yes. capacity tendency Paula million selling We of the to that strong expansion customers. a Look, is as expansion. comments Chase. we've the really saw deal, we average things quite that's in $X on us a focusing highlighted. gives also I have driving and that. When strength we customers those the function you're that it's It ELAs the go It expansion. larger strong bit $X ELA where about think that of we're burst execution into already had many on touched customers, fact drive the visibility the very and strong with and back a with that view large per quarter our around in million-plus made of that to

sets really So for and saw quarter everything us think the year. that up you we rest us about growth from business the well expansion that I this think as the of of

Operator

Blair Securities. question last from is have Abernethy from Rosenblatt we The

Blair Abernethy

Just a new quick your question adds. on customer

So this quarter. customers you added XXX

is going time. fewer size to getting lower deals has wondering do really quite been of now what's they to of it's the it for landing And are larger average the your sort this if I'm shift than reflecting And some So just customers, targets? you're but larger?

Paula Hansen

Blair, you, question. Thank the for

count. of in you're reflected ad what that So right new in is terms customer

at greatest, Global the the large are XXXX. We is is where enterprise level, opportunity clearly the market focused which very

sake add company logo list count. And rather for to having of we'd high-quality so than very our any logo companies rather

terms -- we'll we It the it then is a focus in years growing. adding logos, land share will logos. And level is past. they the So now than but keep size, new publicly, in have on value quality but at don't we enterprise of be are higher landing that we

Kevin Rubin

at would add the if actually XXXX. saw to Global you a we And just where we're I look X-point improvement in landing, that,

really with strength larger, So landing better-quality are in now saw prospects who new customers.

Operator

the And we Ladies Thank to Mark you. Anderson, and back question-and-answer gentlemen, the CEO, reached for remarks. call of like have closing I turn end our would to session.

Mark Anderson

ahead. you, place, we a high And you level, and executing of at to XXXX, say I'd the out can for value like right thank much We the road. year The team for fantastic again unlock you joining We and to opportunity customers. we're again leaders customers, got strategy so forward at and portfolio the so to had here to platform-based the expanded that at of our shareholders Thank over offerings with company first is strong look in us. you forward We've a and our Alteryx. operator. partners, Thank all go-to-market excited our an momentum. the half right look closing seeing

Operator

Thank you, for concludes today's you and sir. Ladies joining Thank gentlemen, conference. that us.

now disconnect your lines. You may

Alteryx Inc - Ordinary Shares (AYX) 3 Aug 222022 Q2 Earnings call transcript