- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to the Alteryx Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. I'd now like to turn the conference over to Mr. Ryan Goodman, the Head of Investor Relations. ahead. go Please

Ryan Goodman

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

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

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

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

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

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

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

Mark Anderson

today. us Ryan, and you, thank Thank joining all for on call the you

and are embrace high QX and more analytics their at level We across continue seeing execute a organizations. companies to data in more

above range. leading our Our XX% of drove came operating non-GAAP also million, up This guidance. guided profit a $XXX in year-over-year, QX revenue

headwind in range our ARR, impact, have year-over-year. businesses, $XX this saw QX. XX% XX% currency million revenue, Like handily up came year-over-year. $XXX Normalizing at ARR recurring guided we above annual a and many global or for meaningful Our in would million, up been

key second continued renewal well We the net highs, improved our rate quarter for multiyear XXX%. rates are expansion to and across metrics. improve tracking straight to our Sales held year-over-year, performance near productivity

go-to-market value-based environment, demonstrate a the our motion continues this in Our meaningfully and market execution to sales resonate strong force. results up-leveled across

logo fact, new ACV QX. deal in In closed our we ever largest

We with pleased QX are our results.

to While to found analytics continue plan how data about multi-year XX tools, than not government projects that needs departments run need pushing into to knowledge more are tighter mindful ahead we of refer the capabilities. organization than of a half a respondents with need macroeconomic Companies organizations and enterprises their workers everything across incorporate These to all see are better analytic is And that any just to transformation half we knowledge what users as them business of inflation environments analytics decisions decision we analytics. study of democratization about priority. the over faster. This software. decision are investments to indicated using to budget do. workers and months. deployed that the less it's and companies, nearly analytics digital that less they than data it's with the The will actively companies empower to actually additional XX% platform XX challenges to in and improve them, a of enables have A solutions data buying ship, analytics software Every many dynamics other fortunate recent facing be predict make are top business survey IDC automation. and affect on in data-driven spend next intelligence that empowering the

embrace data customers in ourselves help find to humbled are analytics. unique We our to a position

deliver two our partner We pride strategic better the ecosystem, to map. partner place established organization outcomes. our our platform innovation initiatives the to go-to-market expanded our for the in put analytics we've that road invested customer We've nothing our to customers past forward-looking and updated achieve cloud value program customers. also market in and We've great our today take over in the position designed take We desired of help business result We've years. success favorable we've granted. fact a is Alteryx

executing level strong fully demonstrate greater quarter. of deal out that these the have scrutiny, us to of we as the discipline. through aware team are effectively environment for spending I'm to elevated We and there, commitment economic their proud initiatives enabled of are customers an another so deliver

me a last global incredible Amsterdam training this Inspire To and and how me, was our XX scale. in and attendees so in the excitement from happening energy general demonstrates sessions, X,XXX in analytics EMEA a the user countries. quarter. the these highlights times workshops, month conference few more. I much and is share on there nearly Let data We over witnessed from with hosted

Our a FIPS. we now road cases the Standards governance innovation And a use capabilities cloud finally, further We with points Cloud Information won aligning the Global cloud platform. Alteryx our transformation are on Alteryx aligned brands with with Cloud new ELA is on platform. journeys. with $X million-plus incorporate two integrated up, penetration deals picking to Cloud Alteryx Analytics X,XXX version of which being Alteryx leveraged XX%, of our achieved X globe this new as on map last server one milestone Alteryx with time up Processing top across Analytics the the bundle. We machine Cloud, or across year, for scaled major that wins Analytics momentum increased digital deeply from their multiple learning Federal

rapid ultimately strong comes to employee a execution, pleased at and back multiyear of successes that remains innovation, our our I'm rate retention all people. to Our our share high.

well across key of executing initiatives. strategic are our We all

about We excited cloud. early successes are particularly in

which deals license us thousand with a with signed incremental auto more As during for count, enterprise seven-figure server manufacturer. the Google personas customers, This its Fortune element, opportunities designer platform in for BigQuery. we also We enable cloud designer cases. several gain quarter cloud was with a and traction to use with Cloud cloud-native of licenses is not and the Alteryx Analytics customer new significant larger won two one Alteryx but only data expanded XXX multiyear to access meaningfully on unlocking

expanding management work their In office cloud empower leveraging company driver leading move well-known achieve significant learning well data. sales customers media can own in they health user see transformation. contact market addition, will to their using agreement firm. This the Auto by cloud. a ELA leverages solutions. reflection of Insights and with and license We learning designer as Auto Auto Alteryx to this provide cloud in Insights. with more center customers early multi-thousand Insights was as that available and Trifacta expand it's demand, A had tax Alteryx already adopted a to coming as innovation, a ELA, for back the engage machine social and with learning with seats expanded design that the multi-tenant, Alteryx analytics organization enhance they usage operations with great UK-based cloud execution, list with as On platform, with a its in well cases usage their strategic In cloud our on its This of significantly customer Analytics architecture. cloud Auto another and And now and customer with to care their optimize milestone in explore company Trifacta, consultants agility are global flexibility machine very as England, this a accelerating QX, use greater and on note, key operations. to Designer a of year a to value and years. designer consulting win was forward company The the our Alteryx adopted excited Cloud and goes milestone. Cloud entertainment on. in earlier media momentum Insights find this that machine adopted acquisition we're potential platform is after we multi-cloud Genomics

App at and including resonating Suresh several Builder, New within offerings Intelligence. Location innovation community. is newer EMEA, Metric our Inspire Store, highlighted

positive seeing feedback next to early part available cloud of and our these expect of year as platform. are We all be

a As to for focus for our be flagship solutions, us. governance key continues

following capabilities public sector. the earlier, in commitment on introduced FIPS, our best-in-class we QX. expands opportunities Server-FIPS our and of launch enhances governance our mentioned in I new As Designer ability to This QX win to

We be most not of the comprehensive, in have better. the could platform company's differentiated solutions history, timing the and

broad secured approximately our As us of $X over months, million-plus now larger opportunities. ACV the that last XX increasing is traction we XX incremental end, $X customers. million-plus wins creating organizations To over bringing XXX with a to range

is priority. validating a driving more productive engagement sales our level data is executive that customers spending current analytics Our approach and with

deliver which favorable response, cases use of repeatable customer initiatives, are higher success our QX. of scalable in construct blueprints, our in hundreds year-over-year customer ELA evidenced such can driving doubling ROI. outcomes, garnering is and delivery as ELA roughly And business by solution Our and as customers

largest win beyond. was one the A ELA with Additionally, actionable in we and ELA of saw last and our us more upsell a US-based of these airlines. year. upsell a XXXX customer to all how offer This together that our QX This and success first XXXX great renew ELA capacity confidence example tier. one burst with wins higher was initiatives gives predictable customers that come will demonstrates opportunities

fully the exploring capacity, business. that on first for to total value, line capacity possible Our ELA $X aircraft maintenance simply in been We This original focused million. After year, motion of deploy new optimization of single customer unique more to increasing to new double as a would have than sales was signed with opportunities of and incremental such its customer audits service enterprise. QX programs, analytics earlier success the exhausting team the a ACV on engaged cadence with data across logistics. this schedules the regular over found enablement opportunities on well create this not the

important team seeing creating our job upsell large also logo success ability earning with enterprise this Our success becomes continue win long-term for to value for has opportunities. course, our customers We're with we customers And more fantastic of opportunities strong Alteryx. that expansion wins. done sign in to even new and, significant a as offer customer

journey. of wins relationships with establishing addition companies history they customer on transformation the we're many digital their one to logo our In new largest company, in of new continue as the

Server and the provider both For Designer organizations. to identity operations Alteryx automate example, adopted, Okta, leading sales in analytics data and a finance independent

we adopted the partner largest run geospatial and store as our updating like with are seeing their as huge to well efforts. in the This to ecosystem. reach, see go-to-market has scale partners to past One enhance of our the of process. means year, highlight also new year, I'd the decision Designer as growing Since over earlier a partner half Alteryx as enhance placement moment and program retailers the over our United a success for both trends, ACV efficiently influencing drug positive focus we QX. food been wins this States a analysis partners to Alteryx customer take in

to cadence increasing In us in count finance We bank. a XX US approximately in customer with of QX. through pleased allowed win steady new to partner a partnership our a engagement are at Thomson closely closing, the customer execution resulting cases a great our its workshops Truist, the in use continue top of tax, leveraged to had We XXX%. This expand breadth help partnerships and and with Reuters incremental with increased and ecosystem momentum. with we sessions. ultimately partner training license commercial We by our engage identify

the are of this of in ourselves position strategic appreciative direction the are we We confident company. and favorable in increasingly find

at on very with We optimize exists the balance XXXX that, profitability to important Kevin and to the their closer growth Alteryx And to beyond. in a spending I'll the requisite I'd feel the turn Kevin? we very call like work. on for market business over focused look discipline team managing financials. in with this rigor for the and entire our thank are fantastic opportunity to

Kevin Rubin

quarter Mark. a QX was financial Thanks the board. across strong

$XXX our evident Our XX% growing ARR traction million of year-over-year. with in large philosophy is investment our results. enterprise grew disciplined customers and

would ARR the million high $XX we our what two and guidance, above guidance in a end headwind year-over-year, Excluding been higher assumed points XX% have of of range. growth versus currency our

current similar As our X%, provided adjust X%, other levels. end-of-quarter with the and benefiting high approximately then the pound FX British currency, guided a foreign million of like of dynamics Revenue end on we in denominated QX rates. declined impact our the ARR robust have incorporated in from the our renewal better-than-expected We reminder, our euro using of in end Since been meaningful guidance declined rates XX% saw have times August. we exchange volatility, a grew with higher currencies. of exceeding ARR can the then, towards of range, ARR year-over-year, we Because entire rates XX% and September. $XXX bookings at

profit upside business million, which in our end $X revenue high than million the our a spending range. of the mindset, operating With delivered $XX of non-GAAP the disciplined better is guided

larger the value. past traction we've our with quarters, a organizations several lifetime Over given to increase higher communicated customer intent

in quarter, Alteryx balancing across leaders leaders event of with from This These upskilling York CFO with look that that and face and hosted in further future data of value. I create top the workforces find operational optimization We the of cost senior large of and agility shareholder to our often the digital dozens response challenge companies. hosting drive the CFOs financial I common and great more office investments their event, in decisions and analytics were financial New in to companies. democratization priorities The was transformation we data-driven a first long-term of analytics initiatives enabling Global XXXX selective finance had forward ROI as theme to business. these leaders to for begins

of partner our ecosystem, As customer motion, success go-to-market road strategic force, our in our our and sales we've product enterprise map. our invested team, part

forward evidence see are driving are investments our this clear these that to in results We initiative. pleased effectively

We acceleration cohort of points customer in with are over ARR of ARR with $X QX last XX strongest our versus seeing year. growth our million-plus growth

growth saw plus Our and XX% average both deal new wins. logo expansion size year-over-year with

ELA QX. first companies deals we coming enterprise continue large ARR this This per our entire driving on as and the see dynamics continues momentum, growth in average XX,XXX financials. positive QX to approximately the sequential at of is ELA Our front, in strong many And see favorable to closing customer momentum in strong year-over-year as with in year. half

average near significantly has highest per of rates more we up customer quarter. First, year-over-year. retention ARR highs customers and renewal churned that average customer are size our than our X larger as our seeing rate, cohort the is this multi-year Moreover, times

in Second, are we as than breadth organization. expanding XXX%. of and improvements Global for within customers, to net data an rate XXXX are identifying expansion rate cloud analytics throughout expansion our And winning solutions, portfolio net growing equipped and of larger ever third, a demand we with sequential we're XXX% of opportunities meet of the a seeing the better

bookings our customers. was than $X our early half of more cloud In fact, ACV million-plus with

We of key as to the force year-over-year Sales of with of both the operating our to our captured resilience the financial $XX We XX in are approximately sales pleased to of evident the see marketing Moreover, percentage true versus higher by non-GAAP In with the reps. the becoming revenue was of and model earnings following increasingly improving over through productivity number of level. driver upside growth is points increased power revenue from profitability, a dynamics QX. benefited to profit operating upside numbers. our guidance, business. and in a we XX% QX, ramped million productivity

investment our are Looking model. current further on unlock we leverage with investments ahead, aligned pace to in appropriately We're is committed philosophy, ensuring focused also the we to strive our a dynamics. market as of disciplined

to of with For moderate fully expect enabled retention example, reps and our in level ramped quarters. QX. temper our growing coming ranks And high further employee of improved hiring in hiring productivity, to we us

leaders Alteryx analytics at a QX by results, top spend evidence QX. data durable, and of priority execution in increasingly growth saw remains for pleased strong an we a evaluating addition, which that we the the globe. summary, demonstrated in workforce, with with rationalization profitable work initiative and business across and we continued and driven the future implementing estate real execute to are are In distributed plan In

confident we in in drivers XXXX. addition, incremental are the growth ahead In

to a expect meaningfully cohort three-year both renewal to larger of relative increasing which XXXX, the we and consists of base have First, XXXX renewals renewals. one-year

a growing capacity, burst high customers have in opportunities large ELAs coming we Second, creating enterprise for quarters. with of with book visibility upsell

momentum we will expand. further last Alteryx accelerate global significant with market reach. of international but we disciplined the in beyond. profitability. well become meaningful we our we've expanding continue build year a strategic investments recent aligned opportunity financials coupled increasingly with to to growing an rigor, the Cloud, to have operational demonstrate our Third, partners presence made which to least, next we and with expect not have Analytics our is business And the and to have years, more improving ecosystem And Fourth,

for As QX outlook. XXXX the

$XX XX%. we We expect excluding FX range mentioned year-over-year earlier. $X growth mind, to And ARR of a be $XXX we Keep million. headwind, to to experienced of in that beat this the QX representing $XXX million, headwind QX million million by in I

raise outlook. million-plus QX So this reflects a $X our implied versus guidance prior

Our current our Investor earnings website. additional provided We've deck color levels. available remain guidance at in QX assumes the FX rates Relations on

revenue rates in GAAP to expect of representing also and million, in We XX% growth at to duration. million change assumes year-over-year levels range contract XX%. of to $XXX $XXX This be material no the FX assumes current

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

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

improvement million expect prior million to our We $X to for $XX profit million. loss $XX from outlook operating a negative breakeven, non-GAAP to an of be

of years, rate share to increasingly from assumes The $X.XX effective be disciplined basic outlook to the of This per shares million made non-GAAP the the and in closing, of range an outstanding durable approach our investments improvement the validate Finally, trends an spending prior XX%. and for tax is we XX.X past $X.XX. $X.XX, over and apparent go-to-market innovation to to expect loss great we've continue $X.XX In our quarter. profitability. improving QX in growth couple a was to

to macro our well and we are the call ability and of proceeding way are us to certainly thank close of on turn joining level ARR are that, and to for we with momentum, While environment believe out operator. mindful $X with we a becoming we today, rigor, year strong back you the I'll the all confident in billion-plus company. a With high our the

Operator

Thank you very much.

Please Derrick from question We begin Instructions] Derrick. [Operator The the will question, Cowen. now session. question-and-answer with comes from Wood your first proceed

Derrick Wood

verticals? solid -- just of to macro on of out feeling kind or the budget of sales everybody. the much some you to kind down of QX? bit. there you about the sales start navigate when I ability That's you priority particularly just little the What's big force's quarter, geographies you Maybe mean and the very macro dynamics, in with how across a look demand seen to buying just are analytics? change behavior a cycle or drill on have I And tone for guess enter your as

Mark Anderson

fragmented team bottoms-up really, to meeting really Thanks thankful, allows nonstop the good were seven go-to-market demand a the motion deals, forecasting. to added really and Yes, XXXX. would close about such sales that help, got of the the we customers lot kind spending Yes, I of ramp massive with pretty to give a don't for cycle, that Derrick, talked excited the I And able say stages we of for did in print. Almost to really additional level been because for data a hey a job to six, number to. of visibility I'm are and move it's solid asking out the from listen, saw quarter CFO I kind that made really from get better people top-down I are a is changes ramping priority us priorities obviously motion, has more than FY people months, I think a gives been for spending because solid and that of We for into a last that ready to us We've the every traveling Mark think but a here. is It's have, frankly, the the question. high. ahead today. moving quite in do market. our the customers, it hundreds quarter a met still small I've analytics we that And it's

Derrick Wood

Great. Thank Well done. you.

Mark Anderson

Yes. Thanks, Derrick.

Operator

comes your proceed Thank with question you. questions. Joel Truist next Please The from from Fishbein Securities.

Joel Fishbein

And execution. renewals Was for you also, Thank you. -- to Clearly, would in impacted early should you're business year, we but in know can revenue how any has from guiding XX%, you. QX provide but -- that some there there trends and the XQ. strong sequential I there XQ be on about XQ on that really next from you congrats seasonal renewed thinking XQ? dynamics question not helpful. I thoughts any the seasonality around year? Any growth this color to rec are Thank be

Mark Anderson

well. more large XXXX those, than four-quarter Joel, large ask about do the but thanks think three-year renewal or renewals or though, a and in ideally hey, no some to customers that was we've different period. that thanks other account had Listen, in know a get plans only over any we've coming. either is I'll not coming talked I that for or and the working well and and for four sell seen. a want this earn been more cohort lot a three quarters, we to tracking XXXX personas well permission do the sell deal ones, the any time, And we this you, on Yes, of that more, full quarter especially as seats early tell the a question, last both. when in to as And get frankly. more little you wishes to quarter, we And renewal quarter advance some for

lead has drive And team job and, that motion. prepping and frankly, that a can on people the just done great Paula so, bringing

Paula Hansen

well license with our the our enterprise agreements. through just renewal on that in terms I'll little as ongoing through bit add a of opportunity programs relates as Joel, customers to And, our as Yes. expanding to it

an we for into go and see as healthy being ongoing we XXXX. as us So opportunity that

we've If a and visibility the agreement and gives put license that the the back next the up enterprise gives consumption place, agreements the license enterprise go or expand and you that to of across in to tier the look balance us them into chance utilization at move great portfolio. sales of team

this healthy place So continue that in and to into and is to for committed that will be is engine were we future. a for an growth the motion us

Mark Anderson

in how in the Joe, really referenced ELAs comments And strong that to ability renewal a opportunity Yes. prepared also, year. the tell we burst is the our can be for next

guidance so, but what in when think see next give you'll And well, call, we we year QX there earnings see a spot. on we're good as I our really

Joel Fishbein

Thank very you much.

Kevin Rubin

Yes, comment I question, on, Joel, guess, your let the linearity and me question. appreciate I

can't to, mind. alluded So, on But few as you a guidance yet. XXXX models, any your you to things just guys as about think in I keep obviously give

and play in tend as out of this I revenue, linearity. you're So, first that's again seeing see I would distribution terms that what year, you and kind the think guys to looking back XX% think half, at we of half, about so XX% the are

We a in the significant pretty also see obvious for QX QX reasons. to relative decline

So, would the back helpful. about I of half thinking think, be year,

If it decline. sequential was XXXX about you QX to XXXX, actually at a XX% relative of looked

should linearity. you help, directionally about guide you think think, that your So, I as XXXX

there. addition get year, then And towards will the tend of I your most you're Tifacta, terms seeing the assumptions lastly In we first keep to of end the that anything the lap so on wouldn't of we as growth ARR as QX of maybe be profit, quarter that mind in back profit just in of ARR, think different new year, expect the this operating that net so well. XXXX about

for thanks participating. So, anyway, and the question, appreciate I again

Joel Fishbein

Thanks.

Operator

Bracelin Thank your with next Brent question, from The comes Please you. Brent. question Sandler. proceed Piper from

Brent Bracelin

to Thank you doubt what's you. increasing drive the Is continued analytics Thanks. question business or customers levels Good explain across the in the enterprise. most now? Is backdrop. seeing it challenging Mark My of Paula, pricing it the right Any and with today a resonating must-have strength there's is, broader given that's no that's a ELA helping that feature category? in I the afternoon. -- just it for being packaging it automation ARR? us really scrutiny workflow broader the you're color just burst feature resonating? and stability guess, momentum we're seeing is Is help

Mark Anderson

Yes.

do You speak Listen, to to need -- to faster. to that, they of they the be data day, to able so. they able every bet, that totality Brent. the they better want customers to I really realize make be that the around need decisions And the garner enterprise to swirls do

that able of upskill frankly, It's going and I is think And this relatively people us And weeks around a leap. big very, of going be we've in so a processes. the of what to to we And very easy. are journey of them start workflows, manual so still -- they and journey. early part your couple easy the what for to have is training turn can building many think automated to hardest point, is getting made I your

inflation to do of now to a and if in the that. them sling are deliver the the we year we I potential in corners And before, pandemic, entire and not the recession. how a nightmare use freaked coming need outcomes, think people and around see and with of more of we impact last of around deal they're help than seeing sales licenses. specific manufacturing People examples understandably -- just out ever out, trying cases supply in built motion business our can is chain

Paula Hansen

years is two would reasons we've cited. he which been that just then in was explained Mark QX. to that It very, just on value-based Brent, scrutiny. eight QX there's opportunity the last about been well, for it outside would that I side has and real resonates lot opportunity hear just building very all the add traveling market of the US that in go-to-market, to now the add, market because I And countries go-to-market conversations that, a the what in of where a the I And in all of Yes. alone I have. that, was extra times really I in

team so want our use operating return quickly. see with sales return show models, to cases is the So customers and on investment scale for clear quickly, up investment the comprehensive blueprints, on models can able that to they

we've with of team, through customers. last with extra the those done partners, two all manage the value, with that scrutiny go-to-market conversations work So the customer and is helping certainly our on us success over to value years focus in value through and

Mark Anderson

friction, people, with Yes. people able And right? our that is sails because really around provide QX. really those specifics cloud platform quarter, last personas, -- with less a us do access cloud the then in to out, behind rolled the And appeal we've resonating little wind with in to our our we to especially to more be in the that's really given want products Brent, extra and want they

Brent Bracelin

Super the color color, business. the and in thanks Thank see and you. to helpful the momentum great here, for

Mark Anderson

Brent. Thanks, Yes.

Operator

question with proceed The Please Citi. Tyler. you. Thank your next Tyler comes from question, Radke from

Tyler Radke

for flow. the Kevin, cash wanted Thanks question. taking about ask to you just I

was it relative last it's last nine ago. to it below at down we was the months, the So quite where certainly, a months. for look bit a if And nine year

just real of you. positive targets think Day. help us you Analyst that expense targeting as reduction other estate understand see about efficiencies this out the driving the cash of trajectory next that So a laid through factors you between year at some talk factors. flow But And that kind like and towards year could Thank your how that? what's footprint behind the some us It sounded and you there's year? kind just you're should being incremental we

Kevin Rubin

Appreciate the question. Thanks, Yes. Tyler.

regard. just a So comments that few in

particular. go-to-market all, number investments of about a if the for about of and in in think And quarters hires those now we've lot hiring, the early cadence talked First came the made you of just that we've in of a year. product

the QX employee is on bit so quarter we be board, to and have little going so, that going real first full that's cash. burn that And base a more to

we then, introduced go also portion which we strongest payout think year. seasonality, that attributable QX, to meaningful the And about are have just semi-annual collections to off We had you bonus QX. year, in a through the of when the prior as collecting tend this we the

about about haven't think that, with you of We bunch you how obviously business, levels going cash expense operating give XXXX. provided for commentary of cash flow of flow don't forward. to bit provided indicated, So sense we a guide I guidance to we XXXX. for little as operating think this that But should we year. how around can't respect and we the the just in a comment

So, hopefully, more that gives you color. a little

Tyler Radke

Thank does. It you.

Mark Anderson

Thanks, Tyler.

Operator

Please Thank with you. Stanley. your question The Singh Morgan proceed next Sanjit from Sanjit. from question comes

Sanjit Singh

Thank well, you the very executing and guys. for questions taking

to some around So base very to XXXX to that mentioned I renewal come see. nice wanted dynamics. Kevin comments back

-- a three-year of customer think, some your renewal You the what the was year XXXX the base was two into be is business on base given To for base, XXXX of middle mentioned, tougher the what on Any think helpful. I be now of you Can sense Kevin: that going of percentage you give of pandemic could a and then a the think deals? XXXX one, very next color us renewal going cycle; to just impact that renewal the the the would tailwind percentage give why also more of extent, ELAs. company? color us I that factors, is we or on is year,

Kevin Rubin

Yes, prepared in I'm can the not then XXXX. relates I offer it. what to I remarks sure more it as appreciate

to closer the as As pretty pricing of to duration. and pricing last we've years, opposed couple you know, and moved over significantly align value

bunch a move seen customers maintain elect to both of others three we've and on to one years So, year.

significantly base look the we and those into out reasons. be in at our for do larger project to renewal renewal XXXX, we base it As than expect XXXX

the to highest I time. in impacted Additionally, guess that verticals we had pandemic, back I significant most we churn that during -- saw the the would at point

XXXX dynamics lot business a their whatever improvement had significant have that significant the the of And through customers now. then had down, those drove to and we're adjustments stabilize, respect. decisions it's had, in a we've seen in gone through we've that at back duration highs of calling commentary year, had a to it so that and I one of with this so in and year, seeing three-year and rates improvement And sitting half renewal just, multiyear again, and one our about we mix pricing intentionally

what had one-year past. significantly seen number proportionate in a we're getting So, deals larger the we of to

Paula Hansen

relative ELAs. on I'll Sanjit, add that to And to

opportunity the ELAs opportunity So, obviously, talking create us of we've inside for move that present the customer number about an up term been of and ELA. expansion to quarters a for the a

when consistently while ELA ELA. quarter, the with in us go expand an friction, imagine So, again about of that an we're ELAs it's end the the with about And it's script to seeing last airline you the of it whole us can QX be will one-year that the ELA them to gave expansion. next term in before for confidence that half, we anniversary, contracts, inside one did QX. ELAs our the to have the we to expand customers back us, And and tier their talking for opportunity opportunity ELA we we and three-year in did example even hit first creates them and they at reducing was for it we to giving an more of

Sanjit Singh

Makes the much you total Thank for so sense. color.

Mark Anderson

Sanjit. lot a Thanks

Operator

Ittai Please The with Kidron from next question you. from question Ittai. comes Thank Oppenheimer. your proceed

Ittai Kidron

revenue the understand or guess, like answer previous ARR. I case. you when well durations, the have tie the question sound above trying That that's a and us on to beat upfront. slight reconcile increasing you element, on doesn't Maybe Thanks. happens early you miss FX revenue renewals And significant your it have where you the the expectations. more the but much usually early renewals. I'm now to can recognize I came help regarding Kevin,

Is rest? solutions on you think some I You've business you've business from I relative of of qualitative gap time that is server the share can XX, kind over we're of figure getting explain introduced have between to the qualification Thank two. -- that's the about on that and over out question, adoption desktop And versus the one of points is, trying mean, months? year, investors XX can year-and-a-half, light you data yet content your the questions the the I'm we next any doing, context the maybe that how in core no there the how provide all amount designer tremendous contributing. introduced So you. the new how do second past the then of the all

Kevin Rubin

Ittai. Thanks,

designer with hand server off revenue for about question ARR, cloud. it around and start the and I'll me the Let and then commentary

that Paula's Mark -- period earlier the excuse those point, So customers revenue -- renewal would certainly to the be we recognized not that renewals in continue just me, to create to look the for do the revenue. clarification, expires. Early have quarter-to-quarter renewal and to any attributable early the period renewal contracts. Those

pretty ARR, renewing ARR their really to and early the potentially needs FX and us. would upside for affected an by effect, has FX. was not beat So the a we a is translation lesser put the accommodation around To doesn't ARR. on FX, and revenue Had customer given been have for it budget completely Revenue works. mean way just nice I point to up contribute your that

revenue So was I quarter, and rates, the FX. to the affected would growth attribute in by strong renewal bookings strong strong ARR

Suresh Vital

in to for kind seven-figure portfolio question, out the earlier in strong ELA end And Alteryx to expansion. designer year. Analyst We that's the -- our it of deals cloud led QX this largest we we of we've Machine our which for did the customers scale. see easier make Auto Insights. the acknowledging adopt at cloud you Alteryx QX of two with innovation traction the and started of introduced Cloud, to cloud thank is a cloud, include product On and Ittai, Learning the Obviously, amount year,

with a So in momentum early innovation renewing, largely designer with side, desktop. while We design adding cloud that's amount Insights. but also tremendous our all tracking did It's and customers also wins being We and expanding. see driven to the along customers this on server Auto of nicely.

and address as us as particularly learning work the the learning, machine the in AI FIPS did on the And upskill the gives and we sector so, where Mark machine there, the to teams needs. opportunity we interest kind All see their customer of all continue to this that public release analysts talked start capabilities. real about product, to

to a to our persona, vision, Mark is platform earlier, building offering, products for the as create we analysts very dashboards Ittai, our teams IT going engineering to and to everybody, going this and as -- they all a get cloud about really talked serve resonating about platform to readily business for are about every So on access designer they is The customers. the creating as rely server for having Auto think users Insights. think to upskilling needs, without their data business beyond insights with

to variety of and this a keep So the expect of innovation out cloud see us kind is it's rolling should as personas, from we products. really with our resonating you

Paula Hansen

wins cloud million-plus this customer. quarter $X our with the referenced we And largest in

that and opportunity because are and that they with our innovation Suresh customers, So address. we've been not built have that historically able unlocks tranches team pretty nice personas to

as journey. as excited really customers with in organization our partnering a we're bag So to analytics sales have that on we're our their

Ittai Kidron

Thank you.

Mark Anderson

Thanks Ittai. a lot,

Operator

from Thank question, Needham. from Mike you. question The next with your Cikos comes Please proceed Mike.

Mike Cikos

about to disclosure, down hunkered commentary broader some Thanks respect around the all ARR. two-parter, though. thinking market. especially here, the when appreciate impressive for guys. specifically and of the I FX here. been the to if about question volatility Pretty I could, taking thinking beat the with the on Hey, we've see for the macro A

seen you know curious the I to seven-figure deals, just up-tiering Can specifically FX calling calendar base First, that far? dynamic Again, And levers some to has customer guess, of customers but out appreciate first thinking FX we're I broader discuss those broad maybe again, the I I quantify pound currently about can that the that for have when you. then like about assuming And XXXX. ARR thinking you're been thus you your the capacity? more context for the But calling what percentage you. today provide question brush with utilizing I growth headwind and to in the you for euro? you've respect appreciate are there? QX out when the rates QX. two, ELA strokes that second Thank the what

Kevin Rubin

Yes. Thanks.

to quickly, guidance off then hit one hand the me I'll Let Paula. and

full QX, So with assuming QX in are across currencies. and we for major current respect are FX guidance the today rates to our as they the

rates obviously in to looking there's a So for at that you what variety QX. saw current we're portion them, of similar but

Paula Hansen

ELAs, And our now. within roughly the utilization quarters we really capacity. utilizing and are licensing of burst four high we're this base then a into capacity our from then customers already of see And XX% burst

we burst. the So every quarter, customers moving see accretive into

Mark Anderson

into able to in bit we like gives always that visibility customers opportunity to faster. the to and CRM extra customers these, want times more to corners. have do and the talk renewal we're be, what they visibility think And as go be most could And a us of really want they I in motivating better to, little incentivizing

Mike Cikos

guys. color you again for the Thank Perfect.

Mark Anderson

lot, Mike. Yep. Thanks a

Operator

proceed Thank next The you. question Kamil. your question, Mielczarek Kamil comes with Please from from Blair. William

Kamil Mielczarek

double on my everyone. for taking strong to some commentary. Hi, thanks just want the of the I macro on questions. click and Congrats quarter,

quarters. adds have realize largely larger, driven net customer I that the strategic to shift more three past come customers. new over a is down So this in focus by

the is industries any macro quarter? Are how demand? customer or where outside metric? you. slowdown you you impact However, there saw on Thank geographies And any there through us in churn an trended update noticeable on can

Paula Hansen

Yes. Thank you, Kamil.

significant, consistently the to or it's customers within quality have we new XXXX existing being whether we've ads in opportunity XXXX on logo, in the customer the on XXXX. We So the new in be the quantity. Global net customers expansion the Global net of that strategy Global the focused about talked see logos versus of most

to has terms two make and QX business. QX nothing And a I our new both that's in EMEA well a logo both because with will well. us and as there level. a growth at there's leaders implied their business we our APJ. Really leadership. quarter international think pleased in saw been expansion ACV So, anything as linked a put comment net for about in or that unique new was macroeconomic as ago in we I focus half in about place of is QX logos international in in to That new big

a QX of our perspective with So, not that's year-on-year did impact from we as a well starting and part a and pipeline, business see perspective. material solid macro we're there, from

Mark Anderson

regarding customer nothing Yes. really Kamil, And churn, new there.

below. you remember, And above. on got up a mid-market customers, largest to As sales signed our partners focused on focus and and mid-market the we've we've might few team

focus are Paula get, in that's And her churn of to so tends we And happen it direct we large putting do cohorts whatever smaller enterprise, result government. just a large said the nominal and that much from customers. team previously, in

Kevin Rubin

XX,XXX mentioned And about that. is about I which revenue customers metric look those X/X my quarter, this of prepared you that And this up out, I customer quarter. just churned, per was in point was Average again at their a would remarks. if value

seeing to So churns, again, tend when customers. smaller, they we're customer be much less penetrated

Kamil Mielczarek

Thanks helpful. really and That’s congrats. again

Mark Anderson

Kamil. lot a Thanks

Operator

Please KeyBanc. next comes Thank Michael with from question proceed The question you. Turits from your Michael.

Michael Turits

guys. quarter Hey solid in Congrats on the environment. tough a

versus like Ittai's I'd ARR. come about revenue back question to to So,

was So, helped upfront outperformance? you quarter -- I rev drive that But strong bookings. or the in just renewals the there -- that the duration know than percentage either said the had in the than of greater revenue revenue planned expected renewals rec originally you

Kevin Rubin

just, did would any I that remind be shift Yes, greater I in the upfront that there material And going Michael. would a slightly did guess, portion. I XXXX, duration. we comment We see question, appreciate into not

seeing. was dynamics. So, is is be benefiting trends, obviously of XX%, certainly recognizing looking those unaffected you about year-over-year dynamic creating upfront, at so when may last of by you're XX% year this is ARR that about both whereas year that from some revenue that

Michael Turits

-- cash guide. -- this and previous but the if course, Just quarter's more you on a of for in focused that but some to quarter? this But you than flow and or is given is decreased year loss that a squeezing you would what part from year we're you lower you hard this of the EBIT don't to guide last for that based now follow-up EBIT, on or were you're that here. I looking than It's guide to and -- for the higher cash quarter's know tell, ARR, revenue say looking for and look flow, to

Kevin Rubin

end QX the expenses. to historically the answer out until from where all operating trend thought which to we the that, -- just be of for it -- guess half paying paying we've But in full I in the I flow bonuses done, have meaningful change Well, in would seen profitability to in the at year would a bonus year, the for cash expect versus would change we today. beginning to Michael, point of year, I of the

Michael Turits

Okay. very Thank much. you,

Ryan Goodman

Thanks a lot, Michael.

Operator

next The Please you. Pinjalim. question from with question, JPMorgan. Pinjalim your Thank comes Bora from proceed

Noah Herman

on thanks taking and This is guys. Pinjalim. for questions. for Noah the on the Herman quarter Congrats Hey

is quarter? Alteryx was opportunities? net I For Thanks. the may insights, the but auto during new And ARR impact license any driving Tableau the that it, consolidation FX to missed what have

Paula Hansen

auto the take Thanks, insights. question on Noah. I'll

particularly time. from necessarily people uncertain great we the definitely dashboards So, in that insights static the aren't because in today market looking this for, on see they're interest this getting economic

not in trends time-based it supplemental the campaigns. that well. pursuing very insight Serves is within sales a very we're real So and it a I Tableau would up say capability Rather, data replacement data. and anomalies because way, automated handles

powerful it's owners business particular. very, in very So capability a for

Suresh Vital

our fingertips. beyond really, customers their goes insights, the about, dashboard so they as use And in describe hit they kind of when they will. it of reveal it, know This That auto about having shows an talk analyst ask at -- kind insights. if AI-powered insights that didn't is to you

Tableau is way about business it's auto owners. get really analytics all. it's to insight making consolidation And a so to And not great about users, accessible business exercise,

these data impacts. deep to in not the access So,

Mark Anderson

sell can we just -- we -- it's persona sell. mean about I whole new I No, whom love can Yes. to what it, a for whom

Paula Hansen

Okay. you. Thank

Operator

question, your Seyrafi with next The question proceed from you. Please from Shebly Thank Shebly. Securities. FBN comes

Shebly Seyrafi

Good much. morning

in talk or the FedRAMP think were now you you working part they'll more and be How driver going size public major products business your So We have public of a that or now? you my think FIPS much federal I these in about getting question forward? completed public is of And certified. quarter QX. on server. Where federal rough Designer do Can are just the federal business sector. of process? and on the your the you you to federal for

Mark Anderson

Steve that was or Sorry, Shebly?

Shebly Seyrafi

Shebly.

Mark Anderson

XX your I ago. years I remember name mispronounced about

Shebly Seyrafi

while. know, Mark. a It’s been I

Mark Anderson

-- of me made fun for it.

Shebly Seyrafi

Yes.

Mark Anderson

certification, good lead and and go the delivered. we're good from it's small very We to just have up now We Hey. license team. a relations got got not kind up intended, really percentage you. a ramping server our team presence. -- a government ramping yet. of hunting Listen, Great designer to on with hear And hunting, both that now. meaningful business pun really our federal FIPS of have but We've our but Suresh very no

it's and from a heard massive mature ServiceNow you more business a week, of As last Alteryx. part their

see breaking governance picture of years the thing give and us points we to think into same bigger that before percentage focus going the You're in I every the couple really, but federal. But building a I'd asking multiple us, start is, great products. brings customer desktop on our this, for from is for FIPS is security and

going in our in last team in that around a have governance. But we cloud-based massive you the few we're products. in that's do the the on focus, haven't. past, that desktop course, And and argued Of our could to especially the for products, year next releases been

Shebly Seyrafi

Okay Thank you.

Mark Anderson

Thanks, Shebly.

Operator

Thank for Anderson to question-and-answer remarks. this concludes turn you. Mark now session. At like over closing sir. Thank to would conference this time, the I our you, back

Mark Anderson

you product team And to and strategic great believe Thank momentum. to level, you, the operator. I'd year at map, a is to We committed this in our and so road the closing like a and I'm opportunity of to again have at here you thank a very Thank really This look we much. shareholders forward partners, ahead. our strong had out the team say strong and I with we're Alteryx. customers, confident executing high company. we QX, direction

Operator

much. participation. you concludes conference. Thank very your Thank much That you for very today's

We will now disconnect.

Alteryx Inc - Ordinary Shares (AYX) 1 Nov 222022 Q3 Earnings call transcript