Earnings call transcript Q1 2023

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Operator

Greetings. Welcome to the Alteryx First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this event is being recorded.

the Investor to Relations. turn Goodman, host, now of Head will conference your over Ryan I

You begin. may

Ryan Goodman

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

Revenue us Officer; Officer Paula the and Vittal, Additionally, and Hansen, prepared Product joining President our after will session Chief be for our question-and-answer Chief Suresh remarks.

first announcing the This on ended afternoon press well with a XXXX we letter as commentary and results. XX, issued our key release results our metrics shareholder for the March as quarter

you both Relations can our Investor If on access the would you a letter, copy online website. like of shareholder release and

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

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

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

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

to Executive turn like call the that, Chief Anderson. over Officer, Mark With to I'd

Mark Anderson

QX on delivered within million, up and outlook and joining XX% spending all operating recurring for financial guided revenue we continue above XX% at $XX came us Ryan, our $XXX today. all million, We QX focus you our feeding Annualized ARR to as the company. year-over-year revenue, year-over-year. at QX came range. in million, up you $XXX metrics in was discipline across thank or Thank non-GAAP or key loss

have our are quarter. exceeded and to operating pleased outlook We the delivered profitability growth first for on non-GAAP

financial our spend facing innovation everywhere, of that continued when the customers environment. even some the IT tightening results Our delivers broader demonstrate value to

saw we sales a in behavior seen are turn slipping deals, applying quarter. specifically, in track changes our we would macroeconomic some in More in quarter. cycles. Despite lengthen the which have shift the have This close overall buying of we deals scrutiny backdrop late continued dynamics any out in customer more material something competitive to not more led Customers has that expected to the economic to we continued stable uncertainty closely. on

some and that navigate customer Now the to our quarter this loyal commitments. with macro this through our risk. along a accounted of prudence we us That strong provided last execution and enabled base backdrop guidance for on deliver

our more than seeing need today rates. with innovation net robust expansion Customers renewal trends and ever. We're

successful we in initiatives environment. XXXX standout the and can and to stay in I far our continue place thus this have believe XXXX, performance Given resilience right agile in and dynamic

we it year. planning in bookings continued drive Seasonally, stay model QX execution. for it's of time in with temperament the conditions rest activity. agile is success macroeconomic important engaged especially of customer the said, strategic is business to key calibrate our of closely year of terms an smallest of and the in to and quarter terms the times dynamic That And that

would There are to like few elements a highlight. here I

class Understanding on top-down executing our critical spending priorities enterprise are First, sales the current we in is motion. environment.

that around Alteryx our proving delivers. the have well resources our as ecosystem We as aligned value partner

the to have forward. the This and discipline past results has motion. in is deal enabled year tight from instilled us over and are to going we pricing growth driving in durable profitable structure and consistent go-to-market Second, controls benefiting we the key financial deliver

executing And third, to look cost a plan reduce are by stay we structure. XX%. this their optimize take headcount and the environment. we And a certainly employee approximately nimble not throughout announced to our is in recently The our we ability who opportunities lightly variable we has provides to that for to dedicated organization full-time cost time took and appreciate close each deeply decision today the structure Alteryx. a us we individual This nature every of

mid-February, the of from along our Alteryx highlights Alteryx few Cloud, announced platform. of a share strategy. go-to-market governance Analytics general now certifications me enhancements Cloud let Cloud In is in embedded Analytics for access all we the that, Designer With quarter. with availability aspect in every

increased year, XXXX within versus our the with X base. to Global Case last penetration points from globe. to time organizations traction This to presence continue with opportunities as provides this X points gain increased us up prior expansion quarter. point, significant Our net expand rate to top growing Global around XXX%, we greenfield XXXX up our the XX%, in

We're strong sold, momentum customers year-over-year capacity. with already continuing see to many burst in using growth ELAs

that with ELA in phase, additional to approximately the that burst are For one-third capacity. QX with prior customers sold still have engaged

proposed financial completed a market reception $XXX a amount, demand. given front, we million reflects This the offering million from $XXX unsecured upsizing notes. on and the the of And senior initial strong

to people And and a the on at key high multiple have a continues path right we executed this the accomplished right the execution be believe a the drive delivered company leadership continued economic as company QX. we're in and while and backdrop challenging, initiatives. level to in lot on and We was We market.

Access span a year multi-cloud Alteryx Analytics of introduced Our have the We this. one All architecture. and multi-tenant Cloud we the product and platform availability recently just just announced of integrated a is we acquired Designer Cloud. example innovation great of In

partner increased leveraging early year-over-year are both The solutions offerings interest cloud strong number of QX. and XX% We cloud customers community. seeing in from our our over customers in our

use has and earned our within personas the us from to our Analytics Alteryx solutions the ability create many use flagship Cloud explore Our to cases quickly proven in of priority high value permission platform. cases incremental with customers

to example, we significant unlock customer have multibillion-dollar that single commercial and of several For eliminate Designer for savings landscape a leveraged failure. years and has national points Server

innovation a cloud new for In customer Designer is AI-driven We cloud-native a had a We're hundreds creating this expanded insights ELA opportunities for visualization finding and offices. provider provide our operational with entertainment signed leaders plus during QX, Belgium, logo of additional and branch win who that services great of seats, in customers. Auto on across also added to Insights leading for our QX. cloud telecommunication with

deliver exciting Designer to Cloud, with cloud a analytics earning in with was engagement enhancing Our of the vision well-established and environment us interface capabilities key designer customer customers' aligned ability and to our Alteryx this on sell innovation platform And the cloud use cases map AI and new win. share. into generative allows Cloud the Analytics personas. have to us several new we road to updates low-friction

use and enhance all. to highly use throughout AI of broaden including analytics the differentiated workers AI First, we're that ways platform, further the with ease of for scope ML developing some cases generative incorporate for knowledge and

embedding Specifically, summarization, optical text and we large topic modeling. with to language help models are enhanced recognition character

insight the customers large we reduce Additionally, will by help to these language with Auto action. to from models time Insights, integrating

ease generative of As our our capabilities with AI always, are into stability. building signature analyst's amplifying use, an we aimed at products

governance data their Alteryx cloud cloud with as analytics data initiatives, such warehouses, visualization integrations customers enhancing and as we're second, throughout transformation platform, adjacent our incorporate solutions. And the into offerings

and on We'll across interoperability these analytic to delivering as flagship faster security, value are customers. such governance, to for at Inspire we Conference unified addition, In experiences month. across and focused a lot our time our enable themes generative User more offerings next to cloud our have share AI

to comprehensive most expands motion of our ecosystem of the significantly tenured with and offerings success opportunities reach portfolio the value. of faster and we well team a sales that the history have and comprised unlocks that the operationalize customers team customer company have We helps enhanced in a partner go-to-market incremental a time

prove earn enterprise continue growth our and companies organizations. to to with large these the to ability highest customers value year-over-year right of again in but number cohort also with, once see of not in We reflects This delivered our within time. our just the we The ARR customers QX. growth large largest over expand engage success

with use enable do are cases asking more for repeatable Customers that less. to them

to to across the accelerate analytics, adoption expansions quickly with on Our and this enterprise. enables the ability us governance automation and deliver

aligned make a multiple path strategically to increasing expansion is this at of within with as example our areas strategic functional One level motion customers. enterprise enables the across a the expansion sales our This customers strategy the visibility for provides easy We've more deliberate that level. as engagement organization. possible executive of

their vision to in as had in with After XXXX, analytic win designer at a the a enablement. a level management small we executive engaged closely consulting demonstrates great We Alteryx global of implementation initial dynamic. component QX core align this a leader for that

multiple scale. The the vertical of at meaningful leverage and a looks teams, now when renewal, not offerings line business limited to across and With service product their possible enhancing engagement. customer expansion expansion level upon this to client-facing designer of is service simply scope pace

for up Another licenses years ELA believe that ago flexibility beyond volume ELAs year. broader and burstable we encourages personas is bundles. to with allow use about enterprise This time. our to sign one engagement defined to cases up Alteryx of initiative introduced XX% to a we contribute will two over to customers for on of exploration new expand that

XXXX and we're of many one-quarter over a off success the of with QX leveraging last We start these saw to ELAs upsells in burst solid months. converting three in first great within to year the bursts

enterprise both land a continue our large key customers, new which sales component with to new also strategy. of ELAs is existing We and

motion. driver Our go-to-market core of partners also emerged have a as our

program and reach Our our partner success expands capabilities. global market customer

friction ecosystem. the often excited In We're and our ACV in again see decision-makers the over reducing ramping to and key to enthusiasm support sales influenced access half once partners particularly cycle. in QX. for of within partner the addition Partners cloud unlock larger new IT,

to seeing partners Designer where as partner as their of great for GSI as Insights incorporate and XXXX-plus designer compelling client their a internal Cloud to added offering. bring opportunities and offerings larger the One we in services unique hyperscale well Alteryx look Cloud more licenses our operations and Auto they can emerge together deeply seats cloud facing customer services. cloud We're Analytics platform, GSI also XXX

with cohorts. folks working particularly finally with our with And Customer engagement and driving renewal our new success customers. with are of Alteryx. directly for momentum success team trends this and rate and training rates, productive high-touch driving expansion larger are and efforts all customer force net behind enablement value positive customer to customers our with customers underpins a support create opportunities These user identifying our the digital

leverage profitable organizations, growth. increasingly we Alteryx customers believe in cases deliver mission-critical business to the is as use closing, well-positioned across In durable their

of order from transitioned our model next past eyes to customers the magnitude. dozens we said and our Over of have selling few we've licenses business on squarely years, successfully hundreds the

before. analytic earning We're ever with value enabler us with aligning to explore Alteryx engaging We're permission top and larger a new working vision. our strategic customers of organizations. than their platform delivering We're as executives with throughout tangible opportunities

We teams with drive have we have partners and better customer with a now our closely with analytics to upsell and ELAs innovations, to expansion exploration. customers. providing broader platform And greater assist cloud flexibility success engaged

proud macroeconomic Alteryx easy an I'm in you delivered the execution so customers, been our of that the what we've for employees partners. resilience to environment. and and our Thank team our has not

many May. to And firsthand is It's analytics see great with truly engage upcoming look democratizing opportunity for seeing and to Conference Alteryx Inspire of finally, I community in our you User our how all. forward at a

at Kevin to the With that over I'll call for financials. look Kevin? a turn closer the

Kevin Rubin

Thanks, results delivering challenging profitability. well believe macro resilience model financial of backdrop QX our a Mark. non-GAAP as our in We as to durability improved reflect operating commitment the and our

XXX% XXXX year-over-year XX% in our million XXX%. within both from overall our $XXX with year-over-year expansion up renewal rate net to retention of expansion two up prior Robust the contributed were ARR quarter and guided Global dollar-based unchanged and up the at rate growth revenue rates net $XXX million XX% to ranges. points QX of and

the the exceeded initiatives efficiencies profitability QX. from outlook. of early in is This cost-saving scale of across discipline cost and Non-GAAP organization, operating executed benefits continued our the result

$XX strongest of cash operations Additionally, reflects collection which cash quarter we delivered QX. from ever for our million flow

we $XXX a during our of sales the instrumented offering executed long-term couple of capital durable successful million resulting innovating metrics the financial in our us in past notes we We quarter the macro transformation position. deliver strongly enabling put over and of meaningfully a challenging Finally, the the believe strengthening senior conditions. are in years hands even platform products we to team the that

consecutive over global which on focus the increased quarter. enterprise increased it large and durability and it a in We all we XX% robust existing investments results. retention in are for ever particularly per customer, our organizations We tangible in in showing strong higher net increasing average with go-to-market see ARR Our which for upsell our our it year-over-year third motion are see expansion than gross rates deal And wins before. size see scale customers. yielding at

accelerate also increased QX personas. new deployment cases innovation Alteryx us meaningfully with new customers achievement strong given Customer has set to broader allows a Cloud our quarter-over-quarter and Analytics Cloud from to bookings platform to seasonality. use of notable cloud been ideation a response and

element We're seeing wins size of from both And quarter-over-quarter than positive with are upsell we larger our as seeing cloud deal wins across of for more and a an momentum often offerings. cloud important year-over-year perspective. customers not platform

and we the our product the did go-to-market challenging environment. despite both macroeconomic in enables results execution motion more Consistent deliver innovation to us

anticipate some headwinds financial had the behavior. our weeks final factored we not When but did events in system we quarter, occurred affect that guided which customer did call, on of the our in we last macroeconomic the

have to-date sales balances we the concentration, vertical to impacted and terms shorter While we cycles, duration. deal of material in market no contract elevated and direct exposure material no scrutiny, did longer banks see cash

while accounting. This material our robust due recent ASC do not ARR revenue years no has duration on impact the of long-term to recognition on a expect revenue as demonstrated influences contract given profitability. we we've and And XXX and rates in effect retention timing

ahead are rest and constantly the our look to we As year business. the calibrating evaluating we of

our the rationalization path through opportunity some profitability eliminations. For forward. reduce a for for and priority accelerated an remains going QX key further real improved saw in This company estate which our example to we role to spending XXXX and

of employees. result $XX in incremental mentioned expect we in action in million and of in approximately to a With earlier primarily charge full-time cost Mark This in $XX headcount approximately million, announced a as mind, $XX that result we over today, million savings or will will of reduction XXXX. XX% QX XXX

our have and operating G&A to model. long-term efficiency look scale the marketing to as We cost-saving sales and financials we our focused improve our align we closely initiatives primarily and in as more with

We updates on at Day will our next provide additional Investor at month Inspire. these efforts

we will XXXX beyond increased we deliver and in growth strong profitability. so to with believe do plan We and

our ahead of largest ever. opportunity base XXXX incredible an have We with renewal us. provides us

We higher have significantly XXXX. in to QX XXXX QX opportunities relative renewal

rest nature years nearly with us of loyal for three believe fact quarters customers We our gross critical have that the retention of our the ARR our demonstrates that levels plus more, been customers. our that platform five or with for largest

leveraging percentage enterprise We book growing have capacity a growing of a ELAs that represented quarter. and new large deals the actively first of are in ELAs

We have success expanded and engaged team. an ecosystem enhanced customer sales an motion partner and

subscription partner. confidence execute customers our in right analytics services as to Our as Alteryx leadership grow their their business to continues long-term for ask strategy demonstrating the business

customers. Auto with along platform And of availability Cloud and now new Analytics Learning we course Machine access offers and Alteryx growing Alteryx Designer our Cloud to full Insights traction existing seeing Alteryx with are and

decision profitability year we increases to easy, the driving recalibrate flow. meaningful and the headcount while expect in second the half enter to productivity of And never cash is

to framework outlook. With in turn the this mind QX let's XXXX

million ARR to be $XXX expect growth We XX% year-over-year in of to million representing to range the XX%. of $XXX

expect GAAP representing growth We to year-over-year. slight X%. contract a flat duration of the decline be to range $XXX $XXX assumes in to This revenue of in million, up million year-over-year

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

weighted to $X.XX XX.X We to This net be $XX assumes the loss and interest expense in debt of of tax outstanding offering expect an incorporates of $X.XX. XX%. from recent share million non-GAAP average per rate the shares effective approximately million range

of representing XXXX, ARR billion $X.XXX are to we the of billion range to XX%. growth maintaining $X.XXX full year XX% our For

our of be $XXX million, are the to representing revenue year-over-year to million XX%. in GAAP We maintaining of $XXX to range growth XX%

to are workforce range $XX planned announced non-GAAP operating million savings reflecting profit spending our from We the discipline, increasing to plus million today. adjustments $XX

the operating Given trends the profit non-GAAP linearity second historical look in expect to our similar half to revenue we linearity, XXXX. in

share million to shares of XX.X $X.XX. assumes of this profit recent in tax expense be We average our incorporates and weighted per XX%. from the expect and range effective the outstanding to $X.XX rate financing non-GAAP interest Again,

the In financial some durability the business. headwinds There's we an early environment macroeconomic has year, results that of doubt are summary, our created level believe facing incremental and demonstrate the elevated while the our resilience in no of uncertainty. customers

commitment customer And while robust friction this of largest all the growth level our retention seeing we and with create can are in ARR sales to the per rates with motion, increasing our customers. continued our customers speak

we the believe billion ARR are are targets our executing for We initiatives to non-GAAP $X delivering and been plus achieve on year. couple to increased the we strategic committed continue past confident have XXXX for for profitability will the years of on in in operating

the I'd handing an INSPIRE note part Vegas. May that in Before like Investor Day have User Conference we to coming XXXX as on operator, the over call up to Las our XXrd, of

will market discuss We joining live in-person. for customer opportunity, further those go-to-market strategies a platform panel with innovation and Alteryx'

those on to customers interested firsthand come in to our to partners. from encourage learning and Alteryx it more I story, the hear Inspire

thank us turn operator. you for today. to joining the all call And that, With I'll back the

Operator

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

Tyler Radke

the for Thanks just my guidance. taking Kevin, Yeah. a question. for on couple you

full obviously, So take quarter, the the really year. ranges macro out called the didn't you of many the changing conditions you some down of in end for

QX? I'm you for the ranges? macro that you. Thank Is I quarter? can relative set a the different still are here what in And what wondering it of assumptions second confidence achieve you So you assuming those guess gives assumed to what

Kevin Rubin

of And do a in on seeing did perspective. we've QX, contract If shortening high QX. taking duration an approach how of cautious while we see We up in expect revenue guide set in the are from we ARR confidence we for you're see have improve reflected it go to degree some a we which still into QX QX.

As we year. various guess I I levers have also about get full the think delivering as this that we on just the different into year, would remind we

large So company's with opportunity as the that in it I call, in mentioned of in renewal have sits of the lot we a history. HX A on the QX. largest percentage

base. of commented a call, shift expect seasonality overall we QX business As a large the do renewal on in slight the result I to relative to the in see as

are We opportunity in have continuing into renew a with that which the the quarter we're large the XXXX expansion the motion. the in population burst success that year. are activity half will And and at is sales and of driving that population ELAs growing back to two-point of Global enterprise We XXX% had a net see improvement.

some we a there's guide. can in lot March think going we've guidance forward, in And on I in the of and so while optimism year saw the challenges as still the reflected you holding see that

Tyler Radke

a may follow-up the And if topic. on Great. generative I just broader AI

as building you're landscape this into your have sure longer can beneficiary? a And business? are extent like you, the into are I are the that Thank investments you wondering making Copilot its implications Microsoft evolution you how term? investors thinking Office think functionality what two you out benefit I about seen investments ChatGPT. are guess very making have competitive long-term of involved the To on Suite. just things competitive questions just And organizations you given in market, to particularly be the make the really what

Suresh Vittal

This I'm answer is that. going Great Suresh question. Vittal. to

that investments in generative And of models significant same available making large we that knowledge continue face out AI that has while models, day language the a almost the making analytics language kind see analytics. exist. as day in worker challenges and opportunity It's in some we democratize company. of in really in characteristics continue to pals share to So large our is to customers for every with everybody the said, to

data ingest from different hundreds to have data sources. of Customers

We As kinds to at data use beyond with with. to of data the different they look types have work that we see sources of them manage Alteryx more nearly users, Excel or analytics. XX% four

And so well large investments, we to continue into as make models. aggressive language

Auto capabilities inside them models analytics in be there's our that And in you'll more going governance in we ask our are AI you bit. large customers things every you'll generative Mark today the notes, bringing in start whole be a Something you'll products that and think faster to our product. like know, more next of here this our day, quarters. little not already. typical bringing leveraged language modeling the summarizations models that announce user, use Inspire have really area to for prepared see a large products topic automated topic capabilities through or also, language of And products we talked case Insights at of that is can over the an to see you're couple if may see that and to us see we

Tyler Radke

Thank you.

Mark Anderson

Thanks, Tyler.

Operator

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

Brent Bracelin

afternoon. Good

demand a here and first Just is linearity really that April. into quarter you saw question quick around here, really in the

for deals of far I missed what do healthy guide full but meaningful standpoint? up? from like in by you And slipped you QX, you April. for the specifically giving any net closed give those new in guide April that midpoint the of here renewals a rebound million obviously, so $X any in sounds confidence the for in but QX have QX, still it they have of looking kind guide QX You get of ARR ARR to confidence, out linearity year see QX, a

Mark Anderson

Yes. Hi, Brent, Mark here. Thanks question. for the

in about, guidance. we cycles an appropriately was shock We the to the I did weeks play end to end really see this hit, the think before of how customers QX, banking out. for a crisis And the cautious regional towards quarter. few the approach sit we going of their on elongate when saw really quarter, hands took sales

impact QX. So that linearity our did in

QX looks far, So fine.

what forecasted be measure I give we some and appropriately can color. to Paula, think we're around going

Paula Hansen

Brent. okay, that’s Yes,

in of And tail an QX more in and terms scrutiny, kind on then just the the of saw majority as what Mark approvals. of and QX we we scrutiny more the extra of March So mentioned, in even deal about the end financial which layer of we behavior reviews in was actually situation. call that the saw talked similar QX, to after

in April the months But three we're the the month of is usually quarter, customers. smaller one is So, QX constructive as the conversations -- months of of of now, having quarter. first any with

that and closed confident from of in with we on that QX deals value discussing number remain our a to We slipped ability we're projects customers. deliver have our the

Mark Anderson

I'll And business their I've decisions April. just digitized give asking I've make the already traveling their month And something sense a data, more doing to around a customer Brent. you of to become help. color, little seen more been it. every or single and in urgency gosh, than of is better for lot with our and I is talk transform ever insights higher to,

So well. factored into our that's views as

Brent Bracelin

consistent April than sounds a definitely March. little our Helpful healthier conversations with color

cost Just side. a on quick the follow-up

than thought Thanks. pulling you on year? now the essentially higher Just little we to targets forward decision a get forward say the the that margins sooner would now? there margin? You're desire in expansion next announced to Why you ref time balance pulling the later? we why hey and goal to of XXXX, do to drive thought a year a to XX% would you kind of that get with XX into Rule this XXXX explanation do is into that margin forward why Is the we're to

Kevin Rubin

scrutinize to year to and an Yeah. we're seeing this was profitability clear critically what the profitability described the year in expenses ahead and is greater we year. we of to remarks as the our opportunity go rationalize that I'll continue in significantly prepared our which Brent. it thing as is that. important felt projections is an and for business going Thanks had And levels this the take we driving an review to to Look in given operating that opportunity create appropriate do business. we increase

Brent Bracelin

Got Thank It helpful. it. you.

Kevin Rubin

Thanks.

Mark Anderson

Brent. Thanks,

Operator

question TD Please next with the comes Wood of Cowen. proceed Our line Derrick your question from with

Derrick Wood

my Thanks for taking question.

First the for questions. parter a guess kind off last it's I two and two based of Kevin

any guide, go-to-market us with how the kind then delta full was the headcount a of why what that sales has -- Is that the capacity? bit duration doesn't XX% or to reiterated do dynamics contract regard line QX? thinking significantly with of with give with the And changed have were So cut you revenue in guide year kind comfort of or below. on we ARR but QX that disruption that what kind just

Kevin Rubin

Yeah. Thanks, Derrick.

question and on first the then cuts her your impact hit me Paula of I'll give question and have sales your respect perspective with second marketing. Let to the and

thought quarter as bit. and contract the I we as first a So we mentioned see in down did about come revenue duration

And QX guide the which duration sensitive ASC softer are XXX contract for that a so we we've duration have affecting is we projecting revenue revenues. is highly since as contract talked we implemented to

for we effect you're ARR what the point guide. that's assumption the booking So your fundamentally we which on To seeing in held quarter. should demonstrate that are our holding

Paula Hansen

it's Paula. Derrick, Hi,

throughout been there workforce reductions sales sales it's focused be whether capacity and we will XXXX. today driving two of to up for continue productivity to the about sales that response we in of Obviously, line quarters on the and are announced growing areas your number So top have a are very question or productivity

we we as mindful be we decisions were intentional increased productivity. of to continue these on So ensuring that to made deliver

Mark Anderson

our of set solutions X% That's cohorts solution. it's and for ticked renewals durable our come second we that, half, large the happening a net that you quarter. a saw customers. so sticky because Derrick. such reason renewable this really rate are for up With a expansion just for And in And feel up

Derrick Wood

last be to going question. was That my

going little but trends may bit feel of in good level really sizes a that have guys the Just the you motions macro, and ASP average keeping first the kind those what's have of deal given how I in keeping in mean I you like of continuing? seen sizes. sales confident conversion deal you know do kind growth momentum confidence going? cycle, longer in growth

Mark Anderson

that confident Yes, to guidance opportunities. of to confident in enough backdrop team's those we've the given, the and certainly we feel the provide ability go prosecute

Paula Hansen

on. we quarters. just the We than we in the already motion go increased them in ELAs rent We the ELA a which more and permission motion, deal -- that QX in QX sizes, gives continue we're first is did success how entirety customers about QX that in average contributor many to and to us repeat us And which and those saw see leveraging segment. XXXX back getting other the with in in I'll certainly talked did XXXX. capacity, XX% Yes. an to that customers expand something burst of started XXXX we're in did of add the of with the still three XXXX Global with ELA great we that with

Derrick Wood

Thank you.

Mark Anderson

Derrick. Thanks,

Operator

comes Our next line proceed your Morgan from the Singh Please Stanley. of Sanjit question question. with with

Sanjit Singh

the Thank want questions. I the taking you ELA just understand little expansion a bit motion better. to for

that XX% customers were capacity. that got that from For and bursting benefited burst year last

Any As is into points QX, of the and on on data of QX? incremental capacity the and in manifested XXXX of for those bursting sort far if lower comment commentary the is they're users, not they're taking you're paying burst ELA from least on sort that so that expected? are you or dynamic seeing conversion at is coming you is they it not than how renewals

Paula Hansen

multiple move that us burst of that say really sized to would success I sizes and another customer capacity go Sanjit. pleased and question, a or that up with above one we're Great that to back ELA the the gives purchased. ability Yes. the they've tier

now of our set our value analysts that in reduce our this to time friction more software with quick the frankly been up terms expectations the mindset XXXX. workers hands turn come into all has in nicely here our the that, out of think I has and paid that the put and exceeded us for the customer ask XXXX knowledge and capacity how to enterprise if that for across them in of customers burst And with early table So, the will software in played to licenses. it's, to we demonstrates and that

Sanjit Singh

opportunities, it When see those most process. where then or Got and BI capabilities models with it. sort question helping in preparation, do a three in language of you to language And where follow the you on of across think data of language plays just large Suresh of do I look where out sort being democratizing, of main models. data see kind less of learning buckets for some on three sort sort insights, the like at wrangling, just the If being data and of science, areas models large sense large and machine effective, Alteryx of then you Tyler's relevant? capabilities question

Suresh Vittal

Okay. I and the I visualization insights see days them -- I mile mean, and them last space. effective being of it's the most early in see

And because a these And the still. that's complex the avoided prepping, to think still tasks. or pipelines, a all interface we Alteryx lot handle you that the the humans the come why and many data to different our I labeling, is need lot ability complexity migrate of really of customers you isn't of them many, with give to the systems. need wrangling, work

Sanjit Singh

lot a guys. it. Appreciate Thanks

Mark Anderson

Thanks, Sanjit.

Operator

question of next Needham from Mike Our line comes the Cikos and Company. with

with You can proceed your question.

Mike Cikos

on I Kevin. that ASC to couple back XQ guys come know Hey the first you help follow-ups questions earlier impact previously based here. that the with the contract through the beneficial guys. a from Thanks expectation It'll to what what penciled contract is expected from QX the can were wanted the for duration Q&A cited overhang is on for revenue the duration have in XXX. shorter but just XQ, still revenue in? A impact slight having. we've to but versus XQ in had I revenue us think impacted the taking shorter improvement conversations been you you But of be

Kevin Rubin

as it. didn't question. quantify much in revenue in Yeah. recognized. and We mean pretty the impacts Thanks on how said significant Mike. have movements gets small I I appreciate I've duration past, the But

basis maybe to full had just it QX for the we QX we've point and I rate again and which a normalized think signal QX. the business. really would an the is growth view year in of into ARR impact how bookings, relative a So on and factored in about on is

Paula Hansen

it in as on and forward. go I in might of of a we little add bit color QX think duration about contract just we how terms saw we what

of the for into long on that the enterprise access a customers' you many of motion last have with motion know, our because Alteryx been in ELA, So is place the period we these as like focused of customers we our consolidate we've full common renew land multiple were sales pricing, of big and predictable expand customers those get the what those and a contracts contract years benefit them our on to a couple running largest for part contracts an with time. And is a interest of there portfolio come to the of the lot to capacity. as burst

really definitely interest for we with by continuing net Alteryx to And saw XXX% me a validation further something And expansion. that's grow evidenced in so that their on positive is in the QX. that

of a terms in bit is context duration. that of So for certainly you little

Mike Cikos

a like the of us color has question guess And workforce recent that Derrick's talking for headcount can be you over that memory. Thanks productivity like second around reduction productivity And time here, quarter-to-quarter? is help reduction I really a follow-up what the think if been on the is, accelerate trend just declining remainder this or actually parter the that the that you're this to, can think versus And assumption XX% I have the think first through we've there, follow-up, gains talking is in help part the the the you -- count seen company in quarters? the first two is productivity calendar would Paula. the you through the recent question follow-up customer XXXX? can becomes my us actually to

Paula Hansen

Sure, problem. Mike. No

focused for is And saw hyper plan In and we that. sales XXXX quarter-on-quarter on now. improvements we're been it So productivity, that first well. productivity in many as quarters on XXXX, have the for

there's is functions of marketing so across just but keep is all of reduction a forth. in which with percentage carriers and go-to-market, carriers, mind again, there, XX% not and supporting there and presales also and operations quota So in quota small the

direct quota continue improvements the to see So of through all not confident productivity it's that XXXX. balance we'll carriers. are we But sales very

the ARR mentioned In growing segment. been size. fastest is to have Global large and we focused customer deal And customer really on count, as improving very on XXXX clients relation enterprise we largest in our

And customer, the so is $XXX,XXX. a average customer $XX,XXX churn around at the ARR customer the ARR if I versus per look of is average churn

upper ARR growth. and opportunity So we market end most for of the the segmentation focused where the more on are much there's

Mike Cikos

much very the color. additional you for Thank

you. Some great Thank data points, Paula.

Paula Hansen

Thanks, Mike.

Mark Anderson

you. Thank

Operator

[Operator Instructions].

with question your KeyBanc Capital from question. Markets Our comes next proceed line Michael Inc. Please with the Turits of

Michael Turits

Hey, guys. still numbers And on solid environment. are what Congrats in tough the quarter.

In -- at the terms of subsegments behavior Where of for the weakness at narrow a question where this can that saw it's of you all any the maybe quarter end you Paula. down How big? small? like banking causality? reaction to banking seems issues? that Is saw it was vertical? to it you it certain attributed crisis certain regions, Is mix. the general Is you It the

specifically want didn't, it, so it most? just people Some saw know where you some to hit people

Mark Anderson

Michael, if one. take don't I'll that Yeah. mind, you

Michael Turits

its fine Yeah, Michael.

Mark Anderson

Yeah, thanks the question. for

typical the a the definition I'll you frankly impacted We turn discipline the a and more have makes I've new that pricing chain either saw good applied a a value just big not extract being scrutiny seen proving difference us. and to that we the that for on value the really negotiators little a been crisis think supply or few of tell bit deal. by wanting go-to-market aggressive before, a customers I verticals of saw But instilled tactics waste in part try we've was around more a level economy. better of out tactics to in and not to

down And pretty feel the shutdown, good about still especially things a so while we saw bit after the little we Bank slow Silicon Valley quarter.

Paula Hansen

Yeah.

vertical a with nothing Mark's comments to agree I geography. So a or specific

I'm the people basis long-term see and of tried business. just as the leverage. think of to to the decisions maybe Mark's wait we to point, use out that right quarterly was wanted happy make and a that for how are cases committed it weeks. in for And days played some it things to profitability on or a a I took stock lot situation, few moment And a

Michael Turits

a then And question. follow-up

Regarding know percentages base fact tougher? your changed is. the renewal you the renewal of the what assumptions obviously, conservatism given back got around conversions Have you half, your that or things

Kevin Rubin

and Yes. Michael. ahead I'll take Thanks that. go

again the strong of in strength remain we renewal So continued of at see to XXX expansion net business. I improved, guess, rates first quarter overall in to in the addition GXK and seeing all, the incredibly some points

three near last, including quarters have I the record this we think continued high see terms to last so of over that rates renewal And in quarter.

look for I as part renewal the our is rates of certainly So we renewal and calculus trends. full out mean, year,

for Paula churn third quarter -- compared less business the mentioned, to than we out grew the per again of by in tend to consecutive had $XX,XXX growth. the ARR we As customer see ARR that customers terms the in XX%

very base customers. very the exists think we rates. seeing strong seeing in renewal renewal we're that back about the with continued the half year, as of We're actually strong engagement So

And that rate QX to remarks perspective from all my in one XXXX that higher ELAs reiterate want prepared year. come that has sold did not so for of and XXXX QX I of renewal excuse we a the due I mention just last seasonality to points me, a base the -- renewal mentioned than significantly of

the past. do So a slightly be seen that to than we've QX is stronger seasonally basis in I expect going relative on

Michael Turits

Kevin. Thanks, Great. Mark. Thanks, Thanks, Paula.

Mark Anderson

Thank you, Michael.

Paula Hansen

Thanks, Michael.

Operator

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

Ittai Kidron

productivity. like at sales Thanks. to been for force point. Mark pretty you the seems two into still you're a have productivity I this trying there years, dig And not from wanted it the guess to much reorient standpoint. I

how ever are So help where nobody that maybe understand from they gets need where has still to understand a this get with to productivity? you you more where we happy point to where us get why And to but you get. getting far and still it want get, takes taken -- can that to need requires long you to to and time it to

Mark Anderson

with Ittai. I'm question, the happy productivity. for Thanks I Listen don't Yes. think never

integrate expect up from looking more and I it Because you in we rightly market math buy and time. so as Alteryx products have are sell. think to up. sizable like and very go more said vendors to or a want or more can for platform productivity salespeople build for I the customers capabilities, very and simple should that's by fragmented a long very should that and we And go our play that

single helping It's customer sold. to in around biggest planning, certainly business what job good like we renewals. more do really this to really job the consume planning our opportunity them your really good the -- earn by in see lifetime times a of We doing of a it's sales important

think, gosh, got go expectation so the into my productivity up And a past up that here to I seen lives And eight will well. at I've time. continue And I've seven, expect go that I as right. for years

Ittai Kidron

Okay. follow-up. Maybe explained as now. right big a Paula fish small guess Clearly, fish I the chase the as and you rather

on activity understand low the end And maybe this larger market. so maybe how designer Kevin versus guess, help continued your on seat well, much just can you the you're in us that's is churn seeing But expansion? driven multi-product penetration expansion of and of the can weigh where the I the as with accounts

long-term you Because all disaster. worry some your is point if designer going seat opportunity. mean the of with would deliver expansion results be me it's just And good this customer end base, I going still might come term at to a that of but a you're to this shrinking to near

linearity what you the it KPI expansion within not just the large to set-wise? of from -- So statistic us understand of trying understand can of depth give expansion I'm us How the profile your a that helps customers. standpoint the a

Paula Hansen

Yes.

about rate have low, we've in that right? still so very within think customers. the is penetration the And market true of our all talked our even that is that I we customers largest

growth early of Designer shortage it licenses assets. or journey. in into is opportunity cloud no portfolio cloud cross Today, increased there our our So whether be we're

the continuing is portfolio the time. quite total a product concern cross more cross expand expansion expansion. users see small still as with of well don't percentage on I to So frankly a some both as for But

Mark Anderson

having just the a these Ittai, want the think enterprise years, want say They think spending over crises XX want platforms. They last fewer customers less few in when I'll vendors. Yes. through narrows complexity. I I of gone

lot the so out. time to of with are prove customers really we really And on platforms that seeing a that we're customers them. for And certainly focus spent value delivering

Ittai Kidron

Thank you.

Operator

our the Kim question proceed And Please of your from Markets. Capital next Yun with Loop question. comes line with

Yun Kim

US and have on particularly focused more channel has Would cuts. resellers be question wanted that or planned think international? I just ask to indirect that Okay. I on Great. the because a I quick international partners.

Mark Anderson

of we Yeah, Yun and exist have of termination internationally vast some in do employment. the around we employment regional here US. of the it's cuts majority Mark were course that here. are cuts did The laws -- and respecting What

Operator

with Please Our of next with proceed question Ikeda comes America. of question. from Bank your the Koji line

Koji Ikeda

taking for Thanks question me in squeezing guys. the and Hey here.

the you some that the quarter we wanted one from in going kind now. ago, the to downside when through on maybe revenue feels here me. gave the deal the It reduction. and like as XX downside but the from guidance of little of ask there financial back kept guardrails same, the think the kind bit because, embedded go full I events, forward out with it Just quarter the of pushed scenario ARR days system for And fourth cushion, seems guidance some maybe conservative year up you've used upside that and you to the guidance, downside is question was that a the scenarios an guidance call a scenario, there. embedded on headcount to the like in with downside you

help you that can there? maybe, dynamics play the better in Thanks guys. So are me understand

Kevin Rubin

didn't saw. anticipate point which and level profitability proud the important. we don't certainly your Look, guidance crisis the in XX our behavior we QX also would being see the above to did regional well drove we anticipate the we thereafter. nor that a we predicted as guide, Yes. question. guide, that we as felt Thanks are said, ago banking an for we I was anybody think That met that increased out still put as of days

we're In I into retention can reiterate of seeing and forward, lot and going we the rates things have that perspective. ELAs we would base, the a about and the the and visibility that again of talked just gross control we've that conservatism expansion terms what renewal from

conservative those go second that around. of year we as a we business. around we and optimism so we're And have dynamics setup the the how into for the convert half a big But of continuing lot to forward, have here cautious be

Operator

turn call over back Mark the end have Anderson closing of question-and-answer reached we the And CEO, session. remarks. to I'll for the now

Mark Anderson

customers, deliver joining you you and the and Thank execution forward May. Alteryx. operating non-GAAP shareholders targets I'd we resilience And operator. Conference upcoming seeing much very results discipline. for all thank look here increased on partners, believe you, durability to financial you our team in the model. our our again QX Inspire to I plan our our Thank and and to at demonstrate business to We strong And of say like us of with profitability at many User

Operator

this may today's conference at and you for concludes you this Thank lines your time. your participation. And disconnect

Alteryx Inc - Ordinary Shares (AYX) 27 Apr 232023 Q1 Earnings call transcript