Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Alteryx Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is recorded.

It is now my pleasure to introduce your host, Ryan Goodman, Head of Investor Relations. Ryan. you, Thank

begin. You may

Ryan Goodman

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

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

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

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

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

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

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

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

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

Mark Anderson

$XXX operating up delivered for our $XX all both loss X% range. better QX you year-over-year thank revenue us joining and non-GAAP Ryan, today. you, guided million, than of and We million, of Thank

million, However, revenue, in range. guided ARR annualized $XXX XX% at or below up year-over-year, our came recurring

identify areas taken operating and of discuss to enhance for some QX going underway to I'll short fell well as these our expectations. we our We've revenue exceeded both as on swift initiatives loss, opportunities of While non-GAAP our execution outlook and action results financial forward, improvement shortly.

start as like is to specifically well and I'd experiences our connected QX as momentum, important cloud highlights. first, generative to But customers, other what's AI with product which our innovation most

aiming proper of that platform. customers our significantly throughout AI We generative First, and set throughout enable broad are will governance offerings accelerate our security. infusing technologies new we we analytics and AI organization scale introduced with believe our their data that generative to

of the execution connected experiences the bringing desktop, Designer ubiquity to Alteryx for workflows. cloud, publish users Second, the with workflows cloud cloud cloud to can now

remains commitment to Third, our customer robust using to customer the as employee high. analytic continue leverage customers enablement platform metrics do and belts more with their tighten We saw to everywhere in QX less. retention scale Alteryx across to a base. Customers engagement and are again unique

positive Asia, pillars we're our in And success Fourth, of with strong seeing to continue booking international growing enterprise organizations. important trends large both see fifth, Europe business. and we global

with points in steady XXX%. expansion net XXXX of penetration at XX%, Global came rate year-over-year two Our up a

generative learn, on our AI. path are increasingly the enabling we this the enterprise. data in it well win. use an they and is of generative enormous era technologies is how technologies change at easy These moment opportunities. easy all. potential solutions, positioned Alteryx customers differentiated ecosystem analytics we've market. AI we won a complex We as uniquely have data for to heart With believe to our orchestration how This are operate Transformative companies pivotal the across at analyze scale they how the data the to layer like how to create analytics reinforcing in data this market to AiDIN, with years, position abstracting of

better. QX performance a Now, to take to the do discuss what need let's moment and we

especially incorporated had the tougher cycle. the pronounced larger the last normal our This we two weeks outside change behavior renewal was expansion of guidance, buying of with into a quarter. in encountered we in QX apparent macro customer a customer While projects

upsell had pushed customer out large clear reduced which to many sight result, quarter with thought ultimately size. of we opportunities line we of closed or a As a the

with of We like and recognize attuned significant improve is identifying macro absolutely plus to diligence backdrop. opportunities our sales quality higher enablement, and our enhancing our current current conversion driving and key America. the should, they which in probability productivity. strategy also dual turn, sales that require forward, pipeline These higher of opportunities, the on more need We're particularly to a improvements execution disciplined to higher in we improve going implementing We're focused a North win engagement and This a significantly in rates. deals on these, are regimen macro. scrutiny level in

several The board economic and executive quickly, business moving cycles there the along is has both the couple years. last through and teams at grown level. the led be substantially of market The way. I've in will learning's

I found the this like is adapt identified execution. that mind, they model strengthen create in to in opportunities several the consistency that With we've to opportunities one and operationally. times business improve

made our sales organization. within leadership some key we've First, changes

exceptional as reporting leaders aligned the end, sales rent well leaders bringing to at have in very are President to We productivity both and as new and have continue important we and meet team, together and ahead. alliances improvements America new to leg an to for have proper unique Hansen. will CRO, that journey stage sure for sales of our and opportunity on experiences it's process each to Paula be this our moment. two we make team, North To the partner These

enterprise also visibility these the deal and sales additional meaningfully sales are within given results. should traction process, our we average and improved driving deal the are new increasing incorporating scrutiny efforts quarter and booking improve expanding key and linearity into our are Second, size,

how economic to are to navigate on current redoubling training sales higher deals enablement to productivity. the in coaching Third, focus on additional the includes accelerate and we This our path environment.

agile improve our more across an which sales can initiatives with as mindset. implementing a are adapt in we have execution. to we work It committed profitability, additional business and upholding finally, never And important customer-centric has been quickly to we spending, model we are the to business cost-saving

customers the Analytics more Our understand decisions. data platform mission-critical to to business their Alteryx drive depend informed better and on

repeatable robust this of Our stronger engagement users and for telemetry activated data add complexity towards We customer higher the automated. platform. believe runs indicates retention. across level with shows Alteryx analytics XX% now trending and are workflows approximately increased Designer a of value automation workflow

tour remains palpable across positioned Sydney, us of Inspire London. our US at confidence partner well was gives Our attendees customer joined at for Over Conference and is X,XXX underway is our Inspire and our May community cyclical and profitable level with international conferences. long-term structural enthusiasm customers that engagement well user moderation recent recent elevated Tokyo up-sell our and not me This that Alteryx growth. durable, the and in

initiatives that a discipline on strategic are focus and key am long-term steadfast delivering I believer success. to

delivering are and pace strategy. ahead we platform focused While driving our with sales innovation committed our improving an on also go-to-market unrelenting execution, are of to we

I'm incredibly initiatives QX. proud of the we in announced

our offerings offerings for AiDIN, as machine later of tracking in learning this as transformative This includes new today. customers' technologies. First, several and availability year early hands well brand AI generative

models Workbench Workbench, help train and data in customers analytics which model AI with designed expertise designed generative these their AI introduce governance our and our responsibly is enterprise. is to language to The into proper first to effectively security. large customer AI is leverage data their

as Next white Global journey for This removes X,XXX barriers within the designer, in as by between collaboration Workbench stakeholders between democratization is We're offerings and and simplified and nurtures it from validated companies customers AI invisible these developing Multimodal. platform. be collaboration Multimodal complementary to solution input an a this unprecedented including several monetizable, accelerator experience. personas different We coding multiple our facilitates interfaces, see or board. meaningful with elements

into of already tools. across Three including Summary incorporated aiding Documents, data for an to are Alteryx we accelerate how seeing three interest path generative all incorporating AI Magic engagement Connector. for our signs and We're of customers. capabilities and are Workflow are the examples analytics to all early already from OpenAI These insights our Designer, platform,

we exciting key in several had cloud, focus QX. announcements of Another innovation area where is

First, the those then save, in for workflows Designer execute forward and integrating a environments customers with on-premise in which major Cloud Desktop cloud. Desktop, platform can and share, and in cloud Workflows the Execution step our create

to Intelligence and visualization of introduces which Location spreadsheets. trends analysis and data patterns that within second, identify geospatial And be found typically cannot

analytics to explore Auto cases. and Insights optimization from Learning real-time further new for on as look to personas current with two-thirds McLaren production Racing, of cases our customers breadth QX coming of as leveraged approximately use with a resonating wins existing media use ranging QX, both is to workflow for monitoring our to Designer racing signed has new across McLaren cloud In for Cloud customers. upsells they example, social Machine and operational abstract analytics.

cloud We're and We to for new Office plus optimize CFO new ELA ELA multibillion-dollar with with automate also of look analytical initiatives. strategic platform, gas their oil a establishing they with cloud-based cloud trends a framework the positive seeing customers. customer modern and early a our for as signed

we platform estate Analytics. automate leading Alteryx data benchmarking encouraging requirements real handle with to real for is later momentum support soon Alteryx to will We a customer cloud-driven intake provider win online for Information marketplaces, a of This had estate processes and key and leverage QX. Analytics excited data services. in and out cloud international Cloud are regional The the to residency industry roll optimize

initiatives of our around This has partners, go-to-market and an customer our become pillar Cloud enterprise, has complemented strategic important success. strategy. underlying

continue ability customers Our of with existing to the Global and trajectory. large long-term our within is enterprise expand key to to growth XXXX many our

earlier, year penetration strongest coming our our customers. last As in from ARR from mentioned with XX%, QX, XXXX Global increased largest up our I XX% we to growth

XXX%, Auto million-plus XXXX with flu, optimized net COVID solid coming organization, win We Designer and at network This created non-profit in an overall rate Learning. its net had track and rate of plus forecast health to inspiring hospitals nursing large XXX%. inventory expanding expansion has and cold, with across Insights distribution. and at trends Workflows Global PPE adopting team $X our customer's Machine was Our a expansion ARR with and

frontline lives see humbling to workers empowering their Alteryx actually save It's with data. own to these

POA solid in workflow excellent of in numbers use of IT, to case, gain example over their on of lines is a continue EUA with ELAs of single of finance, QX initial for as ROI digital identifiable tangible since cases XXXX. Alteryx signed across [indiscernible] traction driving this, multiple range growth broad unlocked They an value. million The implemented of more one sold. they in business, year-over-year a marketing $X and just procurement,

of year, lap expansion original mark one-year this size of signed they in an for the ELA, the more on implementation. the As their QX doubling than they to

and reducing role a played XX friction in pillar Partners continue new among others. with we decision-makers EY, to top of IT our be logo unlocking to and expansion working X/X motion. more to a over and new in forward strategy, our contributions our build Partners access even sales go-to-market core from leadership, With our closer and to programs. with the deals consistent key engagement of partners and Slalom Presidio, look tighter

had win to property sessions opportunities processes working and We throughout the great its a as and partner personas a to implementation new to This governance. ELA with customer Xx, company. new to cases and casualty The corporate hosted drive expanded global they financial insurance bring partner explore Alteryx approximately organization use on overall provided with and optimize new ultimately look enhance training supported a value. by further

In have this company. ahead of we incredible closing, opportunity an

with rising. across governance innovation as is need position new fragmented highly market map enhancing Our proposition the AI. analytics differentiated. data for scale And increasingly with connected on experiences value ecosystem orchestrator our road generative and is our delivering analytics data cloud and We're security an at and an

addressable and pockets quick spending commitment certain improve to near-term environment, our Alteryx, decisive set this to we positioning our importantly, taking are improving profitable and are calibrating of execution We're opportunity, notwithstanding diligently the our a on long-term significant and strong sales customers profitability growth. [indiscernible] and for momentum. maintain durable demonstrating company Most to steps market

the With call to Kevin. that, I'll over turn Kev?

Kevin Rubin

remainder the some and and Thanks, of discuss then QX XXXX. the financial profitability Mark. our a with I'll philosophy metrics, we'll today growth closer of key look around at begin for

at increase million, to our X.X guided the along non-GAAP sequentially million million, customers' our saw guided long-term $XXX discipline another $XX revenue duration spending to than years, upside, better First, We of strong commitment loss contract of with revenue of drove range. above Alteryx. came operating $XX high end in range. our important approximately The indicator

in our up was came million, $XXX XX% year-over-year, but range. at below ARR guided

weaker final the in lands month the closing of a prior of shifting weeks market apparent deals anticipate change at outlook, incorporated historically until While many financial we late did were behavior had that roughly in June. And customer our not three, very business in two-thirds with significant in macro dynamics the QX. of in the we environment buying the we the quarter, as experienced end not

Our upsells our that we of corresponding renewal element, customer drivers event where independent saw time Customer healthy independent sustaining base momentum. underlying at the in it We to deals renewal key existing growth trends and the the of of each expansions provides outside are expansion three encountered important But and was renewal upsells. renewals, expansion challenges. third both renewals cycle. a

of In the last the a historical initiatives to significant new from until the two conversion we reduce time rates delay renewal. weeks quarter, of which customers divergence in saw or meaningfully opted

the expectation. a seven in dynamic bookings. both region that For in which renewal delayed year-over-year opportunities, we had US in figure than closed of This outside less our example, cycle decline six or significant included particularly at resulted and was deals the over pronounced of XX and large XX% US

part attribute sales the as and adapt described, are in to we measures Mark taking macro to execution. pressures, improve change While quickly we our

of have two half model, financial of terms second In clear the for we initiatives XXXX. the

model cloud. we're to ensuring including of of growth moderated First, persists improving we're business, through investment year. and long-term areas funded profitability the second, to calibrating our of AI momentum success remainder key this preserve the are assumes And the which generative phase the well drive the business

with begin profitability for and the Let's strategy balancing growth coming over quarters. our

recent macro to G&A. as savings we in our quarters, of both persisting plans We've second With in sales real adapting and are count several to backdrop profitability. such the and the softer estate optimization cost into on half, the and initiatives highlighted rationalization marketing continue path head higher spending

of the expand Looking early in macro are these since QX, scaling We've given we cost-saving go-to-market additional reductions. meaningfully positions, areas as ahead, that includes what tapered we efforts of areas. decided And focus year. spending, back performance waned. we will has initiatives continue savings a late most in motion to environment the very in in management This initiating XXXX, headcount second elimination of we the back saw our to When cost half additional reorganization, anticipated open environment. we growth and different

efforts generate an of cost We over $XX million. savings expect these cost-saving annualized to

investment growth. scrutinize and areas are closely we've significant we As our to. spending, for both are differentiate we drive key These long-term also to that that areas present committed durable opportunities identified Alteryx

The machine AI and first is learning. generative

machine to additional our engagement see we the of mentioned, Mark As brand AiDIN AiDIN, as We've seeing early technologies. streams ahead. recently recently introduced are for platform opportunity enhancements announced and and generative that in the several AI learning revenue years we user interest, an and

second The is cloud.

Our cloud of with like offerings. offerings we're incredible well move and early been traction. an February here as cloud-connected delivering to incremental encouraged XXXX, converge now innovation pace that intelligence since generally portfolio We're new with location of available portfolio capabilities as has our the

for XX% At our operating Investor our I long-term XXXX. Day presented model FY non-GAAP by margins to in May, XX%

points year, per and assumes margin X through to achieving growth X expansion of to of maintain year. XX% this plus we is ARR framework Our model this per

is to an continue growth and sheet long-term model We this balance appropriate believe profitability.

term, rate. points are actions non-GAAP this the plan incorporated a delivering margins improved taken X we In extension in in profitability by in In of late accelerated XXXX early committed XXXX. the sense, improve our to over to and is operating XXXX, an and in is intermediate an

drive the capture which long-term we XXXX points the ahead margin would full expect of of cost-saving Looking as is recent X suggest. to annualized we faster initiatives, expansion, to framework than benefits plus

place. customer what last are assuming growth the QX. XXXX, weeks no As saw still for we in buying The we improvement in the from of previously two growth behavior discussed drivers we're in remainder of in

level events. a tangible of that selling have renewal record QX opportunities provide We

to We significant in demonstrate momentum QX. opportunities ELA have and continue upsell strong

are with comprehensive We more trends, ecosystem portfolio continue believe much success taking we And offering retention a ramping team. supported our an customer sales and of traction, posture Rule customer year. towards while margin. expanded have of next we business progress upsell specific see a on the to cloud is positioned and of robust partner a attached conservative gaining the force renewal non-GAAP of XX is to deliver of We ARR this not expansion defined the as and a growth magnitude year, and believe combination to operating projects event pacing we

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

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

We expect X%. GAAP of revenue $XXX $XXX of to a be representing the million, year-over-year in range decline million to to X%

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

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

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

revenue million, X% expect million in be to representing to $XXX of a We $XXX GAAP of to the growth XX%. year-over-year range

to operating profit initiatives be of and in $XX non-GAAP to reflecting million million expect the additional We range saving million, $XX spending discipline. cost

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

while closing, are current not In expected, QX as we adapting we pan to would the out have quickly macro did environment.

executing company profitable enhance and strategic to are productivity, long-term improved our We visibility on growth. sales multiple position drive durable, the for initiatives pipeline

Our drive with their rates to customers and Alteryx value platform. retention renewal the robust demonstrates growth our commitments we and

management, platform AI innovation generative focus supporting and We level framework with we our are incredible profitability more deliver cloud on particular with a an expect and cost disciplined to conversion. of

our model. opportunity achieve on to and our in financial this our capitalize ability market ability addressable are to We significant confident long-term

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

Operator

you. Thank

Radke your Tyler proceed from be We Our question Citi. with question-and-answer Instructions] session now conducting question. with a comes first will [Operator Please

Tyler Radke

question. off the reductions. on start Thanks taking to the afternoon. wanted I good guidance for Yes, just

taking at big for dynamics I just mean, could scenario? here guidance by rates. the you kind new which guidance Obviously, it down change are missed the that you worst-case to you Or understand net seems the seems So and $XX first didn't worse like in kind pretty renewal you if you out in bit unpack is if you're actually inside this you guide throwing least I half, think saw of just I embedded It us of better. one you. was was look little just any it the like the second reduction, ARR in that at could changes honestly, Thank a see the philosophy. million if substantial. ARR because than the quarter. the quarters what's you even in of be help hoping

Mark Anderson

Hey, Yes. from. Thanks here. Mark for Tyler, it's get coming question. the where I you're

the of I think we in weeks. at couple our discussed we perspective, behavior, surprised were the change in in from last prepared QX, as comments, especially the

And so the ARR, ARR in missed – quarters, and the a time is maybe first long I've missed this I time. XX we think

business the want We don't we behavior customer is second half for build and want And that we’re times the to the that in buying miss. in, resourced to the properly persists. assuming

are Some say, to be we in basis to final constructed like based to And time. wanted a the take going able on I conservative standalone we're and be the of QX confidence on numbers execution that way changes our some going these the make deals to number. our to

Tyler Radke

a was I did a Mark, the Thanks it, one that, it Obviously, that last the reduction terms Great. reorg of seemed guess. like cost there just reductions. pieces was for quarter. announced, to us for you couple a in you follow-up

secondarily, and eliminated of under were Paula. roles of kind the further it about sounds there's talk more just like then So go-to-market refinement

of quarters solve? going talk specifically couple that and looking replace you roles over leadership of new you. Thank are pain Just kind discovered the these problems to maybe and last what the you're of to about points the some

Mark Anderson

like that's an now think in good to don't on going technologies saying, have an how to we're do question. enterprise Yes. are that alone what to when swing. Tyler, Listen, be from the I are generative and mirror, AI a full we in run we need like look another looking our as year business going impact

things the that that future we to are state. do today to to doing so able need we get be And to

It's make control that headcount just of lot going of consolidation that organizational got in a is get low-performing in people there's to proper I consolidated. think organizations impact span of to reduction sure whatnot. expense and we've and go-to-market. an or frankly, territories the And to be sort a

on right focused need So Paula I think more if down we're things. can drill the any details. you

Paula Hansen

Tyler. Hi, Yes.

some and right and hit in on We're Mark the organization to things the drive make transformation it. efficiently into that preparing preparing we second go sure to as we're think the XXXX. of leg the are for in of journey, looking the half I next certainly simplify places, to we doing continue execution the and the for in interested which here strategy the

Radke. Tyler - Q

Thank you.

Operator

you. Thank

question. Bank is question with from with your proceed next Koji of America. Our Please Ikeda

Koji Ikeda

to from of bunch be times. Hey, sales a be guys. out you the of on there a I of out LLM Hey, that it's not -- to Thanks sure out it's lot just And called There wanted sure noise there. to there. wanted for taking out I wanted sure, too. aspect a the analytics the is competitors a competitive And you question. macro disruption ask kind vendors question and

So into thoughts you a push And macro, elongated out factor you. a wanted kind is just lot Thank on competitive. maybe and competition? the sales but filling not the that your I the to of cycles? from get call did

Paula Hansen

Paula. it's competitive. I'll Hi, that don't it's take Koji, feel We one.

relative are and analytics still our of highly We maturity. high to those discussions renewals customers within in expansions really their still saw levels Our engaged renewals.

dynamic. that number a aren't No competitive out market. shift really in to been change volume. small suggests anything of our We always percentage RFPs in That's the the of a hearing the

really, the execution. So feels adjusting it's quarter-on-quarter, and competitively it macro just on to down consistent and doubling our fairly

Mark Anderson

lot and with customers. a Koji, of here Yes. I'll visit also say, us four the the travel

on. customer rush they're we're they hearing sometimes with they is but want transform, a And a to in so can't interaction screen on computer and digitally face-to-face oftentimes, computer just and help screen that magic based to perspective wave our customers,

that in I deals attached to that we were some in that renewal. think, on pushing a particular, worked up the And ended of

really of to deals in Some couple be because still of need digitize. will quarters. There'll customers numbers and happen big another automate just these

Suresh Vittal

Suresh. elementary also inside a of platform. automate also multiple the databases of the Workflow. Koji, is workflows. the days. Over customers product XX% our connecting customers XX% shows We've product engagement -- activate of of doubled Over first to within number with telemetry this the degree -- The different XX high

talked remarks in generative about the generative with We prepared customers our saw AI Insights engagement of new about Mark our generative capability. -- our AI Auto XX% capabilities. using

with high So, we see to continue degree execute the the platform and with build of kinds of a against. engagement workflows we them help

Koji Ikeda

Got it. And just one follow-up maybe for Kevin.

framework XX% XXXX Investor beyond the XX% the to at framework at here, that ARR margins did and you framework mention growth. XXXX the you are into -- somewhat Looking the presented Day, operating

the and the just XXXX, expansion are has guys ARR comment And not Kevin, is to what margin for -- assume maybe push expansion the operating But by appreciate should get that really plus about thinking years? out still forward changed target that achieve and demand did for or pushed margin you we beyond XX% if XXXX. achievable, about a going or I of five plus try that and five And points that? margin growth points on several that environment does

Kevin Rubin

Yes. Thanks, Koji.

the appreciate my out comments So, prepared remarks. calling you in I

low look, is very have that large and very So, large, still very into a the very a believe large TAM we a we confidently is this opportunity. penetration opportunity,

to guiding the framework acceleration result. we're an the as what in in and seeing it profitability intermediate is here So, we're a what is, term

profitability of would resumes, growth in longer we to if expect result. that and at be term, to as you Day. to growth But appropriately a should then four that we we that balance us leverage would that not, expect over as But continue three talked to Investor points the the

Koji Ikeda

the taking for you Thank Kevin. Thanks questions.

Kevin Rubin

Koji Thanks,

Mark Anderson

Thanks, Koji.

Operator

Thank you.

with has Wood question proceed been question. your TD Derrick Cowen. Please next Our with

Derrick Wood

kind you of Thanks. operating be XXXX. XX. dovetail XX% Kevin, question. you're towards a implying like that that mentioned margin off of trending I'll seems rule you'll And in It of kind

we take stays point expecting growth kind the But to not if -- XXXX, how in kind should about be next curious comment ARR that of that revenue it -- what comment of growth you're the where and base starting how environment specifically, that of just year. mid-XXs in a suspect I level of think is?

Kevin Rubin

No, out comment to Yes. I I really not Thanks was the trying margin plus was appreciate to tag-along that It rule next to year. expansion XX as we relative the appropriate would we growth be Derek. seeking question. long-term to that drive five of we put points a that a the in don't there, that a signal an margin be acceleration if see we result. would target operating of levels

Derrick Wood

Okay. guidance there. to give line Too early on top

I root could be So, terms that coming wanted in guess, mean what the like, to few a Mark things or Paula, of mind tease cause underlying I I to out.

terms that’s cloud is so of You and market? their Just pricing constraints already thoughts there. I’m you I to Is to out kind became more pricing, out mostly May be if then And still are cloud hoping with of there you’re guess, guys cloud selling like and but budget COVID I offerings. that addressed and hit, two there on-prem than just reflection I I’d like still competition, more tease early element start just pricing point. mean licenses. with wondering, just a coming feel changing And go in little pricing scrutiny? then any things. an more on bit those when was think up you

Paula Hansen

I'll Sure, that. Derrick, take

on we right their So, depending that are any end they impact go as are feel we in on very delivered, direction an strategy will where the now. are doing a journey. results And they though clear of want cloud customers is to whatever cloud our that our with go, lot I that it's with don't us having customers both

factor a that's think don't I here. So,

we've pretty seven six, in in opportunity the quarters supports And that value there envelopes like manifesting still reducing of like seeing working feels row, a everybody, need our successfully been negotiating that scrutiny the and customers major course, think of bit lots But pricing, from that towards. to a in itself I were of last which that customers it's changes the for solutions. and to market were we make. little Relative that people and discounts pricing are the don't more budget sort it

Derrick Wood

Okay. Thank you.

Mark Anderson

Thanks, Derrick.

Operator

Thank you.

from proceed next question. with with question your is Our Fishbein Securities. Please Truist Joel

Joel Fishbein

a questions. my have parter taking for as two Thanks well. I

guess, sales I relates about are one, see First some partnerships some would to Thanks. to Databricks when revenue [indiscernible] I and one for any you the would That unwanted are that love be of helpful. you, woes attrition from seeing is, really as it Paula, could hear And and potentially on? we those? the second going

Paula Hansen

We quarters right It increase a here, one announced Relative in partnerships Summit experienced I've level Snowflake at with have sales really to been it's of Databricks, of that now. attrition. of June. the Thanks, lot a remains the of lowest actually with Joel. Snowflake low Sure. at end not the Certainly, our pretty nine the on in any innovation the sort progress levels. We relationship. at and excited since

we have manufacturing joint to -- demoed We customers. the some for have nearing exciting integration X,XXX We continue vertical.

it So, days feels efforts just early far but but of and opportunity ahead. integration got there, partnership. market lots partnership still of a of to Databricks, having in start positive we later the the in still that like bit momentum, as types similar little we're reaction not along

Joel Fishbein

you so Thank Great. much.

Operator

Thank you.

Sandler. Brent with Our your Please Bracelin next question Piper proceed is question. from with

Hannah Rudoff

for on Rudoff questions. Hannah is for my Brent taking This all. today. Hi, Thanks

this bringing hold survey. enterprises and hold new for me testing they Are plans generative one on that getting evaluate deals any putting saw or Just the implement renewals we like CIO is large field? a new on a recent AI in first our to as you sense what are

Mark Anderson

from not to that Mark wanting Hannah, Yes. our projects. sense all park it's they're customers any at getting here. I'm

really it's opposite. the think I

generative just to be to even think faster really give ninja. data less able like to I get less tools with be that experienced be able a better And an and allows generative green even do and to AI helps more error. us AI spreadsheet and user us them

that there. can And Suresh examples of so lots about talk

Suresh Vittal

Yes. with And the great of documentation capabilities. and We on We seen our our capability just governance manage a customers Documents. comments saw, said generative adoption picking really Magic helps and is latched that of summary customer insights. workflow on AI base powered We've This workflow tailwind generative to in our that we Mark's adoption. up are there. XX% a announced Auto found I saw as Insights, AI we technologies earlier,

initial applications. of work, that the this our build already program We customers we to out the into saw, XX We announced AI month, design enables partner we AI-powered saw and launched enrolled as and largest earlier workflows partner the generative program. our workbench AI all nine design customers the

positive everything seeing capabilities we're introducing we've into market. been a adoption the AI the is generative of So

Hannah Rudoff

helpful renewal cycle? super in what in is That's guess guide smaller renewals then you Okay. second factoring from for or normal a push-outs hear. renewal in and Are assuming And perspective? contemplated down Are downgrade? for me you the ARR good I to is Kevin. deal one

Kevin Rubin

say Yes. a would couple Thanks, I of things. Hannah. it's

that we're one, tied more half around is event a the year. the taking of renewal conservative posture expansion not back So a certainly any to in

strong actually to remarks, it in the renewal prepared As in pretty the we business the related a saw first we half. said retention as rates and

a are we're really to expecting more year. So or that the we any approach But a renewal be we've this not to continues challenging far. much upsells attached it as took that macro experienced event thus expansion conservative to

Hannah Rudoff

you. Thank great. right, All

Kevin Rubin

Thanks.

Operator

you. Thank

Our Singh Morgan question Please is with next Sanjit your with proceed Stanley. question. from

Sanjit Singh

AiDIN of And I the you aspects overall break a a sticky of the table macro platform talk issues the themselves? take some monetization and bit. couple which from execution more to sort on the are Mark, kind discrete platform and of just like of little the of maybe second agent of quick stakes perspective, onto sort the sales pricing about opportunities increases competitiveness more of makes your versus want

Suresh Vittal

Suresh. I'll Sanjit. This take that, is

for there's So help one our AI everybody proactive lot as task a domains, them through capabilities. strategy, the road automate us big by allowing in said generative a enterprise three to inside more the of us opportunity in AiDIN described we analyst make helping we

of of announcements we some evidence made. with the saw that You

generative help large Second, the do our sets using their powered we language data analytics, analytical without applications, AI, we more four advanced importantly, do customers most said could data models, AI walls. trained unique these leave generative build their having and workflows, models

enterprise. to significant training it start to That's August, why AI -- we saw and It's a deploying at. at inside early work the our of launched large program when aimed bringing that's some it. language bench largest the is immediately think partner engaged We our use language design opportunity we in customers what large aimed of was them models, models,

the opportunity. think we how that's So about

chatbots whether but help generative right the that company generative of to and by are powered significant there's the into fertile do and experiences there's them think clear governance also to or building enterprise degree AI, compliance. they're a the more other help AI doing introduce and think technologies, they're see large AI we opportunity them to We less with that with opportunity every make inside we productive language opportunity more analyst introduce generative models using

Sanjit Singh

or that relative what's sort plus saw question, out going renewal, I my of these are essence Understood. of the of on either follow-up Suresh. the And of terms to deals core the to renewals back products? in sort tied that the profile Paula, of of Mark customer nature renewals or end not to some to issues the expansion the thoughts, Anything the of the you of or at appreciate then June. of mix expansions there? call deals sort these

Paula Hansen

Sure. Thank you, Sanjit.

customers, So of largest multi-department, engaging are about multi-team are in enterprise-wide if think some we these you initiatives. our

so And across from time can different lines. various various different the come demand departments

so execute in us often to account, that of we on we existing renewal and past. opportunity that see we've pursue with demand outside engage time within And at an that seen way customers our some a and in cycle that when

this the didn't several This the on existing opportunities. and behavior to expansion think these the around all important these customers where demand, The note they that of pushed. was quarter, deals conversations those was unique, opportunities with couple just on their expansion customers was with still budgets in it we're of actively for last It's engaged right those timing weeks.

half, still A second lost. others stand-alone and of with build they're line might their So renewal will not basis. lot to on them continue into align a time

various journeys So departments they're it's just and on the the that and teams engaged.

Sanjit Singh

appreciate the I Paula. you. thoughts, Thank

Operator

Thank you.

is & Needham Company. with your Our question proceed next question. Please Cikos from Mike with

Mike Cikos

here. Thanks guys. the taking Hey, questions, for

I independent sense. around get those a Just to better expansion off to renewal, deals wanted build question but of a Sanjit's

I cited XX% out six the there. that prepared at understanding versus what those or versus in between we're Can in had some help size the Kevin, think, smaller all called us yield up deals. size a in think would a pushed? remarks, consecutive pushing below know about mix reduced you that seven-figure clean QX, we're wanted from your just you you either out those They I I expectations at in to And over quarter. deals those disruptions deals my as this deals And come guess, during be with XX of large I came existing as through came well? is talking helpful quarter, pushing. quarter, some SCD well. had Last still or that we the outstanding deals did second time second customers

Paula Hansen

those. take I'll Mike, Sure,

we I size second would executed move about what number So reduced that part that, large it they're XX-XX me small Remind they was of at deals, they and when are out. when of reduced These needle those pushed that question? deals and a your in from so terms or push. the of deals, a say expected large the

Mike Cikos

to if we've trying We there Did the pushed at I'm in market pushed? a nervousness sense not in of those of the deals of most get seen what's these QX, all or come related right, time. QX, getting magnitude deals the and that had in that from the to SCD them of deals,

Paula Hansen

Yeah.

the QX quarter-on-quarter. we see against with of QX kind think executed pushed in deals I what what were consistent

QX So, deals. QX nothing unique about those

Mike Cikos

Okay. And I another, if then could.

and about are thinking cost the Just the guys sales enablement. out savings calling that you

a efficiencies of is I'm the with respect getting key things guys the the driver profitability of scale is, some are driving. on you I I One pinged for to, guess, guess,

you working about remaining just And imagine, RIF of you scaled would around quality actually workload conversion help put Can what's playing carrying April. functions have meaningfully, execution, increased right? those far it's the coming in at but initiatives quota seat, are reps? initiatives back guys where time We as the out? there on how those but the in support the You're had as on pipeline think the sales rates, obviously enablement folks place given are same anything in XX% understanding helpful those be reduced I some us

Paula Hansen

Sure.

second know, you of lot of carrier have half as the we hiring in XXXX. quota that a So happened

and of enablement is more The ramped elements the doubling well reps. we function are enablement started for around with every had our of coaching planned. expectations scrutiny just built that in we revisiting we've of salespeople so the We It's managers the deal value-driven sales down we that ramped the as enablement as And of more launching sort around around And development the ongoing have of year motion. a an all reps. us. quarter, much

that on executing second on enablement supporting a not half. the focus is team functions So of for an our it huge -- with and areas revisiting is and it's a sales increased these here lift us

Mike Cikos

much, you Paula. Thank it. very Got

Paula Hansen

Thank you.

Operator

Thank you.

Our proceed Bora Pinjalim next with your question from JPMorgan. with is question. Please

Pinjalim Bora

by pricing very seat the base. of Maybe driven other that GXK behavior like on growth Great. much from modules that behavior to then the change customer is leverage? just on today MDR other for a Thank by you about holding net expanding GXK into what that, you or GXK questions. Was taking I unit talk seems on GXK steady. driven wanted because just of And you follow-up versus any the the the price completely ask portion outside growth in expansion still saw.

Paula Hansen

Sure.

pricing seat of expansion Global categories. is by growth will those majority changes the XXXX within growth third product be to So followed

was behavior customers the of it in final of outside it the that GXK terms renewal we time I about would In that GXK. saw specific not was What or to unique was it weeks, their of line. say outside was

Pinjalim Bora

Thank you Understood.

Paula Hansen

you. Thank

Operator

you. Thank

Our your next KeyBanc question from Michael with proceed with Capital is question. Please Turits Markets.

Michael Turits

Thanks.

within challenges I'm time, company. people trying to renewal within renewal portion just guess So the what I non-renewal -- structural issues on expansions cycle, first other time. And are expansion the the is of versus outside just expansion typically is unless most not the have times in all, of overall, there your of of

what non-renewal understand portion? split and usually to trying hit have just on would of the why So One, analysis the of your it just but two stat portion is that renewal the been on what you okay things. is

Paula Hansen

Yes.

So we've seen base renewal our continue the shift half. second year-on-year into to

So we half. base this for have of second XX% renewal our in year the

renewal come the outside to first move of we having half base have on conversations for customers opportunities forward those. certainly to with to to the So what for were expansion surface QX that them and as have meant

that expansion departments different that to an up But base. existing demand. contract we point, the be do teams big think increased within may So come we're still as the opportunity growth not on a really, of very and I that see renewing with on earlier customer my renewal

forward the with will move We customer. the that time can with we we think execute lines

buying sales cases they're in for And create to those it's this And and to marketing, expansion finance, cases, buying for independently. then centralize So discussion, of to the I have and try separate risen vendor either contracts strategic because them I our manage, other starting in this execute they're unified new in where solid and power, customers a becoming want the or centers, customer negotiate the says, want I supply a to the some chain, level expanding we're less to budgets, we've because those pricing opportunities. let's separate easy one. want as

Michael Turits

maybe didn't was separate analysis it? because different the acquired Is motion. what we're of side an of if didn't in the centers why differentiate it to and buying worked trying So, renewal what outside was and between it's it understand perhaps that that

Paula Hansen

customers of it's and their for that's or of them that are has to outside budget different down. be expansion a band, up for time budgeting, when think the I budget renewal to renewal around that very that that frame, expectation sometimes as locked Well, come natural opportunities before

departments way describe and of land it. responsibility expansion of accelerate It's common that budgets. that as analytics So lines would and and and is team's very is budgets, that's, to expand business still I all those my well across the as budgets IT

Michael Turits

Okay. Thanks, Paula.

Paula Hansen

Thanks Mike.

Operator

would to any for closing are Mark I Thank the questions time. no Anderson at this to back comments. There over further you. floor turn like

Mark Anderson

shareholders taking AI. our innovation say you. position improve This market our targets to to improving Alteryx. execution, profitability. partners, to and a company on generative operator, are delivering like highly the our steps Thank customers, has We're opportunity at era differentiated road to in decisive for here and and our we to map. of our committed you, you sales thank I'd incredible an We're team Thank again reinforce quick and

Operator

concludes conference. today's This

for Thank time. this at lines your disconnect you may your You participation.

Alteryx Inc - Ordinary Shares (AYX) 7 Aug 232023 Q2 Earnings call transcript