AYX - Earnings call 3 2023 | Alteryx Inc

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Operator

Greetings, and welcome to the Alteryx Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

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

begin. may You

Ryan Goodman

Good today operator. Call. thank for you Thank Alteryx's afternoon, Third us for Conference Quarter joining you, and XXXX Earnings

I'm Mark of the Ryan Financial Officer. and Head With Chief Goodman, on me Kevin Investor Rubin, call Chief Anderson, Relations. are Executive Officer; today Alteryx'

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

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

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

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

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

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

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

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

Mark Anderson

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

board. quarter solid for QX was across Alteryx the a

bring we to our significant that offerings high customers. product with progress believe made generative Our value AI-infused our team will

$XXX end due $X improved execution at changes ranges. our to guided ARR up since high we includes a of recurring of metrics Our outlook. approximately XX% million established with headwind the currency came This prior revenue financial in or million, the year-over-year. from Annualized quarter above key business the rate

non-GAAP at high our operating execution in driven came and the reflect $XX management. X% sales guided demand of despite disciplined year-over-year by QX. $XX both of trends consistent and income Revenue range relative results by improved These million, million $XXX exceeded million, upside revenue cost to up end

communities. continue ways customers a to automation is to the businesses around platform. government and our commitment and quest demonstrate believe to their Alteryx to and Our efficiencies the intensifying growing deep improve drive hear user look analytics as entities for world customers the we We digitize across

fragmented the of Alteryx analytics uniquely moats to competitive as We with analytic are for enabled processes more with automate and win layer substantial also believe features. years. governance an improved orchestration These Customers this data leveraging are positioned security easy-to-use our have solutions us solutions do enable and is increasingly to data that our less, ecosystem. to

suited context several to for shortly. I position our business, making with strategy. We macro do of Again, earnings in to AI environment. visibility we're of some sales they alike. just technologies, platform, and progress quickly sales is On recently as and that the tougher machine this encouraged of process team am improving generative market on customers reinforcing to capabilities. new our enhancing R&D brand uniquely to A/B, differentiated our and work we our with cloud-connected prospects adapted so the throughout and More also that. with AI incorporate this A/B our We and call, I'm QX execution personnel committed particularly changes our the the our proud learning of announced place. time generative

resources. better driven our forecast pipeline are stage our able discipline management. With improving, Hansen assessment Paula First, more go-to-market management. and has visibility we and qualification, we made rigor into to enhancing significant optimize progress deal

earlier The Second, did cycle opportunities to quarter. much secure our of capitalizing better a but wins quarter we the on renewal we to importer nature back-end improved linearity. in weighted leads our

And third, changes enablement we incorporated these into our capabilities. sales

We leaders needed organization the are monitor help deliver to programs better and coaching them with actions tools teams. providing throughout opportunities and to to drive new their sales training success

We have sales more improvement delivered impact efforts. work recent marketing but early pipe and saw from see to ahead an pleased our quarters, of plus us We in best our efficiency. meaningful we're conversion in

both discussed reporting welcome last two Paula leaders Hansen. the sales on to call, we're new excited directly quarter's As senior to to organization,

cloud and the cloud Enterprise sales most SVP Oracle's leadership positions for new the from the into Oracle, Americas, vertical recently has organization. our Oracle sales at and retail SVP Dorsey, of SVP where of us the Cloud team Sales transforming Mark for held was sales joins North as Mark of First, business growing served skilled he America. a several

he Genpact, and held second, channel Scott of at Global where XX building joins leadership years prior a where channel I'm and to over recent their ran in progress new Valkenburg of on And both to SVP global our Alliances partner and working the partners. go-to-market he welcome from alliance SaaS look which Global organizations. to Scott Institute, Scott strategy. forward Channel global Alliance our over he excited Mark high-performing brings Van with to X,XXX business, team managed mission us experience and

SADA new rate technology and a Global to executive That's global is well our up attract partnership XX%. overall We Google XXX%. working. partner. net at And expansion with to continue and we marquee XXXX remains strong Global XXX% facing points came growing and note, Class QX validation continue top expansion business see our consultancy net our in strong we enterprise-focused leading held XXXX that additions year. at last rate sales announced to above penetration X ecosystem. on of motion that great partner On from

organizations. and component and Our friction customers. seats, removes motion is a bundle ELA exploration encourages ELA include strategy that has we larger as software provided impose trial simplified a to often streamlined licenses. pricing, burst This the on that flexibility features refer resonating often of with what land-and-expand vendors

projects which customer and partners our support team success course, believe these with Of upsell accelerates we opportunities. we

of demonstrates resulted a great year. Early ELA. signed its savings every cost in ELA selling to push had significant into a engagement quickly burst burst new to This broaden In more the time-consuming user a customer larger dramatic strategic burstable for with saw users QX and we XXXX, generated XXXX. value by and company expansion. Fortune finance with teams. the customer more case a momentum operations XXX tasks We quarter. are win with use drive next And This we the ELAs in adopted ELA automating biopharmaceutical with Alteryx the across first that licenses, QX on

and more of accelerated orchestrate sold a within to ELAs same computing and the number beyond. quarter doubled is last year. data In than AI versus the automate Alteryx NVIDIA, and QX, leveraging we leader finance in tasks

increased One a companies customer of for flexible chain This manufacturing private exploring framework across seats. accounting is cases signed management. and the is finance, America on in use for largest burst plus supply tax, and and establishing XXX automation X,XXX-seat a with engagement in ELA HR,

Our and integration were key here. partnership Snowflake differentiators

is company within ELA, Avalara, as incremental meaningfully adopted save the to software XXX global and unique communications they automating the provider Designer. very marketing marketing by and Designer Fortune to of costs unlock opportunities tax financial ELA years now and a their opportunities After new and within a of finance usage their more for compliance expanded finding own as processes for automate enhance are automation processes multiyear within exploring expand savings analytic the their using organization. they to customer clients,

and stack. their strong foothold savings We in with data scale in After new of beginning early data dental implementation and of throughout a small versable a look adjacent that these accessibility companies believe we this. analytics now ROI empower support package relatively organization, and to their a generated leading of quarter executive are example have nearly as to pillar much and Dental, great introduce Pacific multiple Alteryx support, Designer Global Alteryx many they comprehensive, to establishing the executive-level XXXX, we top-down the years a and teams. organization this With users of Dental with Pacific significant of ELA journey. more a potential bringing key expanded half Alteryx engagement, engagement the well remain which to our a finance as established is medical workflows a established few ago, national time

traction executive chief and seeing is governance customers, believe most with prominent of larger chief and officers, the information we data the is teams the also technology officers, our leadership our This and of enterprise dynamic Alteryx We're customers with officers. technical chief platform. of readiness validation analytics

platform. Cloud to milestone anywhere Additionally, experience and of is broader cloud note, an focused often and We in CIO that Alteryx data the the path automate analytic ability implement analytics On adoption. to our workflows strategy with provide customers design cloud-connected is the creating on Analytics resonating. platform workflows then endorsement important

Some Designer users will create workflows a desktop. on in

intelligence. and an into or. leverage machine an auto all will we a data multifaceted model single adjacent offerings offering built Some when what and analytics cloud tap mean for and, analytics cloud is creation location not we democratization on is will This with of platform our unified learning, some say insights

great collaboration with able early their cloud, the is needs WestRock users to example by packaging expanding In flagship opportunities a in use bundle, the through company broad design partner, across this. with We're we of to and cases seeing expanding cloud implementation parallel. Designer use add new meaningfully found a ELA and solutions and create new of identified across to a our of cloud enable new also insights. automation XXX platform value team machine customer many learning Alteryx Designer range data analytics a success were the our ELA cases. server implementations plus We best of Company, adopters Fortune WestRock a meet Designer

new also opening to Cloud is customer opportunities. access up

Designer National were analytics cloud the Google services KeyBank's Cloud differentiating example, native largest in use, Alteryx. Designer accelerate with their Association, decision cloud's program. integration to bank-based ease financial of foundational with nation's Platform a For of companies, one KeyBank expand as scalability component to factors and key selected

an connected R&D Advancing certainly important the cloud experience for is priority analytics Alteryx.

top our introduced generative traction incorporate influences offerings. where A/B, customers. Earlier Another We is of with see A/B focus great AI and seeing aspects we're already entire by and throughout platform to Auto software world year, and opportunities a envision Insights breadth of AI. all existing we this generative innovation features AI

months a X accounts Documents. introduced Insights less than last leveraged of That's half more X active than Auto months, the ago. for we have Over strong engagement solution Magic

Inspire our exciting Conference Europe, had several At announcements. AI we in

First, conversational manage, and workflows to users consume on based in those AI language Workbench construct previously LLMs integration designed large use seamless enable existing Designer A data. applications with proprietary is with a Designer to models enable will interface. Alteryx their customized to platform customers Studio and code-named AI tune securely Alteryx

quickly feature customer's or and generate synthetic cases tailored job use AI high-value automatically new a a company. for is to playbooks function enable planned This to will deliverables. recommends vertical, Insights sets that proof-of-concept data Second, users build Auto industry

a automate time. results designed And allows that data and Designer AI-powered predictive feature workflows for brushing in third, new transformation explore the This is from users as to faster. real cloud suggestions is workflow to of get creation insights data pipelines to users provide

Launched including our analytics add-ons, to about faster. want Marketplace. built Marketplace with and expanding insights users traction for Again, Alteryx rapidly and their One designed collection X,XXX the already to of more is helping supported and over platform in to users The macros. downloads platform analytic with capabilities highlight Marketplace their get Alteryx early efficiency our with October, expert a with extending the provide significant launch companies. I gained Alteryx a add-on has connectors verified increase and is it's

we're conclusion, the expectations results QX the quarter. entering relative performance with our In to and operational encouraged

it are quarter, carry did as is ways platform how to generative the our team our cost and am and maintaining and hard focus, close throughout vision on enables some the rapidly enhance the data-driven while disciplined so AI new out our We A/B momentum execution And work further a and business this challenges management. scale foundation, I quickly a and and at QX, this adapted the and customers in certainly finding we improved I year. the accelerate connected of and to cloud we culture innovations, to team easy-to-use the with journey. analytic forward believe strong differentiated we proud we're experiences Our organization. faced

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

Kevin Rubin

Thank you, Mark.

quarter, $XXX in ARR which $X high up to We million metrics end are pleased deliver ranges. at and above guided the us with range. key QX our outlook execution the of in above enabled XX% million, our came prior year-over-year the financial improved

end note of QX of headwind, would our our this While we high we changes the don't early rate guidance provide $XX I impact currency, since in constant our by August outperformed ARR that approximately million. in resulted currency million. Removing a currency guided $X the established of headwind range

contributed tracking This slightly durable, on end million retention Revenue our guided and rates our quarter. upside the of conversion plus QX in million came reflects for Better-than-expected expansion $XXX our total the high above duration. or gross at $XX assumptions above bookings, higher to contract the opportunities bookings robust range.

Finally, operating end high was the million above guided non-GAAP $XX our range. income $XX of million, our

closely bottom been to incremental line. internal and the which the revenue managing have We enabled optimizing upside to fall through processes, spend

In build to target up-level out quality go-to-market world. our strategy our the team. sales customer doing and experienced enterprise recent organizations years, we partner this, to we the decided leaders, in hired programs enterprise success an and largest In reps enhance

financial that strategy Over the this past in results, on seen in our progress year, QX. we've and continued

We're XX increase by larger growing ago. from as organizations We're penetration winning years deals. with of our an at XXXX Global winning X evidenced now That's XX%. points larger

wins average year-over-year. as new $X increasing QX customers by year-over-year year-over-year, implementation our size plus Our million expansion count connected customer as server seeing meaningfully cloud to over our size for Designer increased expand our are with as and and exploring customer ARR XX% XX% offerings. ARR customers use increased average cases we're grew XXX XXX,XXX-plus deal We well and our

constantly we to last earlier investment improved working strategy. heavier and optimize from we starting go-to-market see to moving and model. are the as are beyond now refine our profitability We And leverage the in phase year, are

underlying systems. came a around sales to offerings, go-to-market of effectively by innovation Both as year-over-year. while development connected us and productivity marketing year-over-year, GAAP non-GAAP a QX cloud and expense administrative per This integrations is over X generative of XX% last efforts. with rep to of revenue product non-GAAP improved management platform level performance general enabling both a percentage we've by and rep Sales function in down leverage of defined healthy spend and investing and by increasing than and year. points versus as bookings enterprise And ARR new profitability while GAAP financial improve more Alteryx fuel and research AI, still enhancing adjacent decreased

term, we As of us. for are think this profit many longer business still drivers ahead of the

logos lower large customer much go-to-market existing landing while can enterprise an carry costly, with is enterprise First, new cost. a expanding

a had for resulted than have to current structure cost we structure our Second, organizational the more an environment. we with expect recent enter is cost XXXX means initiatives optimization in believe macro aligned with that quarters. leaner This we've several

and Scott and cloud a and to established Van under we we've efficiency. Fourth, our cross-sell new And we've partner demonstrated XXXX, Third, to as efficiencies with now offerings types leadership to greater going opportunities to cost Valkenburg, discipline approaching finally, expand of portfolio of strong structure source engage look ecosystem are additional our the we throughout scale creates partner contributions connected scale drive with our new additional expect forward. with unlock and of users.

are turn how about I to philosophy. we our before guidance thinking share like near-term Now the to the opportunity and I'd outlook,

QX. excited have in about We lot be to a

given burst opportunities our interest. of demonstrated to sales customer XXXX while expire. large progress improving opportunities that cognizant we that the macro solid solutions creates as as licenses gaining execution. we we're performance in encountered the increasingly our improving have required ramping lapping for cloud as which ELAs, in time execution, of still additional upsell well QX And significant our continue QX our course, dynamics We're of expansion QX connected have portfolio We And renewal base. are

the buying prudent we relates conversion assumptions as renewal and prior As it such, we're rates largely maintaining rates. our to in behavior, incorporated guidance customer

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

representing the of to $X incremental This to rates range we XX% ARR to relative million issued headwind August year-over-year current in guidance million of based to the incorporates XX%. FX expect be XXXX. million, growth and on currency in $XXX is We the $XXX

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

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

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

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

million We operating $XX outlook $XXX recent on million. to to We $XXX be million, profit cost are expect prior for million well earlier and from an our believe to planned. executing optimization initiatives non-GAAP savings $XX improvement seeing we than originally are

prior Finally, average and to we outlook $X.XX. expect our outstanding rate an non-GAAP to share net to a improvement income and of XX.X $X.XX million $X.XX for weighted be an XX%. This from the range in shares effective assumes of tax per $X.XX,

outperform consistent faster entering savings converted despite conditions on expansion higher-than-expected level In a execution closing, anticipated. cost improved to capturing We macro opportunities assumptions QX. we're at us enabled our than plus

challenging believe continue more results mindful of half the macroeconomic be we to year, closing profitable improvements are pleased team a for on us of to on with and the we strength, building position is is While circumstances, year will the The challenging productive work put with in the which context done. we focused are XXXX. the we recent there and in first that and face a

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

Operator

question from Bank first [Operator Ikeda America. Instructions] Koji of with Our is

Koji Ikeda

ask here. questions couple wanted of a I So to

Global SVP first Americas the new joining overall to strategy the Sales changes then long-term the SVP and near-term just Channels. the or about one any With growth Alliance And team? of them of really for on with and the thinking

Paula Hansen

our increasing then Mark with of and will the talked on helping that, efficiency that And business Americas, question. rigor be us the in progress obviously accelerate continue becoming that on and that that. about, about very had of the an percentage it's quarter over as partners. couple Mark the to Scott more XX% to around that foundation the helping in and we've us I'll it's new we than about the continue of excited have scale. with both and look continue comes this And discipline both from Koji, on us. cases, we'll while the cloud business there, really it's be building ACV that each we've and last to having build operational on In joining drive We're conversations focus help building Paula. Alliance Channels take business, and years. Scott us with customers And and we our to

So with Alteryx. joining be them pleased I couldn't more

Koji Ikeda

Paula of to quarter, be here and Kevin. for after hours. I here be really reflects a would of have that of minds, creating And realize last here Clearly, are and better question for ask, But it's about on interest you framework -- but commentary somewhat on really Mark, in It's the just probably going of thinking directly, the your any that stock and value value. the up one question, or keep helpful. I sort we shareholder follow-up to being driving for takeover around our tough shareholder than but the quarter is, third back framework results the rumors can't comment your

Mark Anderson

business the there's Koji. the this the of we a running think we really to long for be independent question, this this of Thanks for time. And going the is kind to we're companies space, Listen, of we will distributed competitors Yes. very in think important a it's long over given Alteryx. And be business nature -- and a build think a business platform mid because sizable that that share. couple going take will that term in

we've good free execution so any made feel focus rumors, I the that improvements to really flow but And bringing to can't the that business. and we've applied obviously, cash profitability comment and to we the on about

Operator

is with Sanjit question Our Morgan Stanley. next Singh from

Sanjit Singh

QX that sense, sales of force sort wouldn't of terms look did we productivity of you entered quarter, in the sort for what a just Really to which trends of or play To I into can productivity. QX encouraging I'm embedded if play macro quarter assumptions out, that go QX? QX, other just around the is good in big sort of guidance. we any QX how at some KPIs we in as in to this guidance, to in as in that the assumptions get QX context when trends a quarter. out the suggest the is And whether sort you we're it's trying similar obviously that of there a start Kevin, end, any QX. have the renewal this you just it. sort on in quarter of I continuation get appreciate want

Mark Anderson

for Thanks Great Yes. question, here. Sanjit. that. It's Mark

Yes, in guidance. did prudent what with for build listen, QX. of the be around renewals. responsible you I teams build in But we've top conservative, we're far, we QX the feel year campaigns, biggest those had the We renewals And also to have will, full -- happy is and year that fiscal sales the the think if year. QX of had know world we expansion it's cohort to on to us, around by full

our And measure but and predict so taken QX bottom and topline got we to we QX can with we that that resetting all customers our the said, I out for think our we shareholders, to for for going do in woodshed make people. we're spend that responsibly how took so that sure much also the line want QX, to -- and and can on

Sanjit Singh

while users what And follow-up is of contract just yield, contract. sense, burstable in a in question of the you guess my ELA mentioned vehicle seeing a guys quite in ELAs. of Mark. of burstable features on customers the just out that of of you We've trial terms leveraging terms sort for are the burstable ELA nicely, tons couple I the sort expanding Makes -- of had now.

into users going you burstable users to In in yield converting ELAs? or terms type just QX broadly, more are the of with paid seeing what trial of

Paula Hansen

for one, question. I'll Thanks that Sanjit. the take

we from bundles. customers in ELA our QX, continued saw So our interest in

from expand QX with number utilization number doubled than of as also of XXXX. burst a saw outcome we of fact, uplift and QX And XXXX. In we an of the us their the versus in ELAs of did customers more that

for QX continue of as the we bigger is we'll biggest that So our lapping And of even be because relates year. encouraged in us there. seeing trends opportunity to be historically it QX by ELA going last ELAs we're to be an upsells to quarter

Operator

Our from Wood TD next question with Cowen. is Derrick

James Wood

quarter, know last one, you what linearity did the challenges strongest just guess And you First outside to to trying of the see of that changed several pipeline motions? improve to in sales and understand were improvement I mentioned what you engagements one for Nice targets. -- were was able to Or the execution renewal I the the solve you event. Mark. how main better quarter? conversion the way? against And quarters. see selling to of for sell in Did a in drive earlier renewals? Just some these

Mark Anderson

thanks the and Derek, comments for question.

for QX our for make QX, think sure, past to back get we commitments the I commitments we've beating or to that and XX to doing internally. and quarters, our of Street XX been for wanted was the what make that meeting what that's we for we

me, to discounting mentioned QX that in really a on a is was basics of back framework more pretty the process, side I attached and in discipline stage excuse the or rigor weren't than renewal QX. built things. there in deals it the that think was that happen into deals didn't opportunity, think we Paula where greater forecasting did in the XX getting operating I that weren't -- lot to a So of because Kevin to bit heavily QX, and see attached renewals

and back really went organization. and the sort basics, down that those getting of really So to it's up

across into month people really were for for the forecast doing for and call drilled worked I how is weekly the And the really the board. quarter. think this the So week,

The sure hit Kevin's our conversion on the under can different with team other thing we nice back took did of say there to think we as getting we making pipeline metrics well. our job pipeline hit I looks number I'd leadership a And is finance a and that really metrics.

Paula Hansen

add organization to also on with we've provide help the pipeline what's and and put focus happening of organization coaching to increased across down visibility where up clear our just the leveraging I'll And managers the and that tools and opportunities exist. with to enablement

we'll this I QX me carry that So think gives in confidence and our in that execution that something beyond. is forward

James Wood

for Great. Kevin. Maybe one

bps of last a talked lower coming margin the was XXX expansion But 'XX. that -- On about of out of think you in off number. I fiscal quarter,

margin operating target your year. raised You've this

savings talked happening earlier planned. some than You've about

So how last of Or seeing off of kind target should of whatever Is close to the be year? you point expansion quarter? XXX we for expect that bps next would that think about in original 'XX? of based you off margins fiscal

Kevin Rubin

I was Thanks, expect question. X commentary about the last yes, recall was And call would Yes. guide from Derek. time, the you plus X% margin. My to points the at we correctly. appreciate see that the on which an op

I updated the on haven't do next so that metric. We'll So particular call. earnings

going to now, 'XX. I that point XX% So for leverage signal implied would continue into

Operator

Radke Our is next question from Tyler with Citi.

Tyler Radke

your as where GXK year of multiyear and year level ago? linearity So a you in nicely this a these early what's can what indications And pretty net single QX any the QX, compared in about quarter. you're bunch gross this renewals, held the the the the guess at quarter confidence think and to I you retention those quarter? and retention saw rate, both that in sustain overall that processing you level of saw terms of

Paula Hansen

question. the for Tyler, Thanks,

the very see the an we So rates mentioned, teams the really the around in pleased we account from to contract that Mark campaigns retention on to we're with this exceeded saw continue the that full that we'll rates QX. that a portfolio, base I large enterprise with approach continue they Alteryx. renewal And to see these to that endorsements reactions for I'm QX. as our took those. similar to here preparation future in expansion into year customers guidance, conservative that believe QX. our around go strategy and and and are expect we build happy see We see in And duration positive and obviously we

Mark Anderson

digitize to add world we to if their I'll our really in. and Suresh, Paula, Tyler, continue And to need the they they myself, that us modernize tech business customers. you and that, lot we really that automate around don't a Yes. for mind, as to prepare hear live spend time we try with of

just what I -- us kind show beyond. so that's rates it's really And these gives need for we And just into customers. retention confidence and well QX for what our do think continued of as

Tyler Radke

Great. I Kevin, question, number quarter, saw bookings. better think you productivity you follow-up mentioned this think new the And which reps against a is of defined as I that the rep

New that of guess of still are I And down, the down you? through capacity that your quota terms from of imply bookings how outlook kind And what's in here? are kind guess year-over-year. I think, does far management reps number I carrying of were year-over-year? growth that performance

Kevin Rubin

Tyler. Thanks, Yes.

So the quarter, as initiatives we've of cost last we that year, a includes on resources. this it go-to-market part executed talked

reps prior year there are so there carrier today in were period. And less quota than the

We number also, changes improvements. contributed articulated, a the think of Paula we to productivity execution-related as that made

that really how came in and out So that. pleased with saw QX, you

Operator

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

Michael Cikos

Just ask on couple ARR side. inbound. I've And just on a of the a we first received couple could the if really, I my And guided have.

get to for So be it everyone. this there out great just would

$XX and up guys guide by full what at QX midpoint million. that outperformed the have you're you year Looking taking we by the versus today, $XX million,

which is first prudent know Would then hear, I is that pipe assuming guys but we like So not because, those And in macro, why there I essentially second that QX how sales relatively unchanged. that assume execution are again, enablement great you I'd be deals of the in new that on just QX it the the really improved QX. point, point. know some guys hone deal the to which you a that build of attributing net gotten consistent, saw portion pushed out ARR is to pushed with outperformance QX QX? of to from deals were for was have this is, may capture get sense trying much to conversion, of any that we're was that in in into but

Mark Anderson

these to Yes. giving guidance is retention, responsible gross things good at market. deliver to Listen, all And continue because for to aggressive a take can Mike, on. and a think this retention this world that trying I'll here. considered, and we I being badges be net Mark be class out rates any days. they're your prudent expect point, team think crack out confident not in that. job there -- feel that on put number especially to doing And really a be we we I we're

terms than and in deals, -- not we say around In in QX, I'd those not XX to the XX more renewal. in massive deals. that deals came deals attached QX were identified half of of necessarily about a

deals were some came are by in lower. competition, like I'll customers' deals the that, in appetite came for that anything any higher, by we're none a on. of Some little mostly just working impacted And priorities still you, tell in a these deals little remaining quarter. spending

Michael Cikos

highlighting more at year-on-year. Got could quarter, least know if doubling are than I this of it. just guys you -- the ELA I And the sold

Alteryx to thinking for the are who I'm sure more between make versus properly, the of going composition coming existing about all to those breakdown wanted Just but is or selling new ELA? what's just that than customers doubling, ELAs that and the of customers that -- immediately between

Paula Hansen

I'll full the are on those team more interest the with The on because platform. that take imagine the journey in add departments, ELA is particular existing for show Sure, in customers us and as more very functionality customers they you of attractive Mike. can they that.

a with the that lot first a agreement, customers. It's with license customer not logo. try probably do thing we but not to existing an of enterprise would net new new is impossible to a land So it with

Operator

Joel Our Truist with is Securities. question next from Fishbein

Joel Fishbein

whoever how one Paula one and sales of the be question Congrats to And talking that changes on answer then Paula, is for heard going to wants of to there lot the go-to-market, in changes terms incentives? your second people great traction And one. is just basically, execution. I else the getting there? this guess there are about incentives you're a were seeing initiatives. I and to partner some AI for

if around us AI? have of you obviously AI. the around you curious give to specifics guys monetize a can products I'm You just lot are about some able

Paula Hansen

Suresh then about Thanks, can innovation. I'll and Joel. our first the talk take two,

close in where aligned to and our standards partner them make industry program, like of what that got be terms some to we've in annual planning which against relative make always the see that want partners and I we're is looking to we any in ourselves to and really comps just seen partner think don't take are our sure that you've exists, make sales 'XX, sense. opportunity all with in of massively process a we to will our community. quarters, it what with we place different always So alignment focused us any going Relative where recent into as we is we ensure what we the moves look levers from have see go on we'll at today. to might as do benchmarking

Suresh Vittal

On the on widen for is AI competitive the finding focus innovative and value front, our create use to products. ways of our moats our

like us kind based the roles. get Documents, these the AI and based we journey, Summary use more saw generative embarked capabilities our and as of which jump-started just Magic allows So and to on industry on Playbooks, users our recently, the release customers cases Workflow analytics on on you

on AI previews We dozens and of Multimodal, offerings initiatives these Studio that we monetize customers, see new private like and are working with independently. also opportunities are in to

Mark Anderson

us, what broad-based offering it in of bite-sized existing it it customers in generative faster. telling -- is like like more preference can is the be are build do their AI, do and chunks in And to workflows for terms in our stack we're them think really case, our where Joel, better to I adoption productive help curated

reception the has great. And so been far,

off the for results on R&D working hat hard the to and been really I around my the take I speak this, think world. So They've really team themselves.

Operator

question next is with Sandler. Our from Bracelin Piper Brent

Brent Bracelin

if net back at lot we're quarters here. environment. But wanted new I doing internal Mark one in to a Clearly, on great X demand for the go where see. better to kind look to ARR, new I net of Maybe external Paula execution, here or ARR you is environment of is better? below maybe below getting where external signs Or QX the Is the execution? implies tied sort any the here just improving X-year the quarterly optimism for to the seeing environment average. that are another quarterly average, guide it's

Mark Anderson

Brent, thanks for the question. Yes.

that I you same, think stays the the will. of environment assumed we've if kind

working it's are in part sales And now thankful going those saw QX, motion. Our where they're necessarily spending. I'm over seeing better that space days fact not team rooted is an disciplined the really the execution Paula's year. motion deeply on confidence opportunities be there improvements for said, QX. really good That fact of really think in QX, the been the just that to we've a in with these the of they've feel kind I prosecuting that executive-led it's spilling our we is out easy that we certainly got into customers very about And being that

Brent Bracelin

is, Great flow Historically, really the obviously, I cash below higher guess higher to when free to flow? you higher could controls, this seeing converge turn free about to those op margins was see. op a were margins was Kevin, But good next cost well margins when that here. free flow And do and cash question margins. faster-growing think you narrow? could Do driving up those margins much growth next margins year modest and more think business. as start cash

Kevin Rubin

it. Appreciate Brent. Thanks, Yes.

cash perspective. has our the recall, op flow X from long-term margin a points below As you free long-term may model about margin

provide but keep cost to mind, that cash next would on we the to Thanks, and do Brent. expect in expectations, initiatives I those year -- of we'll call this of the lot a a impact. onetime taken As us, converge relative a color cost behind have the cost XXXX more get we've some initiatives trailing

Operator

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

Michael Turits

stabilization great see. execution, to on and solid all Congrats

the cloud, in So on AI. a demand quite we've rates of Designer one of growth on seems guess, I mature stabilization questions. product as strong some now. a the there when in right time One a on stabilization seen and time hyperscalers. And the the product two at this in on cloud of cloud, those is of cloud things that seems two demand the positive be side? got sense Are right way coming to together the sort a that you've

Suresh Vittal

I times products significant use of selling customers have The X multiple But cloud There's of before, cases and these done for cloud our with a Yes. of about journey years property the our having intellectual for of customers quarter appetite solutions. embrace cloud takes mean solutions. They interest lot kind products of this it a into stage and solutions. They've the strong. a apps. cloud on-premise lot test we're the workflows remains and around our a couple to cloud expansion-based got built analytical products. from the

and that wherever so chosen our And They we an we've get to feel very strategy. comfortable it. innovation want access they

independent made and platform. this the we to of cloud them the intent or back there them a it believe past any that work the want they AWS heart to want to BigQuery, the And that ability give There's this If of our that. want any to in Mark strengthening before, access at do we they couple limits or multiyear or Snowflake has share, Google Databricks hold said Azure, access. or platforms a that. market be thing, we this journey. Amazon, know them of on ability the kind been We kind innovation. was over in in in no investments innovation If in will do that to we want consume really don't of really and months capture give of in to is to XX win the to We

interest we're with the our are that. against happy how delivering showing super we're So and customers

Mark Anderson

Yes. it's of And in like contribution, it like think bit Michael, mentality. a a thunder terms a kind I more feels revenue rolling to me of

hey, in read in success people printed revenue people that for milestones to where cloud think all our the with rewrite three of all a haven't have of a public cloud. knit past, a the I because lot had It's of Trifacta acquisition back with the the of comments been environments. I've really all like we've basically few said, we together that's front applications of the end internally ends

but dollar the and those but recognize to the has that them, of will the to sure sort been ahead not to sexy said, haven't, hasn't that I come. And I'm really we R&D going to And fact offense it's -- be headlines We have so team have the -- hands work. signs of all work our that done the I meeting take that's of know And tomorrow, have. others is I successful." you a when been think "Hey, lot haven't

Operator

is Our question with Oppenheimer. Kidron next from Ittai

Ittai Kidron

time issues the through see my to Maybe and things are there's execute Paula, to execution like you on. things some year, through had there's to is, you longer that and guess process then or nice it's and better. fruit go Mark I first question question a take harder getting every low-hanging maybe some this,

can continue to you maybe So to working are talk still of and you about harder improve that sales the execution. here and now longer on things some

Mark Anderson

I'll that's -- question, Yes. you for. business and listen, last I'll we're the if it pass our because a has appreciate then Ittai, the to don't are I years, think company today. what almost this you demanding. mind. I customers That's And wish different very start Paula. off, in X you doubled submit to would what off I careful have

to are you the competencies, be that really along in different from you what want experience different bigger, If different that customers sets. come often with all and expect resources, that things requires

have, economic we whether you're as bad, And massive this always assaulting regardless good so times it's submit market total or that I would of tinkering. addressable that you're

learning that kinds that we You're make our the here that great tinkering relevant today we're that really people going things help them are the sure customers be in of future. have always the to with are the to to enablement ensuring

And sometimes headcount that involves changes.

And of do. you, thing I the competencies people for us, experiences these certainly that brought assure that And quarters. are couple changes and people I really different good to always in We things to good made a table. her team few were surface here and hard think on the But set people a some but did we of that's leadership senior always can needed Paula tinkering. very the the last

Paula Hansen

that the we rest the is we right, That's what to business look take through out of more, opportunity our the scale execution the that across GXK, a the and other add, efficiently, what ahead and demonstrated bit as little are to the I'll ecosystem. in federate which doing Mark. and Ittai, we ourselves, with is XX% And QX with partner

forward. So continue and take scale what as to we as efficiency and look it delivering opportunity are and for done go at we've I to drive us an

Ittai Kidron

Appreciate for it. you. And a Kevin, follow-up maybe

any I should any in we the margins guide, Appreciate of progression 'XX fine. we providing improvement other the considering? color think be us we about year. into You're you'd bogeys should like that to not things guess But expect next as that's to you are there. 'XX in that there account or take already year alluded

Kevin Rubin

Thanks, Appreciate we're XXXX guidance call, Yes. not do we'll this providing the Look, QX on obviously call. Ittai. the question. on it

macro the of and it we've about. continue takes to mindful an we're to talked look, time However, improve as perspective from execution

QX our guys thinking So XXXX, and have by are guidance you of example. growth as you about implied way rates

And of growth give environment. so sense in I this how baselining you think does a we're that

So anyway, I appreciate the question.

Operator

Our with next Bora Pinjalim question JPMorgan. is from

Pinjalim Bora

so understand base Insights, customers, as Any to more of to will the on bigger trying far they be one be able AI for move feedback have much I'm me. they are will question importantly, advantage Multimodal? take about the the the trying you TD to understand or Just to desktop and cloud? these folded in to AI namely cloud/Auto And of how capabilities think Designer Gen of capabilities, or

Suresh Vittal

at Pinjalim, available -- you, of are. the wherever Thank particularly our aimed the for that innovation our they all being is in Gen your question. is AI space, at, customers answering Yes. to aimed Directly question,

products capability and and be through the you the of data of Python patterns and the to But service a capabilities, engineer or we products. being a able our that Designer desktop data same in on the workflow both customers So the cloud customer at to available to telemetry which data have desktop a the analytics AI, look do generative community have desktop, given lens using from clearly, Jupyter allows with of it in our the couple build a scientist we the SQL workflows and dozen customers see will amount cloud in multimodal and of through will collaborate. Notebook. desktop this set in That have world benefit work the through workflow chat, our multimodal really

our of our to at it's core where large pressed on have, being look ability pain unique we customers, analytical customers wealth provides is to building of ideal they're it's strength and workflows customer. data create of point for models this we itself. feel customers personalized point generative every the -- of kind Alteryx Alteryx for this millions And partners Studio, a when and our behalf train blocks. we is with the results At to Similarly, that AI for this produce our that of time, in insights collection

cloud a AI desktop. landscape, So at whether custom-tuned aimed directly or Designer LLMs is their analysts Designer analytics Studio the create into it's helping

Operator

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

Mark Anderson

thank and the in at progress our with you, to like our execution and hard team Thank year QX And the operator. to pleased out customers, here shareholders we again and I'd you especially Alteryx. demonstrated say solid partners, momentum. close to We're working are with

breadth of platform and generative easy-to-use to unique automation a Thank we reinforcing and our differentiated solutions AI continues are a Our and market have with customers, good night. resonate learning of with analytics our new capabilities. you, machine position and

Operator

conference. This concludes today's

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

Alteryx Inc - Ordinary Shares (AYX) 6 Nov 232023 Q3 Earnings call transcript