XM - Earnings call transcript Q1 2022 | Qualtrics International Inc

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Operator

00:02 Thank you for standing by, and welcome to the Qualtrics First Quarter Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's conference call is being recorded. 00:22 I would now turn the conference to your host, Mr. FP&A Relations. of Head Wu, and Investor Steven Please sir. go ahead,

Steven Wu

and to Thank quarter fiscal XX:XX first year welcome call. Qualtrics you conference XXXX earnings

the Zig and On have Chris we President; Beckstead, Serafin, Rob CEO; CFO. Bachman, call,

we remarks, answer prepared line up will Following to questions. the open

release of will press of replay forward-looking relied represent beliefs date. reflect and are expectations a variety make our on XX:XX cause statements of that should a differ be XX:XX During or update today subsequent any concerning subject views today's Relations and that to materially considered Qualtrics could expectations. that under Investor as and from disclaim statements laws. and statements to obligation not upon website. can may as future today's uncertainties actual found These risks We These any results, views Our our of call results any the securities call, be be as events to we federal of our statements forward-looking representative only outlook.

over for the discussion including results the and Zig. on financial fiscal quarterly it December will factors ended important XXXX XX, March Form could that our further and quarter Form other material our XX-Q XX, For refer report XX-K annual with year filed the affect the to to report our I SEC. turn that, filing SEC, will please for with ended be that XXXX risks XX:XX the of With

Zig Serafin

thank Well, you for today. thanks, all XX:XX Steven joining and us

there. the sad and invasion about moment I'm to a how to to of complex just talk the numbers, get about are the that’s going we Ukraine and Before we take

proud and and work terms matter of first have support medicine. evacuate, refugees other up nearly of have a of are has support whole philanthropy by this of relief team Regional agencies. incredible that teams company in been work, stood with I'm already on And Poland our XX,XXX our XX responders product and and In both days, to done Our shelter, Red new used being Cross innovation. the efforts, because helping team the solutions in refugees XM immensely platform connected

out with to support Now Our the to everyone quarter. by them. we're working let's keep go to the that's going them turn and XX:XX war hearts to affected

we So Revenue history This And growth numbers, million, representing as pleased of particularly in our you can subscription the growth was it in revenue that another growth. QX continuing quarter robust and for of operating outstanding to see positive and quarter builds I'm up was company, was have our XX% in the invest QX FY another XX% $XXX on ‘XX. the the year-over-year delivered in while year-over-year. quarter. biggest $XXX million, is margin,

midpoint XX% is X,XXX year. has more seen as critical annually, the In for important is million experience uncertain we was company, XXX%, ever. continue our with category more the our We And experiences two to a customer XX% products, And want. Every ultimate the uncovered quarter. management the all have Qualtrics QX and to build This how we're of scale. we've and customers that best than priorities. unmet that find, have employees. to we from employee out them give revenue guidance which advantage then and by them a This helping more we highlights can them I deep help we year-over-year than personal last raising significant $XXX trying figure Our our matching XX:XX net all-time we the QX at services that range, growth. empathy, representing now and momentum And their retention rate speed and needs speak is that people the last management. do times with than jump spending their to they experiences top and retain in to need relationships, that decades CEO customers, how pioneered in $XXX,XXX and lead. high build that experience They're with XX:XX keep since

experience of XX% operations to an the manager in than deepening Qualtrics which in and happy Qualtrics and get single system. their every they up we're In who experiences. to to fact, And impact on and data is deliver an job connect structured view and our digital form experience, insight in the Experience launched relationships mental all be In our the teams platform. them to CDP, to retention. sites in than companies other improve places. We employee of Take XX:XX connecting proud new mobile were trying navigating will significant powerful and engaged CRM, for that investments an their through operating launched great a to of we Experience and communication In people significantly ID, on platform drivers QX, more to within to spend we the other every XM seamless Kroger in with is operational And third-party systems. important their burnout, XX:XX unhappy employees, teams feedback a and benchmarks health And seeing has companies, more is which the product. users. out single feedback which have expanded them. leadership. giving life employee deal customers. their deliver recognize of Qualtrics to better experiences tune We well-being now on enables customer media, all the of and we're customers, sales that just things now X the with XX% example. their hiring partner the and the new brings of shoppers is to operating In digital how We take experience Experience on physical pick based experience and of the what And to HRS innovation center, of of is of are platform and employee ID. pandemic, category contact to incredibly deliver also more in both Discover increased our trust who proactively customer Qualtrics. across saying app Discover they QX, they're this is that the to care that mitigate on in we power than brings platform with one XX:XX scientific retain they manage platform. employee what's (ph) help from another of chose going options, only momentum existing and employee's single an workplace with and company and the with captures new XM and XM that Chipotle methodology the we workloads more solutions, released In the their every world's all Kroger drive XM XX:XX busy having we engage customers. then with a layer who it's XX,XXX new and innovations stay and experience, able QX, use are financial a in new long-term. experience We Kroger added likely their safety customer dine-in loyalty. led billion then dozens in central Clarabridges’ element to find launched that a our onboarding right Only lifecycle process, employee use social best and customer us in And metrics, saying is system we experiences engineering which customer way to better made their new view to media. directly And unstructured a And new to their We're IDs strengthens a data Qualtrics We Discover, and largest to understand their to people. reopen XM initiatives important integrated and improvements discover balance have industry management safely. XX:XX result, and employees review a social as and the full value of more way upon on

success, growth our leadership attractive to market a approximately category is on opportunities. Group, be in full-time Our discipline than including relentless we Mizuno draw In expanded NTT QX, this Hyundai, with to a software Royal more including customer scientists incredibly hiring continue tight relationships employees, invest continues time extend DOCOMO, XXX brands, fueled to and focus we an workforce and XX:XX ING critical top by and market. the Mail. and XX% with new iconic in or engineers Internationally, labor formed we

that, on organization. they experiences help build digital all with on experience, experience executives to even to buyers a been the and XX the Infosys, outcomes of new through watch across streaming I'd close, including like key phenomenal services, got I Innovation improve you're XM+ contact Singapore price internally the Europe. ability center investment in XX:XX an serve great hand the Rob. world, new employee at collection they XX:XX management And success XM our of which also XM their launches experiences and expanded E&Y, Qualtrics employees the our and over center industries, new I Qualtrics is our with value HR. rapidly I their lineup the QX, to launched healthcare a launched with invite enhances innovation in financial recently make growing and Witherspoon congratulate Obama, with I'll customers SAP our We've formed stronger. than hospitals continue inroads scale Providence Development Asia more One and Discover cash and our with great and center, relationship Providence. we we satisfaction to X,XXX They will outstanding office patient another partner, to it chose healthcare. is their on before region. excellence that person world-leading power our our deliver to and receive. Reese their Using their to of to across another of April chose understand service Now leadership to the seeing a and Qualtrics. the billing their their for for with platform the Michelle partners, and you customer deepening XM IT that with the customer it And Board in better quarter. XX:XX XX which And in In patients with our in XM of our around IT we improve experience XXth. to Discover want In for Qualtrics partners ways channels, We're speakers launched and extend London XX:XX brands. the of never deploy clients. Economic to base relationships We and built the increase on practice from our throughout Qualtrics thank ecosystem, QX, clinics. This which particularly We better

Rob Bachman

Good Zig. board a as in public It everyone. the Thanks, outstanding is a quarter across uncertainty. robust a row time QX and was another of geopolitical afternoon, of growth XX:XX fifth quarter company. economic our during

said, and net across remaining billion, both is other months million representing to XX:XX revenue Zig million, revenue the As $XXX.X We our up revenue contracts all year-over-year. XX:XX in Subscription margins. the metric be was software XX% business. rate to that obligations XX% at year-over-year. second customer under was delivered remaining ended recognized base, includes future and This performance X,XXX renewal dollar-based remained the Customer customers. than $X.XXX to expected under XX% XX% spending which first the $X.XXX year-over-year. in representing a total revenue contract up in recurring retention with was $XXX.X professional our is growth annual quarter year-over-year X% XXX% as revenue year-over-year. and XX up Current the as quarter, $XX.X up the revenue performance quarter was more expansion our billion, for next future row. quarter, year-over-year. $XXX,XXX strong services at all services first grew revenue XX% for obligations, Turning along Our first million in quarter new contract Professional

gross margin the quarter. non-GAAP QX consistent was prior Our XX.X% with

period. Consistent for quarter million plan, operating XXXX. first more profit of the $X.X basis our in our XXX in The operating to frequently to to the and with more contributed non-GAAP year in margin of in-person in an in returned X.X% begin compared travel to QX. approximately Our resulting business operating a meetings was we travel compared for to non-GAAP reduction margins increase point colleagues prior X.X% QX

$X.X XX:XX a cash were significant million, new $XX.X we awards, XXXX, cash QX Operating in higher achieve Additionally, outflows was the negative stock-based of the current cash QX payment to lower seasonally have million million $XX.X was ago relating annual to QX, $X.X to year ago our percentage flow compared to of impact in quarter in to of liabilities pleased million payouts the million, cash hiring period. million the a flow Free to of was year. $XX.X to in significantly related in allowing QX due year employees compared in period. during compared negative the these cash SAP equity-based to $XX for settlement

our cover As a collections the and use During best on equity related depending of position reminder, and or cash Moving to equivalents. we in anniversary million awards of may our and XXXX approximately basis taxes cash to strong the equity in now over we the cash one-year equity in vesting This that timing flow the with to We exist the million which vesting of $XXX due peaked quarterly QX, our of paid sell to flow to term. our outstanding cash IPO, year of XX:XX for will share cash on quarter QX a equity due the a net assess cover related XX:XX cash one-year to a cliff Tax fluctuate to quarter-to-quarter QX of in awards. ended settlement fiscal cash quarter. majority outlook. amount taxes cash to it’s awards in triggered business a the awards. $XXX.X if fluctuate performance we longer free believe to related

the at to representing We for year-over-year growth million to to XX% expect expect second we be the at revenue representing be year-over-year range subscription $XXX to million, XX% the $XXX midpoint. quarter $XXX Within growth this of million, the million in $XXX total midpoint. revenue

per loss range one to of For net assuming in one non-GAAP expect expect non-GAAP share per fiscal X.X% penny XXXX, X.X% year outstanding. We XX:XX profit share $XXX million revenue total to margin of of in XX% in billion. and operating shares billion penny we growth the to net billion growth range year-over-year of ranges, of and revenue At year-over-year this $X.XXX revenue of a subscription $X.XXX of the total of $X.XXX respectively. represents and revenue to subscription XX% billion range the the midpoint the $X.XXX weighted

non-GAAP expect in We margin of range X% to X%. operating the

billion, margin. I As million in We expect shares we working while be invest beyond a toward financial $X.XX weighted Chris for per between With assuming operating long-term we over income of happy to your that, share XX% over outstanding. disciplined and XX% our targets net how non-GAAP scale and $XXX our growth, to $X.X revenue margin and XX:XX free XX:XX are $X we will questions. take cash Zig, flow continue

Operator

question James. [Operator Brian Thank from first comes you. Instructions] of XX:XX Our Raymond Peterson

open. is line Your

Brian Peterson

gentlemen. Hi, quarter. on XX:XX Congrats the

really little us strong on the So base? resonating dynamics I a in bit quarter. just are up-sell start wanted and that NRR of with to of products maybe been this the was you terms that XXX Can help out what of again cross-sell, dissect kind top

Zig Serafin

at ask Sure. mean, more about can then cases power here. step all, this it's also you're the we and the quickly bit and cases and of the which able the we that's enabling landing, new speed use that how Chris is context we new on at use what's how Zig will that application built and start This budget look with but very color. help or in of of on to growth translates that's how think to important I there and that and the Rob, technology partly a into how to Chris business, are NRR you're Rob of number, relevant, long-term think durable customers this. and add contributes innovate suite, I operate inside let turn core look back I'll the first system importantly that a value the just scale at and many company, behind I'm just centers XX:XX to and expanding to highly reflected to is one different and you're but it going adding rich is I actually we

Rob Bachman

I It would see that Qualtrics is system. operating of more value consolidation, you've we and then, that is talk won't continue closely as in data all about of power our on this appreciate heard XX:XX running we to that consolidate It's point to to exist spend. that the customers past, technology having something look of And by the watch the Yeah. within balanced. Rob. and that balance what and at variety and can obviously say, place our their Zig, solutions it find add experience and to as like we I be and that off management the in continues the they see. much us the same gain They something

Brian Peterson

Rob, a And follow-up. Understood. maybe XX:XX

Just seen been an guys. you investors, it's I Thanks, have in on guys. conversation Europe, internationally Ukraine? from that's conflict in impact big there Europe a particularly been any investment point area for What for is know the and guys you in

Zig Serafin

our be is whether through management performance as particularly operating to way closer naturally we inflation, part customers navigating company still the off XX:XX help talent they're on we've I'll helps on the that we'll and for the markets, businesses tell like Zig, out create been to and in that idea navigating of But more of get to and I happening Europe first relative uncertainty to frankly, I organizations comment their and able let and company, any for that and and able part people think it's way and just XX especially Chris times whether years that I'll I'm the able in on better that to I better right, is First the customers expanding capability mean, it's foremost, run in war advantaged, be the this we other across you I workforce team and And that's got experience of create been this you, be in and and little is our we're look, to able again particular. we've of part to all start it. we've been be in ended little dependent and off, product relevant Europe here. more a Europe proud highly their mean, of going what's watching got to to an guys, to specifically serve off only let one. something been it. high delivering. important That's an a at bit in color important we've the navigate Chris the

Chris Beckstead

XX:XX Yeah.

fully is in specific guidance question we globally So guidance business, the business overall. reflected quarter of first the the roughly the in with in all, experienced we that uncertainty, by really in Europe type is to just customers hesitant Russia a overall quarter. our encouraged relatively stability our reflected the we business this we're our business delayed And of of X% that's XX% was the and providing. few of the following in Europe that in gave, quarter results the in deals small. results and less performance were our to had into performance as about please of of there and area as so go-to-market And pull than on ability its that perspective, and that From some our Ukraine far trigger who as this terms and a about in overall,

Zig Serafin

that continue on long-term front. see is XX:XX we the to thing all biggest growth the I international over think here

business international about in why of is our I smaller that see hence accomplished in front, the given days my earlier potential what we're on see QX. we early us today think is as doing the relatively and we've that's international overall you what and percentage well remarks we're of investing just what

Brian Peterson

Thank to you. Good hear. XX:XX

Operator

XX:XX Thank you.

comes question Keith Stanley. of from next Morgan Our Weiss

is line open. Your

Elizabeth Porter

think wanted you XX:XX And about for strategy, get after about next an the whether the customers or Hi. see helpful. wanted the Any on guys Thanks on the do it's Keith biggest higher you much. talked would P&L there how for This be I Porter in the Congratulations vertical to we going benefits on, a so past have retention? sectors. of and to ASPs Weiss. is on strong strategy Elizabeth lower verticalization should touch Thank quarter. where color healthcare the and public really to update you. opportunity

Zig Serafin

and you. hear -- you foremost and good to Elizabeth, first The XX:XX thank and

they that we that's tie points there effect different and when it the important platform, First the then many that industries. it really, examples playing one nature whose companies solve, of are on consumers, unique that specific an that in. specific companies and the their in is those I that this also it that industries, and an Healthcare up those to scales an designed business We're tuned I it. tie the building an deep And company it's systems specific to our is technology of scale are in across that and the designed for said, design that rich getting we we value serving. industries, foremost, mean, into several workforce, and impact markets can that's a are think we've technology, urgent it's they we platform, we've companies in because of an to are we're our way end create very around comes unique, to looking ability and It's things important that the designed understand that of of ecosystem XX:XX way industries. organizations has in. horizontally. really And in systems this important Now into and understand design point problems business go-to-market helping point. helping operate looking, that We also also company. extending building have make

well-being and person providers with the evolves. frankly, into fact before platforms as XX:XX the authentically in nicely of and way that in then and up tunes end and patient the way lifecycle that tunes much into way health management we up that In the the the And have becomes health customers As healthcare patient the with in well. more an tying example, that their with provider we experience the end integration the records even interacting how patient.

beauty just And kernel business a so building industry level, everything I've to these It's been only building are and is factors really operate to on because horizontally. you're important very across specific a a able to around but multiple you're multi-dimensional, We've time bidding have the horizontally, and on scales be hard I described them that of if court a scaling to part -- will also company. vertically. will industries, that be growth option the opposite. to Chris? in to the deeply us reflect you give and We designed the the negatively able scale of want go in more the

Chris Beckstead

Great right. All Nonetheless. XX:XX answer.

Elizabeth Porter

then on range. upside follow-up do margin margin to XX:XX margin just looks despite in revenue call that of guidance. quick the the And It just side a the And to to wanted and on the limited the lower coming out side. be came drivers above like

mentioned you some any count, but be of bigger other Now the head to of to there? drivers aware

Rob Bachman

something prepared going basis remarks, It's a are hybrid XXX the we from is in very both the Appreciate move to in-person that world as on shared what that about Consistent Yeah. experiences. see, return saw digital experience we and into this world, question. we with great I point it. focused that forward travel XX:XX pleased

And then Clarabridge. also on we're be in the purchase some talked So see as return. to were we pressure is still about price to move seeing forward. from we important the that business and accounting as past, the customers integrate to then opportunity margin with investments we've continue and that pleased travel something making Clarabridge And

Elizabeth Porter

you. Thank XX:XX

Chris Beckstead

tremendous travel to continue is, XXXX on The in we've is and This investments model see the about our be thing just return to Chris. go-to-market. it business investments are leverage our return its that integration, to these out and Yeah. we feeling opportunity beyond, and in there that we one investment make good I get able into year really opportunity provide and as for to that go those have made this as add XX:XX on of and leverage to to we

Zig Serafin

is, going in discipline going a same I we're the company way. and way, pivot's the record because also that position doing on of growth markets your nimble, go time, that one we're in that. in after this XX:XX the highlight, being where good at make for we creating have long term last discipline, necessary Yeah. a right of [indiscernible] interest to think margins sure the and making attractive But track comment is it's durable as investing well part also a we're to our

the of philosophy part hold we ourselves and to. what that's So accountable

Elizabeth Porter

you Great. much. so Thank XX:XX

Operator

you. Thank XX:XX

Our next question Bracelin comes Brent Piper of from Sandler.

Your line is open.

Brent Bracelin

afternoon. environment understand clearly risk in risky here experience where wanted environment should And help Good new than that up in and are how an think in is lean was XX:XX how thinking area Global really you Can more us challenges. clearly increasing are this are us they about navigating different positioning Zig, how business, help category? ago. year to are it understand consolidating about products? environment, there very management this we you factors the how going an better an increasingly on you're a Is really holds it to understand you're -- about competing Just products? the

Zig Serafin

Sure. XX:XX

a to way where First got and the deeper share much this understand So and two why why growing after, and they of through and closer the perspective that part highlight are stakeholders the capture that's go CEOs where seeing closer got for expansion right, building in helps to goes opportunities, talent, timely more the companies we've companies core we effectively that customers an today and time that markets, markets be decisions cycles, in makes management outside see responsible are with that experience inflation, and reorientation, get engage why where the up to wallet play solutions positioned to those where opportunity able we go make as their seen are how to of saying, after it the able decisions performer be for they variables other has be as And marketplace. this in operate how is a we to leaders end human going we people we its how for company, again. other an ebbs the that that to are a you around technology be be our decades. and role to so a war they've that different uncertainty you and technology, serve. our XX:XX technology see run where you that to put is that also and important many calling and in many coming is something a flows, time What that has is been different This flows all upon companies consistently the our happens is is We're This the different the understand We in and and you so ebbs company, around that obviously important are. lands it's and may off, technology we're how markets our discipline geopolitical an to pivots, given Qualtrics a of relationships we're the it building time is way Qualtrics depending and they special an category, well get microeconomic proper important. serve that making with is all such to that about want to companies packaging timing differently. different see really we've look, to be is our and to been cycles I'm has help this throughout from platform. And a markets the and going we've a company in vitally shots to more but and macroeconomic, build in on market make which we right. been other situations. factors, that important extremely pricing think The serve of them, our decisions, able the to

letters obsessed the core accommodates that. like values we're and resourceful, with as of our discipline scrappy, We is that philosophy if constraints way operating company part how have after being important highly the being of of And Now that nailing quickly just on creative also everything company and reestablishing the opportunities, that operate we able internal the system is make the company are have of together also adjustments one we we to stitching would company it. Taco focused difficult be and run Now we as and discipline to this a a that's about attractive the what is but last after around technology of said the means an means tech the the in and of being do, that learning in philosophy. being we and customers wherever a and was XX:XX if going pivot also market scrappy Look taco's that go market, be that and world to is hold but in S, being stacks, being I a right. the opportunities didn't a look, technology position see of nimble, internally, customers. we the different part we seen forget

the timely mentioned different different It market same. we important to system. We the the new of And in relevant the enables see not all I market given And platform, ones things the we different components like things a today, building but headed. solutions We remarks very anyone in the way really is that. are company engineers philosophy up quickly, applications. see a U.S. in enables shared are around is where applications that happening that build Europe, look single customers data our the across as of to move our on top also We're it operating in

and different. Some are we common are

important really a technology the and how have company. we're philosophies accommodate a we us of of actually that's how and to so the factor running helps lot values the And

things. context gives additional how hopefully and color that on we these about think you So

Operator

XX:XX Thank you.

Our comes next question Morgan. of from Mark JP Murphy

Your line is open.

Mark Murphy

XX:XX much. you Yes. Thank very

So of consolidating other and QX follow-up. Zig, Qualtrics above and the over data unplugging CDP’s in record do customers of I they I'm they how Qualtrics kind as wondering and the systems? quick a and that, was onto are trend have of viewing for pronounced products CRM system And main customer as just

Zig Serafin

Like, the unique analytics, they've truly designed and is have center, but for as advantages an analytics that companies example. that's pipe media been move like of develop not point trying of XX:XX can not an they're analyze, monitoring we system a scale. social One solutions call to solutions but off

data our able bring make And can the so to over telecom our to that to We their those platform. we I companies our all importantly, it data together. more on systems to platform. bring in very for helping assimilate like programs mentioned easy be But and vendors them that remarks,

our our a I are and the system. of attributes the platform. of ecosystem an other your is the so companies part. it's around platforms. your important question an CDP’s standardizing That's one that on of XX:XX part we seeing like trend And is other continued to things mean other heart Now of technology of question,

that say, they very are we've ones relevant our the data of experience inside XX those in bringing connect it let's support make got today. the factors augmenting very of a a CDP’s can’t information plus let's idea human that do in. easy companies let's with into say, other billion rich CRM, we to inside new it inside more one of it's an So We inside And which X for market. which XX they it's it's HRS the say of information And have, system, populate around that kernel then of different systems. in of profiles data of that

IRR which also the that rate, for those system our can see not competing value you we're system. companies we gracefully with new see. new capability which adopting the our end reflects a at not supports way companies rate We're complementing the And and connecting So up coming we're partly that you also of that up only But in onto logos set in, and them. systems. light coming whole speed

Mark Murphy

XX:XX sorry, Understood. go I'm ahead.

Chris Beckstead

our couple that -- we platform organizations to there there platform Difficulty] was integrated into people have consolidation, out [Technical just able add and Discover of That's we the going of platform. into now the an XX:XX vice we versa. Qualtrics technology on added the consolidate saw to I the to opportunity Clarabridge -- service this XM and now being and we the terms in our as trend are to further with platform have be of historically using that layer that want and did as been

is say and innovate And trend, the anything consolidation seeing if continue we're accelerated as to that leadership. I'd we enhance so our

Zig Serafin

Yes. of is in that budget Like the tapping pools. into call part center. XX:XX also new And

Mark Murphy

you color. XX:XX Okay, Thank for that understood.

about The the other customers question results. I had was comment solid despite you're a Europe. in few delivering It's

or there? any assume said What customers there business any seems hesitancy a confidence because pretty of just think in to North that sporadic out the for sign America into I good think safe is instance, you to few was following the it -- delaying is isolated guidance, convey that, Europe in I quarter. to

Chris Beckstead

Yeah. XX:XX

really So it to has and, of seen our not current the this date question, necessarily and organizations away They of seeing overall macro our didn't technology what kind deals. those seen guidance. is been seen reflected and overall our following see that reflected view we quarters isolated, anything moving systematically kind of we didn't have from at lose those of not annual We outlook. anything into to delayed point overall the into any factors the just got has business, spreading we've we in adequately the relatively the changed we've

Zig Serafin

happy there actually guidance but it the that's at XX% our the what just growth, seeing also that to ability are and put different And in companies to the and we perform. we're dynamics, out and said fewer that that important we're factor the really prove of the able providing. going reflects in it being just guiding these scale subscription because is picture, into seeing is all we're I’m importantly for with to that how fewer we're the growth reflects highlight right. we that scale, we're what kind very really XX:XX indicates look be And for markets to different that year-over-year, demand,

Mark Murphy

you. Thank Excellent. XX:XX

Operator

XX:XX Thank you.

question of next Truist from Terry Tillman comes Securities. Our

open. Your line is

Terry Tillman

you, XX:XX going first a have like on I Thank for the based get Yeah. I strong quarter of where and to solution. first of they're rate, you know PinPoint Chris two would large are we're cross-sell and I contributed, go-to-market every have kind guess where Rob, getting technology questions, in quarter. not Clarabridge. updates and the with we and team starting exposed how Zig, do a is results up-sell but to this so you question to the doing terms and very they how

follow-up. Just a doing kind What you could better are I then a what card, had you report And positively? surprised by be with? of

Chris Beckstead

week so solutions We've together has we've from build greater comment together track together. come so One teams seen is the good. say, saying now. and been teams XX:XX go together the the I on-site well, customers. Anyone take one Clarabridge, a pass In working CEO to our word of it's all to had far, what of execute together we've it's and relationships from And happen help a to we we're these to what not I'd pleased with the in broad working well terms be just Yeah. very, together. received how pipeline very coming team building expected go-to-market last all on that that within are to amount we're of and seeing us who

Zig Serafin

are of that team solutions media many, part are building value called conversation about and of for the and and really customers together, powerful conversational anymore. your they our a great, analytics It's say, when XM time and of point actually world's center XM is serving power bring our for in it's companies connected not platform contact lot who of waste called there of There the organization, met to the they has is, expand we're social like market going now and the analytics, I’m companies importantly here in a separate that Qualtrics been element bring Discover focused fast, and times ways. it organization specialists the Well, both others. around works customer on system, specific XX:XX the We sales and best solution Clarabridge sales and and people opportunity are the care employee to now opportunity. monitoring the our other are these no value word to many expanding the also several the power is of experience system and overall Discover. able And customers some larger and Qualtrics year. with

two So of that's product contact, important we most get that you one were delivering operate and part are execute and we the how one philosophy the the playbook that's sign together. marketplace sector is, to and the solution of you we it's of but it part helps to company a expect to of gives it's the expecting part bringing up we companies as to and were it's

Terry Tillman

Thanks promise say I That's again Discover. be it'll won't XX:XX again. great. I Clarabridge

obviously think were December release press markets turbulent in The I got through to AWS. question. November you'll November with don't follow-up continue partnership this year. much the related a and it’s this on XX Just and play

your they part if a could lot love AWS. just would bit it more I a is market. you there influencer and I could curious an side, little maybe They're because platform this the the if helping was taking think of there. on on win think technologies CX unpack at an in I becoming incremental become business in I'm customer importing

you. a more important pretty press anything Just when then? Thank about like you release looked share back can

Zig Serafin

has platforms that's of we well both can like are I as AWS right. we platform you as if naturally they that also important of customers looks lot a that made. run and think from with you And being Yeah. Amazon running part really like companies, active experience effectively know pathway and center the synergies places same it stack. in on and then, what of on mean, the data it for as them be the XX:XX commercial have, a because solutions they this one customer is, company It's as well, to it shows of so, for patient both that platform the have with to important. lot what you industries, say as world Qualtrics, in example. very that And innovating is beginning customer really and potential its people doing here are and about way other leading look flow based experience other part deep -- and helps introduces up and that a company who The between on we other are the noteworthy had XX:XX the leaders other the Qualtrics with some

everything So more. a said you little that plus yes,

Terry Tillman

XX:XX Thank you.

Operator

XX:XX Thank you.

Sachs. next Borges comes Our question of Gabriela from Goldman

open. is line Your

Gabriela Borges

you afternoon. to Great. a XX:XX taking bit. the love little up question. Thank Good Discover I'd for on follow

the a you priced Zig. the when pipeline Chris a customers engage the is deal will see have look sizes how bit deal and you how typically evolve the think Engage, more in you does Discover and out? Discover, deal how see, Do break at does that time? half mix half the both What Discover. you for and example, and do I Talk like on little question for So about Engage

Zig Serafin

Gabriela. Hi, XX:XX

answer answer the pricing part, customers. the a So Chris natural second first the for part. It's extension of is and we platform I'll Pricing pretty that had straightforward.

license response. conversations through data simplistic is conversations how answer let the that both It's the there Chris number So, as that part. product up based way. I'll in upon Thanks consumption system. a well But utility as think run a existing a to to a license based or flows second based about and the of ends actually that

Chris Beckstead

size, Related Yeah. does relative it used the depend the XX:XX to upon really case.

industry there. to and Discover is why having Clarabridge you XM get the through analyze well data and the excited added power it more our about layer the technology trends as the both unstructured and layer the we're there to where we've along simply about as or you other reviews center that you're be of significant in call or is that hundreds be as a you trend can the industry, engagement on which terms analyzing solution a can heavy platform. as helps we're also unstructured facing. If And an like of of and millions and think call unstructured the that there channels structured of us reality is more so heavy And shared given of that's thousands data online know, that or the data the feedback

So it really does kind of together. all come

action customers give solution Zig mean, we all they an need across board, analyze time. they overall I as so can As take are the real to data. integrating mentioned, experience that in what seamlessly

Zig Serafin

Yeah. XX:XX

form the XM the such because to support of okay. media is, a really that IT review companies an company everybody what that powerful we're we coming interactions not tune incredibly that's on is this unstructured and maybe helping side, customer center an data and through elaborate any posts, both department, then because into pull feedback employee Discover understands me not we and just Let call that's on new on other social help do as together, chat, the and And and companies sources. conversations, call addition sites

had have time There improved we XXX especially intensive able information in be highly is models in in improve through. over we deepen then processes sophisticated the like manual these a customers, we channels applying that people that automate it things efficiency save call centers, to to the loyalty, different order of that end And go through, All and typically data different but relationships. up in to analyze industry then key way.

as of themes so existing partly some our are have the also which these remarks. both company, adding customers to Thank logos in and that we I in new we're And well of the what mentioned in the momentum as you. net that seeing some Gabriela.

Gabriela Borges

to follow-up Chris, is you The Has is for a in was it That How better? that you trend getting that that April. structured the helpful. on Europe. XX:XX been dynamic isolated color worsening few or delaying. is customers one saw

Chris Beckstead

the reflected stability it consistent, time. seen dynamic relevant the some but in have say, in in Europe, terms would customers. where in hesitancy relatively of what overall a more we market that it's has is seeing uncertain by amongst continues there I time, fact Yeah. of business same to terms the in present never [indiscernible] XX:XX degree we're as of At our overall

it's customers one are where because with in the relevant of terms experience more when that's it's been uncertainty. think been, management so I relatively facing it isolated never drivers that, of And seen behind why we've is

Zig Serafin

and of our better able how part do back another suite. What’s on go of have Core product XM product this another the to to research is Design product market one XX:XX the about be like leveraging position understand may our then themselves. and interesting to part part go to XM or they go example area from they may option to they for the And go and to then of

the just bit Chris made helps, a that that comments ago. So notwithstanding

Gabriela Borges

Understood. you. Thank XX:XX

Operator

XX:XX Thank you.

Bhavin question Deutsche Bank. Our from Shah of next comes

open. Your line is

Bhavin Shah

when question. go And my Thanks just for continue or you question to taking Great. as others the little become segments that less that and asked? through can CDP, as that become in are data more maybe XX:XX maybe there bit another ingest how leverage adopt exchanges look elaborate actually they've usage customers products maybe that [indiscernible] was the up to Zig transformation. customers expecting on prioritize Chris, brought not of a some customers and all prioritizing

Zig Serafin

way personas for you factors be collect really the to and to customers you're, populate get We and that few that that then and I the that example, look, Well, job a standpoint is to this customer might in the trends to designed. you are up pop for that have not to and your will end for the digitally to or parallel more you out very features factors. to engage end often, business. Experience theme become XX:XX end to It's interacting they for is ID start to that seeing you up you that customer. care And ask And more like you're connected in powerfully, operate theme have important factors you telling race how be that And a taking with are this start industries to brought that to. convenience you connected larger to better the lifecycle someone. directly or the that's through there a Qualtrics need business or to to segments can going going attention to but customer efficiency pay your is information with start beautifully around place, you recommending pulling a very from with products human is the people orchestrate is be do very influential then a need relationship important business, that the that XX:XX there where might up important So Qualtrics is to navigate them use and with able differently end of internally with.

And point on that are in and There's fairly lot efficiently What idea data workflow or low they we're sit okay. together. actually you capabilities is Secondly, are with And this and dynamics solution interesting scalable businesses in of the automation, something to the more spend growth way. we create people notice provide break of these that doing a money go lot fashion, you'll a system. it of personalized engineering a businesses. all a can so one-off that are can that that a urgently to doing create not semi more and helping connect very XX:XX companies we're bring through together automation to one more are

be If right. the at is serving, they're you and look [indiscernible] which the business, end a end be be for the organization we're companies if patient big what personalized relationships could step-up, of the much customer at day, or we're between the to doing build more picture, helping could you could that stakeholders an the deeper

enabling systems the customer end into way And those be happens those building finding business and what so just to system, or an we with marketing with their CDP like important, more our right. platform. think But then a much And that tailing it automation orchestrate example. the of and published or business play your up are as closely keeping if They they CRM that not data other as you both but help about an is the outcome, record way our might behavior role. customer them integrate then outcome, that automating we some the or systems

the that's relevant we So of it. digital are and The come trend big to together. role how things all these is

Bhavin Shah

And just follow-up helpful. Super a XX:XX quick for Rob.

in that XQ. isolated? this embed the Why additional guys some guidance, or persist you becoming not on the Just you've into conservatism impact of is just seen fairly given just may European guide it impact the confident into that

Rob Bachman

XX:XX Yeah.

Here's is what done historically, our I philosophy on guidance consistent and would as here. comment the we've

and the we at set into we tuning factors our both guidance macro a the and level comfortable company are that with. are the We level factors

and talking coming that into you we're past. taking come So, hear we're relevance think account. in where Qualtrics -- the that it's to to tone that's times seeing taken why of of And is business about I uncertainty you're this

Zig Serafin

at at end business day, XX:XX attention is of for repeating keep of really Look, how reality building mindset is growth going durable market. scale. is, mean the you I of I'm to a we're and a important, to got the a pay operating look, That the this different lot long-term in factors to

and day, the the not That's quarter-to-quarter. important. us We But out, of at system thinking we're technology three to with that. that also the are actually end We're fortunate helps company this years thinking two, have type we the at want, we made remarks of want the business that Rob type in closing of grow end which we of the that in is reflected as this the it. economics

Bhavin Shah

XX:XX color. Thanks for Super helpful. the

Operator

you. Thank XX:XX

comes next Our question Kirk of Evercore ISI. from Materne

Your is line open.

Kirk Materne

when partner might much well, Thanks if into helping some customers we to Zig, the I or on talk to quarter. required partners where XX:XX you deals the about and your selection engagements chime in far, wondering you the influence talk here want to organizational especially might and to you're you've technology? too think up about congrats or very Chris change thus was get going but more or bigger seen how maybe Yeah. take deal just maybe as sort year-to-date there can on be about of of

Zig Serafin

Yeah. Great and thanks XX:XX question, asking. Kirk for

talk company. integration frankly, it's think enabled a innovation sometimes how that type a And is because have and class new I first for And in off, that cases. what So important platform and really about overemphasize systems built partner might is platform you open value we of can't does it partner, the one they of ecosystem think important that in used of an ecosystem. people of

partner a have We ecosystem.

customers is that IO We closely their driven already solution companies build are this. from on who them hand-in-hand. them. Ferry is also solutions important. only Deloitte of to They companies with they in might the we industry, another uses It's partner experts Ours list with companies of And is and us. like Microsoft, over industry those many example. our their experts by is We that like was tools There applications have engaged and expertise. exist are are One be practitioners delivery that it's they as McKinsey are our right, and like HR consulting. that Korn of from example example. They is who are on the systems an multi-dimensional. on that's which by like stay coming well coming on there PwC take of is is this. like or of example. and E&Y example the extremely experts call. to partner, system A XXX another strategy. Adobe, They crafts the experience I who can system, today. are as growing. Accenture dimension our Google, use category mentioned different an psychology that are tie with customer for excellent another might lot excellent others they're create help and class companies platform. as the and Infosys do way and companies companies customers. They whole class it Another who applications other builders. companies, types SAP, companies of using They then leverage partner want But the the in are XX:XX ServiceNow an using integrations like and and is with our software tools be the Bain, of XX:XX want

types ones is, And in along. unique applications these parts existing all also that customers companies and their bringing have like the such advantages have companies I've other are playing that mentioned because And the of these It is practices. have so we they find of their platform. open we too, an one that or

top for and of an door so company using. HIRS experience system, might the might a create expand And a value or on that to that be example. whole then company system that's each You the for unique all will on that new have bring XX:XX workflow operates the capability of record that engagement opens system they'll tricks example on system focused up of as that in top HIRS of practice that

Oracle has system that hey, SAP something has factor the Microsoft out or system for HIRS implementation on So what an us top Salesforce success be or system. example, Dynamics turn might that CRM then layers or to of

the have associated in So human are with understand now we or expansion, operating management the layer those to of drives that better It This flywheel outcomes right associated business. companies run it the those around practices in applications experience that contributes and order an that inbound how the are new bring business effects to with partly opportunity. factors experiences in the then drives systems.

hopefully So that more you gives color.

Kirk Materne

if And that I obviously helpful. of mentioned through slipped That's Yeah. XX:XX a quarter. ask those deals the you Chris, follow-up. just one couple

I more you've a control the comment has element the early still a of thought can like customer think beginning conversion of you building year to but earlier might days pipeline would guys that anything at the obviously the that, you very have it? building there's track what the or mean when changed this about for all pipeline a is from about you augments sort opportunity business, the of little seen is to conversion seems or to the you're changed? of have bit geopolitical that generation because aspect on long-term at it of has implication customer with of You rate sort Zig’s a

Chris Beckstead

XX:XX Yeah.

part of the generation in on opportunity -- out sales globally. our force our and capturing life driving it’s the magnitude of and there. this engaged We is business this and always recognize getting pipe So is going of opportunity just

pipeline on We're we're business focus we so indicator given as in on on going from a of of so what lot driving there lifeblood organization. situation a our on usual on, XM experience We're focused major that track. driving and and retention is success new layer. that’s it. of on pipeline driving importance we're there, on current the a of and future of of our in our terms hearing it, the on two of focus lot it's Discover focus focus leading the lot transition And of category, type our kind and focused generation, The A among digital the type front on on employee employee facing relevance customers. that's know

and gen progress on Our we've guidance reflects drive type that. to continuing the made

Zig Serafin

going with but are end to they up opportunities in up going doesn't way say, they into work what how the Look, that change our use of fundamentals XX:XX right, example for we macro owning are the the trends right right of I’m Europe clearly, because the cases.

are. So those fundamentals are what they

We do sustained on do been we continue quarter quarter and this quarters. into the see the going to any to work like We got our following case. And that's always operate demand them.

Kirk Materne

very good. XX:XX all you much. Thank Sounds

Operator

Thank you. XX:XX

Bhatia William Our Blair. Arjun of next question from comes

Your line is open.

Unidentified Participant

is for Thanks. on XX:XX This Chris Arjun.

the of last want on part the first build I question. to So

was around time IPO mentioned So the the of your the about of you you us give today. curious, importance you XX% you color can customers of how I I And remember of the that in prepared largest stands that remarks customers? know ecosystem. any can among correctly, integrations. you might were where using on that the update growing an provide kind your on were And differ

Zig Serafin

or off our so an Chris to that our don't on did outcomes that remind can we're that and Rob, that maybe part results we Yeah. you I how oriented. are about year, have provided. what publicly, a me, create last statement That's the I public companies to system XX:XX tell is we publish on before, been that's what think really of important update of but actions have number executed of have statistics shared enabling less, a the system that you will been

customer. several it's that's that's it's do one through because insights with that and which had up what's on we you just end So as in of an statistic facing and insight internally been having result it's important that integrations is at our orchestrated -- usage platform up with statistics, actual but it’s not And, but shared. XX:XX XXXX customers look happening and actually that and impact the of you ends I of a and actually system that there last is created it ones been both look we've flow is this published look actions we is just in with generated the at this we their the do X we not result. the with of being our through billion enabling an to year, that consumption, is or the conjunction on amount way getting, all one interacting we actions think the saying a So about the employees number the think, platform of X.X that's end system, the workflow that effectively our

Unidentified Participant

the XX:XX Great. Thank quarter. you and congrats on

Zig Serafin

XX:XX Thank you.

Operator

this question conclude conference. XX:XX participating. you Thank no Ladies at and today's all I'm further Thank for showing gentlemen, time. you. this does

You may now disconnect. Have a great day.

Qualtrics International (XM) 22 Apr 222022 Q1 Earnings call transcript