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Edited Transcript of AYX.N earnings conference call or presentation 5-Nov-20 10:00pm GMT

·51 min read

Q3 2020 Alteryx Inc Earnings Call IRVINE Nov 12, 2020 (Thomson StreetEvents) -- Edited Transcript of Alteryx Inc earnings conference call or presentation Thursday, November 5, 2020 at 10:00:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Christopher M. Lal Alteryx, Inc. - Chief Legal Officer & Corporate Secretary * Kevin Rubin Alteryx, Inc. - CFO * Mark F. Anderson Alteryx, Inc. - CEO & Director ================================================================================ Conference Call Participants ================================================================================ * Adam Charles Bergere JPMorgan Chase & Co, Research Division - Analyst * Bhavanmit Singh Suri William Blair & Company L.L.C., Research Division - Partner & Co-Group Head of Technology, Media and Communications * Brent Alan Bracelin Piper Sandler & Co., Research Division - MD & Senior Research Analyst * Imtiaz Ahmed Koujalgi Guggenheim Securities, LLC, Research Division - Director of Technology, Media & Telecom and Analyst * Ittai Kidron Oppenheimer & Co. Inc., Research Division - MD * James Derrick Wood Cowen and Company, LLC, Research Division - MD & Senior Software Analyst * Patrick D. Walravens JMP Securities LLC, Research Division - MD, Director of Technology Research and Equity Research Analyst * Sherry Guo BofA Merrill Lynch, Research Division - Analyst * Tyler Maverick Radke Citigroup Inc. Exchange Research - Research Analyst * Yun Suk Kim Loop Capital Markets LLC, Research Division - MD ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Thank you for standing by. This is the conference operator. Welcome to the Alteryx Third Quarter 2020 Earnings Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions). I'd now like to turn the conference over to Chris Lal, Chief Legal Officer. Please go ahead. -------------------------------------------------------------------------------- Christopher M. Lal, Alteryx, Inc. - Chief Legal Officer & Corporate Secretary [2] -------------------------------------------------------------------------------- Thank you, operator. Good afternoon, and thank you for joining today to review Alteryx's third quarter 2020 financial results. With me on the call today are Mark Anderson, Chief Executive Officer; and Kevin Rubin, Chief Financial Officer. During this call, we may make statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website and the Investor Relations section of our website as well as the risks and other important factors discussed in today's earnings release. Additionally, non-GAAP financial measures will be discussed in today's conference call. A reconciliation of these measures to their most directly comparable GAAP financial measures can be found in today's earnings release. With that, I'd like to turn the call over to our Chief Executive Officer, Mark Anderson. Mark? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [3] -------------------------------------------------------------------------------- Thanks, Chris, and thank you so much for joining us on the call today. I sincerely hope that everyone continues to be healthy and safe during these challenging times. Given this is my first earnings call as the CEO of Alteryx, I'll start with a quick overview of our Q3 results and then share some of my observations for my first 30 days. I'll then outline what we believe is a massive market opportunity for us, highlight key customer trends, and then I'll share with you how I'm thinking about the next 90 days. Finally, I'll turn over the second half of the call to Kevin, and he'll walk you through the details of our quarter and our outlook for the rest of 2020. Overall, the team delivered solid results in our fiscal third quarter of 2020. We exited the quarter with approximately $450 million of ARR, up 38% year-over-year. We now have close to 7,000 customers across 90 countries, including 38% of the Global 2000. Our net expansion rate was 124% and an even stronger 135% in the Global 2000. Our balance sheet remains extremely strong, just under $1 billion of cash and equivalents. I'm proud of what the team has delivered in Q3 as they adjusted to evolving customer buying habits. I'm also impressed with how the team engages with customers by proactively sharing best practices and helping impacted people, departments, companies and governments, harness the power of the data that's exploding all around them and deliver improved business outcomes. I believe the need for our innovation has never been greater than it is today. In my first 30 days, I was fortunate to spend time with many of our key communities, including customers, partners and Alteryx associates. The enthusiasm and customer delight is just incredible. Digital transformation is our customers' #1 priority. And according to IDC, over $1 trillion is expected to be invested in data-related transformation initiatives. Alteryx has the innovation, presented in an easy-to-use platform that is instrumenting these digital transformation journeys. We have a significant opportunity in front of us, as defined by the $49 billion total addressable market, and we believe we are still in the early stages of this explosion. I'm convinced that we will be one of the long-term winners in this space because we deliver tremendous business outcomes to our customers each and every day. We expect to share more thoughts on our addressable market and overall strategy next spring at our Analyst Day. Please stay tuned for more details. Now as I dig in, it's clear that the Alteryx APA platform is a critical pillar of our customers' business transformation. Boy, I heard this loud and clear at our very first C-Suite Executive Advisory Forum, an event we hosted virtually a few weeks ago. This included approximately 30 C-level executives from Global 2000 customers around the world. During the forum, each customer shared their vision for transformation and detailed how integral our platform is to these efforts. The highlight for me was hearing Jonas Prising, the CEO of ManpowerGroup, speak to how important we are to his company and how progressively they are managing their data to put 600,000 people or more to work every single day. It was humbling. These businesses are not only upskilling knowledge workers to become citizen data scientists, but they're also increasingly leveraging analytics and automation to run smarter. They specifically called out these 3 trends: first, business transformation initiatives are being accelerated due to the COVID pandemic; second, companies are struggling to leverage the massive influx of data, cascading in and around their businesses every day; and third, legacy systems and manual processes are slowing down these transformation, often, separating the winners from the losers in this new age. These trends are real and aligned with the value that the Alteryx APA platform delivers. Now turning to some highlights from Q3 customer activity. We continue to see many compelling COVID-specific use cases from customers as they seek to adjust and realign operations in response to the continued challenging market conditions. For example, in Q3, the FAA expanded its footprint with the Alteryx platform in order to automate and speed up the critical transfer of data between existing systems. Alteryx allowed them to eliminate manual processes and automate their workflows during the pandemic. A U.S.-based global airline, despite having reduced their workforce dramatically as a result of COVID, expanded their use of Alteryx across 14 departments to optimize compensation, optimize staffing, understand the implications of new regulations and identify cost savings across its operations. Our transformation initiatives within the largest companies in the world accelerate, so does Alteryx's relevance. In Q3, a number of Global 2000 companies expanded their use of our platform across multiple lines of business. For example, a large drug wholesaler expanded their use of the Alteryx platform across over 10 business lines, including pricing, sales operation, tax and finance. They're using the Alteryx platform to eliminate manual processes and drive critical business decisions around product profitability, life cycle and sales territory optimization. Ingersoll Rand is improving the bottom line performance by leveraging our platform for root cause analysis and inventory optimization. Not only do they see an 80% improvement in efficiency through automation, but they also rapidly upskilled their teams. To use their words, they see the Alteryx automation as a game changer. I hear this time and time again. At Siemens Gas and Power, we earned the right to expand across multiple departments to significantly improve critical business processes and outcomes with pump surveillance and supplier analysis and cash flow optimization. These companies are instrumenting their business transformation with the Alteryx platform. Finally, we saw strength in the technology vertical. In Q3, we did business with world-class companies such as Amazon, Juniper, Intuit, Salesforce, Splunk and Workday, just to name a few. We're humbled that some of the world's most innovative companies turn to Alteryx for advanced analytics. And speaking of innovation, our strategy is simple and consistent. We're focused on abstracting the complexity of analytics and data science to make it accessible to the tens of millions of citizen users with our signature ease of use, no-code, low-code approach. Going forward, our focus will be on improving our self-service and public cloud capabilities to reduce the friction of adoption. And of course, we'll continue to work seamlessly with all types of data residing anywhere. What Dean, Libby and Ned built here at Alteryx is incredible. Their legacy as innovators in this space is unrivaled. I'm incredibly honored to step in as CEO to guide the company through the next few phases of our growth. Building and scaling world-class teams and evolving organizations to align with market trends and increasing customer demand is something that I'm not only passionate about, but it squarely leverages my experience. In my short time here, I've already identified a number of opportunities to simplify and streamline the current organization by building an execution framework to optimize resource allocation and expand global operations. This will allow us to deliver more innovation faster. It's a familiar playbook for me. Near term, of course, I'm focused on leading the team to a strong Q4 and a finish for 2020. At the same time, we're working on a solid plan for FY '21 and beyond. I can assure you, the next several months will be action-packed. In closing, I'm tremendously excited about leading Alteryx through the next few stages of growth. I'd like to thank all of our customers, partners and associates for their commitment to Alteryx and conviction in our ability to lead the category that we created and transform analytics, data science and data-driven process automation. Now let me turn the call over to Kevin to discuss our Q3 financial performance and our outlook for the remainder of the year. Kevin? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [4] -------------------------------------------------------------------------------- Thank you, Mark. Overall, as Mark just outlined, we delivered a solid performance in the third quarter. Specifically, $450 million in ARR, up 38% year-over-year; $130 million in revenue, up 25% year-over-year; $31 million in operating income; and $10 million in cash flow from operations. Before I go into details on the numbers, let me provide some more color on what we experienced in the third quarter. Customer spending trends improved modestly relative to what we experienced in Q2. We are cautiously optimistic that these improvements will continue in Q4, and as a result, we are raising guidance for the year. That said, among the trends we continue to see, include a higher level of scrutiny on spend, which has led to longer sales cycles, smaller deal sizes and less favorable linearity relative to historical levels. And based on what we see today, much uncertainty remains in the market for 2021. Now turning back to the numbers. As mentioned, we ended the quarter with approximately $450 million in ARR, up 38% year-over-year. Based on feedback from investors, this quarter, we have provided historical ARR by quarter from Q1 2019 to present. These amounts are included in today's earnings release. Our intent in providing this metric is to give investors greater transparency into our underlying business performance as revenue can be impacted by nonoperating metrics such as contract duration. During the quarter, we added 241 net new customers and now have 6,955 customers, including 756 or 38% of the Global 2000. Net expansion for Q3 was 124%, and net expansion for the Global 2000 was 135%. Q3 revenue was $129.7 million, an increase of 25% year-over-year. As we discussed before, our revenue is impacted by overall contract duration of our subscription agreements. While overall duration remained at approximately 2 years in the quarter, we did see a slight tick down on a year-over-year basis. We expect this trend to continue in Q4. Product mix in the quarter was favorable at the higher end of the upfront range. U.S. revenue was $81.1 million, an increase of 9% year-over-year while international revenue was $48.7 million, an increase of 70% year-over-year. We saw relative strength in EMEA and APAC, while North America conditions remain mixed. In terms of vertical performance, Mark already highlighted our performance in technology, but financial services, manufacturing and professional services also demonstrated strength. While renewals, particularly in our enterprise segment remains strong, we continue to see elevated churn levels among smaller customers and those with small Alteryx deployments. That said, churn rates improved slightly from what we saw in the first half of 2020. Before moving on, I want to remind everyone that unless otherwise stated, I will be discussing non-GAAP results. Please refer to our press release for a full reconciliation of GAAP to non-GAAP results. Our Q3 gross margin was 93%, consistent with Q3 2019. Our Q3 operating expenses were $89.6 million compared to $73.4 million in the same period last year. The increase in expenses is primarily attributable to increases in our overall headcount levels. Our Q3 operating income was $31.2 million. Net income was $27.1 million or $0.39 per share based on 69.8 million fully diluted weighted average shares outstanding. Turning now to the GAAP balance sheet and statement of cash flows. In the third quarter, we generated $9.7 million in cash flow from operations, and as of September 30, we have $983 million in cash, cash equivalents, short-term and long-term investments. We ended the quarter with 1,519 associates, up from 1,515 associates at the end of Q2 and 1,176 associates at the end of Q3 2019. Now turning to our outlook for Q4 and full year 2020. Our guidance assumes the following. While we are cautiously optimistic that the overall macro environment will continue to improve, it is too early to say this definitively how quickly things may return to historical levels. With this in mind, we assume the macro environment will be as challenging as we experienced thus far in 2020. The average duration of our subscription agreements will continue to be approximately 2 years, but will be a headwind relative to contract duration in Q4 2019. And approximately 35% to 40% of TCV booked in the quarter will be recognized upfront with the remainder recognized ratably over the time of the contract. Finally, I'd like to remind you that our guidance is subject to various important risks and cautionary factors referenced in our call today and in today's earnings release. For Q4, approximately 50% of revenue will be recognized from deferred revenue and scheduled multiyear billings, approximately 20% is expected from contract renewals and the remainder expected to come from net new business closed in the quarter. For Q4 2020, we expect GAAP revenue in the range of $146 million to $150 million, representing a year-over-year decline of approximately 4% to 7%. We expect our non-GAAP operating income to be in the range of $24 million to $28 million and non-GAAP net income per fully diluted share of $0.27 to $0.31. This assumes 72 million fully diluted weighted average shares outstanding. For the full year 2020, we now expect GAAP revenue to be in the range of $481 million to $485 million. or a year-over-year increase of approximately 16%. We still expect to exit 2020 with approximately $500 million of ARR, which translates to over 30% year-over-year growth. We expect our non-GAAP operating income to be in the range of $52 million to $56 million and non-GAAP net income per diluted share of $0.60 to $0.65. This assumes 69 million fully diluted weighted average shares outstanding and an effective tax rate of 20%. While we are not providing official guidance for fiscal 2021 until our Q4 earnings call, we expect that ARR will continue to demonstrate solid growth and should increase by at least 25% in 2021. We expect revenue growth rates to slow in 2021 as a result of shortened contract duration and other accounting inputs. We view ARR as an additional metric to evaluate the underlying health and momentum of our business. In summary, we are closely monitoring market conditions. We believe the future for Alteryx is bright as we enter the next phase of our growth. Given our strong product market fit, significant market opportunity, powerful business model and our strong financial position with nearly $1 billion of cash on the balance sheet. As Mark mentioned, we are focused on simplifying and streamlining our organization, including how we serve our customers and deliver innovation. We will continue to focus our investments on growth while being mindful of profitability. We have a proven track record of financial discipline and intend to manage our cost structure based on top line dynamics. Finally, I'd also like to extend my special thanks to all of the Alteryx associates across the globe, who continue to delight our customers each and every -- the customers each and every day, even while working remotely in these uncertain times. And with that, we'll open up the call for questions. Operator? ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) Your first question comes from Brent Bracelin from Piper Sandler. -------------------------------------------------------------------------------- Brent Alan Bracelin, Piper Sandler & Co., Research Division - MD & Senior Research Analyst [2] -------------------------------------------------------------------------------- I guess, first thing, Mark, congratulations on the new role here and an opportunity to lead Alteryx in the next stage of growth here. I know it's early days, and this may or may not be a fair question, but I'm going to ask it anyway. As you think about what you know so far and as you look to 2021, where do you need to spend your time? As I think about product, go-to-market, where are you going to be spending your time as you think about what needs to be done to kind of elevate this business? And how do you see that split between investing your time and product versus kind of go-to-market? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [3] -------------------------------------------------------------------------------- Brent, thanks very much for the well wishes. I really appreciate it. And great talking to you again. Listen, I've been on the Board here for a couple of years at Alteryx and I certainly had a level of intimacy with the business, but being here for the last 30 days, I can tell you that it's just much more exciting than I imagine that it would be. It's an incredible business. The tool is unbelievable. And the joy that people have when they're in the tool is world-class. And I think as I look around the business, just reflecting back in my experiences of long-term sustained hyper growth, I see a lot of the same qualities here that I saw it at F5 and at Palo Alto Networks because we really do have that incredible product experience. And we're going to build and continue to evolve a really smart business around this amazing innovation. So for me, that means constantly tweaking, as you know, over the years and long-term sustained growth. You're always evolving and changing because customers demand more, the more relevant you get to them. And so I'll definitely be spending time on the product side, looking at how are we being as easy as possible to do business with, how are we going to reduced friction of interacting with Alteryx, whether it's with a human being or with a website or a robot. And I think we're going to really get aggressive with this innovation and really get the team to focus with customers and partners on delivering really important business outcomes to customers. Because that's at the end of the day, what we do. We help them sort through the massive amount of data that's swirling in and around their business every day and make some sense out of that. And we do it like nobody else does, and I'm looking forward to being aggressive as we manage this business and look to get improved productivity over time out of every head that we have in a business. -------------------------------------------------------------------------------- Brent Alan Bracelin, Piper Sandler & Co., Research Division - MD & Senior Research Analyst [4] -------------------------------------------------------------------------------- Appreciate the color there. And then I guess, just a quick follow-up for Kevin. If I look at RPO backlog, it's kind of been in this $400 million to $410 million range now for 4 quarters. I appreciate the shorter contract duration headwinds that given the global pandemic is understandable. But does that start to impact your visibility in the ARR growth next year? And at what point would you expect to see kind of that -- the larger deals start to show up in RPO? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [5] -------------------------------------------------------------------------------- Yes. Brett, that's a great question. I mean, look, obviously, to your point, RPO is impacted by duration and the nature of, and texture of contracts over time. I think it's premature for me to speculate what it would mean for 2021, though. -------------------------------------------------------------------------------- Brent Alan Bracelin, Piper Sandler & Co., Research Division - MD & Senior Research Analyst [6] -------------------------------------------------------------------------------- Is there any correlation between RPO and ARR kind of growth trends? Or is that tough because of how contracts are structured in ASC 606 accounting? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [7] -------------------------------------------------------------------------------- Yes. I mean, unfortunately, there's really no connection between the two, exactly for your point. I mean, RPO and contract asset are just all just a function of bookings duration and rev rec mechanics. And as you know, ARR is more just a function of the accumulation of ACV over time. -------------------------------------------------------------------------------- Operator [8] -------------------------------------------------------------------------------- Your next question comes from Tyler Radke at Citi. -------------------------------------------------------------------------------- Tyler Maverick Radke, Citigroup Inc. Exchange Research - Research Analyst [9] -------------------------------------------------------------------------------- I had one question for Mark and one for Kevin. Mark, I'm curious, as you look at the pipeline heading into Q4, maybe what -- give us a sense for what you're seeing. I think, in the second quarter, there was a lot of activity with trial-based licenses and some customers that weren't quite ready to fully commit to the full purchase price. But curious if you're more confident in the ability to potentially convert those into kind of full paying customers? And just give us the puts and takes for what you're expecting in Q4? Obviously, the guide would imply you kind of have to add $50 million of incremental ARR. But just help us understand what you're seeing in the pipeline? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [10] -------------------------------------------------------------------------------- You bet, Tyler. Thanks a lot for the question. I'm looking forward to working with you. As I look at the pipeline, listen, I've been here for 30 days and I talk to a lot of customers and the pipeline looks good. I think just what we're seeing in general is businesses sort of getting over the -- just the change in how everything has to work in Q2, which for us was immense. And we saw -- people are starting to get used to doing their jobs remotely and in a way that allowed us to get a little bit better visibility to the pipeline. Q4 is traditionally our strongest quarter. But at the same time, we have to be mindful that businesses are really prioritizing their spend. And that's what gets me really excited about what we do, is we really instrument our customers' digital transformation journey. And they need us to do what they need to do because before COVID, it might have been to prevent from getting Amazon, but now it's existential. Companies have to transform and they really need it. And the guidance that we gave you reflects what I see today. And we'll be working it as we always try to do. And I think you'll see, hopefully see a good quarter out of us. -------------------------------------------------------------------------------- Tyler Maverick Radke, Citigroup Inc. Exchange Research - Research Analyst [11] -------------------------------------------------------------------------------- And a follow-up for Kevin. And I -- first, I appreciate the historical disclosure on ARR. I think that's super helpful. I guess my question, Kevin, is just trying to reconcile what appears to be pretty strong revenue growth at 25% year-over-year, relative to calculated bookings actually declined 10% on RPO. Understanding there's a duration headwind there, but I guess the duration headwind, one would think that would also show up in revenue because revenue is recognized as a percentage of the total contract value. So duration shorter, that would impact revenue. But just help us understand the relative strength in the revenue versus the bookings? And even on ARR, it looked like the sequential add of ARR was less in Q3 than it was in Q2. So help us understand that. And maybe if there's any other variables, whether it's product mix that kind of came outside the range that you were expecting that would drive that. -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [12] -------------------------------------------------------------------------------- Yes. Thanks, Tyler. I hope you're well. Look, so each of the different dynamics that you kind of ran through revenue bookings, ARR, they're all driven in some respects by each of their own components. And so revenue certainly would have a similar impact to RPO and contract asset relative duration. But timing of subscription contracts and things of that nature also plays a factor, and that was a bit favorable for us in Q3. ARR, look, we -- I think we've always said that Q3 is seasonally, one of our kind of typically flat due to -- Q2 to Q3, given some of the geographical seasonality we see specifically in Europe. And so that ultimately plays a factor as we think sequentially. So anyway, I hope that -- hopefully, that answers your question. -------------------------------------------------------------------------------- Tyler Maverick Radke, Citigroup Inc. Exchange Research - Research Analyst [13] -------------------------------------------------------------------------------- Got it. And just if I could clarify one finer point on that. So ARR represents the kind of active contracts. So for instance, if you booked a deal in Q3 that had a start date, and in Q4 that wouldn't show up in ARR until Q4. -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [14] -------------------------------------------------------------------------------- If we are under contract in a subscription agreement at the end of the quarter, that is in ARR. -------------------------------------------------------------------------------- Operator [15] -------------------------------------------------------------------------------- Your next question comes from Derrick Wood at Cowen & Company. -------------------------------------------------------------------------------- James Derrick Wood, Cowen and Company, LLC, Research Division - MD & Senior Software Analyst [16] -------------------------------------------------------------------------------- Mark, nice to meet you over the phone. Congrats on the new position. The idea of simplifying and streamlining operations. I appreciate that. And I wanted to dig in a little deeper to kind of a discussion last quarter, which was the focus on refining kind of sales development programs to help drive sales productivity. Just curious how those efforts have been going so far? And maybe give us a sense. It sounds like there hasn't been a lot of hiring this year. At what point do you feel comfortable to start to kind of accelerate the sales hiring and grow the capacity? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [17] -------------------------------------------------------------------------------- You bet. Well, thanks for the question, Derrick. And first of all, part of what I've been doing in the first 30 days is really trying to understand the team that we have, the construct of the -- all of the organizational structures and really starting to reflect on my experience and time, and really understand and learn what the customers are expecting from resources at Alteryx. And then just over time, like every high-tech company does that's growing a lot, we're constantly refining sales processes, making tweaks to comp plans. I mean, when you work in a long-term sustained marathon around hyper growth, you realize you're always tinkering and making changes, just to make sure you're delivering the right top line and the right bottom line targets. So for me, simplifying is -- I think about it from a customer's perspective. How would we be simple to work with and what does that construct look like now versus even 8 months ago? And I think so we're just thinking about making it easier to do business with us having people that have specialties in certain areas like with major accounts, living in the same towns as their customers calling on -- they are calling and trying to drive business outcomes that are prioritized for them. On the -- there's a financial question that you asked as well, Derrick, towards the end, I'll pass it over to Kevin, yes. -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [18] -------------------------------------------------------------------------------- Derrick, so with respect to hiring, look, as I mentioned in the call, I mean, we are cautiously optimistic with the momentum we're seeing. And I think as we've demonstrated in the past, as we build confidence and being able to continue to invest in the appropriate areas of the business, you'll see hiring ramp. -------------------------------------------------------------------------------- James Derrick Wood, Cowen and Company, LLC, Research Division - MD & Senior Software Analyst [19] -------------------------------------------------------------------------------- Okay. And maybe to follow-up, Kevin. Last quarter, we talked about the shift towards adoption licenses. Could you just touch on what the impact the customer engagement has been? Maybe it's probably early, but how these deals have kind of converted and expanded post-trial relative to expectations? And then, I guess, is this dynamic since Q4 is a kind of big renewal, big quarter for you? I mean, if there's a higher mix of these adoption licenses, is that something you've contemplated that may impact seasonality versus past Q4s? That's it for me. -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [20] -------------------------------------------------------------------------------- Derrick, look, as I said last quarter, adoption licenses, they're essentially a paid trial, and they are just one tool in a salesperson's toolbox. And it is a flexible licensing arrangement that allows customers that are interested in trialing large populations of licenses with specific outcomes in mind. It is a tool we've used for a number of years. Certainly, we attempt to put those very prescriptively into areas where we understand that the customer will have a great outcome in that regard. As it relates to Q4, I mean, certainly, any impact that adoption licenses would have would be baked into guidance. -------------------------------------------------------------------------------- Operator [21] -------------------------------------------------------------------------------- Your next question comes from Ittai Kidron from Oppenheimer. -------------------------------------------------------------------------------- Ittai Kidron, Oppenheimer & Co. Inc., Research Division - MD [22] -------------------------------------------------------------------------------- And my congrats as well for you, Mark. Good luck in your new role, looking forward to working with you. Kevin, I did want to dig again into the fourth quarter. I mean, every quarter this year, as difficult as this year has been, you've delivered quite solid year-over-year revenue growth, no matter what. And the guidance for the next quarter actually suggests a year-to-year decline. Now I know you're a conservative guy and that's fine. But help me understand what is it -- what part of our -- of your business are you more worried about right here right now with half of your revenue coming off deferred? And then I guess it's somewhere between the renewals and the new business activity, where are you more bearish? Where are you more bullish with respect to those parts? And again, sorry to push on the adoption licenses, if I remember correctly, they had a 6 months' time limit to them, which means here in the fourth quarter, people are going to have to make decisions. Are you not seeing very good conversion? Are you not expecting good conversion from those adoption licenses into more permanent arrangements? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [23] -------------------------------------------------------------------------------- Ittai, let me kind of tick through those. So look, I mean, as I provided in our prepared remarks, when we look at Q4, there's still a bit of uncertainty in the market and that certainly is playing a factor as we establish guidance. The other thing just to keep in mind, I mean, we had a very strong Q4 last year. So as we look at the year-over-year comp, it's a little bit more challenging. And when you put on top of that, the fact that we do think contract duration is going to be a headwind relative to what we saw last Q4, it just makes it a little bit more difficult when you look at it on a revenue basis. Now if you look on an ARR basis, I mean, we're guiding for the full year, over 30% year-over-year growth in ARR, which I think is more indicative of what you're seeing underlying the business in terms of kind of a normalized growth rate. Finally, with respect to the adoption license, again, I just want to emphasize, I mean, that is one feature that we offer customers in very select cases that could be helpful as they consider evaluating Alteryx. And certainly, they are short-term in nature. They expire on their own terms. And I think as we mentioned on the call last year -- last quarter, we tend to see very good conversion of adoptions, and I don't expect that rate of adoption conversion to change. -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [24] -------------------------------------------------------------------------------- Yes. Ittai, Mark here. If I could just check on -- if I could just add on, certainly, I think you'll see adoption license continue to be a part of our go-to-market, but I think a much stronger part is working with partners like PWC and the big consulting firms, big accounting firms because they're working in large transformation projects. And in PwC's example, they're actually using the Alteryx platform as the lead behind within their engagements. And so they've got well over 100,000 people that are users of Alteryx within the company, and we're looking forward to that partnership and many more. -------------------------------------------------------------------------------- Ittai Kidron, Oppenheimer & Co. Inc., Research Division - MD [25] -------------------------------------------------------------------------------- Very good. Maybe a follow-up for you, Mark. As you think about next year, and with you running through, I guess, the virtual hallways of the company right now before you move in to the real ones, but help me understand how you think about compensation, incentives. Do you anticipate much in the way of change now that APA -- the APA platform kind of vision has been rolled out and Intelligence Suite is available? How do you think about tweaking potentially comp in order to drive the appropriate adoption? And maybe also you can tell us some of the initial feedback from customers on APA and Intelligence Suite. Have you seen any adoption of this? That will be great to hear. -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [26] -------------------------------------------------------------------------------- Okay. Ittai, so in terms of -- on the comp side, as you know, I've always been a big believer in paying for performance, and overpaying the overperformers and underpaying the underperformers. And so in addition to, I would say, a pretty disciplined talent management framework that we'll be rolling out here, we're going to continue to want to pay people for driving the right outcomes for customers. And I mean that across the entire associate suite at Alteryx. I think we're thinking about what we want to be when we grow up as a company as we enter this new phase with me as the leader and certainly, we have designs on becoming mission-critical to the notion of transformation for enterprise. As far as the customer response from APA, I can tell you, I haven't had more than a dozen conversations with customers that have involved the APA framework. And I think people are starting to understand it. I think that maybe the bigger picture is you're going to hear us do a much better job in the future of really outlining why customers need Alteryx and why do you need us now and be very prescriptive about the outcomes because I think that's what customers are demanding these days. And so I think the customers, if you zoom back out again and say that 30 or 40 customers that I've spoken to in the past 30 days, I would say people are leaning in on using advanced analytics and the APA platform that we have, to really deliver benefit for their company, whether it's a company that's doing really well and we have many customers that are getting tailwinds because of COVID or whether it's conversely, whether it's somebody that's having a tough time, like the airline I gave in my preread. It was a -- we're seeing that quite a bit. So we believe this is important. We want to evangelize and inform and educate the market on how and why. And so you're going to hear a lot more of that down the future. And we'll give you a lot more detail, Ittai, on the Analyst Day that we're going to have in the spring. -------------------------------------------------------------------------------- Operator [27] -------------------------------------------------------------------------------- Your next question comes from Brad Sills at Bank of America. -------------------------------------------------------------------------------- Sherry Guo, BofA Merrill Lynch, Research Division - Analyst [28] -------------------------------------------------------------------------------- This is Sherry Guo on for Brad. I just had a quick one for you. Are you seeing any changes in the competitive environment at all? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [29] -------------------------------------------------------------------------------- Yes, sure, Sherry. Well, I've only got a 30-day window in on this in terms of digging really deep on the competitive side of things. And sure, there is competition because it's a $49 billion market. And we think there's over $1 trillion a year that's going to be spent on infrastructure applications around digital transformation. So there's a lot to go for here. But I look at the complementary players to us that are in the cloud or the big cloud players. We expect the really strong partnerships with them to drive -- not only drive demand in the marketplace, but to prosecute that demand as well. -------------------------------------------------------------------------------- Operator [30] -------------------------------------------------------------------------------- Our next question comes from Taz Koujalgi from Guggenheim Partners. -------------------------------------------------------------------------------- Imtiaz Ahmed Koujalgi, Guggenheim Securities, LLC, Research Division - Director of Technology, Media & Telecom and Analyst [31] -------------------------------------------------------------------------------- Mark, congrats on the new role. I have a couple of questions. Kevin, you mentioned that the churn was still higher on the commercial side of the business. Can you give us some more color on what the mix of the commercial customer is? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [32] -------------------------------------------------------------------------------- Yes. Taz, I'm not entirely sure what you're getting at. I mean, our commercial business is pretty consistent for most in terms of small and medium-sized businesses. We've talked in the past that we obviously have seen that segment specific to churn be most impacted in kind of the higher risk verticals, those verticals that were more obviously impacted by the COVID pandemic. And I would say it's pretty geographically consistent. -------------------------------------------------------------------------------- Imtiaz Ahmed Koujalgi, Guggenheim Securities, LLC, Research Division - Director of Technology, Media & Telecom and Analyst [33] -------------------------------------------------------------------------------- Got it. And then one follow-up. If I got the numbers right, it looks like there's a huge gap in the growth you saw domestically versus international. Can you maybe drill down a bit on what the difference between domestic business and international was? It looks like it is pretty okay outside the U.S., but the U.S. growth was in the single digits. So why such a big difference in growth, with customer demand, behavior? Why is it so much better outside of the U.S. versus U.S.? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [34] -------------------------------------------------------------------------------- Yes. I mean, I think it's really two main factors. First of all, we still continue to see kind of mixed results in the North American market. And I think that is a function of kind of what's been going on with COVID and the pandemic. On the other side, in terms of international, we have seen relative strength in EMEA and APAC, as I mentioned. Those geographies, at least for the third quarter, I think were less impacted by the pandemic and that certainly helped us. And the growth rates are obviously off of a smaller basis for that region as well. -------------------------------------------------------------------------------- Imtiaz Ahmed Koujalgi, Guggenheim Securities, LLC, Research Division - Director of Technology, Media & Telecom and Analyst [35] -------------------------------------------------------------------------------- Got one last one, and I'll let you guys go. Back to the option licenses, I know we're all expecting a lot of renewals or conversion happening in Q4 from adoption licenses. Can you clarify -- are revenues today at ARR today reflecting the adoption licenses? Or they're not being counted in those metrics for Q3? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [36] -------------------------------------------------------------------------------- Yes. Just again, just as a refresher, adoption licenses, they are for a fee, and they are short-term in nature. We do charge, and that is considered a revenue and ARR in that respect, to the extent that it's still outstanding at the end of the period. And then those will come up for renewal, if you will, or for conversion at the end of the adoption period. And as I mentioned, they tend to convert quite well. But they are just one tool in the toolbox. And so I just caution the emphasis. -------------------------------------------------------------------------------- Imtiaz Ahmed Koujalgi, Guggenheim Securities, LLC, Research Division - Director of Technology, Media & Telecom and Analyst [37] -------------------------------------------------------------------------------- Got it. But the question -- I mean, the clarification that I had was if somebody is on adoption license today, they're already being counted in the ARR. When they convert to a full-fledged agreement, it's not incremental to ARR, right? Because they're already a paying customer. The conversion doesn't really trigger any upside to revenues or ARR. -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [38] -------------------------------------------------------------------------------- Well, no, that is not the case. I mean if somebody buys a $25,000 adoption in April and that adoption comes due in October, and they convert that adoption to a much larger contract, when we measure ARR at the end of the year, it will be representative of the nature of the contract that's in place at the end of the year. -------------------------------------------------------------------------------- Operator [39] -------------------------------------------------------------------------------- Our next question comes from Patrick Walravens from JMP. -------------------------------------------------------------------------------- Patrick D. Walravens, JMP Securities LLC, Research Division - MD, Director of Technology Research and Equity Research Analyst [40] -------------------------------------------------------------------------------- Great. One for each of you. So Mark, first of all, you mentioned the cloud a couple of times now. So I guess, what's the opportunity there? You said we expect really strong partnerships with the big cloud players, so who? And how might those partnerships work? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [41] -------------------------------------------------------------------------------- Yes. Well, first of all, nice to meet you. Looking forward to working with you, and thanks for the question. First of all, I want to reiterate that one of the things that I've been proud of being on the Board at Alteryx for the last few years is just how focused on customers we are. And I think we listen to our customers. And of course, we care where our customers are putting their data. And more and more, over time, certainly over the next decade, we are going to put more and more of their data on someone else's premises, whether that's in Amazon's cloud data centers or Microsoft cloud data centers, they're going to put -- they're going to evolve to put it there over time. We think data is going to be everywhere for a very long time, and that's part of the complexity of getting insights out of all of that data. Partnerships like AWS, partnerships like Microsoft, partnerships with -- we've got hundreds of customers with Snowflake, on the Snowflake side of things. And we really feel that this is an important market to represent. We'll share our deeper technical strategy in the spring at the Analyst Day. But I would expect that over the next couple of years, Alteryx customers will be able to manipulate data that's anywhere and be able to do all the amazing things that they can do with it with our signature ease of use, dragging and dropping and cubing. That's where we're going. And we haven't really released too many details about the specifics, but we will certainly in the spring. -------------------------------------------------------------------------------- Patrick D. Walravens, JMP Securities LLC, Research Division - MD, Director of Technology Research and Equity Research Analyst [42] -------------------------------------------------------------------------------- Okay. That's super helpful. And then, Kevin, stepping back for a moment, I mean, not too many people are comfortable guiding for 2021 in this environment, and you told us that you expect 25% ARR growth. I'm not sure where The Street is, but that's higher than what I had. So what gives you that confidence? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [43] -------------------------------------------------------------------------------- Yes. Pat, look, there's a few things. I mean, we obviously have very long-standing customer relationships and understanding the nature of those are obviously informing us. We've had very strong net expansion rates for quite some time, 124% over the customer base this quarter and 135% in the Global 2000. And then if you just -- I mean, stepping back, I mean, this is a $49 billion TAM, and there's just a massive opportunity here. So the combination of all of those things certainly gives me confidence. -------------------------------------------------------------------------------- Operator [44] -------------------------------------------------------------------------------- Your next question comes from Yun Kim at Loop Capital Markets. -------------------------------------------------------------------------------- Yun Suk Kim, Loop Capital Markets LLC, Research Division - MD [45] -------------------------------------------------------------------------------- Mark, first, congrats on the appointment. I know you've only been there for about a month, but can you just talk about some of the go-to-market thinking that you might have, for instance, in regards to verticalization? I think you talked about automation in your prepared remarks quite a bit. Do you feel that you need to verticalize your solutions more to better penetrate the Global 2000s? And then also, obviously, if you do that, then do you need to also tailor your sales and go-to-market efforts around more verticalization? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [46] -------------------------------------------------------------------------------- Yes. Great question, Yun. Thank you, and looking forward to working with you as well. First of all, on the go-to-market side, again, it is only 30 days. But I mentioned streamlining and simplifying. What happens is with a company that's growing as fast as we have over the last 23 years, is, especially when you have the kind of quality leader in Dean Stoecker, the company tends to grow up and you add resources as quickly as you grow. And sometimes looking back, those resources were placed in the right areas. And really, that's all I'm talking about. And again, I do this every year. I've done this every year in every job, is making sure we have the right seats on the bus, and then we have the right butts in the right seats on the bus. And it's pretty simple for me. So more specifically, what that means is we're going to have people calling on major strategic accounts that have experienced calling on big strategically complex accounts. And in key verticals like finance and health care, ones that have a real data challenges, in particular, I think we haven't sort of invested in specific verticalizing those teams because I don't like all the overhead that comes along with verticalizing. But what we've done and what we're going to continue to do is put subject matter expertise around these key verticals. We have co-located out in the field. So if there's a big deal at Citigroup, we'll have somebody that's a BFSI specialist working on it, or if it's a big tax transformation deal in technology or in health care, we'll pull one of those levers in terms of subject matter expert resources. And we will be building out those over the next year. Regardless of sales structure, without question, we're going to be focused on high-impact specific customer business outcomes that we earn the right to hear about and we earn the right to go and help them solve. In terms of tailoring the team, that's a very strong theme, certainly in my early discussions with the team is really focusing on the cohort of verticals and customers that had the highest predisposition to need our innovation. And so I really think about it that way. There's one company that's got the highest predisposed need for our innovation. And then there's maybe a 15,000 customer out there or target out there. And we're going to make sure that we've got proper coverage with the right expertise to prosecute all of that opportunity. And as Kevin and I have tried to maintain, there's a ton of opportunity out there for us. -------------------------------------------------------------------------------- Yun Suk Kim, Loop Capital Markets LLC, Research Division - MD [47] -------------------------------------------------------------------------------- Okay. Great. And then, Mark, on the big deal front, obviously, you're kind of -- you remain focused on that. But at least in the near term, are you thinking more tactically and maybe shifting more of your attention and focus and resources around smaller deals, even potentially breaking up some of the larger deals into the smaller deals that could close today? -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [48] -------------------------------------------------------------------------------- What I found, Yun, is we tend not to -- I don't think it's a smart thing these days to focus on a deal. I think you want to focus on the customer, their business and what we can do with our innovation to help them. And so oftentimes, when we identify a target that we think has a predisposition to need our innovation, we'll make sure we put the right resources in front of that target, whether it's a phone call from me or a meeting with Kevin. And often that first deal is a small one. But once we've got that permission, we go in and wow them with the implementation, make sure they've consumed our innovation. And then we earn permission to go back and expand. And I think you'll find as we start thinking a little more about customer lifetime value in their journey with Alteryx, we think there's a -- reflect back on the pre-IPO roadshow that I did at Palo Alto Networks. And I think the favorite slide of all the analysts was the one that showed all the tiles, and the ratio of landing to expansion revenue over time. And I think our biggest customers, we're going to build long-term relationships with them, put the right people across the account. -------------------------------------------------------------------------------- Yun Suk Kim, Loop Capital Markets LLC, Research Division - MD [49] -------------------------------------------------------------------------------- Great. I'm looking forward to that slide in the coming years. Kevin, real quick on the growth out of the international region, was that driven by new customer adds or just strengthen the expansion deals with existing customers? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [50] -------------------------------------------------------------------------------- Yes. Look, as is the case with all of our regions, we tend to land small and 85% plus or minus of what we recorded in the period is from existing customers. So by definition and by the nature, when we look at revenue growth, it's because of our existing customers. -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [51] -------------------------------------------------------------------------------- And Yun, it's Mark here. Just one other thing. Scott Jones, our President and CRO in the last year, hired a couple of really good senior leaders to run EMEA and Asia Pac. And I couldn't think of 2 better people to run those businesses. And I'm certainly looking forward to supporting them as travel starts to get a little easier. -------------------------------------------------------------------------------- Operator [52] -------------------------------------------------------------------------------- Your next question comes from Bhavan Suri from William Blair. -------------------------------------------------------------------------------- Bhavanmit Singh Suri, William Blair & Company L.L.C., Research Division - Partner & Co-Group Head of Technology, Media and Communications [53] -------------------------------------------------------------------------------- Mark, welcome, and look forward to working with you. I wanted to start off at a slightly high level. And again, I know it's been 30 days and you said that multiple times. But -- and it's a little unfair. But strategically, when you think about analytics in a downturn, in a tough environment, they typically are under prioritized. No one's hiring more analysts. No one's hiring more people to do price elasticity type work, even though they actually should be, right, because you can optimize profitability or whatever, but you have seen an uptick coming out of downturn 2008, whether it's Tableau or Teradata or others, [2000], [Letede] and others, picking up great traction coming out when people said, okay, now we should invest in analytics and optimize and drive promotions or segmentation or whatever. I guess, I ask this question to Dean a little while ago, and he said, we just aren't seeing it yet. This quarter suggests you might be seeing some of it. But as you look out over the next few years, do you believe that acceleration should play out, given the things you commented on TAM and then the quality of the product? Just trying to understand how you think about that idea because even when you're at Palo Alto, you guys chose to invest in analytics, in data analytics during various times of that company's tenures. So I'm just trying to think how you think about that and what you might see, what the company might see as we come out of this. -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [54] -------------------------------------------------------------------------------- Yes. I think it goes back, Bhavan -- and thanks for the question, by the way. I think it goes back to what have we earned with the customer. Have we invested the time to understand their business and invest the time to thoughtfully come up with some areas we can help them. And if we earned the right to do that. I think when we have, I found that there has, frankly, been the opposite when it comes to customers that have been affected by this impact. Perhaps they're chopping people, but I would submit they're chopping the people that have lived miserable life that one -- like an Excel analyst lived is hanging their heads to get called. They're cutting those people out. They're patching up the dry walls. And they're leveraging citizen data scientists or advanced knowledge workers that can do so much more with the information. And by the way, I think the data challenges, they're increasing, not decreasing, right? So I think the explosion of data, and especially as companies digitize everything because when you digitize everything, you don't just -- you have to reimagine it. You have to deconstruct all the workflows and people and roles and then reconstruct them digitally, and you do that with a tool like Alteryx, right? So that's why we talk about it, instrumenting the transformation and digital transformation journeys our customers are going through. I think the long-term opportunity remains the same post-COVID, without question. I think we've all woken up and realized, hey, wait a minute, everyone is an inside sales person. And lots of other different things about our business that we have to really take advantage and use the data as more like a ninja skill for analytics as opposed to just plain surfacing some numbers. -------------------------------------------------------------------------------- Bhavanmit Singh Suri, William Blair & Company L.L.C., Research Division - Partner & Co-Group Head of Technology, Media and Communications [55] -------------------------------------------------------------------------------- Well, yes. Fair enough. I appreciate that. And then a little more topical maybe for you, maybe for Kevin. Just the pricing environment, you increased the list price over 35% the beginning of the year. And obviously, it's just a reflection of all sort of the increased capabilities you've added. But you haven't changed over pricing prior to that since maybe the IPO. And so I suspect there hasn't been much pushback. It would be great if you just give a quick update on customer response to the price increase and just what you're seeing broadly in the pricing environment? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [56] -------------------------------------------------------------------------------- Yes. Bhavan, appreciate it. And hope you're well. We talked a little bit last quarter about the fact that we hadn't seen much pushback from server pricing and continue to be pleased with the momentum of the product. That was the same in Q3. I think to your point, we have significantly increased the capabilities of server over the years. And I hadn't raised that price certainly since IPO, and I think it goes back earlier than that. So look, it's a key feature and a key driver of the APA platform and hopefully, customers understand and appreciate the value it offers. -------------------------------------------------------------------------------- Operator [57] -------------------------------------------------------------------------------- Your next question comes from Mark Murphy at JPMorgan. -------------------------------------------------------------------------------- Adam Charles Bergere, JPMorgan Chase & Co, Research Division - Analyst [58] -------------------------------------------------------------------------------- Adam Bergere on for Mark Murphy. So last quarter, and I guess this quarter, you mentioned that you don't really expect conditions to improve too much for the remainder of 2020. But during Q4, you sort of mentioned intra-quarter that revenues were going to be higher-than-expected than the guided range from Q2. Is there any color you can provide on what gave you that confidence intra-quarter? Maybe was it like a big deal that kind of gave you that signal? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [59] -------------------------------------------------------------------------------- Yes. I think as we provide guidance, I mean, it's based on all the information we have available to us. In my prepared remarks, we talked about the fact that we are cautiously optimistic that we are seeing improvements in some of the customer activity. And that's certainly baked into guidance as we provided it for Q4. I wouldn't signal or indicate it was the function of one or more specific deals. -------------------------------------------------------------------------------- Adam Charles Bergere, JPMorgan Chase & Co, Research Division - Analyst [60] -------------------------------------------------------------------------------- Got it. And then just as a quick follow-up. The net expansion rate has been ticking down presumably because of elevated churn. Are there any kind of guidepost you can provide on where that might drop out? -------------------------------------------------------------------------------- Kevin Rubin, Alteryx, Inc. - CFO [61] -------------------------------------------------------------------------------- Look, I mean, we've been going back to IPO. I think we indicated with a degree of confidence that we believe this business over the long-term will be able to sustain above 120% net expansion. And we're still notably above that, especially in the Global 2000. So beyond that, I don't know that there's any other guidepost. I mean as we get bigger certainly, that puts pressure on net expansion, but still incredibly pleased with what we've seen. And I would just remind you, I mean we're still such an early time in this very large opportunity. And so plenty of room to run. -------------------------------------------------------------------------------- Operator [62] -------------------------------------------------------------------------------- Thank you. That concludes our question-and-answer session. I would now like to hand back to Mark Anderson for closing remarks. -------------------------------------------------------------------------------- Mark F. Anderson, Alteryx, Inc. - CEO & Director [63] -------------------------------------------------------------------------------- Thank you very much, operator, and thank you all for joining us on today's call. Just again, I'm super excited about the opportunity that's ahead of us, all of the associates here at Alteryx, all of our partners as we instrument the digital transformation journey for the customers that matter to us. I look forward to discussing our progress with you on the Q4 earnings call. In the meanwhile, have a great quarter. -------------------------------------------------------------------------------- Operator [64] -------------------------------------------------------------------------------- Ladies and gentlemen, thank you for participating. You may now disconnect your lines.