Qualtrics International Inc.

Thank you for standing by, and welcome to the Qualtrics fourth quarter and fiscal year 2021 earnings conference call. At this time, all participants are in listen-only mode. After the speakers' presentations, there will be a question-and-answer session. To ask a question at that time, please press star then 1 on your touchstone telephone. As a reminder, today's conference call is being recorded. I would now like to turn the conference to our host, Mr. Stephen Wu, head of FP&A and Investor Relations.

Please go ahead. Thank you. and welcome to Qualtrics' fourth quarter and fiscal year 2021 earnings conference call. On the call, we have Zig Serafin, CEO, Chris Beckset, President, and Rob Bachman, CFO. Following prepared remarks, we'll open the lineup to answer questions. Our results, press release, and a replay of today's call can be found on the Qualtrics Investor Relations website. During today's call, we'll make statements that represent our expectations and beliefs concerning future events that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to the press release and the risk factors and MD&A sections of our SEC filings, including our most recent 10Q, and our 10-K that will be filed for the fiscal year 2021. We'd also like to point out that the company presents non-GAAP measures in addition to and not as a substitute for financial measures calculated in accordance with GAAP. To see the reconciliation between these non-GAAP and GAAP measures, please refer to our press release filed earlier today and our investor relations presentation, both of which are posted on our investor relations website. With that, I will turn it over to Zig.

Thank you for joining us today. Q4 was an outstanding quarter, and it caps off a record year for Qualtrics. Revenue for the quarter was $316 million, up 48% year over year. And this was our fourth consecutive quarter of robust growth, bringing our annual revenue for fiscal year 21 to $1.1 billion. And not only did we pass the $1 billion revenue milestone, we're accelerating through it. Q4 subscription revenue was up 61% year over year. And annual subscription revenue in 2021 was up 51% year over year to $871 million. And this is phenomenal growth at our size and our scale. Because of this strong momentum, we expect total revenue in fiscal year 22 to of 1.402 billion to 1.406 billion, representing 31% growth year over year at the midpoint. Experience management is becoming as critical to business success as any CRM or HR system. And the ability to understand how your customers and your employees are feeling and then take action on that data is just golden. We have a 10-year head start on this market. And as our growth demonstrates, we also have a significant opportunity ahead. In a world where it's easier than ever for customers to change service providers and where employees are leaving their jobs at record rates, the experiences that companies deliver have never been more important. Our 128% net retention rate in Q4 illustrates that we're quickly becoming a strategic partner for enterprises. Our XM operating system is a single, secure, cloud-native platform that enables organizations to bring together all of their experience data, customer, employee, product, and brand, and then analyze it and take automated action to continually improve the experiences that they deliver. And with our acquisition of Clarabridge, the leader in omni-channel conversational analytics, we're changing the game again. Clarabridge adds a critical new layer to our platform that helps organizations discover everything that their customers and employees are saying, wherever they're saying it, including in social media, email, support calls, chats, and product reviews. Our customers are designing products, services, and experiences that their customers want next by acting on customer feedback from anywhere. and they're designing new ways of working by listening to their employees. Amid the great resignation, we're seeing strong growth in our employee experience product line as companies look to attract and retain the best talent, increase employee engagement, and improve productivity. Let me give you an example, or at least a couple of examples of what we saw from this quarter. You know, as travel resets, Southwest Airlines has an ambitious goal of adding a significant number of employees to its workforce in 2022, which is a challenge for any company in this labor market. Southwest expanded its relationship with Qualtrics and invested in our candidate experience solution. So from the interview process all the way through to onboarding, they can understand and act on the most important moments along a candidate's journey to the company. We also formed an exciting new relationship with Comcast. They're investing to create a culture of feedback across all of their customer-facing teams. In Q4, they chose Qualtrics to get closer to their advertisers and publishers by understanding their experiences with the company and then training their teams based on that data. Qualtrics will help them strengthen these critical relationships and empower their sales and service teams to deliver greater results. We're seeing a groundswell of customer adoption across all of our product lines. And in Q4, we expanded or formed new relationships with leading organizations like AXA, Cummins, BP, Mitsubishi Motors, HSBC, and the state of Maryland. At the end of 2021, we had 143 customers spending $1 million or more annually. And that is a 93% increase year over year. And we added 3,000 customers in 2021. And today, more than 16,750 organizations around the globe are using Qualtrics to build deeper relationships with their customers and employees. And we continue to innovate with an intense focus on our customer success. Because all of our products are built on our XM operating system, We can innovate faster and enable our customers to unlock more value than ever before. In Q4, we launched Experience ID. This is a major platform innovation that provides a single, unified view of everything that people are sharing within an organization. Experience ID enables organizations to zoom in on the detailed preferences of individual customers to personalize their experiences. And then they can zoom out. to get powerful views by segments such as teams or geographies to identify new market opportunities. Ultimately, we're helping them build deep, trusted relationships at scale. And now we have more than 5 billion experience IDs in our system. Our platform is the system of action. And when it's connected with systems of record, such as their CRM or customers' HR systems, or systems of engagement, such as e-commerce or mobile apps. Anyone can turn insights into action with clicks, not code, using our powerful workflow engine. As we rapidly grow our ecosystem, we have more than 275 integrations with companies like SAP, Salesforce, Zendesk, and ServiceNow, nearly three times more at this time last year. That lets organizations collect experience data and quickly act on it in the systems that they use every day. We continue to invest in areas that will supercharge our growth and deliver greater value to our customers. One of those areas is in key verticals. In November, we acquired healthcare analytics company SurveyVitals, extending our leadership in healthcare. The company is approved to administer all 11 CAP standards, which are standards that assess the patient's experience. In Q4, Trinity Health chose us as its experience management platform across 88 hospitals and hundreds of health and well-being services. With Qualtrics, they'll be able to gather feedback and take action to deliver better experiences for providers, patients, and their families, both in person and virtually. International is another key growth lever for us. And the investments that we're making to support increasing demand for experience management outside the U.S. are paying off. In the quarter, 30% of revenue came from international, which is a company first. Finally, we've already received a tremendous response to our acquisition of Clarabridge. This is particularly because companies are looking to replace point solutions with a single experience management platform that can meet all of their needs. Clarabridge is one of the most advanced intent, emotion, and sentiment understanding systems, and it's now uniquely part of our platform. And as part of this, Clarabridge is creating opportunities for us to expand rapidly into digital, voice, and social media analytics. A great example is Barclays Bank. Barclays has been using Qualtrics for many years, and in the quarter, they added Clarabridge technology to enable analysis of unstructured customer feedback for their retail bank. So now Barclays will have a single system to get a 360-degree view of everything the customers are saying, whether it's in social, in the call center, wherever they're saying it. And this will help them uncover opportunities across financial segments and ultimately power their digital or any experience that they provide as a driver for growth and efficiencies. At the beginning of 2021, we strengthened our leadership team with executives from growth companies like Microsoft, Salesforce, Twilio, and Adobe. We made another strategic hire in Q4 with a DP Brightful joining to lead our global sales organization. DP comes from Salesforce, where he was the most recently global chief revenue officer of Salesforce Health, a multi-billion dollar business unit. And today, we are announcing the appointment of two incredible new board members, marketing executive Omar Johnson, who has led marketing teams at Apple and Beats by Dre, and Ritu Bhargava, a longtime technology leader from SAP and Salesforce. Attracting and retaining talent like this has helped us build an incredible foundation for our company. And Q4, It was another great hiring quarter with more than 400 new employees joining Qualtrics. Q4 is a powerful finish to our first year as a public company, and I couldn't be more proud of the results our team is driving, and I want to thank them for their hard work. We're clearly building Qualtrics for long-term, durable growth. And with that, I'm going to hand it over to Rob to discuss more detailed results.