Alteryx, Inc.

Greetings and welcome to Alteryx First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Mr. Chris Lalt, Chief Legal Officer. Thank you, sir. You may begin.

Thank you, Operator. Good afternoon, and thank you for joining us today to review Alteryx's first quarter 2021 financial results. With me on the call today are Mark Anderson, Chief Executive Officer, and Kevin Rubin, Chief Financial Officer. Additionally, Suresh Patel, Chief Product Officer, will be joining us for the question and answer session after prepared remarks. 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 risk and uncertainty. Our actual results could differ materially from expectations reflected in any forward-looking statements. For 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 in 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 on 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?

Thanks, Chris, and thank you all for joining us on the call today. I'm pleased to report that our FY21 is off to a strong start with Q1 results ahead of expectations. The team did a solid job executing against our plan around the globe. We achieved a key milestone with ARR crossing the $500 million mark, ending at $513 million, up 27% year over year. As we mentioned last year, FY21 is a year of transformation for Alteryx as we evolve how we innovate and deliver value to our customers. And our Q1 results demonstrate the early progress we are making. Execution begins with the right leadership and the right operating framework. I'm confident we're putting a world-class team in place and are making the right investments. I'm quite happy with the execution against our FY21 operating plan thus far, and it has been translated down in an actionable way to every one of our associates. Alteryx is delivering unparalleled value to our customers as we scale. Customers and prospects continue to validate our focus on high-value use cases for functional and digital transformation. The global Tier 1 partnerships with whom we are working have seen great traction as well. I will provide more colors shortly. For the call today, I'll give an update on our overall progress against the key imperative that I outlined last quarter. Kevin will then provide specifics on our Q1 performance as well as our outlook for both Q2 and full year 2021. Our first imperative is delivering strategic customer outcomes. As a reminder, at the end of last year, we began our transformation journey to simplify and streamline our go-to-market organization to focus on the highest value customers and prospects. Narrowing our focus and aligning closely with our partners allows us to go after the largest total addressable market, which will help us deliver high-value business outcomes. I believe these are the right changes in order to capitalize on on the large market opportunity in front of us and sets us up for long-term sustained growth. To do this effectively, we continue to build and scale our go-to-market engine. As I mentioned earlier, execution starts with leadership. We are in the final stages of our search for a new chief revenue officer, and I'm extremely excited to be able to make an announcement very soon. We also continue to expand our sales capacity at all levels. In Q1, we have been incredibly busy hiring associates to bring the right experience and the right skills to Alteryx. We have ambitious hiring plans for 2021 as we look to scale Alteryx across the globe, and we're off to a great start. As an example, we've doubled the size of our customer success team in the past four months. I believe that under Matthew Stahlberg's leadership, this team will really be able to drive important customer engagement, and that over time, these investments will lead to faster expansion and larger deal sizes. While we did see elevated sales attrition in Q1, the majority of it was expected. At the same time, we successfully repositioned and promoted sales resources in Q1, and I'm really proud of how this team adapted to new assignments, new relationships, and a much more comprehensive operating framework. We continue to add high-quality talent with stage-appropriate competencies to complement our strong internal base. With so many moving pieces, our recruiting team and the hiring managers across the globe did an excellent job. My hat goes off to them. Early indications are that our strategy is working, evidenced by improved sales productivity in Q1. I continue to expect sales productivity improvement as we move through 2021 as a result of the increased operational rigor and discipline. Transformations don't happen overnight, and these changes will take time to fully take hold. Our focus on larger companies continues, and we currently have 39% of the G2K where we are seeing new and significant expansion opportunities. They're turning to Alterix to help navigate these important transformation journeys. This quarter, the largest real estate online retail marketplace in the U.S. leveraged the power of the Alterix APA platform to deliver automated analytics and drive marketing effectiveness. Also in Q1, we closed a seven-figure renewal and expansion deal with a large global consulting firm. This firm, like many, uses Alteryx both internally and as a lead behind in their digital transformation projects. Every quarter, we have great examples of how our platform is being used in different ways. This quarter, the U.S. Census expanded with Alteryx. With our analytics automation solution, they're automating a variety of manual processes related to survey collection and processing and are saving thousands of employee hours a year. What used to take weeks now happens in minutes. Also this quarter, a large social media company expanded with Alteryx to improve its human capital experience. Through the power of automation, they expect to save approximately 4,000 employee hours per year. while delivering near real-time updates on employee engagement to their C-level executives. The Alteryx community is another way we serve our customers and partners. We've long believed that achieving analytics outcomes is a social and collaborative experience, and through the Alteryx community, we bring customers and partners together to learn, share, and collaborate. This quarter, we launched a brand new Alteryx community site that makes it even easier to learn, connect, and drive value. The new community platform includes a richer experience with personalized recommendations and a new data science portal to support advanced analytics across the globe. The feedback today has been exceptional. The Alteryx community is extremely impactful to our customers' experience with the Alteryx platform. Customers that are engaged with our community are three times more likely to expand and have significantly higher usage of advanced analytic capabilities. In the past year, we saw an over 50% increase in activity on community. Another key imperative for Alteryx is broadening the ecosystem. Continuing to expand key partnerships while adding new ones is a key pillar in our success. We believe having a robust ecosystem of strategic go-to-market and technology partnerships will act as a force multiplier and help accelerate our growth. These partnerships enable more strategic engagement with the C-suite, including digital transformation initiatives, and allow us to deliver more seamless integration. For example, robotic process automation, or RPA, is highly complementary with our APA platform, and together, we can allow for swift implementation and faster time to value and outcomes. We continue to see momentum with UiPath. People's United Bank is leveraging the joint power of UiPath and Alteryx to drive real-time transaction processing and monitoring, which has enabled them to increase compliance and lower operating risk. We're also pleased to announce partnership with Blue Prism, Customers have a choice of RPA vendors, and we are making it easier for them to integrate with the best. Finally, we are seeing real traction with our Snowflake Alliance and our joint go-to-market program. Our first global go-to-market program together launched in March, and we had a strong start out of the gate with Snowflake-influenced wins this quarter. One of the reasons we are successful is that we are agnostic to where your data comes from, and goes to as well as where your analytics are consumed. We're making progress around our strategic imperative to drive innovation and make Alteryx consumable anywhere. 2021 will be a year of investment in product innovation with our new Chief Product Officer Suresh Natal leading these efforts. He joined the team last quarter and has hit the ground running and is busy driving transformation across R&D. Suresh has been busy shaping the team to support our growth ambitions while augmenting the strong team we currently have in place. I'm also excited that in two weeks, from May 18th to the 20th, we'll be hosting our Inspire Conference virtually, where customers, alliance partners, data fans, and analytics gurus unite as a global analytics community to share and learn new ways to solve the biggest challenges facing business and society today. We have an amazing lineup of customer and alliance partner presentations planned, and I hope you'll join us to hear from Nike, Mercedes-Benz, Kraft Heinz, Standard Charter Bank, UBS, UiPath, Snowflake, AWS, and so many more. We will also be hosting a financial analyst day on the afternoon of May 18th, where Suresh and I will go into more depth on our current product strategy, and Kevin will outline and detail our financial framework. I hope you can join us. In closing, we're making good progress against our 2021 operating plan and strategic objectives. I remain confident in our ability to successfully transform Alteryx to deliver long-term value for associates, customers, and shareholders. The opportunity ahead of us is massive and growing. As we continue to deliver significant business value to our customers and innovate relentlessly, I believe Alteryx will be one of the winners in this highly fragmented vendor landscape. I'm incredibly energized by the opportunity we have in front of us. With that, let me turn the call over to Kevin. Kevin?