Alteryx, Inc. (NYSE:AYX) Q2 2023 Earnings Call Transcript

That’s what our AI work bench was aimed at — is aimed at. It’s why when we launched it early in August, we saw some of our largest customers immediately engaged to the design partner program and start to use it. So that’s how we think about the opportunity. We think there’s clear opportunity to make every analyst more productive inside the company and help them do more with less using generative AI technologies, but we also see significant opportunity to help them introduce large language models and generative AI, whether they’re building chatbots or they’re doing other experiences that are powered by generative AI we think there’s a fertile opportunity to introduce that into the enterprise with the right degree of governance and compliance.

Sanjit Singh: Understood. I appreciate the thoughts, Suresh. And then on my follow-up question, sort of going back to some of the issues that you saw at the end of June. Mark or Paula, the nature of these expansion deals that are not tied to the renewal, what’s sort of the core essence of these deals relative to renewals or renewals plus expansions either in terms of the customer profile or the mix of products? Anything to sort of call out there?

Paula Hansen: Sure. Thank you, Sanjit. So if you think about these are some of our largest customers, we are engaging in multi-department, multi-team enterprise-wide initiatives. And so the demand can come from various different departments across various different time lines. And so when we see opportunity to execute on some demand outside of a renewal cycle within an existing account, we pursue that at that time and customers often engage with us in that way and we’ve seen that in our past. This quarter, it was unique, where several of those conversations with existing customers around those expansion opportunities in the last couple of weeks. The behavior was just they didn’t think the timing was right for their budgets and the deals pushed.

It’s important to note that we’re still actively engaged with all these customers on this demand, on these expansion opportunities. So they’re not lost. A lot of them will align with their renewal time line into second half, and others might still continue to build on a stand-alone basis. So it’s just the journeys that they’re on and the various departments and teams engaged.

Sanjit Singh: I appreciate the thoughts, Paula. Thank you.

Operator: Thank you. Our next question is from Mike Cikos with Needham & Company. Please proceed with your question.

Mike Cikos: Hey, guys. Thanks for taking the questions, here. Just to build off Sanjit’s question around those expansion deals independent of a renewal, but I wanted to get a better sense. I think, Kevin, in your prepared remarks, you had cited over 10 large existing customers with six or seven-figure deals. They either came in at 50% below expectations that reduced size you called out versus yield pushing out a quarter. And I just wanted to clean up my understanding there. Can you help us think through the mix between those deals that came in at a smaller size versus the deals that pushed? And I guess, what would be helpful as well. I know this is the second time we’re second consecutive quarter, we’re talking about deals pushing. Last quarter, we had some disruptions from SCD did all those deals come in during Q2, or some of those still outstanding as well?

Paula Hansen: Sure, Mike, I’ll take those. So I would say that, it was about 50-50 in terms of deals that executed at a reduced size from what we expected and those that pushed out. These are large deals, a small number of large deals, and so they move the needle when they’re reduced or when they push. Remind me the second part of your question?

Mike Cikos: We had the deals that pushed from Q1, right, related to SCD and the nervousness we’ve seen in the market at that time. Did most of those deals, if not all of them come in there in Q2, or I’m trying to get a sense of what’s the magnitude of these deals getting pushed?