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

Paula Hansen: Yeah. I think what executed in Q2 against the Q1 deals pushed were consistent with what we see kind of quarter-on-quarter. So, nothing unique about Q1 those Q1 deals.

Mike Cikos: Okay. And then another, if I could. Just thinking about the cost savings that you guys are calling out and the sales enablement. One of the things I’m getting pinged on is with respect to, I guess, a key driver for the profitability is, I guess, some of the scale efficiencies you guys are driving. You’re obviously working on execution, pipeline quality conversion rates, but the sales enablement initiatives are actually coming at the same time where you guys have scaled back meaningfully, right? We had the 11% RIF in April. Can you just help us think about how those initiatives are playing out? And I imagine, it’s increased workload on those remaining folks in the seat, but anything there would be helpful as far as understanding what’s put in place given the reduced support functions around some of those quota carrying reps?

Paula Hansen: Sure. So as you know, we have a lot of quota carrier hiring that happened in the second half of 2022. And so we started the year with more ramped reps. And every quarter, we have more ramped reps. The enablement is an ongoing function for us. We had much of the enablement that we are launching in development and planned. It’s sort of a doubling down of the enablement that we’ve built around coaching salespeople around the expectations of managers around deal scrutiny as well as just revisiting all the elements of our value-driven sales motion. So it’s not a huge enablement lift on our supporting functions — it is a revisiting and an increased focus on these areas of the sales team that is here and executing with us for second half.

Mike Cikos: Got it. Thank you very much, Paula.

Paula Hansen : Thank you.

Operator: Thank you. Our next question is from Pinjalim Bora with JPMorgan. Please proceed with your question.

Pinjalim Bora : Great. Thank you very much for taking the questions. I wanted to ask you on the customer behavior change that you saw. Was that completely outside of G2K because G2K net expansion seems like still holding on steady. Maybe talk about just the behavior from the G2K base. And then just a follow-up on that, what portion of the G2K MDR today is driven by seat growth versus growth in unit price driven by expanding into other modules or any other pricing leverage?

Paula Hansen : Sure. So the majority of growth within Global 2000 is seat growth followed by product expansion pricing changes will be third to those categories. In terms of the behavior that we saw in the final weeks, I would not say it was unique to G2K or outside of G2K. What was specific about it was that it was customers outside of their renewal time line.

Pinjalim Bora : Understood. Thank you

Paula Hansen : Thank you.

Operator: Thank you. Our next question is from Michael Turits with KeyBanc Capital Markets. Please proceed with your question.

Michael Turits: Thanks. So first of all, what portion of your expansion is typically renewal times versus non-renewal time. And I guess I’m just trying to — in most of the time, the people have challenges on expansions is just expansion overall, not within outside of the renewal cycle, unless there are other structural issues within the company. So just trying to understand two things. One, just that stat of what the split is usually and what your analysis is of why it would have hit you on the non-renewal portion but been okay on the renewal portion?