Q4 2021 Anaplan Inc Earnings Call
Thank you for standing by and welcome to the end of play in fourth quarter of fiscal 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will meet the press star one on your telephone keypad.
Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero. Thank you.
I would now like to hand, the conference over to Italy to two chip Coe, Vice President of Investor Relations for Ana playing Mr. Chen. Please go ahead.
Thank you for joining us on today's conference call to discuss end of plans fourth.
Fourth quarter of fiscal year 'twenty 'twenty, one from actual results joining me on the call of Frank <unk>, Our Chief Executive Officer, and Dave Morton, Our Chief Financial Officer.
On this call, we will be making forward looking statements, including financial guidance and expectations for fourth quarter and fiscal year 2022 anticipated future operating and financial performance strategies customer demand caught up to the technology.
These statements reflect our best judgment based on factors currently known to us and actual events or results may differ materially. Please refer to the documents we filed with the FCC, including the form 8-K filed with today's press release the.
These documents contain risks and other factors that may cause our actual results to differ from those contained in our forward looking statements.
These forward looking statements are being made as of today and we disclaim any obligation to update or revise the statement that this call is reviewed after today. The information presented during this call may not be kind of accurate.
We will also discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles unless otherwise stated during the call all references to our gross margin expenses and operating results are on a non-GAAP basis for it.
Historical periods, a reconciliation of GAAP and non-GAAP results is provided in the press release and in supplemental financial information on our website and with that I will turn the call over to Frank.
Good morning, and thank you for joining us today.
We demonstrated linear progression throughout the year.
And this improvement continued into the fourth quarter, we focused on steady execution.
Helping our customers address their key challenges and how the best plan for an uncertain and unpredictable future.
There was the growing need for rapid scenario based planning in this new environment, where disruption has become the new normal and pivoting of course correcting and transforming our now an ongoing every day part of business.
We finished this past fiscal year with solid execution and with healthy new customer growth. This quarter. We now have over 1600 customers and we also continued to deliver value for them with approximately 70% of new bookings coming from expand deals.
We also have 453 customers with a R R over $250000.
Billings grew 37% year over year.
And we exited the fourth quarter with the remaining performance obligation of RP O balance of $818 million up 25% over the last year.
As an example of an impressive new customer land one of the largest U S suppliers of beverages was looking to modernize the financial planning and reporting systems.
They wanted to move away from their legacy on premise solution that lacks the level of flexibility required to accommodate structural changes to the business. They chose and the plan for the breadth of our platform, which was unique in its built in flexibility to address both the F. T N a core requirement as well as other.
Use cases, such as workforce planning and incentive compensation.
This highlights of what we continue to see with our customers where there is the need to connect financial implications to the ultimate business outcomes. This is a good example of the extension of planning beyond finance into adjacent operational areas within the business and emerging trend that has been highlighted by <unk>.
Gartner ex P&A.
Another example of a new large enterprise customer is a European based global leader in materials and chemical solutions.
This company generates over $11 billion in revenue focused on addressing critical industrial and environmental challenges by developing products supporting advancements in transportation batteries, smart and medical devices water and air treatment.
This customer was embarking on a digital transformation effort by moving from a product based approach to being more customer centric the.
The finance team developed a multi year initiative, while sustaining and protecting revenue growth.
Zero based budgeting was selected as the vehicle to achieve those objectives.
They chose our platform because they needed a very short time to market with flexibility and usability since many users we're not in finance.
They also appreciated the scalability, we offered as they expected more than 1500 users who manage high volume detailed complex data.
We see great potential for this customer to embrace connected planning as they anticipate other areas that require similar capabilities.
Another deal I'd like to highlight this quarter is with an existing customer who has over 15000 employees and revenue at scale.
They needed to expand their use of our platform to include integrated planning across HR finance R&D and their business units. So they could focus on improving their profitability and operational efficiency of their business as they plan for the IPO.
Our platform has been their planning foundation and they have now been able to seamlessly integrate this with their existing ERP and other core systems.
From an innovation perspective, this past year has been productive and I'm excited to share that we continue to deliver capabilities on our platform this quarter.
Today, we announced a strategic relationship with Amazon Web services to provide our Anna plant platform on AWS.
This expanded relationship will help us serve a wider range of enterprise customers and grow our overall market opportunity.
This collaboration will also allow customers to leverage integrated cloud services, extending our Anna plant platform by embedding data storage and analytics tools from AWS.
This builds upon and of plants plan IQ with Amazon forecast, which we announced at our CPE ex user conference last fall.
As a reminder, this product delivers more accurate predictions to our customers by pulling in data from and the plan and by automatically testing several learning algorithms before selecting the model optimized to generate the strongest forecast for our customers unique use case.
Now with Ana plan on AWS. It will allow plan IQ customers to leverage first and third party data in their forecasting and scenario analysis.
This product has been available for the past several months to our early access program and we have been working closely with several major customers and partners in health care mining consumer goods and E Commerce and have received positive customer feedback.
We are building a strong ecosystem of technology partnerships to increase value and choice to our customers.
During this past year, we also announced and the plan on Google Cloud and cloud work demonstrating our commitment to opening up the platform.
Today's announcement of an of plan on AWS is a part of that continued innovation.
From a go to market perspective, our relationships with AWS and Google Cloud will also diversify our selling motions, providing the necessary scale to address the large market opportunity ahead of us our joint go to market with AWS will be supported by their sales team.
Our Si partner ecosystem is a cornerstone of Ana plans go to market strategy and is critical in delivering lasting value to our customers. This quarter 10 of our top 20 deals were sourced by partners.
Also pleased to announce that Mckinsey has down named and of plan their official partner for corporate performance management.
At our sales kickoff last week, we announced the launch of a brand new partner solutions showcase the destination for our partners to showcase their end of planned solutions to customers and prospects, which has been designed to support our customers keep planning needs by function and by industry.
This new portal will help prospects access innovative partner solutions from a single catalog and allow existing customers to see the possibilities for extending their existing use of Ana plan across the business functions and geographies.
We continue to be the leading choice for customers looking to digitally transform their planning capabilities.
And the plan is already recognized by Gartner as the leader in three out of for Magic quadrants.
Adding to this recognition this quarter and the plan was also named a cloud E. P M leader by IDC market scale.
In fiscal year 2021 against the pandemic backdrop, we grew our global employee talent by 19%.
We also continued building a world class ecosystem of certified and the plant experts expanding our community across the variety of functional backgrounds.
The total number of professional that completed one of Anna plant certification levels grew in excess of 100% over the prior year.
This includes an of planned talent at our customers partners as well as their own employees.
The people and talent element of connected planning is vital to the longevity and sustainability and the planned deliveries to our customers.
We have also discussed in the past customers have increasingly implemented a recommended center of excellence or Coa.
These are customers internal teams dedicated to deploying and a plan with the purpose to ensure the transformational business planning is fully realized and self sustaining.
This in turn drives greater customer adoption and broader use of our platform, which are key drivers of our net expansion rate and the customer penetration over the longer term.
I'm excited to share that the number of customers with the Coa doubled during this past year.
Within our leadership team last month, we welcome Bill shoe as Chief revenue officer to manage the company's go to market organization and global growth engine, where he will be focused on driving operational discipline and scaling our go to market capabilities.
Prior to joining us bill that the global industry sales business for another staff company.
He is well known as an effective thoughtful and skillful go to market leader with an impressive track record of delivering growth and operational performance.
Bill understands the importance of continuing to drive stability, while scaling our go to market strategy to help take and have plans for the next level.
Reflecting back on this past year as we have navigated through the challenging environment.
Priority is the in the first half of the fiscal 'twenty. One was to focus on strong sales execution optimizing pipeline around deal opportunities and customers, who had the highest propensity to buy.
Uncertain environment.
We have been successful on building, a healthy pipeline and driving expansion opportunities with existing customers and we drove tighter collaboration joint account planning processes, leveraging our partners to connect and the plant into the digital transformation efforts. They are driving with their largest customers as a result of these.
Efforts, we delivered steady sequential improvement in billings growth as we progress through the fiscal year.
As a true Testament to our Ana planned values, we work together as the community both with one another and with our customers.
We quickly implemented and of plan helps to aid organizations and navigating the impact of COVID-19.
We received over 300 free trial requests for a connected planning platform for hospitals pharmaceuticals and.
The nonprofit organizations.
Im also excited to announce our new vaccine distribution planning solution to help government agencies public health organizations and health care systems manage and control every aspect of COVID-19 vaccine distribution.
This new solution, which has now been adopted in the marketplace is available through our partners.
Looking ahead, we continue to execute in the environment impacted by the ongoing COVID-19 pandemic by delivering value to our customers to help them achieve their digital transformation goals with that backdrop I remain optimistic for fiscal year 2022, as I said before we have.
<unk> opportunities ahead, and the need for modern planning capabilities being a multi year journey for most companies are being prioritized.
All of this provides a tremendous runway for growth.
In closing.
I'd like to thank our employees customers partners investors and other key stakeholders as we value their trust and strategic partnerships.
Now, let me turn over the call to Dave who will discuss our fourth quarter and full year financials and provide our outlook for the first quarter and fiscal year 2022, Dave.
Thank you Frank and good morning, everyone.
Total revenue for the fourth quarter was 123 million of 25% year over year.
Within this subscription revenues grew 26%.
The comprised 92% of total revenue service revenues were $10 million.
Up 14% from the fourth quarter last year.
Total revenue for fiscal 2021 was $448 million.
Up 29% year over year.
Fourth quarter billings growth rate improved year over year and sequentially.
Calculated billings for the fourth quarter were $173 million up 37% year over year, driven by strong sales execution and higher growth in net new bookings for this quarter.
Billings also reflects up for foreign currency tailwind and approximately three points related to a large upfront payment for a multiyear contract.
Excluding these impacts billings growth rate would have been approximately 30%.
Which is still well ahead of our guidance of 20% to 21%.
For the full fiscal year billings were $523 million, reflecting growth of 25 per cent compared to the prior year.
R. P O exiting the fourth quarter was $818 million of 25% over last year.
The current portion of <unk> that is expected to be recognized as revenue over the next 12 months is $420 million of <unk>.
99% year over year.
We demonstrated healthy new enterprise growth and ended the quarter with over 1600 customers.
Our dollar based net expansion rate or enter Ars 114% this quarter.
We delivered year over year growth in the volume of expand deals as a result of broadening Ana <unk> platform within existing customers.
There has been no change in churn this quarter and our overall customer retention rate is in line with historical levels.
As a reminder, <unk> reflects the cumulative impact of lower deal volume for the past several quarters.
As we continue growth and expand deals we will begin to see improvement in our <unk> through the fiscal year.
Turning to our profitability metrics total.
Non-GAAP gross margin was 78%.
Up approximately one percentage point year over year.
Within this subscription gross margins were 84%.
The flat year over year and services gross margins were approximately 7% abroad.
Roughly three percentage points year over year.
For the year total non-GAAP gross margin was 77 per cent.
Up approximately one percentage point year over year.
For the fourth quarter total non-GAAP operating expenses were $105 million up from $87 million in the prior year, primarily due to investments in go to market and product and engineering.
Operating expenses for the year of $385 million.
Of 21% year over year from $319 million.
We continue to drive leverage in Ana plans financial model, while investing in key areas within go to market and product development.
Fourth quarter operating margins were negative 8%.
An improvement of 350 basis points compared to negative 11% in the same period last year.
For the full fiscal year operating margins were negative, 9% representing substantial improvement from negative 16% in the prior year and demonstrating progress towards our financial objectives of them.
Proved productivity and profitability.
Net loss per share in the fourth quarter was 7%.
Based on 143 million weighted average shares.
Free cash flow for the fourth quarter was $7 million.
We demonstrated good working capital management.
We executed the quarter with $321 million of cash and cash equivalents.
While there may be continued economic uncertainty broad based digital transformation investments remain a top priority across industries and around the world, creating significant opportunities for and plan to continue building the healthy pipeline of new customers and driving expansion of our platform within existing customers.
Looking ahead for the first quarter of fiscal 2022, we anticipate revenue to be in the range of $126 5 million to $127 5 million.
Within this we expect services revenue to be in the range of $9 5 million the.
For the 10 5 million.
Billings for the first quarter are expected to be in the range of 122 million to $124 million.
This implies a year over year of growth rate in the range of 27%.
The 29%.
Non-GAAP operating margin for the first quarter is expected to be in the range of negative $9 five per cent to 10 five per se.
Weighted average share count is expected to be approximately 144 million shares.
For the full fiscal 2022, we are raising our guidance of expected revenue to be in the range of $550 million to $555 million.
We expect non-GAAP operating margin to the in the range of negative 8%, the 9% approximately flat year over year.
Weighted average share count is expected to be approximately 147 million shares.
In closing our runway for growth and large market opportunity remain intact.
We will continue to scale our business through strategic investments.
Extend our leadership in this market and drive towards profitable growth.
I'll now turn it over to the operator for questions.
Certainly at this time, if you'd like to ask a question. Please press star one on your telephone keypad, Brett <unk> with Piper Sandler Your line is open.
Thank you.
Frank Billings improvement here is <unk>.
Sounds like the trends here of above a 30% would be the highest level. We've seen in the year could you just kind of drill down into what's driving the improvement is this the industry.
Conditions in digital driving just broader interest in planning or do you think theres some.
The internal execution improvement that drove the bulk of the improvement of buildings and then one quick follow up.
Sure. Thank you, Brian So in summary, I would probably say all.
As we go back and look at this past.
Fiscal year, our focus has been on building pipeline.
Really focusing down on a per.
Current customers and working on expansion.
Opportunities.
Line with our partners, ensuring that they were making the investment.
So that they and we together can build capacity and throughout as I talked about the last few quarters.
Really the have stability across our go to market team. So I think all of that played itself out throughout the fiscal year, Inc.
<unk> in the in the fourth quarter, our focus was on linear progression.
So we did see of continued acceleration of the growth in the number of billings throughout the year, which we're pleased with.
That was partly.
Said the focus on pipeline.
Sure that we were aligned with our customers.
I think we've all talked about the importance of digital transformation.
I think our leaders and organizations.
And whether they be CFO cio's other executives I talked to on a regular basis. They all talk about the need for flexibility for agility.
How best they can transform digitally so that that continues to accelerate throughout this past year I feel good closing out the year.
That we've been able to build a healthy pipeline of quality of quality deals as you know we focused in the areas in the marketplace.
Where they were investing businesses and companies were investing.
We did have a mix in the market early in the year.
The company's debt was struggling based on Covid.
But again, we targeted areas, where we felt it was the two opportunity, but I think the continuation of Digitization of the focus on agility flexibility.
The scenario planning really plays to our strength of platform continues to be out there and one that.
I think is unique to address some of these needs and we continue to see the opportunities going forward and we feel good about the fiscal year 'twenty two.
Great well, it's good to see Inc.
Moving on both internal and external factors share Dave for you on the pipeline.
The net expansion appears to be stabilizing here of 100814%.
Based on the pipeline do you think that kind of where we're kind of stabilizing and you could start to see that slowly kind of recover.
Hey, good morning, Brian Obviously, we don't provide of future guide on on this one specific metric, but if you think about it in terms of our overall speaking points of narrative and obviously enter our is somewhat of a lagging metric coming through without $1 13 quarter. Prior one.
Dollars 14, this quarter and kind of where we've.
We've pivoted a lot of the pipe and kind of what that's been translated into income.
Turning into deals.
Clearly there is the thesis that that would increase coming into FY 'twenty two.
Good good to hear thank you guys.
Scott Berg with Needham and company your line is open.
Hi, Frank and Dave Congrats on the good quarter and thanks for taking the question I guess for ankle itself with the new CRO higher.
I think the assumption was a couple of quarters ago. The sales was going to continue to report up to you for a while I guess why timing now to hire this new individual in one of his background is attractive to the opportunity of the airplane.
So I just mentioned this the Scott and I know we've talked about this over the last couple of quarters.
I mean, the focus that I've had with the go to market team is too.
Really drive stability coming off of Q4 of last year.
And I think the talent that we have on the team and all of the geographies around the world.
Is very <unk>.
Strong talent and I think that talent proved itself throughout this past fiscal year that they can really stabilize team for.
<unk> focus on the opportunity build pipeline aligned with the.
With our partners and execute so that was great I think in question I've always had from for many of you I said that.
Over some time I think we do need.
The lead of the organization.
The CRO, but there was no urgency in doing that primarily because of what I just said.
But I felt that.
Getting the right talent was important finding that right talent I think I've found that with bill feel really good.
The bill and a lot of time.
Prior to bill joining with Bill talking about what he could do and the plan the skills that he brings his highly experienced in being an operating executives as.
Well known in the effective I really like kind of thoughtful and skillful. He is both in the go to market, but I think in business. Overall, he's has an impressive track record delivering growth and operational performance at several companies, which is critical I mentioned.
His SaaS experience also plays very nicely I would say in the first 45 days.
He came in.
To listen to learn ask questions meet the team.
And it was impressive from the standpoint, not only my view, but I think throughout the organization as far as.
How he was able to adapt to and of plan, our model and really kind of make some some good.
The input from the standpoint of going forward. If your focus is clearly on maintaining that stability, allowing us to continue to execute as.
So we're now in a new fiscal year 'twenty two.
But also in making sure that we can continue the scale the organization as we as we invested last year as you saw we added 19% resource half of the good part of that we didn't go to market. The other part was in R&D, so, allowing us to now take that investment and really help us scale of that going forward.
We just had our kickoff last week sales kickoff Bill did a great job with.
The team and so off to a great start.
Okay Wonderful and then from a follow up I know the company set of lot of success landing outside the office of the CFO of pre pandemic and I guess from what you've seen of the pipeline's recently in the last quarter or two or maybe even going forward does that kind of thesis continues to play out or has there been maybe of higher emphasis in the opposite of the CFO of recently.
So I mentioned this in the prepared remarks.
I think it's really important.
We started in finance I mean anytime you think about planning it resides in plant in finance and having the background that I have.
In finance, but also in operations I know that everything starts and ends from a finance perspective as it relates to the planning but.
But I think more and more companies are realizing that the weight planning was looked at in the past is different from what it's needed right now as well into the future and that planning is in the enterprise process not a financial process and.
And so we were able we have been successful in leveraging the strength that we've had in the finance organization in aligning a lot of that planning out into the organization, whether that's in workforce planning with HR, whether that's in sales performance management with sales organizations, whether that's in supply chain demand planning for.
Supply planning.
And many of the conversations that we're having right now is.
CFO to other executives and back and forth and that's that's the strength that we have it's also what gartner has called out over the past year.
In their new.
Category called extended financing planning is really enterprise planning, so we're seeing more and more of that I can just you know even talk about some of the executive meetings I had this week I had one with a.
The CIO.
They have a two day summit this week, which I was part of the kickoff.
Where the current customer.
The the business started in finance with the CFO and the CIO and here the CFO CIO of a sponsoring of two day summit.
From their company, specifically on and the plan and the topic of the summit was making the art of the possible wheel for them right. So how do they continue to expand what they've been able to achieve in finance out across the enterprise. So we're continuing to see that.
And I think we're having some great success with many examples and that's where our partners kind of come into play as well because they have a broader reach.
In some of these accounts to be able to allow us to.
Not only.
The deal with the finance organization, but deal more across the enterprise, especially when they're working on transformation opportunities.
Thanks, Congrats again on the good quarter.
Stan <unk> with Morgan Stanley Your line is open.
Perfect. Thank you so much and good morning, everybody.
So from a from a couple of quick questions.
On the on the.
On the sales organization, Frank maybe and maybe this is for you how are you and bill thinking about the structure of the sales organization moving forward any potential changes.
And then maybe.
How has the sales productivity been trending.
I would imagine it's been improving through the year, but specifically how did finish in Q4.
Mhm.
Hi, Stan.
So I would say.
And this again goes back over the last couple of quarters.
We put in some changes in Q4 of last year.
We then got hit with Covid so.
So I think the go to market organization at the start of the fiscal year 'twenty one.
Had some change both organizationally as well as just the environment.
And as I said before I think I'm really pleased and proud of how the team has weathered that with the execution that we've had throughout.
The focus has been on stability.
Moving to continue that focus built build fully agrees with that as well.
There, we don't anticipate any change in the organization.
What when I announced Bill Bill is.
Has the whole go to market. So it's just all of those individuals that had pieces of that reporting to me now report to him.
Did not announce any organizational changes nor do we intend to and the focus is on continuing to execute and then scale as far as the opportunity.
Now as far as productivity.
As you would expect standards, you mentioned productivity continued to improve throughout the year.
And it also improved in Q4 as well. So we finished the I would say on the high note as far as the productivity and how it trended throughout FY 'twenty one.
Okay, Perfect and then maybe a quick follow up for.
For Dave.
On the on the fiscal 'twenty revenue guidance.
Is there any change in mix that you're expecting as far as like subscription revenue of pro services.
That we need to be mindful of.
Good morning, Stan no.
Not not whatsoever, the the assumptions are pretty fairly based.
I would just use historical.
Views of both our land and expand specifically on the on the subs.
R R.
Is lining up very very nicely to that as well as frankly of narrated on just the productivity gains on so expect those.
The similar conversion ratios and then we're going to continue to deemphasize.
Professional services right and as we've always narrow range that will continue to be less of the 10% as we think about the total aspect of the revenue built from a bottoms up.
Okay Awesome. Thank you guys.
Brent Thill with Jefferies. Your line is open.
Good morning, Frank just from the larger transactions just curious if you could just give us a sense of.
You know what youre seeing in terms of some of these larger enterprises coming back with with bigger commitments now or are you feeling that there.
They're getting back to the opening of trade as well and I'm going to commit and make bigger bigger decisions. This year are you still seeing some hasn't seen there theyre kind of dipping their toe and doing the.
Some simple transactions and then getting getting back up and going again later in the year.
You know I think of the we're still dealing with.
The COVID-19 environment, and so we continue to be prudent from that perspective, and I think.
Things have improved throughout the year from that perspective, our focus has been as.
And how has continued nvidia as they continue to scale and grow.
They've continue to see value in and the plant and so you know working through this past year with with a great example of of continued expansion from that perspective, we've had a couple of of very large companies again in areas, where their business mess had some strength.
Really build out the replace the 20 year old the infrastructure in their sales performance management and replaced that extensively with kind of plan and sales forecasting of territory planning incentive compensation the entire suite. So yeah, we're seeing those types of opportunities.
Build throughout this past year, but again as I started answering your question I'll end with that too.
We want to make sure as we look at F. Y 22, we feel good about having a healthy quality pipeline, but we also want to be prudent.
Knowing that you know the ebbs and flows of Covid in different industries and of different geographies around the world continues to to be out there who want to kind of take it one step at the time.
Great. Thank you.
Michael Sarah Wells Fargo. Your line is open.
Hey, there. Thanks, good morning, you've delivered doings upside the past couple of quarters, but revenue growth is still showing some of the lagging impact just wondering if you'd expect Q1 could be the trough you're assuming the world continues to recover it certainly looks that way of giving guidance for the rest of the year and what you're starting to laugh as well.
Well, but wondering if you could also at all touch on the expected shape from the top line perspective, and maybe remind us how much visibility you have there as well.
You know for for modeling purposes, we.
I would.
We we gave the the guidance that we have most of the Q1 as well as for the full year.
From revenue standpoint, Uhm I think all of you know that with the model that we have you know beige.
Based on the performance throughout FY 21 from of bookings standpoint that says of lagging impact as it relates to revenue.
As far as recovery as they they just said with the previous response.
We we feel good about the healthy pipeline that we have the quality of the pipeline. How we focused the pipe line as I said in industries, where there's business strength, but again I I Wanna be patient as it relates to Covid take this you know one quarter at a time.
While we feel good I think the you know the only way to kind of answer. Your question is to see how it plays out throughout the F Y 22.
With a balanced approach I think it allows us to continue to execute M.
And our objective is to see of continued progression of our business as we see the opportunity being fairly significant in the marketplace and we feel that the products that we have the platform that we have is ideal for that opportunity and the more conversations I have with the executives each week makes me feel better about what.
They Wanna do how they want to do it and where they can leverage and the plan.
Understood <unk>, maybe just a quick for all on for Dave can we go back to the billing. So is it just to make sure we have those right. It sounded like for points from it back from three points from a larger prepay is is there anything you can add on the second one just to help us in characterizing that'd be helpful. Thank you.
Yeah morning, Michael No I think you have it correct. It it says.
Simple as that you know, we we had a large customer of our large prepay that included a year or two kind of your three involved with that and so we specifically wanted to call that out as we don't normally have those deals and so when we talk about you know just comps as well as year over year.
Uhm and sequential quarter, we wanted to provide that the information was transparent as we can so nothing nothing more than the night simply.
I appreciate that thanks, guys.
Kirk return with Evercore Your line is open.
Alright, Thanks, very much Frank I was wondering just in your comments about sort of the the market in in the pipeline build have some of the impacted industries that you saw obviously earlier in the your come back at all or is hopefully the economy and an oral gets back to normal could you see parts of the economy actually coming back into your pipeline that maybe you're not quite see <unk>.
At meeting I'm, just wondering if there's you you've obviously toggled really well in the areas, where there's more demand and hasn't been impacted but you'll have some of the companies that were impacted earlier in the are starting to look maybe of head beyond COVID-19 and come back in or is that still opportunity are upside potential for you is your head in the physical 22.
Current it's <unk>, it's hard to say I, you know I I I think those those vertical still have been impacted I will say of if I think back is you're asking the question.
Have we have started to have some conversation with some of them, Yes, which you know gives you sign that there you know thinking more about the future, but you know we I <unk> I don't I wouldn't say that we started to have certain traction as far as you know clothes deals of deals that are you know in your term the pipeline. So we will continue.
The good thing about of model is is and also the investment that we've made both in our own team as well as with the partner team is that we you know we stay connected with these customers. The key thing that we tried to do early on with all of our customers is to show empathy right go in there and see what we can provide some.
Help and I think that goes a long way uhm as the Ache then come back in and start to see some improvement in their business, how they want to respond to work with us. So that's always an opportunity.
Okay, Let me say that mood board.
Okay. That's great and then maybe just a follow up for for day of and Frank Maybe you went away on the survey How're you of thinking about just sort of you know sales of market going you'll go to market. Your posts pandemic in terms of more virtual selling you are absolutely building out of bigger partner channel and and maybe how you think about that impacting just serve your sales.
Sort of yield of or just sort of your operating margin sort of progression, meaning I think most big enterprise companies I've seen some benefits the sheer actually from your lower traveling of expense of things like that how are you all thinking about that as we had and maybe beyond COVID-19 over the next day of hopefully you know a few quarters. Thanks.
Yeah, the morning, correct or sorry Friday, Let's go ahead now you don't know of Codelco I was just gonna say, obviously, you gotta have the near term.
Economic gain from savings and spend but I do think you know where this is index things you no longer term has been and that positive not only on the investment thesis N and the further date of modernization, but then also access to the respective T.
<unk> that you're trying to sell into you know plus the the value that you're immediately delivering upon implementation of an of plan and so I think when you get a lot of those out. It's it's the net positive you know much further down the road, but in the near term you know obviously like everybody.
Oh, so you've seen some near term savings that then you know obviously, we're reinvesting back into the business as you'd think about just productivity gains an absolute capacity that you put on line.
Sorry, Frank so.
[laughter] that's great. Thanks, guys.
Josh back with Keybanc Your line is open.
Thanks for taking the question of <unk> what are the go back to some of the higher level commentary around does the transformation you said that it remains of top priority of I'm, just curious maybe where it stands now obviously earlier in the pandemic. There was a big focus on front office and I think that.
Shifted as we went through the year and so I I realize it's tough to do but maybe just to help us think about where perhaps it stands of the priority list versus pre pandemic to the extent you can.
I I you know from the <unk> I would answered this way come of priority list I think it's moved up.
Hi are on that list and I, just say that just based on the dialogue that I've had and also participating without partners and some for them that they have with the C. F. O is Dave was even part of the for a few weeks ago with a group of <unk> and that's exactly what the topic and so he can make the jump in and get the his.
Perspective, as well so I I I think the topic has moved up.
The significantly from of privatization standpoint, especially with Cfl's, but I think even more extensive than the cfo's as far as where it is uhm I still say, it's in very early evenings as it relates to enterprise transforming the F. P. M. A functions, but also the transforming some of the planning uhm across the the end of.
Price.
Uhm and I I think it also goes into bring up this the same Ah reference again, the Gartner Twenty-twenty cloud financial planning in N out for the solution report that came out in April where they they they did extensive the amount of research for a whole year and they're they're they're saying early but all indications are that it's been.
Start to show a more aggressive ramp kind of going forward, where they were predicting by 2024 70 per cent of F. P. M. A organizations are going to of something more like an extended planning uhm organization for planning Uhm opportunity, Dave I Dunno, if you want to add in some of the perspective, you picked up in that recent CFL for them.
I I would just add it's it's very top of mind you know there's continue to be a lot of friction points.
And so when you think about just the opportunities that lay ahead for the value creation that end of play it brings but then more importantly, again, whether fifth of greenfield opportunity or or legacy systems that are just not able to.
Keep up with the kind of the of all the times cause we navigate through everything going on I I think it's you know just center front and center for a lot of the operating she of course.
And the the the only thing you know as as again, what the executives are also dealing with as they take all of these transformations they've gotta figure out how best to do it right they've got a lot of things happening in their business, but moving it higher on the prioritization list allows us to start to work through paths of of execution.
And that's that's been increasing.
Really helpful. And then a follow up on really the composition of of new bookings, obviously, you've made of of really purposeful shifts towards the expansion activity of and then that's worked well, but in the next year or maybe too.
Could we could receive that swing the other way as of some of these perhaps the baby larger deals starts to return. So just just curious if you could maybe help us take through the the potential shapes there in in the coming years.
You know, it's it's hard to really predict the you know I I think are mixed of like 60, 40th for his expand the new is probably the the best model that we can see I mean, yes. It did uhm shift more toward expand in queue for but at the same time to for also had a very strong amount of new customers that were brought into.
The you know an appointed portfolio with which is great. The C. I think that's the an indication now of more extensive interest going back to some of the comments that day of and I've been making so that was get the C. As far as the number of customers new customers working with and a plan working the partners in exploring initial use cases and potentially.
Now then further expanding is 22 and 23 continue.
Okay, great. Thanks, guys.
Re orange with Barclays. Your line is open.
Hey, Thanks for squeezing in in Congress for me just about just a quick question on the expanded AWS relationship just just what it doesn't do from like working the customers and new geographies I guess, that's where <unk>, where you initially kind of blue benefit both from them and what are the well how do you think about that the clouds usage and the law.
And what does it do to gross margin. Thank you.
So again with the you know the strategic.
Cooperation agreement that we have with AWS and then of course, the last quarter, we talked about the partnership with the Google Cloud.
Customers one access the public cloud Uhm, we want to provide them with the ability to do that this enabled this further enables us to to to do some of that it also allows us to expand.
Uhm globally as far as the availability uhm and that gives us more opportunity and also expand the animal print footprint extending the availability of Anna plan.
Really to global enterprises of market segments that we didn't have <unk> well, we don't have access to today as well as continue the the innovation, which is also helpful. I know, we we mentioned today about the innovation with Amazon forecast, which we announce back in September other things like that too. So we're really excited.
About the the opportunity that we have here and I don't you know this is I just wanted to mention as far as the joint go to market. That's more of the latter part of this year and two next year.
And as far as the margin implications the margin implications should be minimal tonight existence.
Okay. Thank you for the.
We have time for one final question Terry Tilman with true of security of your line is open.
Yeah. Thanks for taking my questions and it's a nice job on the corner and seen the progress of Hi, Frank David at a later, maybe just actually one question Frank I'll I'll make it easy Mckenzie, that's that's a pretty prominent name in the consulting World I'm curious had you all had some engagement with them in the past and or was this like a bake off where they were wanting to standardize.
Kind of the go to market with of one particular C. P. M vendor and then how could you see this playing out of compared to some of these other relationships like AWS. Thank you.
Yeah. So we we've had a relationship with mckinsey for or the the for years that I've been part of the end of plant I've been working with Mckinsey Uhm I I think this is really of further confirmation of the success, they're staying with their clients can leveraging and of plan, where they do want of standardized especially for.
For corporate from management. So I think it's just showing that they've had some some great examples of value that they've been able to create a leveraging end of plan and wanting to extend it even further with other clients. So it's great to see that and we look forward to the continue the partnership.
Okay.
I would now like to turn the call back over to the end of play in management team for closing remarks.
I want to thank everyone of of joining us here today and the continued support of and of plan. Please join US again next quarter Uhm as we talk about the results from a Q1 I know, we're off and running with fiscal year of 22. So thank you again.
This concludes today's call. We thank you for your participation you may now disconnect.