Q4 2022 Anaplan Inc Earnings Call
Good day my name is Savannah, and I will be your conference operator for today at this time I'd like to welcome everyone to the F. N fourth quarter fiscal 2022 earnings Conference call today's call is being recorded.
Please be advised that the IR website vendor as it eliminates Wifi access issues and we are aware of that and apologize for any inconvenience.
All lines have been placed on mute to prevent any background noise and after the Speakers' remarks, there will be a question and answer session. If he would like to ask a question during that time. Please press.
Star one on your telephone keypad.
I would now like to turn the conference over to Vikram for Pla. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss other plans fourth quarter fiscal year 2022 financial results. Joining me on the call are Frank <unk>, Our Chief Executive Officer, and the cost per head the Chief Financial Officer.
This call, we will review, our fourth quarter and full fiscal year 2022 financial results and discuss our financial guidance for the first quarter and fiscal year 2023.
Please note that some of the information discussed on the call.
Particularly our guidance is based on the information as of March 2nd 2022 and contains forward looking statements that involve risks uncertainties and assumptions, including those related to the continued impact of COVID-19 on our business and global economic and geopolitical conditions.
The guidance, we will provide today is based on our assumptions as to the macroeconomic environment in which we will be updating.
Those assumptions are based on the facts, we know today.
Many of these assumptions relate to matters that are beyond our control and changing rapidly, including but not limited to the scope and effectiveness of precautionary measures designed to contain and prevent the spread of COVID-19, and the continued impact of COVID-19 on customers' purchasing decisions and the length of our sales cycle, but.
Clearly for customers in certain geographies.
Please refer to documents be filed with the SEC, including the form 8-K filed with today's press release those 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 these statements.
If this call is reviewed after today the information presented during this call may not be correct or accurate.
He 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 margins expenses and operating results are on a non-GAAP basis.
For 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 afternoon, everyone. Thank you Vikram and a warm welcome to Ana plan Decrement, our new VP of corporate finance and we are very happy to have them joined the team.
Before we begin I would like to take a moment to acknowledge what is happening in the Ukraine.
We are devastated by the events unfolding and we support those who are personally impacted by this heartbreaking situation.
Now turning to our results.
And our plan delivered a very strong fourth quarter. We finished the year with over 1900 customers and we had the highest ACB and net new ACB growth in three years.
I am proud that our our Po this quarter grew 34% year over year, resulting in an <unk> balance of over $1 billion.
As we start the new fiscal year, we remain confident in the large opportunity ahead and our ability to execute.
A Q4 highlight was the record number of deals over $1 million, which.
Instructs the strong demand for connected planning, especially with the office of the CFO , where software spend remains a high priority in fact in Q4 alone the number of million dollar deals equaled what we had in all of fiscal year 2021.
This was driven by outstanding expansions contributing to 78% of new bookings mix. We also had the highest land bookings growth in the last two years.
We continue to experience increasing demand for used cases within finance supply chain and sales performance management.
This is a clear indication of how today's challenges are being solved by connected planning for some of our largest customers.
Last month, we held our annual sales kickoff to drive our FY 'twenty three go to market strategy and the energy was inspiring.
We have grown our sales capacity through fiscal year 'twenty, two and we brought in exceptional new sales talent.
We have also elevated longtime high performing sales leaders.
We feel good about our pace of hiring and ability to meet the increasing demand in FY 'twenty three.
Bill <unk> and his team are driving four pillars of excellence first by elevating the go to market motion.
By building, a scalable and efficient land motion.
Third by creating a world class adoption and delivery model and fourth by investing in key partnerships.
Our first pillar is elevating our go to market motion. This is where we engage with C suite executives to drive strategic digital transformations as I speak to these executives on a regular basis they need an all in one planning solution.
The latest disruptions, whether it's continued supply chain challenges or massive talent turnover are causing unprecedented shifts that need to be planned quickly with agility.
Our elevated go to market motion is highlighted with our transformative land with ODP solutions also known as office depot. This customer is undergoing a strategic transformation leveraging its <unk> assets to support an increasingly dynamic end market.
This requires constant evolution to drive performance and they are modernizing their sales compensation management to be prepared for these changes.
Otp solutions selected and a plan for the ability to scale and meet the future needs of the business.
Our second pillar of building, a scalable and efficient land motion is geared to accelerate new logo acquisitions.
We welcome Manchester University, NHS Foundation Trust Vitality Health Limited twin Star homes, and Europe car International SA Su <unk>.
Our platform provides critical scenario planning to enable smarter decisions for a variety of customers and industries.
An exciting land this quarter was the largest deal in Canada with the government of Ontario, We will support the financial community in the overall management of Ontario's fiscal plan Ministry plans budgets and forecast will be developed and managed within and a plan, which is expected to lead to better.
Our financial management outcomes.
Advanced pharma is another good example of a scalable land. This customer is a specialty pharmaceutical company, which supplies to over 90 countries with more than 200 types of medicines across the multiple therapy areas.
They wanted to broaden their access to complex medicines, while maintaining agile and efficient operations.
This customer set out to optimize the supply chain operations selecting our data driven platform to help bring greater resilience to the company's network.
Our ability to interconnect demand signals with supply chain outcomes in real time and to model various what if scenarios were deciding factors in selecting Ana plan.
We also landed in ethanol P win with Bobst. This company is one of the world's leading suppliers of substrate processing printing and converting equipment and services to the packaging industry.
The company selected Ana plan as its global sales and operations planning solution to enhance collaboration between sales supply chain and service teams with.
With a scalable and flexible platform. This customer will have a dynamic and integrated view of customer demand.
<unk> can adjust resources evaluate financial impacts of changes to demand and capacity and reduce manufacturing and resource cost to help drive increased revenue.
Our third pillar of creating a world class adoption and delivery model was driven by our expansion metrics up strong customer health and natural expansion opportunities.
This quarter by delivering strategic value, we are deepening our relationship with existing customers such as Autodesk Bayer Adobe Jaguar land Rover, Nomura Ricoh and l'oreal.
These customers span across multiple industries and geographies to help further the digital transformations.
Solvay, a global leader in materials chemicals, and chemical solutions is undergoing a finance transformation to break down silos increased efficiency and enable a customer centric approach.
The company expanded their use of Ana plan from zero based budgeting to integrate workforce cost planning and budget consolidation and planning.
This enables end to end financial planning on a single platform.
Sleep number also expanded with Hana plan with plan IQ this quarter.
They use and a plan for demand planning and has expanded to include use cases in sales and operations workforce and supply chain.
The company is furthering its connected planning journey with plan IQ to deliver greater accuracy across topline product level and market level sales forecasting.
Sleep number can forecast daily across sales planning demand planning and store staffing to get deeper insights and run multiple scenarios related to its seasonal promotions.
Finally, our fourth pillar is investing in key partnerships.
Our partner ecosystem provides opportunities to further differentiate our market leading solutions and to drive more demand for our offerings. This quarter partners participated in 18 out of 20 of the largest net new <unk> deals worldwide.
And net new HCV sourced by GSI was more than any quarter since Q1 fiscal 'twenty one.
Our partners continue to invest in higher and a planned skilled resources, which is a testament to the level of customer interest they're seeing in the market for enterprise grade planning solutions.
Major partners see opportunities to gain a larger footprint with customers by working with Anna plant.
We recently expanded our long term strategic collaboration with Microsoft.
This brings together the predictive intelligence and advanced modeling capabilities of our sales solutions with planning incentive and insights with Microsoft dynamics 365.
With Ana plan and Microsoft sales leaders can build a data driven go to market strategy by leveraging company and third party insights to model market scenarios and create accurate revenue forecasts.
These insights can also help leaders design cost effective sales incentive programs.
I think this relationship is going to make a major impact to our customers who have large expansive go to market teams.
Our partner ecosystem also helps us go deeper with our customers in strategic ways.
One Great example is through our partnership with Deloitte, who has successfully delivered differentiated ESG solutions to <unk> customers.
These sustainability models are critical to supporting their ESG vision through environmental and social related planning and reporting.
We also partner with BCG to bring similar solutions for our mutual customers. In fact, I was recently speaking to a CFO of a $7 billion global consumer product company, who is interested to learn more about our carbon emissions management and other ESG related initiatives with our solution.
Our industry, leading platform is helping mitigate risk, allowing customers to plan ahead and predict what is needed.
Another lever within our growth strategy is our cloud partnership with GTP and AWS. These relationships have been instrumental for us to scale quickly and broaden outreach we closed several deals on GCB cloud both in the U S and Japan.
We also launched on AWS cloud in November and we have started to make progress closing our first deals this quarter, one of which was over $1 million.
And finally with the increased usage of our platform solutions. There is a constant need for more skilled Anna plant experts our ecosystem of talent continues to grow with the total number of certified model builders, increasing over 90% year over year.
From a customer perspective over one third of them currently have a center of excellence with the number of Coes up over 65% year over year.
To recap our four go to market pillars of excellence drive both growth and efficiency and we are confident in our ability to increase demand for our solutions to our customers.
Now onto our innovation, we know that one of the biggest drivers behind our growth and continued customer adoption is a relentless focus on innovation.
As I mentioned last quarter, we are committed to the next level of connected planning and remain leaders in this space outpacing our competition.
We introduced the concept of the autonomous enterprise to extend our platform with embedded intelligence capabilities and simplify complex problems across large enterprises.
Our strategy is to help our customers plan analyze and act in an autonomous system that is unified to drive AI and ml intelligence.
With this investment in the next stage of planning.
We can further our customer success with greater agility intelligence and automation within one sophisticated platform.
In summary, Anna plant delivered a very strong finish to the fiscal year in Q4.
Adding over 100 customers closing a record number of million dollar deals and achieving our highest HCV and net new ACB growth in three years I am proud of our performance, we are well positioned within our growth strategy strategic partnerships talented employees and the next level of innovation to take.
Advantage of the opportunities ahead.
Moving into FY 'twenty, three we feel confident as leaders in our space to focus on investments in our go to market motions and build upon our platform Differentiators, we offer immense value to our customers and we are committed to delivering the most innovative planning solution.
I'd like to take a moment to thank our employees for their continued tenacity and commitment.
You are the reason for our results and I appreciate what you bring everyday.
Now, let me turn over the call to a acosta, who will discuss our fourth quarter and full fiscal year financials and provide our outlook for the first quarter and fiscal year FY 'twenty three the cost.
Thank you Frank I would also like to welcome Vikram Joanna plan.
I am pleased to report our fourth quarter and full fiscal year 2022 results.
We exceeded the high end of our guide across all our guidance metrics for the quarter and the fiscal year.
Total revenue for the fourth quarter was $163 million up 33% year over year.
Within this subscription revenue grew 32% and comprised 91% of total revenue.
Service revenue of $15 million was 9% of the total revenue.
Total revenue for the fiscal 2020 do was $592 million up 32% year over year.
From a geographic perspective international operations, which we define as the EMEA and APAC businesses represented approximately 45% of total revenue.
Saw broad based year over year growth across all regions with Americas, and EMEA revenue up 32% and APAC up 36%.
As Frank mentioned, we closed a record number of million dollar deals. This quarter, we now have 555 customers with.
Over $250000, representing 23% year over year growth.
Additionally, the number of customers with <unk> over 500000, and $1 million increased 28% and 45% year over year, respectively.
Dollar based net expansion rate or <unk> was 118%.
Adjusting for FX and that would be 120%. This is a testament to upsell success in the installed base as well as market validation of the need to extend planning to other areas.
Looking at our performance metrics for the fourth quarter, our billings on a constant currency basis was $224 million and calculated billings was $221 million.
Calculated billings growth for the quarter was 28% as you may recall last year Q4 included a multiyear billing and FX tailwind.
Adjusting for this onetime multiyear billing and current FX headwind billings growth was 32%.
Remaining performance obligations, our RP youre exiting the fourth quarter was $1 1 billion up 34% over last year.
Driven by the strong CRP or bookings growth rate of 36%. The current portion of <unk> that is expected to be recognized as revenue over the next 12 months is $545 million up 30% year over year.
Overall, our pure performance reflect long term customer commitments, the execution of our field and strength of the platform.
As discussed last quarter, we expect to see continued variability in calculated billings and CRP or bookings growth rates based on differences in the timing of large deals timing of billing versus booking.
Early renewals and off cycle renewals.
We recommend looking at trailing 12, month's billings and CRP or bookings metrics, which will help normalize for these timing differences.
On a trailing 12 month basis billings grew 30% and CRP. Your bookings grew 32% year over year and is a clear indicator of the underlying growth in our business.
Turning to margins fourth quarter total non-GAAP gross margin was 75% within this subscription gross margin was 82% and services gross margin was approximately 1% quarterly.
Part of the year total non-GAAP gross margin was 76%.
As we have said previously over the near term our gross margin will include the initial impact of a gradual increase in the cost of hosted services as we ramp our public cloud usage on AWS and GCB.
As Frank mentioned earlier, we are beginning to see good traction from our cloud partnerships.
non-GAAP operating margin for the fourth quarter was negative six 5%, reflecting an over 100 basis point improvement compared to negative seven 7% in the same period last year, reflecting better sales productivity.
For the full fiscal year non-GAAP operating margin was negative six 9% representing improvement from negative eight 6% in the prior year and demonstrating progress towards our financial objectives of improved productivity and profitability.
non-GAAP net loss per share in the fourth quarter was negative 11.
<unk> hundred 48 million weighted average shares.
Turning to the balance sheet and cash flow free cash flow for the quarter was negative $22 million and we exited the quarter with approximately $300 million in cash and cash equivalents.
Moving to our outlook.
We expect first quarter of fiscal 2023 revenue in the range of 164.5 to 165 5 million.
Within this we expect services revenue to be in the range of 14 million to $15 million.
This is within our target range of approximately 10% of total revenue.
non-GAAP operating margin for the first quarter is expected to be in the range of negative seven 5% to negative six 5% as.
As a reminder, our Q2 spend is seasonally higher reflecting investment in marketing return to travel and in person events, including our annual user conference in June .
Turning to <unk>, we expect first quarter growth of 26% year over year and increasing growth rates in the second half of the fiscal year.
Keep in mind that the two primary drivers of growth are net new bookings and the timing of renewals.
For the full fiscal year 2023, we are increasing revenue guidance to 745 million up from $730 million.
Do you have a high level of confidence.
FY 'twenty three outlook as we already have 73% of our FY 'twenty three revenue guide in <unk>.
We expect non-GAAP operating margin for the full year to be in the range of negative three five to negative four 5% as we drive improved operating leverage and a path to breakeven in Q4.
Finally weighted average share count for the first quarter and full fiscal year is expected to be approximately 150 million shares and 152 million shares respectively.
Demand for connected planning remains strong our customers are choosing and plan to address their most complex needs in today's volatile environment with <unk>.
Let's now open it up for questions.
Thank you and as a reminder, and a star one to ask a question and we do ask that you. Please limit yourself to one question, we will pause for a moment to compile the Q&A roster.
And our first question will come from Raimo <unk> with Barclays.
Please go ahead.
Okay.
As a reminder, please.
Before you ask your question.
We can move to the next question.
And we'll have to Terry Tillman with <unk> Securities.
Please go ahead, yes. Thank you. Thanks for taking my questions are welcome aboard Vikram, Hi, Frank and Lacoste.
Hi, Terry My question on a question a follow up is as following that's great to hear about the record million dollar plus deals I think last quarter.
It was definitely light I don't think it had much activity there, but I think you were indicating you had a good pipeline. So kind of what was the tipping point what was the catalyst for the improvement of million dollar deals and how does that feel as we move into <unk>.
The first half of the year in terms of that pipeline and then the follow up question on <unk> could.
Could you give us a little bit more specificity on I think you said CRP could actually accelerate in the second half, which is good to hear from the 26%, but any more color there. Thank you.
Yeah. Good good question Terry So first very pleased as I said about the performance in the Q4 nice way to end the year and also the overall performance for FY 'twenty two.
I think we've been talking now for a while about the importance of.
Let's say some of the larger transactions that were seeing in the market and I would say they continue to improve and I think they are continuing to improve primarily because of some of the secular trends that are happening if you look at.
Really what's going on as far as the data modernization some of the transformation I think thats, increasing and I think thats going to be here to stay for a while I think secondly, with all the.
I'd say disruption that we've all seen in the last two years. When you think about how leaders are looking to manage a lot of this disruption this change and have the agility, they're looking to transform their business and.
And I think when you look at $1 million deals, it's an indication of an organization.
Really sponsored by one of the executives that is moving forward with some of these transformations and we've seen them.
As I said continue to improve.
Throughout this past year and increase both in those that we closed in Q4 as well as even pipeline that we came into fiscal 'twenty three.
Again, I see those trends continuing I think I pulled some information even just getting ready for this call looking at some of the financial transformations back to this past fiscal year, where cfo's or heads of <unk> have been working with and a plan to drive those transformations driving a lot of those large.
Transactions spin.
Specifically with expands.
And the number of those transactions in 'twenty two.
Was up substantially from where they were in 'twenty, one and again as I said before a healthy pipeline going into 'twenty three so I feel good about the trends the macro trends are secular trends that are driving this in the right direction.
Eddie let me.
To add to.
Frank's comments and.
Let me start by saying that first of all of you feel great about.
Shifting to the CRP or guidance metric.
Clearly this helps reduce the duration and timing noise that is dead and billing.
As you think about CRE.
Going forward. There are two factors that are important to understand first is the renewal and second is the new bookings.
Shared last quarter, we had in each one FY 'twenty one.
The impact on the renewal base because of Covid and given our two year renewal cycles, our each one.
The overlap and have the impact from that.
As you look beyond each one as we shed.
See our appeal is expected to increase and will be more normalized going forward.
And our next question will come from Alex Zukin with Wolfe Research.
Please go ahead guys. Thanks.
Thanks for taking the question I guess just to start could you talk a little bit about what youre seeing bodes out of the demand and competitive environment as we exit Covid here. If you think about returning to our pre COVID-19 type pipeline from an execution standpoint and.
Just talk about the competitive environment, what youre seeing.
From offered opportunities that youre, seeing and where the difficulties are.
So Alex I think I'll reiterate what I just mentioned as far as the demand I think the demand signals are strong and as I said driven by really the back office modernization digital transformation trends.
Seeing that accelerate let's say over the last few quarters and positioned for.
Going forward over the next few years and then the macro with the volatility that's going on in the change in business is really driving the need for agile planning so when I step back and look at the demand signals.
They continue to improve.
And as I said, I think I think they're going to be here to stay.
I put that in the framework of the competition first before I get there I'll say that I believe that in order to go after that demand from and Anna plant perspective, we have the go to market capacity.
As far as some of the growth priorities I mentioned earlier and how those are gaining traction to be able to continue to go after that opportunity that demand.
And I think that from a differentiation perspective, our platform, which has been pretty much a leading platform now for a number of years that we're continuing to invest in and innovate.
As we think about the next phase beyond connected planning.
I think allows us to really position the platform.
And our go to market.
Very strongly.
To address any competitive situation out there on the competition as you would expect.
Want to make sure that we're obsessed.
And also inspired by competition, we want to be aware of what's happening at all levels.
And use that as a vehicle to push ourselves.
Both in going after the opportunity as I said as well as making sure we continue to innovate the platform.
Thank and I think theres, a lot of proof points out there by.
By a lot of the.
Industry research analysts that look at the different whether you look at finance or supply chain or sales performance management with have identified and apply and clearly as that leader pioneering where we worked with connected planning and then continue to develop so I feel really good about our competitive position and we want to make sure. We continue to push ourselves to do even.
Better.
Our next question will come from Raimo <unk> with Barclays.
And thanks for squeezing me back in thank you very much.
Frankly.
In the past, we talked a lot about kind of renewal portfolios and.
You are calling now again slight cohorts from the pandemic.
<unk> didn't have.
A lot of kind of customer new customers.
Looking at Europe .
The comments in your guidance et cetera, it looks like the new cost of our business is really kind of picking up in pipeline is building. There can you kind of talk a little bit about that dynamic as what we saw in Q4, a little bit because you went through in Q4 19, but then also for Q1 Q2 and the new year. Thank you.
Okay.
A really good question.
I can answer in a couple of different ways.
So first.
I would say.
<unk>.
That.
If I go back and look at the.
Yes.
The situation that we've had here we've continued to.
Look at new customers as a top priority.
And I think it's proven when you start to think about the ability for us to expand with customers and you can expand unless you continue to get new customers.
This quarter, we have been very focus we've made some additional investments you heard that I made some statements earlier.
Now continuing that investment into FY 'twenty, three one of bill's initiatives as far as making sure that we have scalable lands.
Any land that we get regardless of the size, including small allows us to start to demonstrate the value that the platform can provide and we've seen time and time again, especially over the last couple of years that the expansion. Once we get that is huge and so we are focused we're making the investment we've aligned.
The team for FY 'twenty three.
To be able to do that in our geographies.
And I expect the performance in Q4, having over 100 customers and quality customers allows us to take that even to the next level.
And our next question will come from Jeff <unk> with UBS.
Please go ahead.
Hi, Yes. This is Taylor mcginness. Thanks, so much for taking the question.
Frank maybe maybe going off what you just last side. So obviously a strong year for new land. So can you talk about how that sets up dollar base net expansion rate and that trajectory as we look ahead and maybe as a part two to this question. When we think about the outperformance in for Q, how much of that was driven by deals becoming on stock over.
This past year versus May be you know net new deals coming into the pipeline.
Yes.
Taylor as far as the ability for the expansion as I said.
It's one of our great strengths.
With the platform that we have and the ability to not only in finance, but also to address the connectedness of our platform across.
The different functions and.
Especially with what we've seen more recently as I said with the.
Disruption thats occurring.
And if I, even just stay on finance and focused on the comment I mentioned before about the long list of impressive finance transformation deals that we've had this year, where its truly identified SNF transformation.
The ability for us to.
Sell the <unk>.
Platform not only in finance, but to allow finance professionals to leverage information throughout the supply chain from a planning standpoint, our leverage information into and out of the sales organization makes the CFO and the finance team much more effective in what they need to do to <unk>.
Not only report, but help analyze and manage the business.
And then it allows the the other members of the team from an end to end standpoint in the process to really participate effectively.
So when I look down I got the list in front of me of the quality.
Expansion finance transformation deals that have.
Extended within finance, but also have touch points into other parts of the of the function, it's quite impressive and I'll repeat what I said before the growth in those transactions from a <unk> perspective, and even from a number of customers is up substantially year on year.
So I think that's a good point to really kind of a demonstrate the potential going forward.
For these types of expands now the land as I said before our critical right as we think about not necessarily next year, but lets say two years out three years out which is why we want to make sure we emphasize and I think through.
The early part of Covid.
On these calls in those quarters.
We did have.
Pullback in spend from various customers and the pullback in spend was really on new transactions.
So what we did is we emphasized working with existing customers on the expansion and that really proved out well now we have the ability to do both.
And we want to make sure that we continue to leverage and Thats why there is two key pillars of bills.
Go to market growth initiatives for FY, 'twenty, three and going forward.
And our next question will come from Brent Thill with Jefferies.
Please go ahead good afternoon.
<unk>.
Just on the number of a million dollar deals I think in Q3, you had a few deals that slipped out did you did you close all those deals in Q4 some of those deals still remaining.
It's always an ongoing.
It's hard to really say, that's why I never really lets save a slip deals when youre dealing with if I go back to what I, just said when youre dealing with large transformation deals right.
There's a good side of it for what I, just said in the last two or three responses to the questions.
Because it allows us to really make a difference providing value to customers and it becomes sticky for us right.
They're making big investments.
Those big investments.
Take time.
Especially when you're dealing with enterprise and <unk> customers I was there myself.
Several years ago, <unk> got various or parts of the organization that need to weigh in.
And as I said before those transactions or those deal cycles can go from six months to 12 months and it's hard to gauge because sometimes you think you have a closed deal and at the last minute someone from legal are somewhat for procurement comes in it raises an issue and that could add a couple of weeks to the schedule. So it's a constant ebb and flow.
And so that's why I kind of step back and now that we closed the fiscal year and I look back over the year and I'm quite pleased with the number of deals that we were able to close and feel good about the ability to kind of continue that going forward yes.
Yes ill quickly jump in as well Brenda and.
The key thing that we look in those big transformational deals.
Is to getting the right deal done right deal done for the customer right deal done for in our plan as well as.
Shareholders. So we really don't try to forecast.
Large deals by quarter that either we really want to make sure that they drive value for the customer as well as in our plan I want to add one more thing I was going to say our rewards costs came in.
The other thing, which I will say, which I think is a positive also when you have these large transactions with enterprise accounts.
It also addresses the competitive question earlier these companies run Rfps and we are seeing Rfps and Thats, where were competing one rfps can be a lengthy process and two they usually have a large number of participants.
Why it makes me feel good that despite the number of participants in those rfps. We've been successful from a competitive standpoint for all the reasons I said before to win these deals.
And our next question will come from Stan <unk> with Morgan Stanley .
Please go ahead.
Perfect Good afternoon, guys and congratulations.
Good end to the fiscal year.
Wanted to dig into.
Two quick areas. One is you mentioned on the call and we also heard it.
The channel checks that you guys went through a.
Some reshuffling in the sales organization side.
What precipitated the change.
<unk> had a lot of stability in the sales organization.
Why making the changes and what was kind of the overall spirit.
Behind the changes and then just on the on the <unk> guidance.
The way we should do.
We should think about <unk> guidance is the is the methodology and framework to use it for setting CRP O guidance similar to the framework that you used for billings in terms of the.
Our goal to deliver upside in setting conservative targets. Thanks, guys.
So Stan I'll start with the first part of your question.
I'll say this and having been around for so many years.
Especially working very closely with sales organizations I think every sales organization at the start of fiscal year goes to some change.
And there are different levels of change.
And so part of starting FY 'twenty, three and finishing FY 'twenty two on a high note allows us to start to raise the bar and I would expect all of you would want us to do that.
Bill has been with us now over a year.
And as I mentioned, when we announced bill back in Q4 of last year.
That we went to hold the organization was running very well and bill was going to continue to keep that moving but also have an ability to influence learn see what areas that needed some additional.
Our focus and attention and investment and Bill has done a great job over this past year doing that and Thats why in the prepared remarks earlier I felt important to lay out the four.
Pillars of his excellence a plan going forward.
Some of which he has already put in place over the past quarter or two and Thats.
Making sure that we are selling outcomes up to the highest level in the organization of our customers.
The ability to drive large transformational deals secondly to look for opportunities to accelerate.
New logos so.
That we have the base to expand later third to make sure that we keep that fantastic engine that we have with our CF organization our partners.
In others the sales team on the expanse of working with our customers to continue that moving in the right direction and getting even more focused on some of the data and metrics that drive even more.
Second nest there.
And then last and this continues to in the five years I've been part of Ana plan I think about the partner ecosystem, where it was five years ago to where it is right now it continues to evolve and grow and expand and bills doing even more of that one bringing in some of the talent.
To head up some of these efforts, but also making sure that the processes to focus the attention.
Is there for us to take things to the next level.
And I'll jump instead, we are second part question on CRT deal no.
No change in the guidance philosophy.
And our next question will come from.
Scott Berg with Needham.
Okay.
Hi, everyone. This is Michael rockers on for Scott. Thanks for taking my question.
Could you give us a bit more color on the partner involvement in the quarter and maybe what this looks like internationally as well.
Okay.
Partner, So we usually have.
A very healthy participation with our partners.
So when I first talk about our partners, let me just start with the let's.
Let's say the GSI and the various other go to market partners that we have that had been successful working with us.
We continue to see strong.
Alignment with them, where they are driving more than 50% are in participating in 50% I gave some stats earlier as far as even the top deals.
18 out of the top 20, we're participating in those large transactions. So they continue to help us support us support their clients their customers to be able to effectively consult with them to drive a lot of these projects and transformation is further along the way they are investing.
<unk> been investing.
Substantially.
Have a little bit more time, I know that the various programs that we're doing along with our partners to make sure that we enhanced the Anna plant skilled resources at partners at Ana plan, but also our customers.
Efforts that we're doing there and I think we're showing progress I gave some of the stats as far as.
The number of Coes that we have and the growth year on year of 165%. So that all I think is moving in a very healthy positive direction.
The other area of partners is the cloud partners.
Talked about both DCP in AWS.
It took us a while too.
That's a port power platform onto the clouds, we successfully have been able to do that now we're starting to.
Leverage that from a go to market perspective with.
<unk> and AWS with our sales teams are now selling the platform.
Jointly with Ana plan.
And I mentioned some of the.
The transactions in the quarter, both with GTP and AWS nice one sizable ones.
We feel good about <unk>.
Allowing us.
Good start to FY 'twenty, three and that is part of our plan, especially as we go further into the year.
For FY 'twenty three.
As an additional lever of opportunity.
Concentration with those partners primarily right now is in the U S, Canada, and Japan, and we will continue to evaluate other geographies.
Things unfold, so really feel good about that.
Yes.
And our final question will come from Daniel Jester with capital Mark BMO capital markets.
Thanks for squeezing me in can you just expand on the on the public cloud comments you just made there Frank.
Okay.
Are you seeing specific strength in regions or used cases or like type of client can you just help us think about like what that could be in the year ahead now that you're through a lot of the technical heavy lifting.
So the regions are as I mentioned, so U S.
We just moved into Canada at the end of the year.
And we had some transactions, let's say middle end of year in Japan. So those three regions of the focus at the moment.
In in those regions.
The initial leverage so some of the deals that we've had have been with existing I'll take GTP as an example, where they were existing Google customers.
That we're able to bring they brought Anna plant into those customers, who were working on transformational initiatives around planning and so together.
Also with the GSI GTP and Anna plant, we were effective in working through that.
I think in the pre.
Calls I was able to mention some we had Ford credit was it was a great one with GTP I'm trying to make sure.
My head I'm trying to remember, which ones we have approvals to talk about but there are some other impressive ones that we had with AWS as I said, we just started with them in November December so it's early but.
But even early we've got a pretty nice deal with.
With a retailer.
That was a very beneficial of finance transformation.
Deal that is going to allow us now several years of enhancement and also expansion.
Is it an existing customer of Amazon or AWS that also was able to bring and are planning on the planning side to leverage some of their.
Activity.
And that will conclude today's question and answer session I would now like to turn the call back to Frank Connor any for any additional closing remarks.
Thank you everyone I appreciate your support of Ana plan on the call, but also throughout the quarter and we look forward to connecting with you again next quarter. Thank.
Thank you.
And this will conclude today's conference. Thank you for your participation and you may now disconnect.
Please wait the conference will begin shortly.
Sure.
Okay.
Okay.
Okay.
Sure.
Yes.
Yes.
Okay.
Yes.
Yes.
Yes.
Okay.
Yes.
[music].
Right.
Thanks.
Yes.
[music].
No.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
[music].
Okay.
Thanks.
Sure.
[music].
Okay.
Thanks.
Yes.
Okay.
Okay.
Okay.
Okay.
Great.
Yes.
Okay.
Okay.
Yes.
Sure.
Yes.
Yes.
Sure.
Sure.
Yes.
Sure.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Right.
Okay.
Thanks.
Okay.
Yes.
No.
Okay.
Yes.
[music].
Yes.
[music].
Okay.