Alteryx, Inc. (NYSE:AYX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 05:00 pm ET


Alteryx, Inc. (NYSE:AYX) Q4 2019 Earnings Conference Call - Final Transcript


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Q & A

[Operator Instructions] Thank you. And our first question is from Brent Bracelin with Piper Sandler. Please proceed with your question.

Brent Bracelin

Thank you and good afternoon. I'll Start with Dean, and then I have a follow-up for Kevin. Dean, can you provide additional color on what's driving kind of broader Alteryx engagement at some of these larger global SIs? I know you announced the strategic alliance with PwC last week, but our checks also show pretty healthy engagement in Accenture, IBM and Deloitte. So I guess the question here is, why are you seeing these large global SIs engage more broadly? What are the drivers and kind of why now?

Dean Stoecker

Well, thanks for the question, Brent. I think there's a couple of vectors that are occurring kind of simultaneously here. First of all, the quarter, I think, and the year were largely driven by just improved execution by the company. We have been spending quite a bit of time on our top-down selling motion, and I think that's reflected in the strategic alliances that we've formed in the execution in G2Ks that we've established. The second thing, I think, that's driving this is all the factors that are falling under the umbrella of what we've been referring to recently as Digital Transformation 2.0. I think over the decade between 2010 to 2020, there was a lot of money spent on digital transformation, a lot of things didn't go well. Most organizations did not see success or at least sustainable success. And it's for a variety of reasons. Many organizations had sort of outward-in approach, was thinking they could digitally transform others before digitally transforming themselves, a kind of a selling out of the humans in the digital transformation effort, and probably, an over-reliance on machines.

And I think that's completely changed. We're seeing now an inside-out approach, we're seeing the requirements to upskill data workers, having the human in the mix, which means you've got to have a human-centered platform available to them, and we believe we're best human-centered platform. And the emergence of CDOs or the proxies of CDOs that we've been talking about now for well over a year on these very calls. And these folks in the organizations see and understand this networking effect of people, data, technologies and processes in organizations. And it turns out that the global analytic consulting firms and the big four are all beginning to realize that digital transformation has to be inside-out. So we're seeing these firms focus more on automation, we see them focusing more on the convergence between the personas that matter in digital success, like the convergence of the citizen data scientist, the trained statistician and this new profile of the data engineer that has always existed riding sequel mostly closer to IT.

And as we engage with with more companies in a net expansion model or net expansion number of 130, we're starting to see the data engineers arrive more often. We also have been talking about the other