The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew Melotto Parron - JP Morgan Chase & Co, Research Division - Analyst
: This is Matt on for Sterling. So looking at the significant upside in ARR versus what you did in subscription revenue, wondering if you could comment
on the linearity in bookings during the quarter.
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: In addition to the 44% ARR growth, new customer adds, it was really impressive to us. And I think you added 130 more than you did in the year
ago quarter as well as last quarter. Can you talk in a bit more detail of why new customer adds were so strong? Has something changed competitively?
Perhaps could there be some acceleration in competitive replacements?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: That's great. And then maybe when you look at your customer base, John, can you estimate what percentage of, say, an average customer are
monitoring cloud-based app or infrastructure versus, say, an on-premise app or infrastructure? And how do you think that differs versus sort of the
broader competitive landscape?
Question: David A. Griffin - William Blair & Company L.L.C., Research Division - Analyst
: This is David Griffin on for Bhavan. Two if I could. First, just so last quarter, you called out a pretty encouraging early interest in the new digital
business analytics module. I was wondering if you could just give us an update on the level of interest that you're seeing from customers there.
And maybe just talk a little bit about how the early partnership conversations with the traditional BI vendors are progressing.
Question: David A. Griffin - William Blair & Company L.L.C., Research Division - Analyst
: Got it. That's helpful. And then I wanted to talk about one other recent announcement. So in December, you announced a new Autonomous Cloud
enablement practice that, I guess, the goal is to provide things like best practices, hands-on expertise and automation services to help customers
kind of make the transition to Autonomous Cloud operations, which certainly sounds interesting and an area of need. Can you talk in a little bit
more detail just about the practice, kind of how that's different from what you've been doing on the services side previously? And then maybe
whether there are any margin implications associated with that.
Question: Jennifer Alexandra Swanson Lowe - UBS Investment Bank, Research Division - Analyst
: First question for me. So the commentary around the improvement in conversion was, I thought, particularly interesting. And I wanted to parse
through that a little bit more. Can you talk about how much of that was a function of market, i.e., as companies move to seize more complex
environments, it's just a more pressing issue to modernize our APM and observability practices versus things that maybe you were doing differently
from a sales process perspective, versus anything you're seeing differently from a competitive perspective where maybe your win rates were a bit
better in the quarter than they've been? If you could just sort of give a little more granularity, that would be awesome.
Question: Jennifer Alexandra Swanson Lowe - UBS Investment Bank, Research Division - Analyst
: Okay. And maybe just to follow-up on that. So if we look at pipelines versus conversions, is it reasonable to think that the pipeline trajectory has
been more steady and now the delta is really just converting on that pipeline more effectively? Or are you seeing pipelines expand as well?
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