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: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Congrats on the strong results. John, I wanted to ask, look, obviously, the plans are in place for accelerated sales investment, that's awesome. I'm
going to be greedy. I'm going to ask, why not more, right? I mean do you think the market could support faster sales investments? And I'd be
curious to get your thoughts on kind of the gating factors there. Is it just about operationalizing a larger team? Or is there more to it?
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Yes. Makes sense. And maybe I can follow up with a different competitive question. Bhavan asked about ServiceNow. I want to ask you about
Splunk. I know you've talked about having lots of joint customers in the past. I'm curious what you're hearing there as they expand into observability.
I mean look, obviously, lots of work for them to do in terms of moving the product together. But I'm curious how you see that playing out. I mean
do you think they'll try and be price disruptive? I know they're not a core competitor today, but would love any thoughts.
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: John, hearing you talk about maintaining 30% growth over the long time is certainly impressive. And I guess part of that thesis, I think, is continuing
to kind of diversify away from APM. And last quarter, I think you noted 40% of your customers or maybe nearly 40% were using infrastructure on
nonfull-stack workloads. I'm wondering can you comment on how that might trend this year?
And then I guess, sort of importantly, why have you been so successful cross-selling outside of APM?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: That's great. Certainly seems evident to us as well. And I guess, Kevin, you always do a good job of outlining sort of some of your building blocks
assumptions for ARR, and there's been a lot of focus on NRR and obviously on your quota capacity adds this year. But I think you added about 20%
-- you grew your customer base by about 20% last year. I guess I'm wondering sort of within your ARR guide, what is sort of your assumption on
customer adds this year? Do you think you might grow that base even more than you did last year?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Yes. No, that's super helpful. Congrats from me as well on the results, guys. Very strong.
|
