Anaplan First Quarter 2020 Earnings Part 2

Yesterday we covered the results from Anaplan’s First Quarter 2020 Earnings Report. Today in Part 2 we will cover management’s prepared remarks and the Q&A from the earnings call.

Prepared remarks

Frank Calderoni — Chief Executive Officer

I like to watch the verbiage and how management communicates to open calls. If we see changes in this tone, I’ll start to dig deeper.

We are very pleased with our first-quarter results as it marked a strong start to the year with solid financial and operational performance.

On the competitive landscape.

We believe we are the leading modern business planning platform as we are the only connected planning solution that can address the phenomenon of digital transformation. The rapid growth and expansion we are seeing is the result of the key role Anaplan plays in helping enterprises, regardless of industry, adapt faster to the increased business dynamics.

Land with a new customer.

 This quarter, one of our largest insurance companies in the world selected Anaplan as part of a large-scale effort to modernize their financial processes and functions. This customer has over 50,000 employees in almost 1,000 locations, so they needed a platform that could extend beyond finance. 

Expand with an existing customer.

A key customer expand this quarter was with one of our largest multinational technology companies through their digital transformation effort to focus on transforming user experience with their products. 

They were already using the Anaplan platform for financial planning and workforce planning, and we are now focusing on their global marketing operations. Previously, manual processes and limited visibility into spending across geographies led to millions of lost marketing campaign dollars.

Framework for Anaplan’s land/expand model; the honeycomb.

We have a new framework to visualize how Anaplan's many use cases typically expand and connect within our customers, which we call the honeycomb. Starting with one use case or a single hexagon within a honeycomb, we typically see that rapidly expands into additional use cases often in related or adjacent business areas.

On Gartner ratings. Note the movement from “niche player” to “leader”.

We are very proud of our recent achievements as Anaplan was recognized as a leader by Gartner in the 2019 Sales and Operations Planning Systems of Differentiation S&OP Market Magic Quadrant.

In Gartner's last version of this report, we were considered a niche player, and we have quickly moved to a leadership position. We believe the recognition in the elitist quadrant is because of the high customer satisfaction and impressive capabilities of our supply chain solution. It's important to note that we are one of the few included in six different Gartner categories for a single platform. Driving further adoption of our platform globally is an area of focus.

Dave Morton — Chief Financial Officer

For the first quarter of fiscal 2020, we exceeded our expectations across all of our key financial metrics. 

On remaining performance obligation (RPO).

Our remaining performance obligation or RPO consists of both billed and unbilled consideration for contracted business remaining to be performed that we expect to recognize as subscription revenue. We exited the first quarter with a total RPO of $473 million, up 53% over last year, which accelerated compared to last quarter's year-over-year growth rate of 44%. There are two key factors that can influence RPO. First is the timing of large enterprise renewals, and second is the weighted average contract term length.

Raised full-year 2020 guidance

For the full fiscal of 2020, we are raising our revenue