Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Tien, on the total monetization point, you noted business model changes, particularly around consumption billing. What's the plan to take advantage of that from a monetization perspective? A: Tien Tzuo, Founder and CEO: Total monetization allows us to continue our journey, almost as an act two. Initially, we offered billing for pure subscription businesses. Now, as recurring revenue models become more prevalent, companies are blending different business models. It's not just about subscriptions but also consumption, one-time fees, and outcome-based fees. This opportunity allows us to go beyond billing and subscription revenue, resonating well with our customer base and analysts.
Q: Todd, regarding the revisions lower on ARR and NRR for the year, how much of that is added conservatism versus anything specific you saw in the quarter? A: Todd McElhatton, CFO: We want to be prudent with our forecast. We have some significant deals in our install base, and timing can be challenging to predict. We aim to provide guidance that we are confident in achieving. Despite the environment, we raised our revenue and non-GAAP operating margin guidance, indicating other ways we are monetizing our business.
Q: Jeff, regarding Canva, what was the competitive landscape there, and what was the internal environment? A: Tien Tzuo, Founder and CEO: Canva had a homegrown system that worked when they were smaller. As they grew, their needs became more complex. They evaluated the market and chose us due to our differentiating technologies, ensuring they wouldn't need another system implementation in a few years.
Q: Joshua, regarding the ARR guidance update, are you pulling back more on new customer activity expectations or cross-sell? A: Todd McElhatton, CFO: It's balanced between both new customer activity and cross-sell, reflected in our DBRR guidance of 103% to 104%. We see headwinds in both areas.
Q: Joseph, can you provide an update on Togai and the product set's ability to capture the opportunity around consumption-based pricing with AI? A: Tien Tzuo, Founder and CEO: Togai is integrated into our Advanced Consumption Billing, one of our fastest-growing products. It enhances our metering and rating capabilities, crucial for consumption-based billing. The integration strengthens our product vision, gaining positive traction with customers and prospects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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