Anaplan, Inc.

Fourth quarter revenue was $163 million, up 33% year over year. Subscription revenue grew 32% and was 91% of total revenue, while service revenue was $15 million. Full-year fiscal 2022 revenue was $592 million, up 32% year over year. Fourth quarter non-GAAP gross margin was 75% (subscription gross margin 82%, services gross margin about 1%); full-year non-GAAP gross margin was 76%. Fourth quarter non-GAAP operating margin was negative 6.5%, improving from negative 7.7% a year ago, and full-year non-GAAP operating margin was negative 6.9% versus negative 8.6% last year. Non-GAAP net loss per share was negative $0.11, and free cash flow for the quarter was negative $22 million; cash and cash equivalents were approximately $300 million. For Q1 FY23, revenue is expected to be $164.5 million to $165.5 million, services revenue $14 million to $15 million, and non-GAAP operating margin negative 7.5% to negative 6.5%. For FY23, revenue guidance was raised to $745 million from $730 million, with non-GAAP operating margin expected to be negative 3.5% to negative 4.5%.

Frank Calderoni struck an upbeat tone, saying Anaplan finished the year very strongly with over 1,900 customers, the highest ACV and net new ACV growth in three years, and RPO above $1 billion. He emphasized that demand is being driven by secular trends like digital transformation, finance modernization, supply chain complexity, and the need for agile planning, which is leading to more million-dollar deals and more executive-sponsored transformations. He also highlighted the company’s four go-to-market pillars, deeper partnerships, and ongoing product innovation around the “autonomous enterprise” and embedded intelligence.

Vikas Mehta focused on the quarter’s outperformance and the guidance framework. He noted Q4 revenue of $163 million and full-year revenue of $592 million, with Q4 gross margin at 75% and full-year gross margin at 76%; operating margin improved to negative 6.5% in Q4 and negative 6.9% for the year. He also pointed to billings of $224 million on a constant currency basis, calculated billings of $221 million, RPO of $1.1 billion, current RPO of $545 million, NRR of 118% (120% FX-adjusted), negative $22 million of free cash flow, and about $300 million of cash. On outlook, he raised FY23 revenue guidance to $745 million, kept Q1 revenue at $164.5 million to $165.5 million, and said FY23 operating margin should improve to negative 3.5% to negative 4.5% as the company drives operating leverage.

Analysts pressed on what drove the rebound in million-dollar deals, the outlook for CRPO, demand and competition post-COVID, and whether the sales organization changes signaled a problem. Management said the larger deals are being driven by secular demand for transformation, especially finance transformation, and that deal cycles remain long and variable because enterprise deals often take 6 to 12 months and involve procurement and legal review. On CRPO, Vikas said the move to CRPO guidance reduces billings noise, and that growth should normalize and increase beyond H1; on sales changes, Frank said every sales organization changes at the start of a fiscal year and that the team is being aligned around four go-to-market pillars rather than responding to a disruption.