Anaplan Inc (PLAN) Q1 2020 Earnings Call Transcript

Anaplan Inc (PLAN)
Q1 2020 Earnings Call
May 28, 2019, 8:30 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

My name is Sharon, and I will be your conference operator today. At this time, I would like to welcome everyone to the Anaplan first-quarter fiscal 2020 earnings conference call. [Operator instructions] Edelita Tichepco, you may begin your conference.

Edelita Tichepco -- Vice President, Investor Relations

Good morning, and thank you for joining us on today's conference call to discuss Anaplan's first-quarter fiscal year 2020 financial results. Joining me on the call are Frank Calderoni, our chief executive officer; and Dave Morton, our chief financial officer. On this call, we will be making forward-looking statements, including financial guidance and expectations for our second quarter and fiscal year 2020, anticipated future operating and financial performance, strategies, customer demand, product and technologies. These statements reflect our best judgment based on factors currently known to us, and actual events or results may differ materially.

Please refer to documents we filed with the SEC, including the Form 8-K filed with today's press release. Those documents contain risks and other factors that may cause our actual results to differ from those contained in our forward-looking statements. These forward-looking statements are being made as of today, and we disclaim any obligation to update or revise these statements. If this call is reviewed after today, the information presented during this call may not contain current or accurate information.

We will also discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. Unless otherwise stated, during the call, all references to our gross margins, expenses, and operating results are on non-GAAP basis. For historical periods, a reconciliation of GAAP and non-GAAP results is provided in the press release and in supplemental financial information on our website. Finally, we're planning for today's call to last approximately 45 minutes, and we'll do our best to accommodate your questions following our prepared remarks if time permits.

And with that, I'll now turn it over to Frank Calderoni.

Frank Calderoni -- Chief Executive Officer

Thank you, Edelita, and good morning, and welcome to our first-quarter earnings call. I would like to first start off by saying thank you to our customers, partners, investors, and especially our employees who have been instrumental in helping us get to where we are today. We are very proud of how far we've come in a short amount of time, and we couldn't have done it without the commitment, dedication and loyalty from all of our stakeholders. We are very pleased with our first-quarter results as it marked a strong start to the year with solid financial and operational performance.

This is a reflection of our committed market momentum and an indicator that all our main drivers behind our growth are producing well. 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. Every business leader is now applying new rules of engagement in order to compete and grow, and they are seeking solutions that can address their needs for the future.

Our platform is quickly becoming the new core digital technology standard that can dramatically improve the economics of any business, and our results reflect this. Within this quarter, we experienced strong top-line growth. Our total revenue grew 47% year over year to $76 million. Our non-GAAP operating margin improved 19 percentage points year after year while we maintained very strong revenue growth as we continued to see increasing year-over-year leverage in our business.

Our dedication to putting our customers first and our relentless focus on establishing deep relationships with them have enabled us to grow to serve a broad customer base. We grew our customer momentum in the first quarter, and we now serve 279 customers with over $250,000 in annual recurring revenue, a number that has grown 43% year over year. The enthusiasm and interest our customers have for our connected planning solution continues to multiply as demonstrated by our consistently high-dollar based net expansion rate, which was 123% in the first quarter. We experienced a healthy mix of new customer wins and strong expand activity as demand for our platform continues to grow.

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. Consistent with our land and expand strategy, this customer is first implementing Anaplan for one of their business units and then have plans to roll out our platform globally. Another new customer this quarter is a Japanese global information and communication services leader.

This is a company that has operated for over 100 years and conducts businesses in over 150 countries. The customer chose our platform for its ability to support a broad range of potential planning use cases, as well as its intelligent and flexible modeling capabilities. The first-use case will enable a consolidated accurate sales forecast across multiple business units, which previously took months to deploy. Our platform has enabled an improved forecast capability that now runs within days and has driven investment priorities against a more accurate and timely sales forecast.

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. I have personally met with their chief strategy officer and their chief digital officer to discuss how we are their core technology platform to help them further penetrate their markets in a digitized way. 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.

We are the platform that will modernize this customer's marketing resource management by building foundational capabilities across its campaign life cycle, as well as optimizing its marketing budget planning and tracking. 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. An excellent recent example of this is a large G2K customer.

It's a consumer products company. They've continued a rapid expansion of their connected planning to help drive digital transformation across multiple lines of business. We singalized in April of '19 supporting new use cases in P&L and opex planning were deployed in just four months to bring them to a total of 14 deployed use cases across supply chain and finance in addition to using Anaplan with their external network of suppliers. Future plans are to deploy the Anaplan platform to support an incremental six use cases within this calendar year in areas such as project planning and sales and operations planning, and a roadmap for an additional 10 use cases in 2020.

Once these are in place, this customer's honeycomb will have then built out to about 30 use cases within a rapid 24-month period. Overall, we are becoming an emerging standard in a number of industry verticals. As leading companies in an industry deploy our platform and see the immediate results, word spreads quickly within an industry. For example, we believe we are the leader in the spirits and cosmetics verticals with many of our customers digitizing the way they conduct their business globally.

And we hear often that we are the only platform that can help them achieve their ambitious growth goals. Our successful and happy customers are best promoters and the sales people for Anaplan, and this is now resulting in a domino effect in several industries. One of our top priorities is broadening our partner ecosystem where we see strong momentum in our partner contributions. They continue to invest heavily in scaling their Anaplan practice capacity and capability, and we have now formalized partnerships with the world's leading strategic and global systems integrated firms, including Bain, BCG, McKinsey, and onboarding this quarter, A.T.

Kearney and Oliver Wyman. We also recently won an award with Wipro at their Annual Partner Summit. Anaplan was named accelerated go-to market partner of the year. 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.

One way we do this is through our user community including our inaugural virtual user conference. The event was impressive with over 275 companies participating and 38 countries represented. Our customers are excited to share their Anaplan success stories, and we hold some of our top global customers from the Fortune 100 at our marketing event, including our upcoming global user conference called Connected Planning Xperience. It is taking place on June 10 to 12 in San Francisco.

We expect a large turnout as we will showcase how Anaplan will enable businesses to maximize real-time opportunities and continually improve decision making in a fully digitized future. We will demonstrate our new user experience and mobility, which essentially brings to life all planning for all people. The momentum and opportunity we are experiencing with our customers are exciting. With digital transformation taking over every industry, we have never been better prepared for this moment.

We are at an inflection point where we believe we will continue to see an increase in market adoption. Our purpose-built platform gives the depth and breadth across six different quadrants that will help any organizations make better, smarter, and faster decisions. Now let me turn over the call to Dave who will discuss our first-quarter financials and outlook for the second quarter and fiscal year 2020. Dave?

Dave Morton -- Chief Financial Officer

Thanks, Frank, and good morning, everyone. For the first quarter of fiscal 2020, we exceeded our expectations across all of our key financial metrics. We drove year-over-year revenue growth of 47% and within this, subscription revenues were up 45% year over year and comprised 86% of total revenue. Service revenues were $11 million, up from $7 million in the first quarter last year and calculated billings of $87 million grew 57% year over year.

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.

We have standard contract terms. Initial land contracts are approximately three years in length, renewal contracts are approximately one and a half years, and expand contracts are somewhere within that range. Highlighting results from some additional key metrics. Our dollar-based net expansion rate was 123% and continues to track above 120%, underscoring our success in retaining and steadily expanding business with our existing customer base.

We ended the quarter with 279 customers over $250,000 in annual recurring revenue, up from 195 customers this time last year. And within this, the number of customers over $1 million in annual recurring revenue has almost doubled compared to the same period last year. We continue to drive the growth of our overall deal size led by an increase in our land's average selling price, which was up 60% compared to the prior year. We have a broad and diverse customer base across all range of industries.

This quarter, some of our largest deals were with customers in the consumer goods, oil and gas, financial and technology verticals. This growing and diverse customer base speaks to the breadth and value of our platform and Anaplan's increasing role in enabling our customers' digital transformation strategies. Turning to our profitability metrics for the first quarter, total non-GAAP gross margin was 73% and flat on a year-over-year basis. Within this, subscription gross margins were 84%, up 92 basis points year over year, and services gross margins were approximately 7%, up 65 basis points year over year.

Total non-GAAP operating expenses were $75 million, up from $61 million in the prior-year period. Year-over-year growth in spending was driven by strategic go-to market investments, and as mentioned on our last earnings call, first-quarter operating expenses included certain seasonal costs such as our annual sales kickoff and audit fees. First-quarter loss from operations was $20 million, down from $23 million in the same period last year. Operating margins of negative 26.5% improved 19 percentage points, compared to negative 45.2% in the same period last year.

While we're still in the early stages of driving increased leverage from our strategic go-to market investments over the fiscal years, we are beginning to see the returns in our top-line growth and achieving better leverage and scale within our financial model. Net loss per share in the first quarter was $0.16 based on $123 million weighted average shares. Free cash flow, which is cash flow from operations less capital expenditures for the first quarter was negative $5 million. We ended the first quarter with $333 million in cash and cash equivalents.

We have strong momentum heading into the second quarter of fiscal 2020, both in terms of market opportunities and profitability goals. We expect total revenue to be in the range of $77.5 million to $78.5 million and non-GAAP operating margin to be in the range of negative 25.5% to 26.5%. Weighted average share count for the second quarter is expected to be approximately 128 million shares. For the full fiscal of 2020, we are raising our revenue and operating margin outlook driven by the first-quarter performance and ongoing strength we see in our business.

Looking ahead, we expect total revenue to be in the range of $326 million to $331 million, and we expect billings to track in line with overall revenue growth rates. As previously stated, Anaplan's quarterly calculated billings can fluctuate from quarter to quarter impacted by timing renewals end of annual contracted billings. Non-GAAP operating margin is now expected to be in the range of negative 22.5% to 23.5%. As a reminder, second-quarter operating expenses will reflect the cost related to our upcoming annual user conference in June.

Weighted average share count for the full year is expected to be approximately 129 million shares. In summary, we drove excellent operating results in the first quarter with strong top-line growth and improved leverage in our business model through productivity gains. There is significant momentum in our business with increasing deal sizes, strong unit economics, and an expanding and diversifying customer base. We are confident our focused execution will continue to drive Anaplan's category leadership in the connected planning market.

With that, we will now turn it back to the operator to take your questions.

Questions & Answers:

Operator

[Operator instructions] And the first question comes from Richard Davis with Canaccord. Your line is open.

Richard Davis -- Canaccord Genuity -- Analyst

Thanks. Just a quick question. So tipping point's always kind of a loaded phrase but Frank, you and I have seen a bunch of past companies, kind of, try and fail the scale in connected planning. So when I kind of think about this and when you think about this, what is there -- what's the most important factor that's kind of broken the dam to kind of get this upgrade cycle? Is it -- you talked about time to live, is it early steps to verticalization? Is it consult and validation? And I guess you could just say it's everything.

But can you identify something that, as outsiders, we can kind of focus on to think about what's making this thing work well? Thanks.

Frank Calderoni -- Chief Executive Officer

Yes. Richard, that's a good question. I have to say this spending over 30 years in the planning vertical, what I should say. The first thing I would say is that there hasn't really been that much change in planning in decades from the standpoint of process, as well as tools and applications.

And I think if you look back over the last several years, what I think has hit a strong point with customers is that they're trying to digitize, as I mentioned in the prepared remarks, and they haven't been able to really effectively do that in planning. And to have a platform that Anaplan has that's so pervasive across an enterprise, I think, is very compelling for many of these companies start to leverage that and really start embarking on a new way of doing their planning. And once they start and all the examples that we have seen, especially myself over the last two and a half years with Anaplan, really starts to show that we are in the early stages of what I think is really pretty phenomenal as far as what companies, large G2K company, enterprise companies, can accomplish over a period of time. So I think it's really kind of taking processes that haven't had much change that are very costly, that haven't been very flexible, that have been more backward-looking rather than forward-looking and providing these customers with an option where they can make some change and realize value in a short period of time.

And that's the compelling part of what Anaplan -- the Anaplan platform delivers.

Richard Davis -- Canaccord Genuity -- Analyst

Great. That's super helpful. Thanks so much.

Operator

Your next question comes from Alex Zukin with Piper Jaffray. Your line is open.

Alex Zukin -- Piper Jaffray -- Analyst

Hey, guys, thanks for taking my questions. This marks the third straight quarter of billings acceleration, and I think it's the -- actually the biggest dispersion from a growth rate perspective between billings growth and revenue growth. So maybe can you first talk about any unusually large renewals in the quarter and maybe how we should think about the renewal opportunity this year versus last? And then as we think about some of the recent changes in the sales and marketing leadership, just an update on how that's going, what you're looking for and what you're expecting there? Thanks again, guys.

Dave Morton -- Chief Financial Officer

Hey, Alex. It's Dave Morton, and I'll take the first part, and then I'll turn over to Frank to address the latter. In regards to our billings dispersion, as you referred it to, I would just articulate that there was nothing abnormal within the quarter. It was really clean.

And as you know, our standard contracts are approximately three years. We get the first year upfront from a billing perspective. And so we don't look at anything being abnormal within that. And quite candidly, we're not goal seeking on billings per se.

At the end of the day, we're just finding some great customer success not only with the land but then also with expands. We continue -- I mean even this quarter, our top 10 deals, both lands and expands, continue to be well above $500,000. And so with the strong pipeline coverage and momentum that we've experienced, it just so ensues. So that's pretty much it from a billings perspective.

Frank Calderoni -- Chief Executive Officer

So Alex, in regard to the CRO, I'm extremely -- first of all let me just say that I'm extremely proud of the leadership team. We focused on strong execution, and I think our first-quarter results really demonstrate the progress that we're making. Our focus, and I mentioned this last time and internally this is what we talk about, is scaling the business to $1 billion and beyond. And so we've been putting plans in place, making our investments in order to do that.

As part of that talent is top focus as we continue to scale. I focused on talent. I probably say this almost every week or several times a week as far as making sure we have the right talent, we can retain the right talent, that we're really going out in the marketplace and attracting more. Over the last six months, we have continued to enhance the leadership team with the addition of YY Lee back in September timeframe as our chief strategy officer, and she's been very effective in really helping both the product and engineering team kind of think about the platform going forward.

Ana Pinczuk joined us back at the beginning of this year as our chief transformation officer. She's been focused on the go-to market, as well as operations across the company, and then also in helping us build various solutions as we think about what really hits the marketplace best in different verticals. And so as it relates to the CRO, I continue to evaluate our options. Right now we have a very strong internal team with strong geographic sales leaders who have been performing extremely well.

And I'm going to continue to see and receive -- I get strong inbound interests, and so I'll continue to see how this plays out.

Operator

Your next question comes from Heather Bellini with Goldman Sachs.

Heather Bellini -- Goldman Sachs -- Analyst

Great, thank you. I had a couple of questions, Frank. First, I wanted to talk about the increase. I mean just everyone's been talking about the acceleration in business, both from billings and a subscription revenue growth perspective.

I was wondering if you could share with us a little bit about the ramp in the quarter carrying sales reps? I know you guys have made obviously big investments there over the years, but how have we seen the growth in the ramped sales headcount trend? And kind of if you have any thoughts about how we should think about growth this year versus last year, even if you can just give us a sense of the magnitude without giving us a specific number? And then also I had a question on the competitive environment. I was wondering if you're seeing Adaptive in the market more, and if you thought having Workday sales reps talking about this product now is helping to grow awareness? Thank you.

Frank Calderoni -- Chief Executive Officer

So Heather, as far as your first question, as you would expect, we'll continue to invest in the market opportunity, which I think is quite large, and I think we're in the early stages, in order to maintain or even accelerate the top-line growth. So we're going to have a continued investment cycle in our reps. I have to say that in the last three quarters since the IPO, I've been pleased with the progress that the ramped reps have been able to deliver. We will continue to have ramping reps.

And as you know, ramping takes nine to 12 months in that period of time. But even in the last quarter alone, even the ramping reps have been able to produce -- close deals, which is great to see. I would have to say that very pleased with the progress. I have to also mention that we monitor the overall productivity of our reps through our Anaplan SPM platform, which we've been able to deploy, especially over that time frame where we can monitor how -- and also the RVPs in the different regions.

They can monitor how the reps are performing, which reps are doing what type of business, what kind of coverage they have, where they've been able to build pipeline over an extended several quarters in advance, how they have to better manage or consult or develop some of the reps. And this, we call this the RVP Dashboard, has been very instrumental in allowing the RVPs, as well as the regional geography leads and also across the company, betterment to the overall performance of the sales reps. And so far, it's going, I'd say, quite well. As far as the competitive dynamics, I would say there's been no change.

We have not seen anything in particular in the marketplace. I think it's because, as I mentioned earlier, the platform that we have is -- it is quite compelling. We are the only ones, I believe, out there with the enterprise planning platform that can address six different quadrants within finance, sales, workforce planning, supply chain. And so no one really comes close when you think about it from that perspective.

And as a result, customers are coming to us and looking for this opportunity to be on our platform.

Heather Bellini -- Goldman Sachs -- Analyst

Great, thank you.

Operator

Your next question comes from Stan Zlotsky with Morgan Stanley.

Stan Zlotsky -- Morgan Stanley -- Analyst

Perfect. Thank you so much, guys, for taking my question. I wanted to dig into pro services. Very strong acceleration, 62% growth year on year.

What drove the big bump in pro services in the quarter? And maybe as a follow-up question, with this strong expansionary partner ecosystem, how are you thinking about the pro services growth for the rest of the year?

Dave Morton -- Chief Financial Officer

Stan, this is Dave Morton. I'll take the first part and then add -- let Frank add on some additional comments. Overall, from a strategic level, nothing's really changed from our point of view. From the professional services on our end, we're going to continue to deemphasize.

Think of it as a continued just backstop to ensure our customer success. We have had some backlog, as you know, both in F Q4 and then coming into F Q1 that continued through. But we don't see our percentages varying in mass amounts as a percentage versus subscription. Quite candidly, subscription is where our key focus is at, and we'll continue to drive.

As you noted, we have an amazing partner economy, and so that's something that we continue to promote, as well as they've been great partners with us and delivering our platform across our multitude of customer sets.

Frank Calderoni -- Chief Executive Officer

Yes. Stan, let me just add onto what Dave said. I think one of the things we started to branch out on this, It has to do, first of all, with the overall volume of transactions that we have both land and expand. I think our strategy is working well, which is focusing high in the organization, selling to the C-Suite, looking at larger expand -- larger lands, I should say, and then of course, faster and larger expands.

And that comes through deploying our model. We're seeing a need with our services team, but we're also extending the ecosystem with our partners. The number of partners that have been added -- I'd say, consultants that have been added to the ecosystem continues to grow, we have over 1,000 right now. We're also leveraging both with Anaplan but more so with our partners, embarking on solutions because as we're now starting to get some traction with many large G2K customers, we're starting to see certain areas of focus around, let's say, workforce planning or demand planning or commercial planning, where we can develop solutions, our partners can develop solutions that they're best able to go to market.

And therefore, that accelerates the success that we have and accelerates the time to market. So I just add that as far as additional color around what we're seeing as services, as well as services from partners.

Stan Zlotsky -- Morgan Stanley -- Analyst

Got it. And why don't you just dig in very quickly on something you just mentioned, Frank. And that is the speed at which your add-on deals come in. Have you seen any shrinkage between the initial sale and when the add-ons expansions started roll in versus maybe a year ago or the year before?

Frank Calderoni -- Chief Executive Officer

You know, I think as I mentioned in the prepared remarks, the customer expands, when I talked about the honeycomb, I think that's a great example of really looking at a G2K customer that starts to see value early. And the minute they start to realize that value and they're able to track that value, which is a good -- also additional added point for Anaplan, that allows them to get more support for standing sooner and faster. And so I will -- I still say -- I have to say here, we're in the early stages with G2K and just with enterprise in general. But I am seeing larger transactions and faster expands in certain areas.

And I believe that, that should accelerate as I think and look at the pipeline for the rest of this year. One other fact, and I know we mentioned this before but it continues to get more impressive, if you live in the top 25 customers, the average ARR, we're now about a $3 million at the end of Q1, and that's slightly up from what we said last time, which is good to see, right? If your top 25 customers continue to expand with you and the average ARR continues to grow, that's a good annuity but also a good traction that you have with these customers to even further expand.

Stan Zlotsky -- Morgan Stanley -- Analyst

Got it. Thank you so much.

Operator

Next question comes from Brent Bracelin from KeyBanc Capital Markets.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Good morning, and thanks for taking my questions. Frank, I have one for you and a follow-up for Dave. Frank, I wanted to go back on the demand side. I mean, all the metrics were strong during what is typically a seasonally slower Q1 period for a software company.

What was it this quarter that surprised you the most? Is the answer just improving sales productivity? Or is there more new nuance here that drove the momentum this quarter? And again, what is historically a seasonally slower quarter for you?

Frank Calderoni -- Chief Executive Officer

Brent, I'd say that the one that comes up to mind is really how everything is coming together. As you would expect, getting off to a new start for a new fiscal year with kickoffs and various other things going on. It was great to see how it all came together many things that we talk about getting higher into a G2K, aligning with partners so we have the right offering that we can bring to digital transformation, enabling us to really think and work with our customers more strategically. It -- and also the productivity, right? As I mentioned before, as far as the investments that we're making in the sales and the whole go-to market is working out well.

I have to mention this, if I were to take an example, I recently -- this was back a couple of weeks ago, I've been on the road quite a bit. I think I've probably met with over 25 CIOs and C-Suites over the past two months alone, which is great. I did that when I first came to Anaplan, I continue to do that outreach. It's really hearing firsthand with existing customers but especially with new customer prospects what's on their mind.

And there was one a few weeks ago that came -- we spent an hour with the head of a very large business unit in a global G2K company. This company had just had their first deployment use case in Anaplan in finance, and the CFO of that business unit wanted me to meet their general manager. So we met early in the morning, we spent an hour, and we articulated the connected planning platform, and we were able to address a host of his needs, his concerns, in running his business. And he was extremely engaging in understanding the story of connected planning.

At the end of the meeting, he said to me that -- and this was about 8:45 a.m. in the morning, he said I think I'm going to leave for the day because this is the best meeting I've had, and I don't think I'm going to have a better meeting today. And I think it was because of, again, everything coming together for him to start to see that he can now have solutions to better run his business and make better decisions.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Very helpful color and certainly encouraging to see the things come here together here. A follow-up for Dave here on just the new lands' customer. Net new customer cohorts, over $250,000. I think we're up $31,000 this quarter sequentially versus only $20,000 in this season's strong Q4.

So what drove that? Was that just outperformance on the land side or was it just a balance of lands and expands?

Dave Morton -- Chief Financial Officer

Yes. I think Frank has articulated it well. It's been a fair amount of lands and expands equally balanced. I would tell you it's within some of the framework that we've described before, the 60-40 mix between land and expand.

But it also goes back to the productivity that we've articulated, as well. Productivity within our partners, productivity within all the feet on the street, productivity within even some of our own models and how we're able to have deep levels of inspection and go after the biggest opportunities across the TAM as we've defined and rolled out. So I would tell you across all those different vectors, it's kind of all come together.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Thank you. That's all I had.

Operator

Next question comes from Terry Tillman with SunTrust.

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

Good morning. Thanks for fitting me in. The first question just -- and maybe this is for you, Frank. Just the mix of business across, as you call them quadrants, whether it's finance sales, supply chain and HR, have you noticed any changes, any discernible changes in terms of the mix across those quadrants? And then I have a follow-up.

Frank Calderoni -- Chief Executive Officer

So Terry, the overall mix continues about the same, where it's about 60% in finance and 40% outside of finance. But similar -- and I've mentioned this in the past that, but I have to say in the last quarter alone, it continues to accelerate, which is supply chain. It was great to see the recognition by Gartner as the leader in the Magic Quadrant. I think that also solidified many of the great customers and the use cases that we have in supply chain and how Anaplan is uniquely positioned across supply general, not just in one specific area and really trying to connect the supply chain.

But I have to say, more and more -- we got a great -- the Gartner Supply Chain Conference just a week or so ago, we got a strong interest in Anaplan, and we continue to see that outreach. If I go back to what I mentioned in the prepared remarks talking about spirits and also cosmetics, if you look at those companies, and those are large companies on a global basis, pretty much all of them are either using or looking to use Anaplan in supply chain. And it works extremely well for them to help digitize and streamline a lot of the metrics and the process by which they manage their demand and supply.

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

OK. Thank you.  And Dave, maybe just a question for you. Totally understand that the billings can be volatile quarter in quarter out depending on different factors.

But we have the June user conference. I'm assuming your sales reps have prospects there, you're going to be aggressively trying to sell them and talk about the new innovations. But is there any implications of when the user conference is and thinking about maybe billings in the second quarter or third quarter from just activities around the conference? Thanks and nice job.

Dave Morton -- Chief Financial Officer

Look, at the end of the day, we're really pleased with our Q1 results and momentum we saw. And having said that, we still have a very prudent approach to our guidance. And so with respect to the additional opportunities coming at us at this time and the pipeline coverage we see, we feel that our guidance reflects that level of prudence.

Operator

Next question comes from Kirk Materne with Evercore.

Peter Levine -- Evercore ISI -- Analyst

Great, thanks. This is Peter Levine in for Kirk. I'll echo my congrats on the quarter. So just one for me.

Can you talk about your international performance during the quarter? Maybe talk what regions are you outperforming in? And why -- and on the partner side of that equation, how different do partner-led deals look versus some -- versus deals down here in the U.S. with partners? Thank you.

Frank Calderoni -- Chief Executive Officer

So Peter, I'd say that if I look at the overall global performance, it was strong across the board, in the Americas, in Europe, as well as in Asia-Pacific. We are seeing growth rates in all regions but especially in Asia-Pacific, which has been a small unit for us but really expanding at a very rapid rate. Areas such as Japan is doing well, as well as Singapore and some of the Southeast Asian countries. We continue to invest in all regions, but we are, as we have been, very focused.

So we select certain regions where we put the investment and then we establish a certain amount of metrics to determine what success we're looking for and the progress that we're making before we'll take on another region. So we have not necessarily been in all regions of the Americas, in Europe, as well as in Asia-Pacific, so it does provide opportunity for us in the future. But we will be very disciplined on when and how we go into those markets. As far as the partner ecosystem, I would say that the partner ecosystem in Asia-Pacific is probably the youngest but we are starting to get some traction in those larger countries that I mentioned, where many of our global partners are leaning in, in some of those regions, and we're developing some of the expertise with the consultants to help support that.

And I expect that to continue over the next several quarters, as well. So good performance. I think many of our global partners are starting to realize the value that they're getting in the Americas and in Europe and willing to expand that in Asia-Pacific, and we're seeing signs of it.

Peter Levine -- Evercore ISI -- Analyst

Great, thank you.

Operator

Next question comes from Scott Berg with Needham.

Scott Berg -- Needham and Company -- Analyst

Hi, Frank and Dave. Congrats on a good quarter, and I apologize for the airport background noise. I guess just one question for me, Frank, as you mentioned the CPG customer that will have 30 use cases with fully ramped next year, that's a pretty aggressive scale. You talked about it, is this one of your largest customer to date? Or how large is your platform scale [Inaudible]?

Frank Calderoni -- Chief Executive Officer

Scott, it's not necessarily our largest customer, I think it's just one that probably has come the fastest in the short amount of time. And they've been really been able to -- if I look at that honeycomb that I talked about before, their honeycomb continues to expand very aggressively because I think they're seeing the value. They recently came to us this past quarter and asked us to work with them jointly on creating a video that they distributed internally within their G2K organization to get the word out even further about what they're doing with Anaplan, the value that they're getting from Anaplan, so they can even accelerate this even more so, and I think that's helping to drive the expansion. That's not the only example, we have other examples, and we have also customers that are larger than that one in addition.

As I said before, when you think about the top 25 being on average about $3 million ACVs or ARRs, I should say, that's pretty -- I'd say pretty impressive. And I think as we continue to update those going forward, we'll see that increase.

Operator

Your last question comes from Shebly Seyrafi with FBN Securities. Your line is open.

Shebly Seyrafi -- FBN Securities -- Analyst

Thank you very much. Nice quarter. So you said that the RPO was up 44% in the prior quarter. Do you have a number? I don't believe you gave a number for the RPO in Q4.

And secondly, you're guiding for a mid-30s revenue growth in Q2 but you've been growing in the high 40s, so I'm just wondering why the deceleration in the growth rate?

Dave Morton -- Chief Financial Officer

So Shebly, this is Dave Morton. We can get you offline the exact number. And obviously, it will be disclosed in our Q4, the -- so you can get the right sequential quarter, Q3 over Q3. But more importantly, it's really in Q4 over Q4 respectively.

But more importantly what we just ended the last quarter at and the acceleration that we saw, and our remaining performance obligations just speaks to the strength that we saw. Again, in regards to our guidance, it's just a matter of practicality and prudence that we've put out there. And so we've done a bottoms up with our respective sales team. Frank spoke about the RVP dashboard and cockpit.

And so with deep level of inspection, that's our prudent levels that we've provided at this time.

Shebly Seyrafi -- FBN Securities -- Analyst

OK. And I was impressed by your land ASP, up 60% year to year. How does that compare to prior quarters, that growth rate?

Dave Morton -- Chief Financial Officer

Well, obviously, over this past quarter, the year over year approximately 60%. And so you can assume, even from a sequential value, that has increased, as well. And again, the overall narrative isn't about the exact percentage per se other than our lands are becoming bigger and bigger as we continue to connect at a higher level within organizations and speaking to the multitude of quadrants we get recognized in. And so from that level, we're able to sell at the platform level across so many different use cases.

And so it's just not about one point specific land, which would be nominal in dollars, it's the multitude that we're able to sell across, which yields a larger ASP. And so that motion on our lands continues to accelerate.

Frank Calderoni -- Chief Executive Officer

Dave and I were talking about this yesterday as far as looking at some of the metrics, and what we liked about it is it really solidifies, as I mentioned earlier, the strategy. Selling high in the organization that's the C-Suite on some type of transmission, most likely digital transformation, working with a partner, allowing us to get a larger land in this case, which is what's driving the higher average. And then moving fast to get to expand and see that expand roadmap or journey be over multiple years, which is great.

Shebly Seyrafi -- FBN Securities -- Analyst

Thank you.

Frank Calderoni -- Chief Executive Officer

So I want to thank everyone for joining our call today. I want to also thank all our customers, our partners, and our shareholders, as well as our team members for your continued support, and we look forward to talking with you again next quarter. As we mentioned, June 10 to the 12 in San Francisco is our Connected Planning Xperience conference. So please join us and look forward to next quarter.

Thanks again.

Operator

[Operator signoff]

Duration: 47 minutes

Call participants:

Edelita Tichepco -- Vice President, Investor Relations

Frank Calderoni -- Chief Executive Officer

Dave Morton -- Chief Financial Officer

Richard Davis -- Canaccord Genuity -- Analyst

Alex Zukin -- Piper Jaffray -- Analyst

Heather Bellini -- Goldman Sachs -- Analyst

Stan Zlotsky -- Morgan Stanley -- Analyst

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

Peter Levine -- Evercore ISI -- Analyst

Scott Berg -- Needham and Company -- Analyst

Shebly Seyrafi -- FBN Securities -- Analyst

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