Q1 FY2022 Earnings Conference Call

Q1 FY2022 Earnings Conference Call May 27, 2021

Cautionary note regarding forward-looking statementsThis document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including all statements other than statements of historical fact contained in this document and includes, without limitation, statements about the company’s expectations regarding the impact of the COVID-19 pandemic and resulting global economic uncertainty, statements about the company’s growth, plans, strategies, opportunities and prospects, statements regarding market demand and competitive position, statements about events and trends including events and trends that we believe may affect our financial condition, results of operations, short- and long-term business operations and objectives, and financial needs. These statements identify prospective information and may include words such as “expects,” “intends,” “continue,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “should,” “may,” “will,” or the negative version of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the company as of the date of this document and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the company’s control and may pose a risk to the company’s operating and financial condition. Such risks and uncertainties include, but are not limited to: the ongoing COVID-19 pandemic, and resulting global economic uncertainty, has impacted how we, our customers, and our partners are operating, and could result in a material adverse effect on our business, financial condition, operating results and cash flows; we have a limited history of operating at our current scale and under our current strategy, which makes it difficult to predict our future operating results, and we may not achieve our expected operating results in the future; our recent revenue growth rates may not be indicative of our future performance or growth; we have a history of net losses, we anticipate increasing our operating expenses in the future, and we do not expect to be profitable for the near future; our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business; we have experienced rapid growth and expect to continue to invest in our growth in the future, and if we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service, or adequately address competitive challenges and our business, financial condition and results of operations may be adversely affected; we derive substantially all of our revenue from a single software platform and if our platform fails to satisfy customer demands or to achieve widespread market acceptance it would adversely affect our business, operating results, financial condition, and growth prospects; if we are unable to attract new customers, both domestically and internationally, the growth of our revenue will be adversely affected and our business may be harmed; our business depends substantially on our customers renewing their subscriptions and expanding their use of our platform and if we fail to achieve renewals or expansions or our customers renew or expand their subscriptions on less favorable terms, our business and operating results will be adversely affected; failure to effectively expand our sales and marketing capabilities, including to hire and retain direct sales personnel, could harm our ability to increase our customer base and achieve broader market acceptance of our service; our growth depends in part on the success of our strategic relationships with third parties and their continued performance; if our customers and partners do not have access to highly skilled and trained users of our platform, our customers may not be able to unlock the full potential of our platform, customer satisfaction may suffer, and our results of operations, financial condition and growth prospects may be adversely affected; if we fail to continue to enhance our platform, satisfy the cloud infrastructure priorities of our clients or adapt to rapid technological change, our ability to remain competitive could be impaired; if we experience a security incident affecting our platform, networks, systems or data or the data of our customers, or are perceived to have experienced such a security incident, our platform may be perceived as not being secure, our reputation may be harmed, customers may reduce the use of or stop using our platform, we may incur significant liabilities, and our business could be materially adversely affected; real or perceived errors, failures, bugs, service outages, or disruptions in our platform could adversely affect our reputation and harm our business; we depend on the experience and expertise of our senior management team and certain key employees, especially engineering, research and development and sales personnel, and our inability to retain these executive officers and key employees or recruit them in a timely manner, could harm our business, operating results, and financial condition; the markets in which we participate are intensely competitive, and if we do not compete effectively, our business and operating results could be adversely affected; we collect, process and store personal information and furthermore, our platform could be used by customers to do the same, and evolving domestic and international privacy and security laws, regulations and other obligations could result in additional costs and liabilities to us or inhibit sales of our platform. Furthermore, the additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may amplify many of these risks. Information concerning risks, uncertainties and other factors that could cause results to differ materially from the expectations described in this document is contained in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K filed with the SEC on March 12, 2021, and other documents the company may file with or furnish to the SEC from time to time such as annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. These forward-looking statements should not be relied upon as representing the company’s views as of any subsequent date and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.

Copyright © Anaplan Inc., 2021

Use of non-GAAP financial measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this document and the accompanying tables contain non-GAAPfinancial measures, including non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAPloss from operations, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and free cash flow. The non-GAAP financial information is presented forsupplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented inaccordance with GAAP. The non-GAAP measures presented here may be different from similarly-titled non-GAAP measures used by other companies.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operatingbudget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. Webelieve these non-GAAP measures, when viewed collectively with the GAAP measures, may be helpful to investors because they provide consistency and comparability with our pastfinancial performance and facilitate period-to-period comparisons of our operating results.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recordedin our financial statements. The definitions of our non-GAAP measures may differ from the definitions used by other companies and therefore comparability may be limited. Inaddition, other companies may utilize metrics that are not similar to ours. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as anon-GAAP basis and by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. Please see the reconciliation tables at the endof this document for the reconciliation of GAAP and non-GAAP results.


Q1 Fiscal Year 2022

Revenue $130M, up 25% YoY GAAP Operating Margin (38.2%)

Billings $127M, up 32% YoY Non-GAAP Operating Margin (9.6%)

Remaining Performance Obligation (RPO) $832M, up 29% YoY GAAP Net Loss per Share ($0.36)

Dollar-based Net Expansion Rate (NRR) 118% Non-GAAP Net Loss per Share ($0.10)

Customers with ARR >$250K, up 29% YoY Non-GAAP Free Cash Flow $7.6M

Financial Highlights


144 209

308408

FY'18 FY'19 FY'20 FY'21

26%31%32%44%Y/Y 26%

Subscription Revenue Growth


ANNUAL SUBSCRIPTION REVENUE $M QUARTERLY SUBSCRIPTION REVENUE $M

+45%

+48%

+33%

94 97 105 113 118

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

KEY

Y/Y Growth Rates

Subscription Revenue

Net Expansion Rate (“NRR”) is calculated as the ARR at the end of a period for the base set of customers from which we had ARR in the year prior to the calculation, divided by the ARR one year prior to the date of calculation for that same customer base.

Capturing a Greater Share of Wallet

CUSTOMERS WITH >$250K ARR GROWING STEADILY DOLLAR-BASED NET EXPANSION RATE


248 353

453 473

FY'19 FY'20 FY'21 Q1'22

123% 122% 114% 118%

50%

60%

70%

80%

90%

100%

110%

120%

130%

FY'19 FY'20 FY'21 Q1'22

Y/Y 37% 36% 25% 25% 29%Y/Y 33% 32% 28% 29% 34%

Quarterly Remaining Performance Obligation

Current RPO $M RPO $M


330 358 383 420 442

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

KEY

Y/Y Growth Rates

Remaining Performance Obligation

647 703 740 818 832

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

204 290

417 523

FY'18 FY'19 FY'20 FY'21

Note: Calculated Billings is defined as revenue plus the change in deferred revenue.

Annual and Quarterly Billings

ANNUAL BILLINGS $M QUARTERLY BILLINGS $M

+42%

+44%

37%27%22%10%Y/Y 32%


+25%

96 109 145

173

127

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

KEY

Y/Y Growth Rates

Calculated Billings

Non-GAAP gross margin calculated as gross profit, excluding the effect of stock-based compensation expense, employer payroll tax expense related to employee stock plans, and amortization of acquired intangibles, as a percentage of revenue. See appendix for a reconciliation of non-GAAP gross margin to GAAP gross margin.

80

117

81

KEY Total Gross Profit

Subscription Gross Margin %

Total Gross Margin %Non-GAAP

Non-GAAP Gross Margin

GROSS MARGIN BY YEAR GROSS MARGIN BY QUARTER


81 83 87 96 100

78% 78% 76% 78% 77%

85% 85% 83% 84% 84%

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

117 175

263 346

70% 73% 76% 77%

86% 83% 84% 84%

FY'18 FY'19 FY'20 FY'21

Note: All numbers are Non-GAAP; See appendix for a reconciliation of non-GAAP operating margin to GAAP operating margin. Free cash flow defined as net cash used in operating activities less purchase of property and equipment and capitalized internal-use software.

Non-GAAP Operating Expense and Free Cash Flow Margins

OPERATING EXPENSE AS A % OF REVENUE FREE CASH FLOW $M AND AS PERCENTAGE OF REVENUE

KEY

G&A

S&M R&D

KEY

Free cash flow margin

Free cash flow


-68

-29 -20

8

(28%)

(8%) (5%)6%

FY'19 FY'20 FY'21 Q1'22

45 56 7925

161210

250

70

44

5357

16

249

319

385

112

104%92%

86% 86%

FY'19 FY'20 FY'21 Q1'22

Thank you!

Non-GAAP reconciliation(In thousands, except percentages and per share data) Three Months Ended Three Months Ended(Unaudited) April 30, 2021 April 30, 2020

Revenue 129,825$ 103,844$

GAAP operating loss (49,623)$ (38,760)$ Stock-based compensation 34,071 22,493 Employer payroll tax expense related to employee stock plans 2,000 1,485 Business combination and other related cost 778 1,019 Amortization of acquired intangibles 335 335

Non-GAAP operating loss (12,439)$ (13,428)$

GAAP operating margin % -38.2% -37.3%Stock-based compensation % 26.2% 21.7%Employer payroll tax expense related to employee stock plans % 1.5% 1.4%Business combination and other related cost % 0.6% 1.0%Amortization of acquired intangibles % 0.3% 0.3%

Non-GAAP operating margin % -9.6% -12.9%

GAAP net loss (51,491)$ Stock-based compensation 34,071 Employer payroll tax expense related to employee stock plans 2,000 Business combination and other related cost 778 Amortization of acquired intangibles 335

Non-GAAP net loss (14,307)$

GAAP net loss per share, basic and diluted (0.36)$ Stock-based compensation 0.24 Employer payroll tax expense related to employee stock plans 0.01Business combination and other related cost 0.01Amortization of acquired intangibles -

Non-GAAP net loss per share (0.10)$

Shares used to compute GAAP and non-GAAP net loss per share attributable to common stockholders, basic and diluted 144,161

GAAP net cash provided by operating activities 13,809$ Purchase of property and equipment (3,113) Capitalized internal-use software (3,086)

Non-GAAP free cash flow 7,610$

Non-GAAP reconciliation(In thousands, except percentages)(Unaudited) 2021 2020 2019 April 30, 2021 April 30, 2020

Revenue 447,755$ 348,022$ 240,642$ 129,825$ 103,844$

GAAP operating expenses 492,555$ 405,678$ 301,507$ 146,627$ 117,864$ Stock-based compensation 97,323 75,300 51,124 31,718 21,277 Employer payroll tax expense related to employee stock plans 6,347 8,168 834 1,831 1,400 Business combination and other related cost 3,636 2,720 - 778 1,019 Amortization of acquired intangibles 300 135 212 75 75

Non-GAAP operating expenses 384,949$ 319,355$ 249,337$ 112,225$ 94,093$

GAAP operating expenses as a % of revenue 110% 117% 125% 113%Stock-based compensation as a % of revenue -22% -22% -21% -25%Employer payroll tax expense related to employee stock plans as a % of revenue -1% -2% 0% -1%Business combination and other related cost as a % of revenue -1% -1% 0% -1%Amortization of acquired intangibles as a % of revenue 0% 0% 0% 0%

Non-GAAP operating expenses as a % of revenue 86% 92% 104% 86%

GAAP research and development 100,523$ 68,396$ 48,998$ 33,212$ Stock-based compensation 18,715 10,608 3,826 6,966 Employer payroll tax expense related to employee stock plans 608 865 - 289 Business combination and other related cost 2,633 917 - 649 Amortization of acquired intangibles - 35 212 -

Non-GAAP research and development 78,567$ 55,971$ 44,960$ 25,308$

GAAP sales and marketing 302,002$ 250,430$ 176,323$ 88,470$ Stock-based compensation 48,210 34,428 15,475 16,633 Employer payroll tax expense related to employee stock plans 3,323 5,246 - 1,151 Business combination and other related cost 517 173 - 129 Amortization of acquired intangibles 300 100 - 75

Non-GAAP sales and marketing 249,652$ 210,483$ 160,848$ 70,482$

GAAP general and administrative 90,030$ 86,852$ 76,186$ 24,945$ Stock-based compensation 30,398 30,264 31,823 8,119 Employer payroll tax expense related to employee stock plans 2,416 2,057 834 391 Business combination and other related cost 486 1,630 - -

Non-GAAP general and administrative 56,730$ 52,901$ 43,529$ 16,435$

GAAP net cash provided by (used in) operating activities (4,631)$ (14,405)$ (45,853)$ 13,809$ Purchase of property and equipment (5,680) (3,991) (15,122) (3,113) Capitalized internal-use software (10,063) (11,023) (7,397) (3,086)

Non-GAAP free cash flow (20,374)$ (29,419)$ (68,372)$ 7,610$

GAAP net cash provided by (used in) operating activities % -1% -4% -19% 11%Purchase of property and equipment % -1% -1% -6% -3%Capitalized internal-use software % -3% -3% -3% -2%

Non-GAAP free cash flow margin % -5% -8% -28% 6%

Year Ended January 31, Three Months Ended

Non-GAAP reconciliation(In thousands, except percentages)(Unaudited) 2021 2020 2019 2018

Revenue 447,755$ 348,022$ 240,642$ 168,347$

GAAP gross profit 338,776$ 257,245$ 173,244$ 116,362$ Stock-based compensation 6,303 4,746 1,682 655 Employer payroll tax expense related to employee stock plans 355 470 - - Amortization of acquired intangibles 1,040 347 - -

Non-GAAP gross profit 346,474$ 262,808$ 174,926$ 117,017$

GAAP gross margin % 76% 74% 72% 69%Stock-based compensation % 1% 1% 1% 1%Employer payroll tax expense related to employee stock plans % 0% 1% 0% 0%Amortization of acquired intangibles % 0% 0% 0% 0%

Non-GAAP gross margin % 77% 76% 73% 70%

Subscription revenue 408,199$ 307,890$ 208,605$ 143,542$

GAAP subscription gross profit 338,397$ 256,430$ 172,105$ 123,615$ Stock-based compensation 3,822 2,547 831 148 Employer payroll tax expense related to employee stock plans 186 276 - - Amortization of acquired intangibles 1,040 347 - -

Non-GAAP subscription gross profit 343,445$ 259,600$ 172,936$ 123,763$

GAAP subscription gross margin % 83% 83% 83% 86%Stock-based compensation % 1% 1% 0% 0%Employer payroll tax expense related to employee stock plans % 0% 0% 0% 0%Amortization of acquired intangibles % 0% 0% 0% 0%

Non-GAAP subscription gross margin % 84% 84% 83% 86%

Year Ended January 31,

Non-GAAP reconciliation(In thousands, except percentages)(Unaudited) April 30, 2021 January 31, 2021 October 31, 2020 July 31, 2020 April 30, 2020 January 31, 2020

Revenue 129,825$ 122,525$ 114,875$ 106,511$ 103,844$ 98,242$

GAAP gross profit 97,004$ 93,103$ 85,500$ 81,069$ 79,104$ 74,033$ Stock-based compensation 2,353 2,060 1,459 1,568 1,216 1,352 Employer payroll tax expense related to employee stock plans 169 104 88 78 85 219 Amortization of acquired intangibles 260 260 260 260 260 261

Non-GAAP gross profit 99,786$ 95,527$ 87,307$ 82,975$ 80,665$ 75,865$

GAAP gross margin % 75% 76% 74% 76% 76% 75%Stock-based compensation % 2% 2% 2% 2% 1% 1%Employer payroll tax expense related to employee stock plans as a % of revenue 0% 0% 0% 0% 0% 1%Amortization of acquired intangibles as a % of revenue 0% 0% 0% 0% 1% 0%

Non-GAAP gross margin % 77% 78% 76% 78% 78% 77%

Subscription revenue 118,343$ 112,551$ 104,707$ 97,117$ 93,824$ 89,512$

GAAP subscription gross profit 97,014$ 93,269$ 85,520$ 80,969$ 78,639$ 74,458$ Stock-based compensation 1,522 1,285 953 876 708 730 Employer payroll tax expense related to employee stock plans 87 56 48 39 43 145 Amortization of acquired intangibles 260 260 260 260 260 261

Non-GAAP subscription gross profit 98,883$ 94,870$ 86,781$ 82,144$ 79,650$ 75,594$

GAAP subscription gross margin % 82% 83% 82% 83% 84% 83%Stock-based compensation % 2% 1% 1% 2% 1% 1%Employer payroll tax expense related to employee stock plans as a % of revenue 0% 0% 0% 0% 0% 0%Amortization of acquired intangibles as a % of revenue 0% 0% 0% 0% 0% 0%

Non-GAAP subscription gross margin % 84% 84% 83% 85% 85% 84%

Professional services revenue 11,482$ 10,020$

GAAP professional services gross profit (10)$ 465$ Stock-based compensation 831 508 Employer payroll tax expense related to employee stock plans 82 42

Non-GAAP professional services gross profit 903$ 1,015$

GAAP professional services gross margin % 0% 5%Stock-based compensation % 7% 5%Employer payroll tax expense related to employee stock plans as a % of revenue 1% 0%

Non-GAAP professional services gross margin % 8% 10%

Three Months Ended

Definitions

Customer Lifetime Value (LTV)We define customer lifetime value as the increase in subscription gross profit comparing the last twelve months of subscription gross profit to the twelve months a year prior, divided by an assumed churn rate.

Customer Acquisition Cost (CAC)We define customer acquisition cost as the last twelve months of sales and marketing expense, a year prior.

Annual Recurring Revenue (ARR) We define annual recurring revenue as subscription revenue already booked and in backlog that will be recorded over the next 12 months, assuming any contract expiring in those 12 months is renewed and continues on its existing terms and at its prevailing rate of utilization.

Dollar-based Net Expansion Rate (NRR)We define dollar-based net expansion rate as the ARR at the end of a period for the base set of customers from which we had ARR in the year prior to the calculation, divided by the ARR one year prior to the date of calculation for that same customer base.

Documents

Q1 FY2022 Earnings Conference Call