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Specialist
Former Vice President at Moveworks
Agenda
- Moveworks’ overall operating environment and market positioning across competing vendors such as ServiceNow (NYSE: NOW)
- Value proposition and differentiation for conversational AI products and product roadmap outlook
- Go-to-market strategy, customer segmentation and customer demand trends amid AI adoption tailwinds
- Industry trends and outlook for consolidation
Questions
1.
Could you describe Moveworks as a company, including its value proposition as an enterprise copilot platform and its core offerings or services?
2.
Could you talk about the products that Moveworks offers today, to get a sense of what’s contributing to overall revenue at the company?
3.
Could you roughly segment out revenue for Moveworks, whether by use case, function, capability or anything else?
4.
You mentioned the majority is catering to the core enterprise service support automation capability. Can you estimate the percentage of revenue generated by that today?
5.
How do you see Moveworks positioned to benefit from secular market trends towards AI adoption, proliferation of generative AI implementations and just general adoption of generative AI, thinking about what the company does, compared to other vendors that provide AI solutions and foundational model solutions today? How do you see Moveworks benefiting specifically?
6.
What is Moveworks’ primary go-to-market strategy? Is this changing at all as the company continues to attempt to scale?
7.
What would you say is the rough split by revenue for enterprise vs commercial segmentation and North American vs European segmentation?
8.
You mentioned ASP is about 2x for enterprise customers, so do you have any rough estimates for what ASP is today for enterprise? I know that for large AI deployments, ASP can be upwards of USD 100,000, USD 200,000 or USD 300,000 for enterprise customers.
9.
You mentioned there’s a significant upside, so what would typically drive expansion revenue? Was it just seat expansion into new functions or use cases? Could you talk about the expansion motion?
10.
Moveworks cites a Forrester study that found a composite organisation based on real Moveworks customers realised 256% ROI over three years and USD 11.5m in savings. We’ve heard that other AI vendors, specifically AI platform vendors, have had challenges selling AI platforms due to the complexity of the sale – C3.ai comes to mind. Would you say that proving ROI in the sales process has proven to be a challenge at all for Moveworks? What appears to be the most efficient strategy for selling the company’s platform to enterprises?
11.
How would you say Moveworks is doing in trying to meet the challenge you noted? Would you say that there’s more work that needs to be done, or that the company has worked out a good system as it tries to reach enterprise scale? Can you talk about how it’s navigating that motion?
12.
Would you have an estimate of an average sales cycle for an enterprise customer?
13.
I saw one estimate that put the global enterprise AI TAM as reaching USD 64.5bn by 2028. I’ve seen other estimates that put it at north of USD 100bn. Looking at the chatbot software TAM, specifically one estimate put it at 5.4bn in 2023 and growing to 15.5bn by 2028 at a 23.3% CAGR. How should we think about sizing the TAM for Moveworks? Does the latter estimate seem right?
14.
The chatbot software market growth rate I mentioned in my previous question was at 23.3%. How do you characterise Moveworks’ growth rate over the past year? Where do you think it’s at currently? Would you say it’s far above that rate or around that rate?
15.
Could you give a rough range of where you think Moveworks’ growth might be currently?
16.
Do you think the macroeconomic climate is impacting Moveworks’ growth at all? Obviously, there are trends towards AI adoption that are working to the company’s benefit, but at the same time, customers are looking to cut costs.
17.
What is your estimate for the split of revenue growth between new logo and expansion revenue for Moveworks?
18.
It seems that the macro climate is having an impact. Would you say it’s having impact on expansion as well for Moveworks, or once a logo has landed, is the delivery of value strong enough such that the macro climate wouldn’t impact that?
19.
Thinking about the stickiness of the product, how common was churn? What were the most common reasons cited for churn when it did occur?
20.
Could you describe Moveworks’ competitive positioning and differentiation? Who do you see as the company’s key competitors, such as ServiceNow or any other enterprise AI platforms?
21.
In a bake-off scenario, when Moveworks would win or lose vs ServiceNow, what would be the primary factors driving that outcome?
22.
What percentage of the time would you say Moveworks would win in an evaluation where ServiceNow was present?
23.
How high would you say Moveworks’ moat is today, given the accessibility of sophisticated foundational models such as OpenAI and Anthropic or large cloud vendors such as Google?
24.
What’s your view on Moveworks as an acquisition target vs an eventual IPO? If it is an acquisition target, what type of company profile do you think would represent a potential buyer?
25.
Moveworks announced USD 200m in a series C funding round in June 2021 at a USD 2.1bn valuation, which was a massive raise at the time within the AI industry. What would you say is the focus of the company’s spending and investment priorities today?
26.
What’s your opinion on the health of the operating environment at Moveworks? Would you say it’s an efficient, lean organisation, or is there any area that you would point to as an area of inefficiency?
27.
What are your thoughts on Moveworks’ current management team?
28.
Do you have any concluding thoughts that you’d like to mention, or is there anything we haven’t covered yet?
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