Cloud Stocks: Alteryx Bounces Back Despite Low Outlook

Data science and analytics platform provider Alteryx (NYSE: AYX) early this month reported a strong quarter with revenue growth of 43%, but it swung to a loss and missed analyst earnings estimates. The company also experienced a sudden and significant change in customer behavior in March due to the COVID-19 situation. As a result, its quarterly outlook was disappointing, and its stock slid before recovering to pre-earnings levels.

Alteryx’s Financials

For the first quarter, Alteryx’s revenue grew 43% to $108.8 million. GAAP gross profit was $95.8 million, or a GAAP gross margin of 88%, compared to GAAP gross profit of $68.0 million, or a GAAP gross margin of 89% a year ago. GAAP net loss was $(15.5) million, compared to GAAP net income of $5.9 million for the first quarter of 2019. Non-GAAP net loss was $(6.5) million or $(0.10) per diluted share compared to non GAAP net income of $3 million or $0.04 per share. Analysts expected loss of $(0.08) per share on revenue of $105.8 million.

Its operating expenses were $102.6 million compared to $67.3 million a year ago. The increase in operating expenses is mainly due to increase in its overall head count level. Q1 operating expenses also included $6 million of one-time and seasonal expenses primarily related to its annual Global Kickoff meeting held in February and costs associated with rescheduling its US and EMEA user conferences.

For the second quarter, revenue is expected to be in the range of $91 million to $95 million or a growth range of 10%-15%. Non-GAAP net loss per share is expected to be in the range of $(0.12) to $(0.18). Analysts expect loss of $0.09 per share on revenue of $105.5 million.

Due to the macroeconomic uncertainty related to the coronavirus, Alteryx withdrew its previous 2020 guidance of revenues of $555-$565 million with an adjusted net income of $0.80-$0.90 per share.

Alteryx’s Customer Growth

Since it went public in 2017, Alteryx’s customer count has almost tripled from 2,300 to 6,443 customers. It added 356 net new customers in Q1, up 30% q-o-q, and achieved a dollar-based net expansion rate of 128%. Prominent customers include Royal Bank of Canada, tech communication specialist Vodafone, pharmaceutical giant Pfizer, Royal Caribbean Cruise Lines, Copa Airlines, Choice Hotels, and Chevron USA.  

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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