Cloud Stocks: Analysis Of Alteryx PaaS Strategy

Data science and analytics platform provider Alteryx (NYSE: AYX) early this month reported its second quarter results that beat analyst estimates. However, its disappointing outlook sent its stock sliding.

Alteryx’s Financials

For the second quarter, Alteryx’s revenue grew 17% to $96.2 million beating analyst estimates of $93.8 million. GAAP gross profit was $86.6 million, or a GAAP gross margin of 90%, compared to GAAP gross profit of $72.7 million, or a GAAP gross margin of 89% a year ago. GAAP net loss was $(35.3) million, compared to GAAP net loss of $(3.2) million a year ago. Non-GAAP net income was $1.7 million or $0.02 per diluted share compared to non-GAAP net income of $0.9 million or $0.01 per diluted share a year ago. Analysts expected loss of $(0.14) per share.

At the end of Q2, it had cash, cash equivalents, and short-term and long-term investments of $974.4 million, compared to $974.9 million as of December 31, 2019.

With customers going for higher levels of scrutiny, sales cycles have elongated, and deal sizes have become smaller. It ended the quarter with 6,714 customers, up 27%, with 271 net new customers. It achieved a dollar-based net expansion rate of 126%. It ended the quarter with over $430 million in ARR, an increase of over 40%.

For the third quarter, revenue is expected to be in the range of $111 million to $115 million or a growth range of 7%-11%. Non-GAAP net income per share is expected to be in the range of $0.09 to $0.14. For the full year 2020, Alteryx expects revenue of $460-$465 million, a growth range of 10% -11%. Analysts were expecting 15% growth for the third quarter and 21% for the full year.

Alteryx’s New Offerings

Alteryx recently introduced its next generation Alteryx Multi-threaded Processing engine, or AMP. It allows customers to execute workflows simultaneously, resulting in processing efficiency on larger data sets with complex analytical processes. While not a stand-alone SKU, the AMP engine is shipped with every Designer, Server, and Analytics Hub.

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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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