Cloud Stocks: Analysis Of Alteryx’s Acquisitions

The Global Data Science Platform Market is estimated to grow at 11% CAGR from $43.3 billion in 2021 to reach $81.43 billion by 2027. Data science and analytics platform provider Alteryx’s (NYSE: AYX) is expanding its presence in the market through acquisitions.

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Alteryx’s Financials

For the third quarter, Alteryx’s revenue fell 5% to $124 million beating analyst estimates of $119.12 million. GAAP gross profit was $108 million, compared to GAAP gross profit of $119.3 million a year ago. GAAP net loss was $5.8 million, compared to GAAP net income of $4.4 million a year ago. Non GAAP net loss narrowed to $11.9 million or $0.18 per diluted share from $27.1 million or $0.39 per diluted share a year ago. It was also significantly better than the market’s estimate of $0.14 per share.

Alteryx ended the quarter with 7,689 customers, up 11%, with 284 net new customers. It achieved a dollar-based net expansion rate of 119%. ARR for the quarter grew 29% to $578.6 million.

For the fourth quarter, Alteryx expects revenues of $163-$168 million and non GAAP net income of $0.02-$0.07 per share. For the full year 2021, it expects revenue of $525-$530 million and non GAAP net loss of $0.32-$0.27 per share. The market was looking for revenue of $148.4 million and net income of $0.30 per share for the fourth quarter and revenues of $483.2 million and net income of $0.62 per share for the fiscal year.

Alteryx’s Recent Acquisitions

Recently, Alteryx announced its acquisition of Sydney-based Hyper Anna. Founded in 2016 by Natalie Nguyen and Sam Zheng, Hyper Anna is an AI-powered analytics platform that allows customers to analyze data and share insights almost instantaneously. Prior to the acquisition, Hyper Anna had raised A$17.3M ($12.5 million) in two rounds of funding led by Sequoia Capital, IAG Firemark Ventures, AirTree Ventures, and Reinventure. The terms of the deal were not disclosed.

Alteryx is known for automating data science and analytics through the entire data acquisition to data transformation cycle. It offers predictive and prescriptive insights through a code-free and code-friendly platform. The acquisition of Hyper Anna will enable Alteryx’s customers to highlight outliers or anomalies in data that would have normally gone unnoticed in traditional visualization tools, use AI-powered insights to determine key trends in the data, and derive impactful stories around the data.

Alteryx also announced the acquisition of California-based Lore IO. Founded in 2017 by Digvijay Singh Lamba, Lore IO is a business-accessible data fabric for the entire enterprise data. It maintains declarative data transformations that are executed virtually at query time and are abstracted from the application layer. The acquisition gives Alteryx the talent and the technical know-how needed to leverage cloud-native, elastic compute within Alteryx Designer Cloud and Alteryx Machine Learning, providing customers with the ability to analyze large datasets for actionable self-service insights. The terms of the deal were not disclosed.

Alteryx’s acquisitions are aimed at providing a complete end-to-end data analytics solution. The additional AI / ML capabilities will make Alteryx compete directly with other powerhouses such as Tableau Prep and Microsoft Power BI. Both Tableau and Power BI already have significant AI capabilities and provide the end-to-end capabilities that Alteryx is aspiring to add.

It is currently trading at $62.7 with a market cap of $4.23 billion. It hit a 52-week high of $140.36 in February this year and a 52-week low of $66.50 earlier this month.

Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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