Cloud Stocks: Is SAP Acquiring Alteryx?

According to a recent Market Research Future report, the Global Data Analytics Market is estimated to grow at 29% CAGR to reach $132.9 billion by the year 2026 from $23 billion in 2019. Data science and analytics platform provider Alteryx’s (NYSE: AYX) recently announced its fourth quarter results that surpassed market expectations. There is a lot of speculation in the industry that SAP is in the process of acquiring Alteryx.

Alteryx’s Financials

For the fourth quarter, Alteryx’s revenue grew 3% to $160.5 million ahead of the market’s estimates by $6.9 million. GAAP gross profit was $149.8 million and GAAP gross margin was 93%, better than GAAP gross profit of $144.2 million and GAAP gross margin of 92% a year ago. GAAP net income was $22 million, was also significantly worse than GAAP net loss of $30.7 million a year ago. Adjusted net income was $43.2.1 million or $0.62 per share, down from $44.2 million or $0.64 per share a year ago. The market was looking for an EPS of $0.31.

Alteryx ended the quarter with 7,083 customers, up 16% with 128 net new customers. It achieved a dollar-based net expansion rate of 122%. ARR for the quarter grew 32% to over $492.6 million.

For the year, Alteryx announced a 19% increase in revenue to $495.3 million and a loss of $0.37 per share.

For the first quarter, Alteryx expects revenues of $104-$107 million and an adjusted net income of $0.25-$0.22 per share. For the full year 2021, it expects revenue of $555-$565 million and net income of ($0.07)-$0.07 per share. The market was looking for revenues of 567.2 million for the year with a net income of $0.73 per share.

Alteryx’s Growing Partnerships

During the quarter, Alteryx continued its series of partnerships. It announced a tie-up with Snowflake to integrate its analytics automation and data science capabilities with Snowflake’s platform. The partnership will allow customers with automated data pipelining, faster data processing, and quicker analytics outcomes at scale. It will also allow its data prep, analytics, and no-code low data sharing capabilities, allowing it to leverage Snowflake’s compute elastic scaling, and secure data sharing capabilities. The partnership makes scalable analytics and data science more accessible on Snowflake. The integration provides Alteryx with automated data preparation and processing inside Snowflake’s compute services, a new data loader to help large-scale analytics and data science initiatives, and seamless connections between already transformed data and Alteryx’s own analytic and data science capabilities.

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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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William K. 1 month ago Member's comment

Interesting news here. And if the project is successful we can wave farewell to privacy as we currently know it.

Certainly there can be much profit made from all of that "bottom up" analysis, but not much benefit to those analyzed.

Andrew Armstrong 1 month ago Member's comment

It says there is a lot of speculation in the market that $SAP is in the process of acquiring $AYX. Anything else out there besides this article?