Tag: AYX

Alteryx announced Q2 earnings on August 6th. They delivered a slight beat to revenue estimates and a large beat on EPS. However, Q3 and full year revenue estimates came in below analyst targets. Currently, the full year revenue growth target sits at 11%, down from 65% in 2019. On the day following the Q2 report, the stock dropped by 28%. On the earnings call, the leadership team discussed a few challenges during the quarter, primarily attributable to the macro environment and the associated slowdown in enterprise spend. Over the course of the quarter, Alteryx launched several new product offerings. In this post, I review Alteryx’s Q2 earnings, customer adds and the expansion of the platform. I also take a look at the bigger picture in analytics and how Alteryx is positioned in the emerging competitive landscape. For more background on Alteryx, readers can review my prior coverage.

Alteryx released their Q1 2020 earnings report on May 6, 2020. Results were mixed – they beat Q1 estimates for revenue and were almost inline on EPS. However, the headline surprise came with a substantial reduction in Q2 revenue and EPS estimates as a result of a COVID-19 driven slowdown. The stock initially dropped by as much as 10% the next day, but gradually recovered to close down 2.9%. Following the results, most analysts lowered their price targets. Alteryx also made a major product announcement on May 11th and has recently posted some very interesting new job openings. There is a lot to unpack here and I will try to cover all the new activity, in addition to the earnings report. Then, we can look at what this means for the investment thesis going forward.

A few days after Alteryx’s earnings release, Gartner published its updated Magic Quadrant for Data Science and Machine Learning Platforms. Alteryx recaptured the Leader position, after being moved to a Challenger in 2019. Gartner highlighted solid expansion in Alteryx’s product vision, driven by improvements in augmented machine learning and process automation. Additionally, Alteryx was rated as having the highest ability to execute on its vision amongst all companies. This recognition from Gartner validates Alteryx’s strong product position and reflects progress in 2019 to extend its offerings across the full life-cycle of data science and machine learning.

Alteryx released earnings results for Q4 2019 on February 13, 2020. Overall, results were strong and exceeded expectations. The market responded favorably by driving the stock price up 9.5% the following day to an all-time high. Analysts were positive in their response with raised price targets. Projections for 2020 surpassed estimates, with ample room to outperform. Let’s do a deep-dive of the results.

On January 14, Dean Stoecker, Alteryx’s CEO, and Kevin Rubin, the CFO, spoke at the Needham Growth Conference. This conference included many of the software stack companies we track (MDB, DDOG, APPN, SMAR, etc.). Listening to the presentation, I had a couple of encouraging take-aways that further reinforce my long term view on Alteryx stock performance. I am bullish on AYX. Interested readers can review my prior recommendation.

Date of Recommendation:       December 17, 2019
Closing Stock Price:          $97.40

Alteryx (AYX) stock should be considered for long term investment. Based on my characteristics for a successful software stack company, I expect the price of Alteryx’s stock to grow significantly over the next 5 years.  This will be driven by their expanding product offering in an enormous addressable market. Their data analytics platform is deeply embedded and highly valued by major enterprises, particularly in the global 2000. The product is often described as a “must have” by data analysts with clear ROI tied to business outcomes. The leadership team is strong, led by a long-time founder and CEO. I expect the stock price to more than triple and exceed $325 within the next 5 years.