Alteryx had a really nice quarter for my turnaround play.
Big beats in revenue, +50% yoy, and accelerating guidance for next quarter with revenue +54 to 55%.
Strong ARR results as well.
However, one of the most interesting anecdotes on the earnings call was: Alteryx added MongoDB as an analytics customer.
I never would have guessed a data (and arguably analytics) company like MongoDB would sign up for Alteryx’s products. If any company in the world could reproduce that sort of functionality, I would have guessed MongoDB.
Which leads me to conclude that there is real value in Alteryx’s offerings, and more importantly, it’s good value even for a company with significant data capability like Mongo.
cheers
Greg
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They had another blowout quarter! Inside joke…
The tools provided by Alteryx are well beyond what MDB would have for analytics. Not only are they extremely synergistic with each other, but I am not surprised to hear MDB would use Alteryx. My son is a Alteryx Data sci guy, and they rely on MDB for their databases (mostly).
More importantly, Alteryx has been executing a turnaround. While the numbers for operating profits / and cash flows look bad, they include charges for their acquisition of trifacta (which really enables their whole cloud transition), but due to accounting differences, they are not recognizing any revenue yet from that acquisition. Bert did a good job of explaining it last report, so for subscribers to Bert Hochfeld, please refer there. (plug plug)
They’ve fixed their go-to-market problem that was exacerbated when Covid drove all investment into the cloud tools and AYX was caught flat footed. Salespeople fled to go make their big commissions elsewhere. But the last few quarters has seen the cloud revenue really accelerate. They made key hires and the gal running their salesteams is a powerhouse. New CEO has been on point each quarter.
MDB and AYX have something in common. During the early transition to cloud, overall revenue growth took a big hit (revenue recognition changes etc). But MDB really started to execute a few quarters back. Alteryx seems to be almost there (and Elastic). All of these are tools I consider highly embedded into the Enterprise and thus very sticky. AYX and ESTC aren’t yet as high of growth as mdB, and may not get there. But they are both growing now in the 50% range which is extraordinary, but most importantly, it looks like durable growth. Their valuations have reflected the slowdown in growth. I’ve got small bets on all of these that they will make the cloud transition and grow strong for sometime. MDB already did that and is now a full position. AYX and ESTC are small bets currently.
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Which leads me to conclude that there is real value in Alteryx’s offerings, and more importantly, it’s good value even for a company with significant data capability like Mongo.
Or, it could be a case of keeping an enemy closer, or even a consideration for a bit of reverse engineering.
(I have no opinion nor insight, just an observation born of experience in corporate wrangling…)