Alteryx Inc (AYX) Q12020 Earnings
Price: 5/24/2020 $148.60
P/S: 21.62
FCFYield: .23%
Non-Gaap EPS of -$.10 misses by 1 cents, Gaap Eps of -$.24 beats by $.05 cents
Revenue of $108.8 million up 43% beats by $3.16 Million
Ayx improves business through data science and analytics by enabling analytic producers, regardless of technical acumen, to quickly and easily transform data into actionable insights and deliver improved data-driven business outcomes. Their platform democratizes access to data-driven insights by expanding the capabilities and analytical sophistication available to all data producers, ranging from business analysts to expert programmers and trained data scientists. They unify the analytic process into one simple self-service experience by combining tasks that were previously distributed among multiple tools and parties. Their platform allows a single user to easily discover, access, and prepare data from a multitude of sources, perform a variety of analyses, and deliver analytical output to drive data-driven decisions and improve business outcomes.
1Q:2020 Notes:
Income Statement:
Ayx’s Revenue grew 43.16% this quarter. While it beat guidance it was a big drop from last quarter, which grew 75.49%. This was their slowest growth quarter yet. The gross margins were down 1%(100 basis points) From 89% to 88% YoY. Their operating margins were negative this quarter also. This also had their earnings negative. When looking at the numbers You can see that Sales and Marketing are the largest portion of their spending costs. This quarter though it was at 60% and that is the largest it has ever been. Also their Research and Development was also at the largest it’s ever been. Even though they beat on Revenue I do not think they expected that their Revenue would only grow 43% this quarter. How could they with covid happening. But they hired more sales people this quarter and I only hope that this helps them in the future, because they could be setting themselves up for larger growth in 2021. Let’s look at some of the numbers.
all numbers in Gaap
Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120
Revenue 50,329 51,502 62,589 89,150 76,020 82,043 103,397 156,450 108,831
% Rev Gr. 51% 59% 65% 76% 43%
Net Income 4,897 (4,239) 10,821 16,541 5,914 (3,219) (6,240) 30,688 (15,473)
EPS .08 (.07) .17 .25 .09 -.05 -.10 .44 (.24)
Here are some more numbers as a percentage to Revenue
Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120
Gross Margin 90% 90% 91% 92% 89% 89% 91% 92% 88%
R&D 21% 20% 17% 13% 19% 20% 17% 13% 24%
S&M 44% 53% 40% 39% 51% 59% 42% 39% 60%
G&A 19% 23% 19% 16% 26% 20% 20% 15% 23%
Oper. Margin 5% (7%) 15% 24% (6%) (10%) 12% 25% (18%)
NGaap EPS
Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120
NGaap EPS .10 0 .18 .32 .04 .01 .24 .64 -.10
Balance sheet:
On their balance sheet their Cash and Debt both went up. They now have $991,934 million in cash and $698,475 in debt. Their debt is all convertible notes which I expect that they will be converted into shares when they are due. The last convertible they had was for $800 million and was in two tranche. One tranche which is due in 2024 was for $400 million and the interest rate is for .50 % annually and the second tranche is also $400 million which is due in 2026 and has an interest rate for 1%.
Numbers in Thousands
Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120
Cash 205,743 341,097 414,081 426,243 461,083 426,802 986,486 974,865 991,934
Debt 0 0 170,927 173,647 176,345 297,575 690,799 630,321 698,475
Cashflow statement:
Their Free Cashflow was positive this quarter. The company has been FCF positive almost every quarter going back to Q118. Their stock based compensation this quarter was $13.7 million which was up 156% YoY. But what is surprising is that it doesn’t show up in an expansion of their diluted shares yet.
In Millions
Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120
Shares 63476 60685 65559 66079 67748 62613 63996 69132 65569
StockComp $3789 $3894 $4382 $4582 $5335 $8024 $8836 $10930 $13664
Conclusion:
It was surprising that Revenue fell as far as it did this Quarter. Next Quarter Ayx is guiding for revenue growth of 10 to 15 percent. I think that some people are thinking that they are sand bagging but their CFO Kevin Rubin stated: However, based on the Q2 quarter-to-date activity coupled with the ratable portion of our revenue that will be recognized in Q2, we believe we have sufficient visibility to provide Q2 guidance for revenue, operating income and EPS. So with that being said I have a hard time believing that they will have Revenue growth of more than 20 percent. That is a huge drop and surprisingly the stock has kept climbing. I think this company will come out of this stronger but I do think their growth in the next two quarters will be hurt. They are doing everything right to grow their business by hiring more sales people and looking forward, past these covid times. But their S&M as a percentage of Revenue is huge, especially this quarter. But I see this will also allow them a path to profitability by lowering their spend on S&M. This company is going to be a much bigger company in 5 years but in the short term I think they will sell for a cheaper price. So I sold a portion of my AYX and held onto a much smaller portion. I want to keep an eye on this company I just do not want a very big portion right now.
Some final numbers:
Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120
Customers 3673 3940 4315 4696 4973 5278 5613 6087 6443
DBNR 129% 129% 131% 132% 134% 133% 132% 130% 128%
DBNR=DollarBasedNetRetention
Current Numbers
May 6th, 2020 1Q:2020 earnings highlights:
** Revenue was $108,831 million up 43.16% from $76,020 million
** TTM revenue was $450,721 million or $6.87 per share
** Earnings were loss ($.24) down from $.09
** TTM earnings were $0.05
** Diluted share count 65,569 million
** Cash $991,934 million: debt $698.475 million
** Cash flow for the Quarter was $14,999 million up from $14,510 million
** TTM cash flow was 23,228 million per share was $0.35 per share
** Stock based compensation for the year was $41,454 million up from $16,647 million
** Stock based compensation for the quarter was $13,664 million up from $5,335 million
** Gross margins were 88% down from 89%. Operating margins were -18% down from -6%
** Trading range between February 14, 2020 and May 7th, 2020 was $75.17 to $160.11:
PE ratio range was 93,962,500,00 to 200,137,500,000: PS ratio range was 10.93 to 23.29 : Cash flow yield range was 0.22% to 0.47%
**Named a Leader in Gartner’s 2020 Magic Quadrant for Data Science and Machine-Learning Platforms.
**The Stock went Down $12.30 the day after the report finishing the day down $3.46. Closing at $118.96
Historic Numbers
February 21, 2018 4Q:2017 earnings highlights:
** Revenue was $38.588 million up 54.6% from $24.962 million
** Fiscal 2017 Revenue was $131.607 million up from $85.79 million
** TTM revenue per share was $2.22 per share
** 4Q earnings were ($0.03) up from ($0.25)
** Fiscal 2017 earnings were ($0.37) up from ($0.95)
** Diluted share count 59.363 million up from 32.59 million
** Cash and investments $194.1 million: debt 0
** Cash flow for the quarter was 11.34 million up from $2.24 million
** Cash flow for the year was $15.274 million up from negative ($10.34 million)
** Cash flow per share was $0.26 per share
** Stock based compensation $8.886 million up from $3.284 million
** Trading range between February 21, 2018 and May 9, 2018 was $30.45 to $39.21:
PE ratio range NA: PS ratio range was 13.72 to 17.66: Cash flow yield range was 0.6% to 0.8%
** Special Note: The stock price increased $4.23 per share the day after the report to close at $33.75 on February 22, 2018
May 9, 2018 1Q:2018 earnings highlights:
** Revenue was $42.821 million up 50% from $28.545 million
** TTM Revenue was $145.88 million or $2.43 per share
** Earnings were ($0.09) up from ($0.22) per share
** TTM earnings were ($0.24) per share
** Diluted share count 60.052 million
** Cash $205.743 million: debt 0
** Cash flow for the quarter was $10.69 million up from $4.52 million
** TTM cash flow was $20.44 million or $0.34
** Trading range between May 9, 2018 and August 8, 2018 was $30.71 to $47.82:
PE ratio range was NA: PS ratio range was 12.64 to 19.68: Cash flow yield range was 0.7% to 1.1%
** Special note: The stock price fell $2.27 the day after the report to close at $32.71 on March 10, 2018
** Announced the general availability of Alteryx Promote, a component of the Alteryx Analytics platform that allows both data scientists and citizen data scientists to deploy predictive models directly into business applications through an API, and then manage and monitor performance over time.
** Opened Asia-Pacific (APAC) headquarters in Singapore and appointed a Regional Vice President to accelerate growth and support the success of hundreds of customers in the region.
** Expanded reach by acquiring distributor, Alteryx ANZ in Sydney, Australia, to provide local sales and marketing presence, in-market platform support and thought leadership in the region.
August 8, 2018 2Q:2018 earnings highlights:
** Revenue was $46.796 million up from $30.319 million
** TTM Revenue was $162.357 million or $2.68 per share
** Earnings were ($0.09) up from ($0.12)
** TTM earnings were ($0.21) per share
** Diluted share count 60.685 million
** Cash $405.223 million: debt $168.255 million
** Cash flow for the quarter was negative ($7.82 million) down from negative ($32,000)
** Cash flow for six months was $2.87 million down from $4.48 million
** TTM cash flow was $13.66 million or $0.23 per share
** Trading range between August 8, 2018 and November 7, 2018 was $42.23 to $63.18:
PE ratio range was NA: PS ratio range was 15.76 to 23.58: Cash flow yield range was 0.4% to 0.5%
** Special Note: The stock price increased $7.53 the day after the report to close at $55.33 per share on 8/9/2018
** Sold $230.0 million aggregate principal amount of our 0.50% Convertible Senior Notes due 2023, including the initial purchasers’ exercise in full of their option to purchase an additional $30.0 million of the notes.
** Announced the general availability of the newest version of the Alteryx platform (2018.2) at its annual user conference, Inspire 2018. The release delivers new features across the platform to improve the analytic experience for IT, business analysts and data scientists, altering how they collaborate and scale analytics across the organization, find and connect to data, and ultimately drive business-changing insights.
** Announced the general availability of the newest version of the Alteryx platform (2018.2) at its annual user conference, Inspire 2018. The release delivers new features across the platform to improve the analytic experience for IT, business analysts and data scientists, altering how they collaborate and scale analytics across the organization, find and connect to data, and ultimately drive business-changing insights.
**Ned Harding, chief technology officer (CTO) and co-founder, has decided to step down from the CTO position. Mr. Harding will serve in an advisory capacity to the board of directors and executive management through 2019. The board of directors has appointed Derek Knudsen as CTO, effective August 13, 2018. Mr. Knudsen will be responsible for software engineering, engineering operations, and information technology. In addition, the board of directors has appointed Scott Jones, the company’s chief revenue officer (CRO), as president and CRO. Mr. Jones joined the company in January 2017 as CRO, and as president he will be responsible for all go-to-market activities, including marketing.
November 7, 2018 3Q:2018 earnings highlights:
** Revenue was $54.179 million up 58.6% from $34.155 million
** TTM Revenue was $250.691 million or $4.10 per share
** 4Q earnings (loss) (0.00) up from (0.06)
** TTM earnings were (loss)($0.15) per share
** Diluted share count 61.103 million
** Cash and investments were $414.081 million: debt $170.927 million
** Cash flow for quarter was $2.868 million up from negative ($346,000)
** TTM cash flow was $16.874 million or $0.28 per share
** Trading range between November 7, 2018 and February 27, 2018 was $47.07 to $79.76:
PE ratio range was NA: PS ratio range was 11.48 to 19.45: Cash flow yield range was 0.4% to 0.6%
** Special Note: The stock price increased $5.38 the day of the report to close at $58.64 on November 7, 2018. It fell slightly the day after the report.
**Announced the general availability of the newest version of the Alteryx platform (2018.3), which introduces new features that greatly enhance how users prepare, analyze, share and collaborate on data across the organization, now amplified with our newest innovation: Visualytics.
February 27, 2019 4Q: 2018 earnings highlight:
** Revenue was $89.15 million up 131% from $38.588 million
** Fiscal 2018 revenue was $253.57 million up from $131.607 million
** TTM Revenue per share $3.84 per share
** Earnings were $0.25 up from a ($0.03) per share
** Fiscal 2018 earnings were $0.43 (thanks to adoption 606) up from a loss ($0.37) per share
** Diluted share count 66.079 million
** Cash and investments were $426.243 million: Debt $173.647 million
** Cash flow for the year was $19.361 million or $0.29 per share
** Cash flow for the quarter was $13.625 million up from $11.299 million
** Customer count: 4700
** Trading range was February 27, 2019 and March 24, 2019 was $64.52 to $85.68:
PE ratio range was 150.05 to 199: PS ratio range was 16.8 to 22.31: Cash flow yield range was 0.34% to 0.45%
** Special note: The stock price fell $3.05 the day after the report to close at $76.31 on February 28, 2019
**Recognized on Deloitte’s Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.
**Switching from ASC 605 to ASC 606
May 1, 2019 1Q:2019 earnings highlights:
** Revenue was $76.02 million up 51% from $50.329 million
** TTM Revenue was $279.261 million or $4.14 per share
** Earnings were $0.09 up from $0.08
** TTM earnings were $0.44 per share
** Shares outstanding 67.478 million
** Cash flow for the quarter was $14.51 million up from $10.685 million
** TTM cash flow was $23.186 million or $0.34 per share
** Cash $461.348 million: debt $176.345 million
** 4,973 customers
** Gross margins 90.5%
** Trading range between May 1, 2019 and July31, 2019 was $80.68 to $123.06:
PE ratio range was NM: Cash flow yield range was 0.27% to 0.4%: PS ratio range was 19.44 to 27.02
** Special Note: The stock price increased $7.95 per share the day after the report to close at $95.46 per share on May 2, 2019
**Acquired ClearStory Data Inc., an enterprise-scale, continuous intelligence analytics solution for complex and unstructured data.
**Expanded our international presence with new office launch events in Japan and Dubai.
July 31, 2019 2Q:2019 earnings highlights:
** Revenue was $82.043 million up from $51.502 million
** TTM Revenue was $309.802 million or $4.95 per share
** Earnings were (loss) ($0.05) up from (0.07) per share
** TTM earnings were $0.42 per share
** Diluted share count 62.613 million
** Cash and investments were 426.802 million: debt $179.160 million
** Cash flow for the six months was $3.123 million up from $2.87 million
** TTM Cash flow was $19.614 million or 0.31 per share
** Trading range between July 31, 2019 and October 31, 2019 was $86 to $147.79:
PE Ratio range was 204.76 to 351.88: PS Ratio range was 17.37 to 29.86: Cash flow yield range was 0.2% to 0.36%
** Special Note: The stock price increased $14.03 the day after the report to close at $131.57 on August 1, 2019
**Hosted the largest-ever Alteryx user conference, U.S. Inspire 2019, which brought together approximately 4,500 customers, partners and employees to celebrate the Alteryx Community.
October 31, 2019 3Q:2019 earnings highlights:
** Revenue was $103.397 million up 65.2% from $62.589 million
** TTM revenue was $350.61 million or $5.48 per share
** Earnings were (loss) ($0.10) down from $0.17 per share
** TTM earnings were $0.17 per share
** Diluted share count was 63.966 million
** Cash $986.486 million: debt $690.799 million
** Cash flow for the nine months was $7.326 million up from $5.736 million
** Cash flow for the quarter was $4.203 million up from $2.87 million
** TTM cash flow was $20.951 million or $0.33 per share
** Trading range between October 31, 2019 and February 13, 2020 was $86.56 to $147.95.
PE ratio range NM: PS ratio range was 15.80 to 27: Cash flow yield range was 0.2% to 0.38%
** Special Note: The stock price increased $7.78 the day after the report to close at $99.28 on November 1, 2019
**Raised $800 million of additional growth capital via a convertible note offering in August 2019.
**Acquired Feature Labs to further enable Alteryx to address the data science and machine learning talent gap in October 2019.
February 13, 2020 4Q:2019 earnings highlights:
** Revenue was $156.45 million up 75.49% from $89.15 million
** TTM revenue was $417.91 million or $6.05 per share
** Earnings were $0.44 up from $0.25
** TTM earnings were $0.36 per share
** Diluted share count 69.132 million
** Cash $974.865 million: debt $698.475 million
** Cash flow for the year was $22.739 million up from $19.361 million
** TTM cash flow per share was $0.33 per share
** Cash flow for the quarter was $15.413 million up from $13.625 million
** Stock based compensation for the year was $33.125 million up from $16.647 million
** Stock based compensation for the quarter was $10.93 million up from $4.582 million
** Gross margins were 92.2% down from 92.47%. Operating margins were 24.76% up from 23.69%
** Capital expenditures for the year was $34.192 million up from $26.089 million
** Capital expenditures for the quarter was $5.293 million up from $799,000
** Trading range between February 13, 2020 and the present May 4, 2020 was $80.00 (March 16, 2020 first COVID-19 quarter) to $160.11 (February 18, 2020):
PE ratio range was 222.22 to 444.75: PS ratio range was 13.22 to 26.46 : Cash flow yield range was 0.21% to 0.4%
** Special Note: The stock price increased $13.70 the day after the report to close at $158.00
**Announced a five-year strategic relationship with PwC U.S., which includes the designation of PwC as a “Global Elite Partner.”
May 6th, 2020 1Q:2020 earnings highlights:
** Revenue was $108,831 million up 43.16% from $76,020 million
** TTM revenue was $450,721 million or $6.87 per share
** Earnings were loss ($.24) down from $.09
** TTM earnings were $0.05
** Diluted share count 65,569 million
** Cash $991,934 million: debt $698.475 million
** Cash flow for the Quarter was $14,999 million up from $14,510 million
** TTM cash flow was 23,228 million per share was $0.35 per share
** Stock based compensation for the year was $41,454 million up from $16,647 million
** Stock based compensation for the quarter was $13,664 million up from $5,335 million
** Gross margins were 88% down from 89%. Operating margins were -18% down from -6%
** Trading range between February 14, 2020 and May 7th, 2020 was $75.17 to $160.11:
PE ratio range was 93,962,500,00 to 200,137,500,000: PS ratio range was 10.93 to 23.29 : Cash flow yield range was 0.22% to 0.47%
**Named a Leader in Gartner’s 2020 Magic Quadrant for Data Science and Machine-Learning Platforms.
**The Stock went Down $12.30 the day after the report finishing the day down $3.46. Closing at $118.96
Andy