Alteryx CEO superb interview at Global Tech.

Investment Analysis Clubs Saul’s Investing Discussions
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Most of the research i need on Alteryx is contained right here in this 41 minute interview and Q&A with CEO Dean Stoecker and CFO Kevin Rubin.

He discusses clear vision short a long term strategy, pricing, including recent financing for future acquisitions, on premise vs cloud, other macro shifts, new products, stickiness of products,growing customer base, AI, automation, protection during downturns, current optimistic outlook, and more, including a few CFO answers from Rubin.

i have gladly added to AYX during this general decline in momentum stocks.

https://www.veracast.com/webcasts/citigroup/technology2019/9…

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Most of the research i need on Alteryx is contained right here in this 41 minute interview and Q&A with CEO Dean Stoecker and CFO Kevin Rubin.

addedupon,

Thanks for posting the link to that interview from last week. I just finished listened to it, and it reminded me of a few things:

  1. We are definitely in the Information Age. The amount of available data is growing exponentially and in order to become truly valuable this data needs to be transformed into knowledge. There are an increasing number of use cases where data can be extracted and transformed into knowledge in a net positive ROI endeavor. Companies, large and small, are in the process of digitally transforming themselves. Not only are these activities net ROI positive, but they would also put the company into a competitive disadvantage if they do not engage in these digital transformation activities.

  2. AYX has greater than 90% gross margins. This is higher than any other of my companies and it speaks to the value that AYX is providing and the lack of effective competition.

  3. AYX has only penetrated 1/3 of the Global 2000 companies and these customers as a group have a net expansion rate of about 144%. AYX is starting to land larger customers and these customers are providing the most dollar based net expansion rate. This is why the venue growth accelerated recently.

  4. There are use cases across every function within companies, but the finance and accounting departments are often the first to adopt Alteryx. This is beneficial because these groups see ROI and are likely to encourage and approval AYX purchases in other functional areas.

  5. AYX expects to hit its free cashflow target of 30-35% of revenue in about 3 years. They see a path to becoming a $1B company (TTM revenue is currently $310M…less than 1/3 of this target). In addition, they are already thinking of how to become a $3B and $5B. They sure seem confident.

  6. AYX was self funded since they started the company more than 20 years ago. They are very capital efficient and have much low share based comp than our other companies.

  7. There are lots of reasons to love AYX and this one is still my favorite and least likely one to sell. I’ve trimmed twice this year and have decided to let the rest run. Currently, it’s a whopping 24.9% of my portfolio.

  8. The age of information has created so essential businesses to secure that information (OKTA, CRWD, ZS) to search that information (ESTC). To make sense of that information and make business decisions on analyses of the information (AYX). To enable organization and storage of the information (MDB). The age of information requires such enablers and these enables can be very capital light business models.

Chris

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Chris,

Thanks for so thoroughly summarizing the content of that fantastic interview that should provide assurance to whomever needs it, that Alteryx has a big future.

I’m partial to bootstrapped because it offers evidence that the visionary founder is also interested in and good at executive leadership, and it usually takes a little longer to break out, giving diligent small investors an equal shot at discovering them.

All of my major holdings were bootstrapped and are still founder led except for ROKU which spun off somse funding from Netflix. Aside from my two top holdings in non hypergrowth BRKA and MSFT (Gates is still Chairman), i also hold major stakes in AYX, RNG, APPN, TTD. Those 7 stocks account for 70% of my holdings. I also have decent bets in ANET, PSTG, and WIX. Exceptional, visionary leadership with a passion for executive role and a credible plan for massive growth.

That’s how i invest. To the guy who didn’t think i said why i held positions i listed in a previous post. Actually, i did so and i do now and it’s been good enough for 20%+ compounded annual returns for over 20 years.

GLTA

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