Alteryx with a blow out Quarter

Here’s a company from this board’s past who is finally making solid gains in sales and especially the conversion to SaaS/Cloud vs On-Prem. New leadership team seems to be executing.

But perhaps more importantly, just another company in “our space” reporting a great quarter and up today in a very down market. +3.5% at 10:20 am EST.

ER call here:
https://seekingalpha.com/article/4506529-alteryx-inc-ayx-ceo…

12 Likes

Hi MFChips,

Sorry, but it sounds like Alteryx has a pretty terrible quarter to me, not a blow out.

They had revenue up 33%, which was way below the range when we were following it.

Adj net LOSS was $27 million, worsening from a loss of $3 million a year ago. That’s terrible.

Adj EPS was a LOSS of 40 cents per share, worsening from a loss of 5 cents a year ago. That’s terrible too.

Adj Operating Profit was a LOSS of $30 million worsening from a loss of $1 million a uear ago.

Operating Cash Flow was a LOSS of $9 million, worsening from a gain of $26 million a year ago.

How in God’s name can you call this horrible result a “blow-out” quarter? I don’t get it.

Saul

41 Likes

I was not going to say anything, however as the Ticker Guide for Alteryx inside the paywall I have to say I was cringing as I listened to the conference call yesterday - Saul is right this was not a good quarter.

There is one bright spot however. As I type Alteryx shares are trading for $68.56. It closed out last year at $60.50. The stock is up on the year. It has performed better than cash.

I can name at least 50 companies I would rather own other than Alteryx, and won’t due to trading restrictions that would trigger, whose shares have gone down since the beginning of the year. In other words the Alteryx share price against other growth stocks has increased on a relative basis. This gives an investor an excellent opportunity to redeploy the capital from Alteryx into other companies with greater potential.

Frank - no position in Alteryx, see profile for all holdings

29 Likes

Nowhere did I mean to imply that this was indicative of reconsideration as an investment for this board.

Their results were quite good compared to how bad they’ve been though!

Simply put, they exceeded estimates by a fair amount and provided strong guidance.

Alteryx’s revenue was up 33% YoY and their forward guidance was growth of 32-35% going forward.

This was not the shrinkage in revenue that the street seems to imply is coming in Software.

And btw, this growth is coming during a pivot from on-prem to cloud, which as we know, often means a contraction in growth due to how revenue is recognized.

So yes, this is a positive sign for Enterprise Software, even if you hate the financial metrics of Alteryx at the present time.

4 Likes

Thanks MFChips, I thought the quarter was solid given as you say where they were. Note AYX tends to have much bigger Q4, and Q1/2 are generally a bit weaker.

The main points IMO were:

  1. Best Q1 revenue ever - suggesting that solid demand exists.
  2. Record Q1 >$1m ACV deals. Suggesting that companies are willing to pay significant dollars for the problem AYX is solving.
  3. G2K net expansion rate at 128%, vs 119% for the company. Suggesting that G2K customers see significant value in AYXs products.
  4. “Over the last 12 months, we’ve added approximately the same number of $1 million ARR customers that we added in all of 2019 and 2020 combined” - suggesting something is on the improve.
  5. Licensing changes seem to be enhancing revenue.
  6. Close to half the G2K are customers. Suggests massive value for AYX products for the biggest business in the world, and AYX has a reasonable capacity to land and expand (See point 3).

The big trend (data data data + data science people are hard to find, AYX replaces the need for a chunk of that) seems to be intact and the new management look like they have a good idea what needs to be done, and most importantly, big companies are spending big money on Alteryx right now.

They’re spending more on operating expenses, which addresses most of the numbers Saul brings up.

Note that Alteryx is a turn-around story, which is not something interesting to most on this board. AYX is a 2% position for me, because I think its a story worth following, and I’m interested to learn what a turn-around looks like.

Overall, I think it was a “some green shoots showing” quarter. I don’t see the negativity of Saul and CMFFrankDip, but I think they’re judging it by a different set of criteria.

cheers
Greg

PS. A quote on the macro-environment from Mark Anderson (CEO). Another saying “Digital transformation is a priority”.

“Certainly, we’re painfully aware of what’s going on in the macro environment. I do think though, however, whether it’s number one or number two, we constantly hear from executives that functionally and digitally transforming everything about your business is a priority. And it’s really starting to drive that priority through into budget cycles and allow solutions like Alteryx. And services, like our partners can deliver around Alteryx, to make it above the red line on that CFO spreadsheet that gets prioritized, and spent every quarter.”

11 Likes