AYX 10-Q Is Out


I wanted to see what sort of language was being used regarding business impact from COVID:

“Towards end of Q1, we experienced an abrupt and significant change in customer buying behavior, including decreased customer engagement and delayed sales cycles.”

“Although we saw a rebound in customer engagement in April, we currently expect that (full year revenue) will be lower than anticipated”

“Because our products are offered as subscription-based licenses and a portion of that revenue is recognized over time, the effect of the pandemic may not be fully reflected in our operating results until future periods”

“Existing and potential customers may attempt to renegotiate contracts and obtain concessions”

Also, significant portion of their sales is usually done in person; currently all sales are being done remotely and unclear if there will be a negative impact (pg 33)

On a positive note:

Liquidity- they believe current financial resources will allow them to manage anticipated impact of COVID

Allowance for doubtful accounts- not forecasting any significant differences in loss rates across geographies

My take (and after listening to the call)- short term there will be headwinds. The CEO remains confident and thinks COVID will further emphasize the importance of analytics. I wonder if there is potential to pivot to a less on-premise business model? We shall see.

AC Doyle
(long AYX)