AYX, Notes from the conference calls

Here’s some interesting info beyond what was in the presser:

We grew total revenue by 54%, increased international revenue by 100% and we maintained our best-in-class net revenue retention rate of 131%. We also crossed an important milestone in the quarter achieving more than 200 million in annual recurring revenue.

Interesting, total Q2 revenue was $46,8M yet they report achieving $200M annualized (or $50M per Q). This can only be true if

a) almost all of their revenue is recurring
b) it has accelerated considerably towards the end of the quarter

This is all supported with strong community metrics, including a 136% year-over-year growth in unique visitors and 176% year-over-year increase in consumption of user based solutions posted to the [Alteryx] Community.

In the few months since the launch of Alteryx Academy, our online learning environment within the Alteryx Community, customers have consumed over 140,000 interactive lessons and obtained 3200 product certifications.

This is extremely important as these kind of platforms live and die on their accessibility to experts. I’m glad it’s so high up on their list that the CEO mentions in just after the revenue results.

During Q2 we had 267 customers and ended the quarter with 3940 total customers around the world, including nearly 500 of the Global 2000 companies.

Plenty of room to grow!

We also saw strength internationally in Q2, as our international business doubled year-over-year, and we did business in 70 countries.

Kudos no doubt to the growing Alteryx community. Don’t see any other way how a 500 man expert system company could do business on such a global scale.

Our dollar-based net revenue retention rate of 131% exceeded 130% for the seventh consecutive quarter.

And we are talking recurring revenue here!

Our gross margin was 90% in the second quarter

I bet it’s because of the Alteryx community again. Typically if you are selling an expert platform, you have to hold the customer’s hand in integrating it and using it. It could be that they still have them but don’t count them towards COGS. But that’s unlikely given info from the Q&A where they say expanding the custommer support will eat into the margin. So for now it seems their customers make do with the online community. Got to check out their academy courses:


Cash used in operating activities was $5.7 million for the quarter. For the first six months of 2018, we reported positive cash flow from operating activities of $6.4 million.


For the third quarter of 2018, we expect GAAP revenue in the range of $49 million to $50 million

Huh? How can they report crossing the yearly recurring revenue $200M margin and then only expect $49M to $50M in the next quarter? Are they just lowballing the estimate a whole lot?

I would start it by saying that there’s almost no competition in the data prep world given the longevity we’ve had in one defining the space in building up the end-to-end capabilities of data prep.

Data prep. means that if you want to feed any analytics platform with your data you need to prepare it - pick the right data sources, format it, remove doubles etc. Typically you do this with a platform specialist/support looking over your shoulder. If customers from banking or transportation sectors are able to do this without needing much support it means the Alteryx platform is really well design. I’ve got to look through the courses!


Huh? How can they report crossing the yearly recurring revenue $200M margin and then only expect $49M to $50M in the next quarter? Are they just lowballing the estimate a whole lot?

From the Press Release:
“The company also uses annual recurring revenue (ARR) as one of our operating measures to assess the health and trajectory of our business. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be combined with any of these items. ARR represents the total annual contract value for active customer subscription contracts as of the measurement date.”

I believe this explains the difference between the stated ARR of more than $200 million and Revenue of less than $200 million. They also state 40% more customers were added from same period last year.