I did this while cooking dinner so please forgive the brevity.
I’m not going to sum up the numbers. AYX does a great job of it. Have a read here.
TL:DR; Good to very good quarter. q1 revenue is in line with typical seasonality. Customer adds are much larger customers than in the past NER of 134% (up significantly from 129%) reflects their focus on large customers.
My previous post about the competition (no real competition) -https://discussion.fool.com/i39ve-lookedeach-time-a-press-releas…
My previous post about ASC 606.
Expect to see sam seasonality of revenue in 2019 as 2018
Convertible is now listed as a short term liability because it is now convertible.
Increased focus on large enterprise which is why you see NER is so high but customer growth is steady. Large increase is global 2000 customers.
Focus on RPO,( same comments on seasonality)
Larger deal activity, more top-down activity instead of bottom-up (when a chief data officer is present)
Clearstory - spark expertise, data harmonization (spark tooling, auto inferencing to automatically clean up a data set) Good visualizations that they aren’t sure how they are going to use yet. Silicon Valley presence.
82% growth global 2000, 62 % of that was international
Switch from NRR(revenue) to NER(contract value), NER is based on ACV that is unaffected by 606.
Elevated opex ( front-loaded hires in the year so some seasonality) . AYX sees a “significant opportunity” so as long as they see large opportunity they will continue to do that. They expect to be able to generate significant cash flow over the long term.
Focuses on current verticles (healthcare and tax and audit). See opportunities in university, manufacturing,
Competitive environment - SAP is generally the incumbent but not necessarily a head to head. Corporate culture is the biggest competition. Not worried yet about competition. Look at them from an M&A standpoint.
Follow the signals (use ayx )
Refining the process
Remove the friction
They offer discounts for longer-term contracts but they limit this.
Very good quarter, not an amazing quarter ,just continued amazing performance. I was initially worried that they only added 277 customers but in the CC they are focusing on their largest customers (global 2k) which they have been very successful with. THeir G2k adds were up 82% which they seemed pretty excited about. I was also very pleased to see their Net expansion ratio increase to 134%. Thisn’t isn’t an apples to apples comparison because they were using a dollar-based ratio instead of a contract based ratio…either way, this is good. THey expect to see the same seasonality that they saw in 2018 which is revenue backloaded in the year. Just a reminder, with the move to asc 606 we won’t see as “smooth” of revenue (see my post linked above) which is why we are going to see the exaggerated seasonality now.
AYX continues to move from success to success. I’d buy some if i didn’t own so much of it, it is reasonably valued in comparison to the other SaaS stocks.