AYX reports 2nd quarter earnings after the bell.
Here is what I have in my notes:
percent change in revenue growth by quarter
2017 55 52 52 55
2018 50
2nd quarter guidance is $44, which is 45% growth.
AYX is at an all time high so it has big expectations.
Jim (long AYX)
*would like to see 50%+, with margin and FCF improvement
17 Likes
Looks like you got your wish ha- 54% increase, GP increased and dollar based net retention of 131%. Will read report in more detail but looks like a blow out quarter.
5 Likes
Gross Margin of 89%…I mean, that’s not even fair.
Looks like a blowout quarter. Spending was up (as they had forecast) but OpEx growth stayed below the 54% revenue growth. Gross Profit grew 66%! Uncanny.
They had 40% more customers than they did at this time last year.
Deferred Revenue was up from last Q (this was down sequentially in March, so it’s nice to see).
Knocked it out of the park.
Bear
27 Likes
Analyst pt of $131
Now that’s what I call upside potential!
https://www.google.com/amp/s/www.smarteranalyst.com/brief/ke…
2 Likes
Analyst pt of $131. Now that’s what I call upside potential!
Hi musicali,
That $131 was a misprint 
:
“We are raising estimates and our PT to $61 from $53 factoring in strong underlying fundamentals for the leader in data automation and workflow tools. Large lands and international driving $3M revenue beat on 54% growth.”
Saul
5 Likes
Knocked it out of the park.
Bear
Yeah, wow.
It was my largest position.
Now it’s even larger.
Wish I had bought even more!
Gross Margin of 89%…I mean, that’s not even fair
All their investments on growth is happening below this line. Revenue growth is fantastic but still away from inflection point, still not seeing the leverage. IN any case, the stock price movement today is nice.
AYX is a relatively new position for me, as of early February (before any official recs, if I recall), and one where I was forcibly forcing (yes, it requires 2x) myself to add to the position as it proved itself. This is something I suck at – full-on price anchoring galore – so it’s very nice to see the method be proved out. Thanks to all of you who’ve chimed in on AYX and others to help me be better at adding along the way. Still have room to go, but this is notable.
2 Likes
…but still away from inflection point, still not seeing the leverage…
Kingran -
Can you explain what you mean by “leverage” in the above context?
Thanks.
Eric
Can you explain what you mean by “leverage” in the above context?
If you take a year ago figures, the cost of revenue remained in dollar terms remained same, that is as % of revenue, it came down from 17% to 11%, that is leverage. I think it will be difficult to further drive this number down but it is impressive.
on the other hand, R&D, SGA as % of revenue remained same, Operating expense as % of revenue is 109% year ago and today it is 108%.
I understand the company is aggressively investing in developing new products, and sales efforts, etc.
In simple terms, your finance department will be able to handle $200M to $400m revenue increase with marginal increase in cost, but beyond $400m, the cost increases along with the revenue. This is same for many support organizations like IT, HR etc.
However, for a growing organization like AYX, at some point they gain critical mass, they can drive incremental revenue or sales without similar incremental cost. That’s the inflection point. AYX is far away from that point, in other words, while sales growth are impressive, it will not be matched by GAAP profits.
6 Likes