You have to understand the accounting of AYX. recurring revenue at AYX is <50% of 2019 revenue. compared to 75%-90% for most of the other stocks owned on this board. On top that ARR growth at AYX is lower than their revenue growth because contract length has increased over time - which increases the pull forward contribution to revenue.
Hi Hastan, You may want to take another look at this. You may have some of it backward. Here’s the way Bert saw it in his most recent write-up just a couple of months ago, and I quote (slightly paraphrased as I’m taking it from my notes, and bolding is mine):
"Of all of the numbers that were presented in terms of revenue, the most salient, at least from my perspective, was bookings. Bookings grew by 81% and were $290 million compared to revenue of $156 million. Of all of the reasons to suggest that growth next year will continue near or above 50%, that bookings number has to be considered. Most of the bookings growth winds up in RPO (Remaining Perf Oblig), as there is no cash that has to be exchanged when signing multi-year Alteryx agreements [so it goes into RPO instead of deferred revenue]. For the full year, bookings growth was 70%. This quarter’s growth was the highest of the year.
The bookings number has nothing to do with the change from ASC 605 to 606. It is a simple calculation of the value of contracts signed in Q4 2019 compared to Q4 2018. The difference between bookings and revenue is backlog that will be recognized in future periods. In last year’s Q4, backlog grew by $56 million; in this quarter backlog rose $134 million. So the addition to backlog more than doubled with much of it sitting in the increase in RPO."
Saul