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Alteryx's Revenue and Customer Growth Continue to Propel the Company Forward

Chris Neiger, The Motley Fool

Alteryx (NYSE: AYX), a data analytics platform company, reported its second-quarter 2019 results on Wednesday, with sales climbing 59% year over year to $82 million. The company also reported non-GAAP (adjusted) net income of $896,000 in the quarter, up from a break-even adjusted net income in the year-ago quarter.

Alteryx results: The raw numbers

Metric 

Q2 2018

Q2 2019

Change

Revenue

$51.5 million

$82.0 million

59%

GAAP net income (loss)

($4.2 million)

($3.2 million)

N/A

GAAP earnings per share (loss)

($0.07)

($0.05)

N/A

Data source: Alteryx.

A bar graph in shades of blue.

Image source: Getty Images.

What happened with Alteryx this quarter?

  • Sales in the second quarter were $82 million, up from $51.5 million in the second quarter of 2018.
  • International revenue rose 58% year over year to $24 million, and now accounts for 30% of total sales.
  • Alteryx's GAAP gross profit in the quarter was $72.7 million, which was up from a GAAP gross profit of $46.2 million in the year-ago quarter.
  • The company's GAAP loss from operations widened in the quarter to $8.3 million, compared to a loss of $3.4 million in the year-ago quarter.
  • Alteryx added 305 net new customers and finished the second quarter with 5,278 customers, an increase of 34% from the second quarter of 2018.
  • The company achieved a dollar-based net expansion rate of 133% in the quarter.
  • Alteryx ended the quarter with cash, cash equivalents, and short-term and long-term investments of $426.8 million, compared to $426.2 million at the end of 2018.

What management had to say

Management was pleased with the results, and on the earnings conference call, CEO Dean Stoecker pointed to the fact that the company continues to increase its number of customers, and that many of them are spending more money on the Alteryx platform.

"We achieved net expansion of 133%, illustrating our customers continue to invest more in the Alteryx platform over time. We saw a doubling of seven-figure deals and an over 50% increase year-over-year in deals larger than $250,000, both consistent with our expectations as we focus on the Global 2000."

Management is also confident that there's a lot more room to grow within the data analytics market. Said Stoecker: "For example, based on our analysis, we believe there are approximately 8 million to 9 million potential Alteryx Designer users within the Global 2000, and we currently have less than 1% penetration within that population."

Looking ahead

Alteryx's management is expecting third-quarter GAAP revenue in the range of $88 million to $91 million, which would be a 43% year-over-year increase at the midpoint. Meanwhile, Alteryx's forecast range for non-GAAP operating income is $5 million to $8 million for the third quarter, and management expects non-GAAP earnings per share of $0.06 to $0.09.

Additionally, the company raised its full-year 2019 revenue guidance to a range of $370 million to $375 million, which is up from the previous forecast range of $355 million to $360 million.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alteryx. The Motley Fool has a disclosure policy.