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Alteryx (AYX) Appoints New CEO, Raises Q3 Top-Line Outlook

Aniruddha Ganguly
·3 mins read

Alteryx AYX announced the appointment of Mark Anderson as its new CEO on Oct 5. Mark Anderson replaced Dean Stoecker, the company’s co-founder, who was appointed as the executive chairman. Dean Stoecker will also continue to serve as the chairman of the board of directors.

Meanwhile, Alteryx raised its third-quarter 2020 top-line guidance. The company now expects revenues between $126 million and $128 million, representing 22-24% year-over-year growth. The guidance range is higher than previous expectation of $111 million to $115 million.

Markedly, Alteryx is set to report its third-quarter 2020 financial results on Nov 5, 2020. The Zacks Consensus Estimate for revenues is pegged at $112.4 million, indicating growth of 8.7% from the figure reported in the year-ago quarter. The consensus mark for earnings stands at 12 cents per share, unchanged over the past 30 days.

Shares of Alteryx jumped 21.2% in pre-market trading following the raised top-line outlook and appointment of the new CEO. Notably, the stock has underperformed the Zacks Internet Software industry year to date. While Alteryx’s shares returned 13.8%, the industry rallied 75%.

 

Alteryx, Inc. Price, Consensus and EPS Surprise

Alteryx, Inc. Price, Consensus and EPS Surprise
Alteryx, Inc. Price, Consensus and EPS Surprise

Alteryx, Inc. price-consensus-eps-surprise-chart | Alteryx, Inc. Quote

 

New CEO, Raised Top-Line View: Key Catalysts

Mark Anderson is a seasoned technology leader and has been credited with transforming operations and sales of Palo Alto Networks PANW. His timely appointment is expected to boost Alteryx’s growth prospects as it strives hard to recoup from the coronavirus-led disruptions.

Markedly, Alteryx witnessed a significant change in customers’ buying behavior due to the coronavirus-triggered rapidly changing macroeconomic conditions and implementation of shelter-in-place guidelines in second-quarter 2020.

The company observed notable changes such as higher levels of scrutiny on spending across all sectors, resulting in longer sales cycles, smaller deal sizes and less favorable linearity in the quarter.

However, the raised top-line guidance reflects improved demand driven by the company’s robust portfolio. Notably, in the second quarter, Alteryx showcased Analytic Process Automation (“APA”) that unifies analytics, data science and business-process automation. The company also introduced Alteryx Analytics Hub and Alteryx Intelligence Suite, solutions that extend the functionality of its APA platform.

Notably, Alteryx ended the second quarter with 6,714 customers, up 27.2% year over year. The company added 271 net customers, including six of the Global 2000, in the reported quarter.

Zacks Rank & Stocks to Consider

Alteryx currently has a Zacks Rank #4 (Sell).

Zoom Video ZM and Square SQ are a couple of better-ranked stocks in the same industry. Both the stocks sport Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rankstocks here.

Long-term earnings-growth rate for Zoom Video and Square is pegged at 25% and 40.9%, respectively.

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