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Alteryx (AYX) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research

Alteryx AYX is set to report third-quarter 2019 results on Oct 31.

For the quarter, the company expects revenues between $88 million and $91 million. The Zacks Consensus Estimate for revenues currently stands at $90.3 million, which indicates growth of 66.7% from the year-ago quarter’s reported figure.

Moreover, earnings are expected between 6 and 9 cents per share. The consensus mark for earnings has remained unchanged over the past 30 days at 8 cents. In fact, the company had reported earnings of 8 cents in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average positive surprise being 144.2%.

In the last reported quarter, Alteryx’s adjusted earnings of 1 cent per share were much better than the Zacks Consensus Estimate of a loss of 6 cents.

Revenues surged 59.3% year over year to $82 million, which also beat the consensus mark of $76 million.

Alteryx, Inc. Price and EPS Surprise

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

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

Key Factors to Consider

Alteryx’s third-quarter results are expected to reflect the impact of an expanding clientele, driven by increasing demand for a self-service data science and analytics platform. Also, improved awareness of the company’s brand and solutions, particularly among Global 2000 clients, is expected to have aided customer base expansion in the to-be-reported quarter.

Notably, in the last reported quarter, dollar-based net expansion rate was 133%, down 10 basis points (bps) sequentially. The company added 305 net new customers, bringing the total to 5300, including 33% from the Global 2000 list. The momentum in customer addition most likely continued in the third quarter due to strong global demand for data analytics.

Further, Alteryx continued to add innovative features to its solutions including Designer, Promote and Connect that is expected to have improved user experience. This is expected to have further expanded customer base.  Moreover, rapid adoption of predictive analytics and AI modelling solutions are expected to have benefited Alteryx’s top line in the to-be-reported quarter.

However, the company’s investments in strengthening international sales organization and developer talent base is expected to have negatively impacted profitability.

What Our Model Says

According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of a positive earnings surprise.

Alteryx has a Zacks Rank #2 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Advanced Energy Industries AEIS has an Earnings ESP of +4.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Micro Devices AMD has an Earnings ESP of +6.54% and a Zacks Rank #2.

TE Connectivity Ltd. TEL has an Earnings ESP of 1.15% and a Zacks Rank #3.

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