Alteryx Inc (AYX) Reports Solid Revenue Growth and Profitability in Q4 and Full Year 2023
Q4 Revenue: Increased by 17% year-over-year to $351 million.
Full Year Revenue: Grew by 13% to $970 million in 2023.
Annualized Recurring Revenue (ARR): Rose by 15% to $955 million.
Q4 Net Income: A significant swing to $80 million GAAP net income from a net loss in the same quarter last year.
Non-GAAP Financials: Non-GAAP net income for Q4 reached $129 million, and $110 million for the full year.
Balance Sheet Strength: Cash and investments totaled $744 million as of December 31, 2023.
On February 6, 2024, Alteryx Inc (NYSE:AYX), a leader in analytics automation, released its 8-K filing, detailing the financial outcomes for the fourth quarter and the full year ended December 31, 2023. The company, known for its self-service data analytics software, has reported a robust performance with significant year-over-year revenue growth and a return to profitability in the fourth quarter.
Alteryx's revenue for Q4 2023 was $351 million, marking a 17% increase from the $301 million reported in the fourth quarter of 2022. The full-year revenue also saw a healthy rise to $970 million, up 13% from the previous year. This growth reflects the company's success in expanding its subscription-based software platform, which is critical in the software industry where recurring revenue streams are highly valued.
The company's GAAP gross profit for the fourth quarter was $317 million, translating to a GAAP gross margin of 90%, which is a slight improvement from the 89% in the same period last year. Non-GAAP gross profit for the same quarter stood at $324 million, maintaining a non-GAAP gross margin of 92%. For the full year, GAAP gross profit was $839 million with a margin of 86%, consistent with the previous year, while non-GAAP gross profit reached $871 million, also with a margin of 90%.
Alteryx's operational efficiency is evident in its income from operations. The GAAP income from operations for Q4 2023 was $76 million, a significant turnaround from the GAAP loss from operations of $(41) million in Q4 2022. The non-GAAP income from operations for the same period was even more impressive at $154 million, more than doubling the $68 million from the year before.
The company's net income also reflected a strong recovery. GAAP net income attributable to common stockholders for Q4 2023 was $80 million, or $1.07 per diluted share, a stark contrast to the GAAP net loss of $(32) million, or $(0.46) per diluted share, in the fourth quarter of 2022. Non-GAAP net income for Q4 was $129 million, or $1.70 per diluted share, compared to $62 million, or $0.84 per diluted share, in the prior year's quarter.
Alteryx's balance sheet shows a solid financial position with $744 million in cash, cash equivalents, and investments as of December 31, 2023, a substantial increase from $432 million at the end of 2022. This financial strength is partly due to a $441 million cash inflow primarily related to the issuance of senior notes, net of debt issuance costs.
Furthermore, the company ended the fourth quarter with $955 million in ARR, a key metric indicating the health and trajectory of Alteryx's business, representing a 15% increase year-over-year. This metric, along with a dollar-based net expansion rate of 116%, underscores the company's ability to retain and grow its customer base.
Despite these positive results, Alteryx faces challenges, including the pending acquisition by Clearlake Capital Group and Insight Partners, which has led to the company not hosting an earnings conference call or providing financial guidance. The transaction's outcome could have significant implications for the company's future operations and strategy.
In conclusion, Alteryx's financial performance in Q4 and the full year of 2023 demonstrates a company on the rise, with strong revenue growth, improved profitability, and a robust balance sheet. These results are particularly important for a software company like Alteryx, as they reflect the successful scaling of its subscription-based platform and the ability to generate recurring revenue, which is vital for long-term sustainability in the tech industry.
For detailed financial tables and further information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Alteryx Inc for further details.
This article first appeared on GuruFocus.
