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Bull of the Day: Alteryx (AYX)

Madeleine Johnson

Headquartered in Irvine, California, Alteryx, Inc. (AYX) is company that provides a self-service data analytics software platform to customers. Its product line-up consists of Alteryx Designer, Alteryx Server and Alteryx Analytics Gallery.

Alteryx Designer offers customers data preparation, blending and analytics which could be deployable in the cloud and on premise; Alteryx Server is a secure and scalable product for sharing and running analytic applications in a Web-based environment; and Alteryx Analytics Gallery is a cloud-based collaboration that allows users to share workflows in a centralized source.

Fourth Quarter Earnings Impressed

Back in February, Alteryx reported its fourth-quarter and full-year 2018 results.

Revenues of $61 million grew 57% year-over-year and beat the Zacks Consensus Estimate. While earnings also beat our consensus estimate, the company reported a non-GAAP net loss of $500,000, which is down from the year-ago period.

Taking into account Alteryx’s new ASC 606 accounting standard, however, Q4 revenue was $89.2 million and GAAP EPS came in at 25 cents per share; GAAP net income was $16.5 million.

The company ended 2018 with 4,696 customers, up 38% from 2017. It added 381 new customers in the fourth quarter.

Billings in Q4 surged 65% year-over-year to $116 million, while international revenue was up 92%.

"In 2019 and beyond, we expect to increase investments to drive our strong growth as we build a company for scale,” said CFO Kevin Rubin on the earnings call.

AYX is On the Move

Alteryx, Inc. Price and Consensus

Alteryx, Inc. Price and Consensus | Alteryx, Inc. Quote

Year-to-date, shares of AYX have increased 40.5% compared to the S&P 500’s return of 16%.

Management expects Q1 revenue to be in the range of $69 million to $72 million, which would mark an increase of 40% at the midpoint. For the full year, revenues would be between $345 million and $350 million.

Earnings estimates have since been rising, and the stock is now a Zacks Rank #1 (Strong Buy).

For the current fiscal year, nine analysts have revised their estimate upwards in the past 60 days, and the Zacks Consensus Estimate has jumped 43 cents during that same time period. Earnings growth is expected to turn positive this year, and grow significantly from the prior-year period.

2020 looks pretty strong too, with earnings expected to grow over 78% year-over-year; next year’s consensus estimate has moved 57 cents higher from $0.14 to $0.71, with five upward revisions in the last 60 days.

AYX does report its next quarterly results right at the beginning of May, so be aware that the company’s current outlook could be impacted.

But, thanks to increased billings growth, soaring sales and a strong product portfolio, the future is looking promising for Alteryx. If you’re an investor looking for a tech stock to add to your portfolio, make sure to keep AYX on your shortlist.

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