Alteryx, Inc. (NYSE:AYX) shareholders might be concerned after seeing the share price drop 26% in the last month. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 86% in that time.
We don't think that Alteryx's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last year Alteryx saw its revenue grow by 77%. That's stonking growth even when compared to other loss-making stocks. The solid 86% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Alteryx. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Alteryx is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.
A Different Perspective
Alteryx boasts a total shareholder return of 86% for the last year. Unfortunately the share price is down 2.7% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. Before spending more time on Alteryx it might be wise to click here to see if insiders have been buying or selling shares.
Of course Alteryx may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.