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Alteryx's (AYX) Q2 Earnings Top Estimates, Revenues Rise Y/Y

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Alteryx’s second-quarter 2020 non-GAAP earnings of 2 cents per share beat the Zacks Consensus Estimate by 114.3% and jumped 100% year over year.

Revenues increased 17.3% year over year to $96.2 million and surpassed the consensus mark by 2.4%.

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.

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. Alteryx doesn’t anticipate a material improvement in business conditions during 2020.

 

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

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

 

Top-Line Details

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.

The company won new businesses in high-risk verticals like transportation, accommodations, food service and retail in the quarter under review, reflecting solid demand for Alteryx’s solutions and long-term tailwind for analytics space.

Moreover, the dollar-based net expansion rate (annual contract-value based) was 126%, down from 133% achieved in the year-ago quarter.

At the end of the quarter, Alteryx’s annual recurring revenue (“ARR”) was more than $430 million, up 40% year over year.

U.S. revenues increased 14% year over year to $66 million while international revenues were up 25% to $30.2 million. Asia and Middle East exhibited strength during the quarter.

Markedly, 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.

As a part of its social-responsibility initiatives, the company launched Advancing Data & Analytics Potential Together program, which offers free data analytics training to thousands of workers globally impacted by the coronavirus pandemic.

Operating Details

Non-GAAP gross profit increased 18.5% year over year to $88 million. Moreover, gross margin expanded 90 basis points (bps) year over year to 91.4%.

Research & development (R&D), sales & marketing (S&M), and general & administrative (G&A) expenses jumped 42%, 20.2% and 40.8%, respectively.

R&D, S&M and G&A expenses, as a percentage of revenues, soared 420 bps, 150 bps and 400 bps on a year-over-year basis to 24.2%, 60.2% and 24.1%, respectively.

Balance Sheet

As of Jun 30, 2020, cash, cash equivalents, and short-term and long-term investments were worth $974.4 million compared with $991.9 million as of Mar 31, 2020.

Remaining performance obligations were $410 million, up 71.7% year over year. 

Guidance

For third-quarter 2020, revenues are expected between $111 million and $115 million, indicating a 7-10% rise from the year-ago reported figure.

Management stated that 70% of its third-quarter revenues will be recognized from deferred revenues and scheduled multi-year billings. Moreover, roughly 15% is expected from contract renewals and the remainder will be generated from net new business closed in the quarter.

For the third quarter, non-GAAP operating income is expected between $8 million and $12 million.

Non-GAAP earnings are anticipated between 9 cents and 14 cents per share in the third quarter.

Moreover, Alteryx reinstalled full-year 2020 guidance. The company now expects revenues between $460 million and $465 million, indicating a 10-11% rise from the year-ago reported figure.

ARR is expected to be roughly $500 million as of Dec 31, 2020, an increase of more than 30% year over year.

Zacks Rank & Stocks to Consider

Alteryx currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are ANGI Homeservices (ANGI - Free Report) , Agilent (A - Free Report) and Analog Devices (ADI - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANGI Homeservices, Agilent and Analog Devices are set to report their quarterly results on Aug 10, 18 and 19, respectively.

 

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