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Factors to Consider Ahead of Alteryx's (AYX) Q1 Earnings

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Alteryx is set to release first-quarter 2019 results on May 1.

In the last reported quarter, the company reported loss of a penny (per ASC 605), narrower than the Zacks Consensus Estimate of a loss of 2 cents. However, per ASC 606, Alteryx reported earnings of 37 cents per share.

Revenues of $61 million (as per ASC 605) also beat the consensus mark of $57 million. However, per ASC 606, Alteryx reported revenues of $89.2 million that surged 131.1% on a year-over-year basis.

The company added 381 net new customers in fourth-quarter 2018, bringing the total to 4,696, including 534 from the Global 2000 list.

Alteryx expects revenues between $69 million and $72 million (per ASC 606) for first-quarter 2019. The Zacks Consensus Estimate for revenues is $71.1 million, indicating growth of 66.1% from the figure reported in the year-ago quarter.
 

Alteryx, Inc. Price and EPS Surprise

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

 

Further, net loss is expected between 8 cents and 13 cents per share. The Zacks Consensus Estimate currently stands at a loss of 8 cents, unchanged over the past seven days.

Let’s see how things are shaping up for this announcement.

Factors to Watch

Alteryx is gaining from an expanding clientele, driven by increasing demand for a self-service data science and analytics platform. In the last reported quarter, dollar-based net revenue retention was 131%. Moreover, dollar-based net expansion rate was 132%, up 100 basis points (bps) sequentially.

The Promote and Connect solutions are seeing good traction and expected to drive growth. Moreover, the rapid adoption of predictive analytics and AI modelling is expected to drive Alteryx’s top line in the to-be-reported quarter.

However, the company’s investments in strengthening sales organization and developer talent base are anticipated to negatively impact profitability in the first quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Alteryx has a Zacks Rank #1 but an Earnings ESP of -20.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Upland Software (UPLD - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.


Ceridian HCM Holding has an Earnings ESP of +31.65% and a Zacks Rank #1.

FUJIFILM (FUJIY - Free Report) has an Earnings ESP of +20.55% and a Zacks Rank #1.

 

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