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Alteryx (AYX) to Report Q3 Earnings: What's in the Cards?

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Alteryx (AYX - Free Report) is set to report third-quarter 2020 results on Nov 5.

For the quarter, the company expects revenues between $126 million and $128 million. The Zacks Consensus Estimate for revenues currently stands at $119.9 million, which indicates growth of 15.9% from the year-ago quarter’s reported figure.

Its non-GAAP earnings are anticipated between 9 cents and 14 cents per share. Moreover, the consensus mark for earnings stands at 12 cents per share, unchanged over the past 30 days, suggesting a decline of 50% from the figure reported in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one, the average surprise being 102.5%.
 

Alteryx, Inc. Price and EPS Surprise

Alteryx, Inc. Price and EPS Surprise

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

 

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

Factors to Consider

Alteryx’s third-quarter results are expected to reflect the impact of an expanding clientele, driven by increasing demand for a self-service data science and analytics platform.

The company observed notable changes such as higher levels of scrutiny on spending across all sectors, which is likely to have resulted in longer sales cycles, smaller deal sizes and less favorable linearity in the quarter.

Additionally, given the coronavirus-induced macro-environmental uncertainties, Alteryx is expected to have experienced an increased churn rate in the to-be-reported quarter.

However, despite disruptions caused by the coronavirus outbreak, improved awareness of the company’s brands and solutions, particularly among Global 2000 clients, is expected to have aided customer-base expansion in the to-be-reported quarter.

Notably, Alteryx ended the second quarter of 2020 with 6,714 customers, up 27.2% year over year. The company added 271 net new customers, including 6 of the Global 2000, in the reported quarter

Moreover, Alteryx continued to strengthen its product portfolio with the launch of new solutions.

Notably, in the second quarter, the company 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.

Additionally, the company introduced the new Alteryx Multithreaded Processing engine or AMP, allowing customers to execute workflow simultaneously, resulting in processing efficiency on larger data sets with complex analytical processes. The new solution is expected to have attracted new customers, thereby driving the top line in the to-be-reported quarter.

Moreover, the company’s Advancing Data Science and Analytics Potential Together (ADAPT) program added more than 10,700 individuals across 135 countries. This is likely to have driven customer engagement and expanded its global footprint.

Further, addition of innovative features to its solutions and ease of usage are expected to have strengthened demand for its solutions.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Alteryx has an Earnings ESP of +3.09% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle:

Paycom Software (PAYC - Free Report) has an Earnings ESP of +3.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cambium Networks (CMBM - Free Report) has an Earnings ESP of +17.21% and a Zacks Rank #2.

Marchex (MCHX - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #2.

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