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Alteryx (AYX) Partners Snowflake to Integrate Capabilities

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Alteryx (AYX - Free Report) recently announced a partnership with Snowflake (SNOW - Free Report) , a data cloud company that integrates Alteryx analytics automation and data science capabilities with Snowflake's platform.

This integrated offering allows Alteryx to leverage Snowflake's compute, elastic scaling and secure data sharing capabilities to provide customers with automated data pipelining, faster data processing and accelerated analytics outcomes at scale. The financial terms of the deal were not disclosed.

Moreover, the new offering is supported with a 30-day free trial that enables a single, seamless user experience that automates connectivity to Snowflake and executes Alteryx's automated data transformation capabilities within Snowflake.

Alteryx shares rose 8.2% to $124.65 in pre-market trading, following the announcement. Notably, the stock has underperformed the Zacks Internet Software industry in the past year. While Alteryx’s shares have declined 2%, the industry has rallied 93.9%.

One Year Performance

User Growth, Portfolio Expansion Drive Growth

Alteryx is benefiting from an expanding clientele, driven by increasing demand for a self-service data science and analytics platform.

Improved awareness of the company’s brands and solutions, particularly among Global 2000 clients, is expected to aid customer-base expansion in the near term. Notably, as of the end of the third quarter of 2020, Alteryx had 6,955 customers across 90 countries, up 24% year over year. These include 756 or 38% of the Global 2000.

Moreover, the company added 241 net new customers in the reported quarter with a net expansion rate of 124% and an even stronger 135% for the Global 2000. Recently, Ingersoll Rand (IR - Free Report) improved its bottom-line performance by leveraging Alteryx’s platform for root cause analysis and inventory optimization.

Markedly, between 2020 and 2023, direct investments in digital transformation are projected to reach $6.8 trillion, per a Statista report. For 2023 alone, spending on technologies and services that enable digital transformation worldwide is expected to amount to 2.3 trillion U.S. dollars. This creates significant growth opportunities with increasing demand for Alteryx’s self-service data analytics software platform.

However, for fourth-quarter 2020, the company expects GAAP revenues in the range of $146 million to $150 million, indicating year-over-year decline in the range of 4% to 7%. Given the coronavirus-induced macro-environmental uncertainties, Alteryx is expected to experience an increased churn rate in the to-be-reported quarter.

Moreover, the Zacks Consensus Estimate for 2021 earnings per share has moved south by 4 cents to 75 cents over the past 30 days.

Nonetheless, Alteryx continues to strengthen its product portfolio with the launch of new solutions. 

During the quarter, Alteryx partnered with Adobe (ADBE - Free Report) to provide marketers access to new analytics and data science solutions through Adobe Exchange.

This Zacks Rank #4 (Sell) company’s Analytic Process Automation (APA) unifies analytics, data science and business-process automation in one self-service platform, making it easier for marketers to answer any question from Adobe Experience Cloud applications and Adobe Experience Platform.

The company also introduced Alteryx Analytics Hub and Alteryx Intelligence Suite, solutions that extend the functionality of its APA platform.

The addition of innovative features to its solutions and ease of usage are expected to strengthen demand for its solutions in the near term.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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