Alteryx AYX reported fourth-quarter 2019 non-GAAP earnings of 64 cents per share that crushed the Zacks Consensus Estimate by 35 cents and jumped 100% year over year. Revenues surged 75.5% year over year to $156.5 million and surpassed the consensus mark by 19.4%. Quarter Details Alteryx ended the fourth quarter with 6,087 customers, up 30% year over year. The company added 474 net new customers, including 36 of the Global 2000, in the reported quarter. Notable customer additions included Caesars Entertainment, Canadian Pacific Railway, Emerson Electric, Halliburton, Komatsu and Nasdaq. Moreover, the dollar-based net expansion rate (annual contract value based) was 130%, down from 132% achieved in the year-ago quarter.
Alteryx booked approximately $290 million in total contract value, up 81% year over year.
Non-GAAP gross margin was flat year over year at 93.2%. Operating expenses were $105.5 million, up 72.1% year over year. As a percentage of revenues, operating expenses decreased 130 basis points (bps) on a year-over-year basis to 67.4%. Research & development (R&D) and general & administrative (G&A) expenses, as a percentage of revenues, declined 10 bps and 150 bps to 13.4% and 14.9%, respectively. However, sales & marketing (S&M) expenses increased 20 bps year over year to 39.2%. Non-GAAP operating income jumped 93.4% year over year to $51 million. Operating margin expanded 300 bps year over year to 32.6%. Balance Sheet and Cash Flow As of Dec 31, 2020, Alteryx’s cash & cash equivalents and investments balance were $974.9 million. Operating cash flow was $20.7 million, up 43.6% year over year. Remaining performance obligations were $407 million, up 82.4% year over year. Acquisition & Partnership During the reported quarter, Alteryx completed its acquisition of Feature Labs to strengthen its machine learning capabilities and establish an engineering hub on the East Coast of the United States. The company also inked a five-year relationship with PwC U.S. and recognized PwC as a “Global Elite Partner.” Guidance For first-quarter 2020, revenues are expected between $105 million and $108 million, up 38-42% year over year. The Zacks Consensus Estimate for revenues is pegged at $12.70 billion, indicating a decline of 2% from the figure reported in the year-ago quarter. Non-GAAP loss from operations for the first quarter is expected between $6 million and $9 million. Non-GAAP loss is anticipated between 7 cents and 11 cents per share in the first quarter. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, implying a year-over-year increase of 3.9%. For 2020, revenues are expected between $555 million and $565 million, up 33-35% year over year. The Zacks Consensus Estimate for revenues is pegged at $12.70 billion, suggesting a decline of 2%. Non-GAAP income from operations is expected between $71 million and $81 million. Non-GAAP earnings are anticipated between 80 cents and 90 cents per share. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, implying year-over-year growth of 3.9%. Zacks Rank & Other Stocks to Consider Alteryx currently sports a Zacks Rank #1 (Strong Buy). Atlassian ( TEAM Quick Quote TEAM - Free Report) , Splunk SPLK and Sogou SOGO are other similar-ranked stocks in the same industry. You can see . the complete list of today’s Zacks #1 Rank stocks here Long-term earnings growth rate for Atlassian, Splunk and Sogou is pegged at 22.3%, 31.2% and 20%, respectively. Looking for Stocks with Skyrocketing Upside? Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>