A stock that has been holding up well during the recent market
downturn is Alteryx (AYX 61.60, +4.27, +7.45%).
Alteryx is a provider of self-service data analytics software. Its
subscription-based software platform enables companies to prepare, blend, and
analyze data from a multitude of sources and more quickly benefit from
data-driven decisions. AYX made its IPO debut in March 2017. The deal priced at $14, opened at $17.25 and the company has not looked back.
Its platform allows a single user to access various data sources, clean and prepare data, and perform a variety of analyses. This is done through visual workflows and an intuitive drag-and-drop interface that can eliminate the need to write code. Demand for its analytics platform for the enterprise has increased, driven by its land and expand strategy (free trials that turn into paying accounts as word of mouth spreads in a company.)
AYX is aiming to make its platform as ubiquitous in the workplace as spreadsheets are today. Traditional data analysis tools are slow and difficult to use. AYX brings the fragmented analytic process into one simple experience, combining tasks that were previously distributed among multiple tools and parties.
AYX has been teetering around profitability and in Q3 it reported a surprise profit when a loss was expected. Revenue for Q3 grew a robust 59% yr/yr to $54.2 mln. In addition to good revenue growth in the US, AYX has done a good job of building its international business as that segment nearly doubled in sales in Q3 (+99% to $15.7 mln) and accounted for 29% of total revs. AYX also added 375 net new customers in Q3, up 62% yr/yr.
AYX says its market continues to open up around the globe for self-service data science and analytics. AYX is executing well in all regions. The company has been investing heavily this last year in quite a few markets from Australia to EMEA.
Looking ahead, Alteryx is expected to report Q4 results around the February 20-21 timeframe. The company has guided to a non-GAAP loss of $(0.03)-(0.02), but as we said, they reported a surprise profit in Q3, so maybe they will do it again. Revenue in Q4 is expected to be in the range of $56.5-57.5 mln.
Despite the recent market downturn, AYX has not slowed too much. However, investors would like to see AYX achieve consistent profitability.
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