Alteryx Inc. (NYSE:AYX), a data analytics platform company, reported its second-quarter results on Wednesday with revenue spiking 54% from the year-ago quarter to $46.8 million. The company's non-GAAP loss in the second quarter was $5.6 million (or $0.09 per share), slightly larger than the $5.3 million loss in the year-ago quarter.

Alteryx continued to benefit from rising recurring revenue, saw its gross margins increase, and experienced a significant jump in customer growth.

Alteryx results: The raw numbers

Metric

Q2 2018

Q2 2017

Change (YOY)

Revenue

$46.8 million

$30.3 million

54%

Non-GAAP net income (loss)

($5.6 million)

($5.3 million)

N/A

Adjusted EPS

($0.09)

($0.09)

N/A

Data source: Alteryx.

Stock chart with bars and numbers.

Image source: Getty Images.

What happened with Alteryx this quarter

  • Alteryx finished the second quarter with 3,940 customers, a 40% jump year over year and an increase of more than 7% sequentially.
  • The company's dollar-based net revenue retention rate, which indicates how well the company is keeping customers and earning more sales from them, was an impressive 131%.
  • The company surpassed $200 million in annual recurring revenue.
  • Its non-GAAP gross margin increased in the second quarter to 90%, up from 84% gross margin in the year-ago quarter.
  • The company's non-GAAP operating loss of $4.3 million was an improvement over its $5.5 million operating loss in the second quarter 2017.
  • Alteryx finished the second quarter with cash, cash equivalents, and investments totaling $405.2 million, which was up from $194.1 million at the beginning of the year.

What management had to say

CEO Dean Stoecker highlighted the company's "outstanding" quarter by mentioning its strong sales growth, net revenue retention rate, and recurring revenue.

In a press release, Stoecker said, "Alteryx achieved a key milestone during the second quarter, having crossed $200 million in annual recurring revenue, as we continue to benefit from market tailwinds as companies of all sizes in diverse industries across the globe seek to turn data into insights for better business results."

With strong customer growth and the company achieving more recurring sales from its customers, it's no surprise that Stoecker says his company will continue to grow into a leader in the data platform space. "We believe that Alteryx can become synonymous with analytics by delivering high-value data science and analytics outcomes for our customers each and every day," he said.

Looking ahead

Alteryx's management forecasts third-quarter sales to be in the range of $49 million to $50 million, with a non-GAAP loss per share between $0.04 to $0.06, or around $61.5 million. Operating losses are expected to be between $2.5 million and $3.5 million.

Management said that Alteryx's full-year 2018 sales would be between $191 million and $193 million, which would represent a 47% year-over-year increase if the company reaches the high end of its estimates. Non-GAAP loss per share is expected to be in the range of $0.24 and $0.27, significantly higher than the loss of $0.11 for the full year 2017.

 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Alteryx. The Motley Fool has a disclosure policy.