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Alteryx's Third Quarter 2018: Sales Jump and Customer Growth Continues to Expand

By Chris Neiger – Updated Nov 8, 2018 at 1:56PM

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The company is adding customers at a healthy clip and building out strong international sales.

Data analytics platform company Alteryx Inc. (AYX -2.51%) reported its third-quarter results on Wednesday, with revenue spiking 59% from the year-ago quarter to $54.2 million. The company's non-GAAP net income in the third quarter was $5.3 million, or $0.08 per share, up from $1.2 million in the third quarter 2017.

Alteryx moved further toward GAAP profitability in the quarter, with a net income loss of just $0.2 million, up from a loss of $3.3 million in the year-ago quarter.

Man pointing to a tablet with bar charts popping up above it.

Image source: Getty Images.

Alteryx results: The raw numbers

Metric Q3 2018 Q3 2017 Change (YOY)
Revenue $54.2 million $34.2 million 59%
GAAP net income ($0.2 million) ($3.3 million) N/A
GAAP earnings per share ($0.00) ($0.06) N/A

Data source: Alteryx. YOY = year-over-year.

What happened with Alteryx this quarter?

  • Alteryx ended the third quarter with 4,315 customers, a 41% increase from the year-ago quarter.
  • The company increased its net customers by 375 in the quarter and added 7-Eleven, Cowen and Company, J.Crew, Michael Kors, and Workday in the quarter.
  • International revenue grew by 99% to $15.7 million and accounted for 29% of the company's total revenue in the quarter.
  • The company achieved a dollar-based net revenue retention rate of 131% for the third quarter, which marks eight consecutive quarters above 130%.
  • Operating profit was $4.6 million in the quarter, which was a significant jump from $885,000 in the in the year-ago quarter.
  • Alteryx ended the quarter with cash, cash equivalents, and investments of $414 million, up from $194 million at the end of 2017.
  • The company's cash flow from operations was $5.3 million in the quarter.

What management had to say

Management spent some time on the earnings conference call highlighting the expansion of Alteryx's customer base and noted that its international customers are growing along with domestic ones.

Dean Stoecker, Alteryx's CEO, said on the call, "We also continue to see strong demand outside of North America, as evidenced by a near doubling of our international revenues in Q3 and did business in more than 70 countries."

Alteryx's management also noted that while gross margins in the quarter improved to 90.5%, they could soon slide as the company invests in its support and professional services.

Looking ahead

Alteryx's management expects revenue in the fourth quarter to be in the range of $56.5 million to $57.5 million, which would be a year-over-year increase of between 46% and 49%. The company forecasts non-GAAP earnings loss per share to be in the range of $0.02 to $0.03 in the quarter.

Management also raised its full-year revenue guidance and now expects GAAP revenue will be in the range of $200.5 million to $201.5 million, which represents year-over-year growth of about 52% to 53%. While sales are expected to spike, Alteryx's earnings will still be in the red with an expected loss per share between $0.03 and $0.05.

Stoecker said at the end of the call that, "As we head into Q4 and 2019, we remain focused on building a business that we believe will have continued strong revenue growth and long-term sustainable profitability."

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Workday. The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool recommends Alteryx. The Motley Fool has a disclosure policy.

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