Please ensure Javascript is enabled for purposes of website accessibility

Why Alteryx Stock Was Soaring Today

By Jeremy Bowman – Updated Oct 6, 2020 at 11:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A surprise pre-earnings announcement lifted the stock this morning.

What happened

Shares of Alteryx (AYX 4.75%) were surging today after the company announced better-than-expected revenue growth for the third quarter, and named a new CEO in a surprising move. 

As of 9:56 a.m. EDT on Tuesday, the stock was up 27.2%.

A man looking at several different monitors displaying data.

Image source: Getty Images.

So what

Alteryx said it now expects to deliver revenue of $126 million to $128 million when it releases its third-quarter earnings report on Nov. 5, representing 22% to 24% growth. That will be much better than its prior guidance of $111 million to $115 million, or just 7% to 11% growth.

Shares of the provider of data analytics software had tumbled when the company originally offered that guidance in its second-quarter earnings report, falling 35% over a two-day span. So today's gains recouped some of those losses.

Additionally, the company said that Mark Anderson would take over as CEO, effective immediately, replacing its founder, Dean Stoecker, who will remain as chairman of the board and was also named as executive chairman. The CEO transition came as a surprise to investors, but Stoecker is in his mid-60's, so it makes some sense that he is stepping down from the day-to-day role of running the business.

Anderson was previously president of Palo Alto Networks, a cybersecurity technology company, and had been on the Alteryx board for two years, perhaps being groomed to take over the leadership position.

Anderson said: "I am honored and excited to be Alteryx's new CEO. Digital transformation is accelerating globally and Alteryx's product vision and strategic positioning align closely with the market convergence of people, process and data. Building and enabling high performing teams -- especially at Alteryx's stage -- is my professional and personal passion."

Stoecker added, "When I decided to transition from day-to-day operations, it was clear to me that Mark is the ideal candidate to serve as Alteryx's next CEO given his passion for our company and our newly created Analytic Process Automation category, coupled with his experience in scaling organizations."

Now what

It was unclear what drove the better-than-expected performance by Alteryx in the third quarter. Some of the headwinds from the second quarter, including a longer sales cycle for new business, may have dissipated as the economy normalized, and the original guidance was likely on the conservative side as well.

Investors will learn more when the complete earnings report comes out on Nov. 5. Analysts expect earnings per share to slip from $0.24 to $0.12, though that forecast is likely to improve following the strong pre-earnings revenue numbers.

 

Jeremy Bowman owns shares of Alteryx. The Motley Fool owns shares of and recommends Alteryx and Palo Alto Networks. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alteryx Stock Quote
Alteryx
AYX
$59.09 (4.75%) $2.68
Palo Alto Networks, Inc. Stock Quote
Palo Alto Networks, Inc.
PANW
$174.35 (2.75%) $4.66

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.