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Why Alteryx Stock Was Sliding Today

By Jeremy Bowman - Feb 22, 2021 at 12:52PM

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The sudden departure of its Chief Revenue Officer fueled doubts about the cloud stock.

What happened

Things were going from bad to worse today for Alteryx (AYX 0.72%) as shares of the cloud-based data-analytics specialist were pulling back again. This time, news about the new Chief Revenue Officer's sudden resignation sparked the slide.

As of 11:55 a.m. EST, the stock was down 7%, falling alongside a broader sell-off in tech stocks as the Nasdaq was off 1.7%. 

A man scratching his chin while looking at a digital chart

Image source: Getty Images.

So what

In a filing after hours on Friday, Alteryx said that Chief Revenue Officer Dean Darwin had resigned after the company became aware of a social media post that was not "consistent with the company's values."

It also said that Darwin's duties would be assumed by other members of the organization.

The news comes as the company has been busy shuffling its executive team following the hiring of new CEO Mark Anderson last October. Darwin started with the company only weeks ago, on Jan. 4, and at the time, the company said Darwin would lead Alteryx's global go-to-market organization and drive its next phase of growth. Those are important responsibilities, and the decision to divide them among other managers seems questionable, especially as the company is in the midst of a turnaround after revenue growth plunged over the past year.

Darwin appears to have posted something untoward on LinkedIn and has since deleted his profile on that site.

Now what

Losing Darwin in and of itself may not be a significant problem for Alteryx, but it may be difficult for management, especially since Anderson and Darwin had worked together at Palo Alto Networks.

Following a disappointing fourth-quarter earnings report and weak guidance for 2021, Alteryx investors are desperate for some good news for the cloud stock. The latest update on Darwin is only going to fuel doubts about the new management team and the company's strategy at a key crossroads.

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