Upstart and Alteryx Are Leading a Growth-Stock Rebound Late Tuesday

The stock market moved higher on Tuesday, buoyed by some positive news out of Eastern Europe as the threat of armed conflict between Russia and Ukraine became somewhat less imminent. Gains for the Nasdaq Composite (^IXIC 2.16%) were the most pronounced, with smaller but still substantial increases in the Dow Jones Industrial Average (^DJI 0.55%) and S&P 500 (^GSPC 1.22%).

Data source: Yahoo! Finance.

Several stocks saved their best news for after the end of the regular trading session. In after-hours trading, both Upstart Holdings (UPST 2.58%) and Alteryx (AYX) managed to deliver double-digit percentage gains for their shareholders. Let's take a closer look at what the companies said and why investors are so excited about the future prospects for these two growth stocks .

Upstart keeps its growth strong

Shares of Upstart Holdings jumped more than 24% in after-hours trading Tuesday afternoon. The fintech lending platform provider announced fourth-quarter financial results that reassured shareholders that its best days of growth aren't over just yet.

Image source: Getty Images.

Upstart's numbers remained spectacular. Revenue of $305 million soared 252% year over year, on a 240 % rise in fee-related revenue to $287 million. Loan origination volume soared to more than 495,000 loans totaling $4.1 billion in value, with a dramatic rise in conversion rates from 17% in the year-earlier period to 24% in the most recent quarter. Adjusted net income for the quarter came in at $87 million, producing adjusted earnings of $0.89 per share, easily topping expectations.

The story for the full year was similar. Upstart's total 2021 revenue was $849 million, up 264% from 2020. Adjusted earnings amounted to $2.37 per share.

Upstart's outlook was also favorable. The company expects sales of $1.4 billion in 2022, which would represent a 65% rise from 2021 levels. Moreover, Upstart specifically stated it saw its stock price as undervalued, with its board of directors authorizing a $400 million share-repurchase program.

The declines in Upstart's stock have been severe, and this afternoon's rise only claws back a tiny portion of those losses. However, Upstart's fundamental business still looks strong, and it'll be interesting to see if the stock can build up some upward momentum as well.

Alteryx bounces back

Shares of Alteryx were also higher after hours, rising more than 10%. The data analytics specialist didn't enjoy the same strength in key business metrics as Upstart, but investors were nevertheless pleased with what they did see.

Alteryx's numbers were mixed. Revenue climbed 8% in the fourth quarter to $173.8 million. However, adjusted net income of $11.8 million was down by more than 70% year over year, producing earnings of $0.17 per share on an adjusted basis. Investors were comforted by the fact that the company ended the year with $638 million in annual recurring revenue, which was 30% higher than it was 12 months before.

The guidance that Alteryx provided was somewhat more upbeat. The company sees 2022 revenue coming in between $710 million and $720 million, implying that its growth rate will accelerate to 33%. Alteryx is projecting losses even on an adjusted basis, but it hopes to see annual recurring revenue rise to $805 million to $815 million.

The figures from Alteryx show its ongoing transition to a recurring-revenue model, which can create some confusing results during the process. Investors are more hopeful that 2022 will finally put Alteryx on a more sustainable path toward reliable growth that will help the data analytics provider's stock finally start moving back toward its mid-2020 highs.