What happened

Shares of Alteryx (AYX) soared out of the gate on Wednesday and didn't looked back, surging as much as 23.7%. As of 11:30 a.m. ET today, the stock was still up 19.1%.

The catalyst that sent the data science and analytics specialist higher was the company's quarterly financial results, which were far better than investors anticipated.

So what

For the second quarter, Alteryx grew revenue to $180.6 million, up 50% year over year. This resulted in an adjusted loss per share of $0.46.  

To give those numbers context, analysts' consensus estimates were calling for revenue of $161 million and a loss per share of $0.60, so Alteryx exceeded those expectations by a wide margin. 

Other metrics pointed to the strength of Alteryx's business. The technology company closed out the second quarter with annual recurring revenue (ARR) of $726.8 million, up 33% year over year, while its dollar-based net expansion rate clocked in at 120%.

On the conference call, CEO Mark Anderson said the company was experiencing "healthy demand trends as evidenced by a multiyear high for our renewal rates and solid year-over-year growth in pipeline generation." He also said Alteryx closed its two largest deals ever in terms of annual contract value (ACV).

Now what

There were other reasons to be bullish. For the upcoming third quarter, Alteryx is expecting sales growth to accelerate, with revenue in a range of $191 million to $194 million, up 56% at the midpoint, and sailing past investor expectations of $183.4 million. The company is also expecting to pare its losses, edging closer to profitability, so it's easy to see why investors were so excited about its prospects.

Perhaps as important for investors, management raised its full-year outlook. Alteryx is now guiding for revenue in a range of $770 million to $780 million, up roughly 45% at the midpoint, and an increase from its prior guidance range of $730 million to $740 million. 

Even after today's rally, Alteryx is selling for less than six times forward sales, well below its historical average.

Investors like nothing more than a beat and raise, and Alteryx delivered on both counts. Given the company's blockbuster results, robust outlook, and bargain-basement price, the stock is a buy.