What happened
Shares of Alteryx (AYX) raced out of the gate on Friday, spiking as much as 14.3%. As of 2:54 p.m. ET, the stock was still up 5.8%.
The catalyst that sent shares of the data analytics specialist higher was the company's quarterly financial results, which were far better than investors had hoped.
So what
For the fourth quarter, Alteryx grew revenue to $301.1 million, up 73% year over year. This resulted in adjusted earnings per share (EPS) of $0.84.
To give those results context, analysts' consensus estimates were calling for revenue of $279.3 million and EPS of $0.51, so the company blew past expectations, exceeding them by a wide margin.
Other metrics pointed to the strength of Alteryx's business. The company closed out the quarter with annual recurring revenue (ARR) of $833.5 million, up 31% year over year, while its dollar-based net expansion rate clocked in at 121%.
On the conference call, CEO Mark Anderson said the company "finished 2022 with strong growth momentum and an increasing focus on profitability." He also noted Alteryx saw "robust demand for data analytics," as the company sold more enterprise license agreements (ELA) in the fourth quarter than in the rest of the year combined.
Now what
There were other reasons to be bullish. For the first quarter, Alteryx is forecasting sales of $200 million at the midpoint of its guidance, up 27% year over year, and surpassing analysts' expectations of $198 million. The company also projects it will swing to an adjusted profit for the full year.
Even after today's rally, Alteryx stock is currently selling for less than 4 times next year's sales, well below its historical average.
Given the company's blockbuster results, solid outlook, and bargain-basement price, Alteryx sure looks like a buy.
