What happened
Shares of Alteryx (AYX) were falling today after the data analytics software company gave disappointing guidance for the second quarter in earnings report last night.
As of 10:13 a.m. ET, the stock is down 15.2%.
So what
Alteryx has struggled for the last few years, and the slowdown in the cloud market has only added to the company's challenges.
Revenue growth in the first quarter was solid, rising 26% to $199.1 million, which nearly matched estimates at $200.1 million. Annual recurring revenue (ARR), meanwhile, increased 25% to $857 million, and the company reported a dollar-based net expansion rate of 121%, showing that existing customers increased their spending by 21% over the last four quarters.
On the bottom line, Alteryx reported an adjusted loss per share of $0.19, which was better than its per-share loss of $0.40 in the quarter a year ago and analyst estimates of a loss of $0.26.
The company also said it was laying off 11% of its staff, mostly in the sales and marketing and general and administrative organizations, which will improve operating margins.
Now what
Second-quarter guidance seemed to be the real reason for the stock's slide today, as the company forecast revenue growth of just flat to 2%, reaching between $180 million and $184 million, which was well below the consensus at $205.1 million.
On the bottom line, it expects an adjusted loss per share of $0.65 to $0.69, which was also worse than estimates at a loss of $0.42.
For the full year, the company maintained its top-line guidance, calling for revenue growth of 15% to 16% to between $980 million and $990 million, and raised its adjusted EPS guidance from $0.36–$0.46 to $0.65–$0.75, which seems to reflect the layoffs.
Nonetheless, investors seemed focused on the second quarter, which makes sense since the company has more visibility into the current quarter. If a recession hits, the cloud stock could be forced to lower its full-year guidance.
