Alteryx, a fast-growing big data company, exceeds expectations and its stock soars

big data company Alteryx Inc. is flying high today after posting strong second quarter results and offering guidance for the next quarter and full year that exceeded expectations.

The company reported a loss before certain costs such as stock-based compensation of 46 cents per share on revenue of $108.6 million, up 50% from the same period last year. Wall Street was looking for a bigger loss of 60 cents per share on lower sales of just $161 million.

Alteryx’s net loss widened to $106.8 million in the quarter from $43.4 million in the same period a year earlier. Following the report, Alteryx stock jumped more than 12% in extended trading, adding a gain of just over 4% in the regular session.

Alteryx chief executive Mark Anderson (pictured) also hailed the company’s “outstanding” annual growth in recurring revenue. It ended the quarter with $726.8 million in ARR, up 33% year-over-year. “We see business leaders increasingly prioritizing the democratization of data as part of their digital transformation journeys,” Anderson said. “Alteryx is uniquely positioned to enable enterprises to automate workflows, hone the workforce, and embrace advanced data analytics.”

Alteryx sells Extract, Transform, and Load, or ETL, tools that are used by companies to prepare data for analysis. The company’s Alteryx Analytics Cloud platform provides integrated connectivity to business intelligence tools such as Experian and Tableau, and offers data cleansing, data mining and geospatial analysis capabilities.

The company’s offering apparently found a receptive audience. Alteryx said it ended the quarter with 8,296 paying customers, up 12% from a year earlier. Additionally, Alteryx is making more money from this customer base, with its net dollar expansion rate reaching 120% by the end of the quarter. The net expansion rate is a measure used to measure the growth of the annual contract value.

As for the third quarter, Alteryx offered an upbeat forecast that contrasts with the cautionary advice of most other tech companies these days. The company said it expects revenue of between $191 million and $194 million in the third quarter. That would represent revenue growth of between 55% and 57%, and is well ahead of Wall Street’s forecast of $173.6 million in sales.

Alteryx also adjusted its fiscal 2023 guidance, saying it now expects full-year sales of $770 million to $780 million, down from a previous range of $750 million to $760 million. Wall Street had forecast annual revenue of just $734 million.

Photo: Alteryx

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