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Why Alteryx Stock Plummeted Today

What happened

Shares of Alteryx (NYSE: AYX) have plummeted today, down by 18% as of 1:15 p.m. EST, after the company reported third-quarter earnings. The results topped Wall Street's expectations but guidance for the fourth quarter was lacking.

So what

Revenue in the third quarter increased 25% to $129.7 million, which was ahead of the consensus estimate of $119.7 million. That translated into adjusted net income of $27.1 million, or $0.39 per share, compared to the $0.14 per share in adjusted profits that analysts were modeling for. The analytics technology company ended the quarter with nearly 7,000 customers and reported a dollar-based net expansion rate of 124%. Annual recurring revenue (ARR) is now $449.5 million.

Image source: Alteryx.

"Alteryx has a unique combination of passionate and engaged customers, differentiated technology, a high growth market and strong talent," CEO Mark Anderson said in a statement. "The analytics market that we play in is extremely dynamic, and we need to continually evolve to meet the ever-increasing needs of our customers as they seek to leverage their data assets and run smarter."

Now what

Alteryx's guidance for the fourth quarter calls for revenue in the range of $146 million to $150 million, which is light compared to the consensus estimate of $151.5 million in sales next quarter. That should result in adjusted earnings per share of $0.27 to $0.31, while analysts are expecting $0.41 per share in adjusted profits. The forecast should bring full-year 2020 revenue should be $481 million to $485 million, and Alteryx expects to finish the year with ARR of $500 million.

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Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alteryx. The Motley Fool has a disclosure policy.


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