Posted on Friday, Aug 20th 2021
According to a Markets and Markets report, the global data science platform market is expected to grow at 30% CAGR to reach $140.9 billion by 2024 from $37.9 billion in 2019. Data science and analytics platform provider Alteryx (NYSE: AYX) recently announced its stellar quarterly results. The company continues to add to its partner portfolio to drive market expansion.
For the second quarter, Alteryx’s revenue grew 25% to $120.1 million ahead of the market’s estimates of $112.8 million. GAAP gross profit was $107.1 million, compared to GAAP gross profit of $86.6 million a year ago. Non GAAP net loss was $5.2 million or $0.08 per diluted share, down from non GAAP net income of $1.7 million or $0.02 per diluted share a year ago. The market was looking for a loss per share of $0.25.
Alteryx added 191 net new customers and ended the quarter with 7,405 customers, up 10%. It achieved a dollar-based net expansion rate of 120%. ARR for the quarter grew 27% to $547.6 million.
For the third quarter, Alteryx expects revenues of $121-$124 million with an adjusted net loss of $0.21-$0.18 per share. For the full year 2021, it expects revenue of $520-$530 million with a net loss of $0.26-$0.12 per share. The market was looking for revenues of $113.01 million for the quarter with a net loss of $0.25 per share and revenues of $527.12 million with a net loss of $0.17 for the year.
Alteryx’s Growing Partnerships
Recently, Alteryx announced the expansion of its partnership with PwC. The extension will allow it to combine its analytics and data science automation with PwC’s services and technologies, accelerate transformation in organizations throughout Asia-Pacific, Europe, the Middle East, and Africa regions. Alteryx had entered into a partnership with PwC in February 2020. The recent expansion will add additional geographies to this collaboration, and help drive global growth, innovation, and business outcome.
It also announced a partnership with Blue Prism. The partnership will allow customers to automate data-driven processes at scale, providing them with critical data and the insights necessary for creating smart, quick decisions. The partnership also announced a bi-directional integration between platforms. Blue Prism developers now have the ability to include an Alteryx analytic process into their RPA driven processes with the Alteryx VBO for Blue Prism Process Studio, adding machine learning intelligence to the actions.
The market is abuzz with the recent news that
Alteryx may have a potential suitor. In the past, I have talked about how I think SAP could be a good buyer for Alteryx. Alteryx provides native integration for SAP Sybase databases and SAP HANA and enables analysts to confidently apply analytics tools to current and future SAP database investments and even accelerate migration initiatives. Its bi-directional integration enables SAP database, SAP’s Sybase Adaptive Server Enterprise, and SAP Sybase SQL Anywhere 10 to access both sides of the workflow, source, or target. SAP will also benefit from Alteryx’s consumerized approach to HANA to drive HANA adoption.
Some also believe that a PE firm may be interested in buying Alteryx. Over the recent past, Thoma Bravo has made big moves in the market. It
recently bought Proofpoint, Stamps.com, and Medallia. Of late, the PE firms have been making big acquisitions within the SaaS space. Vista Equity Partners, for instance, is another big buyer. It completed the acquisition of Gainsight for $1.1 billion, Pipedrive for $1.5 billion, and, most r ecently Pluralsight for $3.5 billion.
Alteryx’s stock is currently trading at $70 with a market cap of $4.7 billion. It hit a 52-week high of $154.83 in October last year and a 52-week low of $66.66 earlier this month.
Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article. I am an investor in this company. This segment is a part in the series : Cloud Stocks . Smartsheet Acquiring Bootstrapped Startups to Drive Growth . Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups . Netflix Price Hike Ruffles Competition . How Will Carbon Black Differentiate? . 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