Alteryx Announces First Quarter 2021 Financial Results
First Quarter Revenue of $119 million, up 9% Year-Over-Year
Annual Recurring Revenue of $513 million, up 27% Year-Over-Year
IRVINE, Calif. – May 4, 2021 – Alteryx, Inc. (NYSE: AYX), a leader in analytic process automation (APATM) that automates analytics, data science and processes to accelerate business outcomes, today announced financial results for its first quarter ended March 31, 2021.
“Alteryx is off to a solid start to the year with first quarter results ahead of expectations as we see our transformation efforts taking hold,” said Mark Anderson, CEO of Alteryx, Inc. “We are encouraged by industry tailwinds and are increasing investments in people and infrastructure to deliver relentless value for our customers."
First Quarter 2021 Financial Highlights
•Revenue: Revenue for the first quarter of 2021 was $118.8 million, an increase of 9%, compared to revenue of $108.8 million in the first quarter of 2020.
•Gross Profit: GAAP gross profit for the first quarter of 2021 was $107.9 million, or a GAAP gross margin of 91%, compared to GAAP gross profit of $95.8 million, or a GAAP gross margin of 88%, in the first quarter of 2020. Non-GAAP gross profit for the first quarter of 2021 was $110.1 million, or a non-GAAP gross margin of 93%, compared to non-GAAP gross profit of $99.4 million, or a non-GAAP gross margin of 91%, in the first quarter of 2020.
•Loss from Operations: GAAP loss from operations for the first quarter of 2021 was $(28.8) million, compared to GAAP loss from operations of $(20.1) million for the first quarter of 2020. Non-GAAP loss from operations for the first quarter of 2021 was $(3.2) million, compared to non-GAAP loss from operations of $(3.2) million for the first quarter of 2020.
•Net Loss: GAAP net loss attributable to common stockholders for the first quarter of 2021 was $(40.7) million, compared to GAAP net loss attributable to common stockholders of $(15.5) million for the first quarter of 2020. GAAP net loss per diluted share for the first quarter of 2021 was $(0.61), based on 66.9 million GAAP weighted-average diluted shares outstanding, compared to GAAP net loss per diluted share of $(0.24), based on 65.6 million GAAP weighted-average diluted shares outstanding for the first quarter of 2020.
Non-GAAP net loss and non-GAAP net loss per diluted share for the first quarter of 2021 were $(5.5) million and $(0.08), respectively, compared to non-GAAP net loss of $(6.5) million and non-GAAP net loss per diluted share of $(0.10) for the first quarter of 2020. Non-GAAP net loss per diluted share for the first quarter of 2021 was based on 66.9 million non-GAAP weighted-average diluted shares outstanding, compared to 65.6 million non-GAAP weighted-average diluted shares outstanding for the first quarter of 2020.
•Balance Sheet and Cash Flow: Cash, cash equivalents, and short-term and long-term investments as of each of March 31, 2021 and December 31, 2020 were $1.0 billion. Cash provided by operating activities for the first three months of 2021 was $26.0 million, compared to cash provided by operating activities of $20.0 million for the first three months of 2020.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Operating Measures.”
First Quarter 2021 and Recent Business Highlights
•Ended the first quarter of 2021 with 7,214 customers, a 12% increase from the first quarter of 2020. Added 131 net new customers in the first quarter of 2021.
•Achieved a dollar-based net expansion rate (annual contract value based) of 120% for the first quarter of 2021.
•Ended the quarter with $512.7 million in annual recurring revenue (ARR), an increase of 27% year-over-year.
•Announced Virtual Global Inspire 2021 from May 18 - May 21, 2021.
•Named one of the ten most innovative companies in data science by Fast Company.
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•Appointed Anjali Joshi to the Board of Directors.
Financial Outlook
As of May 4, 2021, guidance for the second quarter of 2021 and full year 2021 is as follows:
•Second Quarter 2021 Guidance:
◦Revenue is expected to be in the range of $111.0 million to $114.0 million.
◦Non-GAAP loss from operations is expected to be in the range of $(22.0) million to $(19.0) million.
◦Non-GAAP net loss per share is expected to be in the range of $(0.27) to $(0.24) based on approximately 68.0 million non-GAAP weighted-average basic shares outstanding.
•Full Year 2021 Guidance:
◦Revenue is expected to be in the range of $565.0 million to $575.0 million.
◦ARR is expected to be approximately $635.0 million as of December 31, 2021.
◦Non-GAAP income (loss) from operations is expected to be in the range of $(5.0) million to $5.0 million.
◦Non-GAAP net income (loss) per share is expected to be in the range of $(0.07) to $0.07 based on approximately 68.5 million and 72.0 million non-GAAP weighted-average diluted shares outstanding, respectively, and an effective tax rate of 20%.
The financial outlook above for non-GAAP income (loss) from operations and non-GAAP net income (loss) per share excludes estimates for stock-based compensation expense, acquisition-related adjustments, and amortization of debt discount and issuance costs. A reconciliation of the non-GAAP financial guidance measures to corresponding GAAP measures is not available on a forward-looking basis primarily as a result of the uncertainty regarding, and the potential variability of, stock-based compensation expense, acquisition-related adjustments, and amortization of debt discount and issuance costs. In particular, stock-based compensation expense is impacted by our future hiring and retention needs, as well as the future fair market value of our Class A common stock, all of which is not within our control, is difficult to predict, and is subject to constant change. The actual amount of these expenses during 2021 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of the non-GAAP financial guidance measures to the corresponding GAAP measures is not available without unreasonable effort.
Quarterly Conference Call
Alteryx will host a conference call today at 5:00 p.m. Eastern Time to discuss the company’s financial results and financial guidance. To access this call, dial 877-407-9716 (domestic) or 201-493-6779 (international). A live webcast of this conference call will be available on the “Investors” page of the company’s website at https://investor.alteryx.com.
Following the conference call, a telephone replay will be available through May 11, 2021, at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13718364. An archived webcast of this conference call will also be available on the “Investors” page of the company’s website at https://investor.alteryx.com.
Non-GAAP Financial Measures and Operating Measures
Non-GAAP Financial Measures. To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, and non-GAAP weighted-average diluted shares outstanding. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.
We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. We exclude the following items from one or more of our non-GAAP financial measures:
Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.
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Acquisition-related adjustments. We exclude amortization and impairment of intangible assets and changes in fair value of contingent consideration which are non-cash and related to business combinations, from certain of our non-GAAP financial measures. We exclude such expenses as they are related to a business combination and have no direct correlation to the operation of our business.
Convertible senior notes adjustments. We exclude the portion of amortization of debt discount and issuance costs that relate to the equity component of our convertible notes, which are non-cash, from certain of our non-GAAP financial measures. We exclude such expenses as they are non-cash and have no direct correlation to the operation of our business.
Income tax adjustments. We utilize a fixed annual projected long-term non-GAAP tax rate in order to provide better consistency across reporting periods by eliminating the effects of items such as changes in the tax valuation allowance, excess tax benefits associated with stock options, and tax effects of acquisition-related costs, since each of these can vary in size and frequency. When projecting this rate, we exclude the direct impact of the following non-cash items: stock-based compensation expenses, amortization and impairment of purchased intangibles, and the amortization of debt discount and issuance costs. The projected rate also assumes no new acquisitions, and considers other factors including our expected tax structure, our tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. We used a projected non-GAAP tax rate of 20% for both 2021 and 2020. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix including due to acquisition activity, or other changes to our strategy or business operations. We will re-evaluate our long-term rate as appropriate.
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, we exclude stock-based compensation expense, amortization of intangible assets, and amortization of debt discount and issuance costs which are recurring and will be reflected in our financial results for the foreseeable future. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.
Annual Recurring Revenue (ARR). Annual recurring revenue, or ARR, represents the total annual contract value for active customer subscription contracts as of the measurement date. We also use ARR as one of our operating measures to assess the health and trajectory of our business. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be a substitute for, or combined with, any of these items.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our guidance for the second quarter and full year 2021, our ability to assist our customers with their digital transformation efforts, our ability to scale and innovate on our product and operations, our ability to execute our long-term growth strategy and transformation efforts, our ability to capitalize on industry trends, our non-GAAP tax rate for 2021, and other future events. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including, but not limited to: risks and uncertainties associated with the COVID-19 pandemic; our ability to manage our growth and the investments made to grow our business effectively; our history of losses; our ability to retain and expand our talent base, particularly our sales force and software engineers, and increase their productivity; our dependence on our software platform for substantially all of our revenue; our ability to attract new customers and retain and expand sales to existing customers; our ability to develop and release product and service enhancements and new products and services to respond to rapid technological change in a timely and cost-effective manner; intense and increasing competition in our market; the rate of growth in the market for analytics products and services; our ability to establish and maintain successful relationships with our channel partners; our dependence on technology and data licensed to us by third parties; risks associated with our international operations; our ability to develop, maintain, and enhance our brand and reputation cost-effectively; litigation and related costs; security breaches; and other general market, political, economic, and business conditions. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, including those related to the impact of the COVID-19 pandemic on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of the impact of the COVID-19 pandemic on our customers’ purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by the COVID-19 pandemic.
Additional risks and uncertainties that could affect our financial results are included under the caption “Risk Factors” in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2020, which are available on the “Investors” page of our website at https://investor.alteryx.com and on the SEC website at http://www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events.
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About Alteryx, Inc.
As a leader in analytic process automation (APATM), Alteryx unifies analytics, data science and business process automation in one, end-to-end platform to accelerate digital transformation. Organizations of all sizes, all over the world, rely on the Alteryx Analytic Process Automation Platform to deliver high-impact business outcomes and the rapid upskilling of their modern workforce. For more information visit www.alteryx.com.
Alteryx is a registered trademark of Alteryx, Inc. All other product and brand names may be trademarks or registered trademarks of their respective owners.
Media Contact
Alteryx, Inc.
Rachel Shatz
rshatz@alteryx.com
Investor Contacts
Alteryx, Inc.
Elena Carr
ir@alteryx.com
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Alteryx, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
2021
2020
Revenue:
Subscription-based software license
$
43,358
$
50,744
PCS and services
75,401
58,087
Total revenue
118,759
108,831
Cost of revenue:
Subscription-based software license
1,249
1,981
PCS and services
9,592
11,066
Total cost of revenue
10,841
13,047
Gross profit
107,918
95,784
Operating expenses:
Research and development
31,322
26,181
Sales and marketing
71,907
65,165
General and administrative
33,500
24,543
Total operating expenses
136,729
115,889
Loss from operations
(28,811)
(20,105)
Interest expense
(9,598)
(9,303)
Other expense, net
(1,254)
(2,462)
Loss before provision for (benefit of) income taxes
(39,663)
(31,870)
Provision for (benefit of) income taxes
993
(16,397)
Net loss
$
(40,656)
$
(15,473)
Net loss per share attributable to common stockholders, basic
$
(0.61)
$
(0.24)
Net loss per share attributable to common stockholders, diluted
$
(0.61)
$
(0.24)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic
66,932
65,569
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted
66,932
65,569
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Alteryx, Inc.
Stock-Based Compensation Expense
(in thousands)
(unaudited)
Three Months Ended March 31,
2021
2020
Cost of revenue
$
1,108
$
436
Research and development
6,325
3,627
Sales and marketing
7,045
5,149
General and administrative
9,961
4,452
Total
$
24,439
$
13,664
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Alteryx, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
253,760
$
171,891
Short-term investments
585,737
584,445
Accounts receivable, net
60,502
136,985
Prepaid expenses and other current assets
87,725
79,144
Total current assets
987,724
972,465
Property and equipment, net
43,914
40,645
Operating lease right-of-use assets
61,988
62,508
Long-term investments
192,330
265,800
Goodwill
37,040
37,070
Intangible assets, net
15,046
16,191
Other assets
77,705
70,616
Total assets
$
1,415,747
$
1,465,295
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
5,950
$
5,340
Accrued payroll and payroll related liabilities
32,519
46,569
Accrued expenses and other current liabilities
31,642
34,987
Deferred revenue
95,260
108,664
Convertible senior notes, net
73,762
72,619
Total current liabilities
239,133
268,179
Convertible senior notes, net
664,350
657,501
Deferred revenue
3,354
3,806
Operating lease liabilities
52,277
53,860
Other liabilities
5,147
5,158
Total liabilities
964,261
988,504
Stockholders’ equity:
Common stock
7
7
Additional paid-in capital
505,636
489,025
Accumulated deficit
(51,404)
(10,748)
Accumulated other comprehensive loss
(2,753)
(1,493)
Total stockholders’ equity
451,486
476,791
Total liabilities and stockholders’ equity
$
1,415,747
$
1,465,295
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Alteryx, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended March 31,
2021
2020
Cash flows from operating activities:
Net loss
$
(40,656)
$
(15,473)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
3,683
2,760
Non-cash operating lease cost
3,022
1,757
Stock-based compensation
24,439
13,664
Amortization (accretion) of discounts and premiums on investments, net
1,324
(606)
Amortization of debt discount and issuance costs
7,992
7,675
Deferred income taxes
433
(16,628)
Other non-cash operating activities, net
153
7,509
Changes in operating assets and liabilities:
Accounts receivable
76,680
74,901
Deferred commissions
451
461
Prepaid expenses and other current assets and other assets
(16,253)
(20,371)
Accounts payable
761
4,285
Accrued payroll and payroll related liabilities
(13,924)
(29,690)
Accrued expenses, other current liabilities, operating lease liabilities, and other liabilities
(8,271)
(4,919)
Deferred revenue
(13,866)
(5,350)
Net cash provided by operating activities
25,968
19,975
Cash flows from investing activities:
Purchases of property and equipment
(5,643)
(4,976)
Purchases of investments
(144,701)
(313,611)
Sales and maturities of investments
214,955
116,691
Net cash provided by (used in) investing activities
64,611
(201,896)
Cash flows from financing activities:
Proceeds from exercise of stock options and taxes withheld
5,243
11,600
Minimum tax withholding paid on behalf of employees for restricted stock units
(13,071)
(9,945)
Other financing activity
—
(433)
Net cash provided by (used in) financing activities
(7,828)
1,222
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(207)
(1,228)
Net increase (decrease) in cash, cash equivalents and restricted cash
82,544
(181,927)
Cash, cash equivalents and restricted cash—beginning of period
173,665
411,424
Cash, cash equivalents and restricted cash—end of period
$
256,209
$
229,497
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Alteryx, Inc.
Reconciliation of GAAP Measures to Non-GAAP Measures
(in thousands, except percentages and per share amounts)
(unaudited)
Three Months Ended March 31,
2021
2020
Reconciliation of non-GAAP gross profit:
GAAP gross profit
$
107,918
$
95,784
GAAP gross margin
91
%
88
%
Add back:
Stock-based compensation expense
1,108
436
Amortization of intangible assets
1,082
1,118
Impairment of intangible assets
—
2,025
Non-GAAP gross profit
$
110,108
$
99,363
Non-GAAP gross margin
93
%
91
%
Reconciliation of non-GAAP loss from operations:
GAAP loss from operations
$
(28,811)
$
(20,105)
GAAP operating margin
(24)
%
(18)
%
Add back:
Stock-based compensation expense
24,439
13,664
Amortization of intangible assets
1,140
1,168
Impairment of intangible assets
—
2,025
Non-GAAP loss from operations
$
(3,232)
$
(3,248)
Non-GAAP operating margin
(3)
%
(3)
%
Reconciliation of non-GAAP net loss:
GAAP net loss attributable to common stockholders
$
(40,656)
$
(15,473)
Add back:
Stock-based compensation expense
24,439
13,664
Amortization of intangible assets
1,140
1,168
Impairment of intangible assets
—
2,025
Amortization of debt discount and issuance costs
7,235
6,947
Income tax adjustments
2,363
(14,784)
Non-GAAP net loss
$
(5,479)
$
(6,453)
Non-GAAP loss per diluted share:
Non-GAAP net loss
$
(5,479)
$
(6,453)
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted
66,932
65,569
Non-GAAP net loss per diluted share
$
(0.08)
$
(0.10)
Reconciliation of non-GAAP net loss per diluted share:
GAAP net loss per share attributable to common stockholders, diluted
$
(0.61)
$
(0.24)
Add back:
Non-GAAP adjustments to net loss per share
0.53
0.14
Non-GAAP net loss per diluted share
$
(0.08)
$
(0.10)
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Alteryx, Inc.
Other Business Metrics
(unaudited)
Number of Customers. We define a customer at the end of any particular period as an entity with a subscription agreement that runs through the current or future period as of the measurement date. Organizations with free trials have not entered into a subscription agreement and are not considered customers. A single organization with separate subsidiaries, segments, or divisions that use our platform may represent multiple customers, as we treat each entity that is invoiced separately as a single customer. In cases where customers subscribe to our platform through our channel partners, each end customer is counted separately.
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
2020
2020
2020
2020
2021
Customers
6,443
6,714
6,955
7,083
7,214
Dollar-Based Net Expansion Rate. Our dollar-based net expansion rate is a trailing four-quarter average of the annual contract value, or ACV, which is defined as the subscription revenue that we would contractually expect to recognize over the term of the contract divided by the term of the contract, in years, from a cohort of customers in a quarter as compared to the same quarter in the prior year. To calculate our dollar-based net expansion rate, we first identify a cohort of customers, or the Base Customers, in a particular quarter, or the Base Quarter. A customer will not be considered a Base Customer unless such customer has an active subscription on the last day of the Base Quarter. We then divide the ACV in the same quarter of the subsequent year attributable to the Base Customers, or the Comparison Quarter, including Base Customers from which we no longer derive ACV in the Comparison Quarter, by the ACV attributable to those Base Customers in the Base Quarter. Our dollar-based net expansion rate in a particular quarter is then obtained by averaging the result from that particular quarter with the corresponding result from each of the prior three quarters. The dollar-based net expansion rate excludes contract value relating to professional services from that cohort.
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
2020
2020
2020
2020
2021
Dollar-based net expansion rate
128
%
126
%
124
%
122
%
120
%
Annual Recurring Revenue (ARR). ARR represents the annualized recurring value of all active subscription contracts at the end of a reporting period and excludes the value of non-recurring revenue streams, such as professional services. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by twelve (in millions).
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
2020
2020
2020
2020
2021
Annual recurring revenue
$
404.9
$
432.3
$
449.5
$
492.6
$
512.7
Remaining Performance Obligations. Remaining performance obligations represent amounts from contracts with customers allocated to unsatisfied or partially unsatisfied performance obligations that are not yet recorded in revenue in our condensed consolidated statements of operations (in millions).
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
2020
2020
2020
2020
2021
Remaining performance obligations
$
400.4
$
410.0
$
402.7
$
484.3
$
452.6
Contract Assets. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional in our condensed consolidated balance sheets (in millions).
