Alteryx Announces Fourth Quarter and Full Year 2018 Financial Results

Full Year 2018 ASC 606 Revenue of $253.6 Million
Full Year 2018 ASC 605 Revenue of $204.3 Million Increased 55% Year-Over-Year

IRVINE, Calif. – February 27, 2019 Alteryx, Inc. (NYSE: AYX), revolutionizing business through data science and analytics, today announced financial results for its fourth quarter and full year ended December 31, 2018.

“Q4 was a strong finish to an amazing year,” said Dean Stoecker, CEO of Alteryx, Inc. “We saw strength across the globe as enterprises increasingly invested in digital transformation initiatives. As we head into 2019, we remain focused on scaling Alteryx globally and building a foundation for many years of durable growth.”

Alteryx adopted the new revenue recognition accounting standard, Accounting Standards Codification (“ASC”) 606, effective January 1, 2018 on a modified retrospective basis. Financial results for the reporting periods during 2018 are presented in accordance with the new revenue recognition standard. In addition, for purposes of comparability with our historical financial results for 2017, we have disclosed financial information for 2018 under ASC 605, the prior revenue recognition standard. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously reported under ASC 605. This press release includes additional information to reconcile the impact of the adoption of this revenue standard on our financial results for the quarter and year ended December 31, 2018. Additionally, we have posted a presentation on the investor section of our website at https://investor.alteryx.com with details regarding the impact of the ASC 606 adoption on our reported financial results.

Fourth Quarter 2018 Financial Highlights

ASC 606 Financial Summary

  • Revenue: ASC 606 revenue for the fourth quarter of 2018 was $89.2 million.
  • Gross Profit: ASC 606 GAAP gross profit for the fourth quarter of 2018 was $82.4 million, or an ASC 606 GAAP gross margin of 92%. ASC 606 non-GAAP gross profit for the fourth quarter of 2018 was $83.1 million, or an ASC 606 non-GAAP gross margin of 93%.
  • Income from Operations: ASC 606 GAAP income from operations for the fourth quarter of 2018 was $21.1 million. ASC 606 non-GAAP income from operations for the fourth quarter of 2018 was $26.4 million.
  • Net Income: ASC 606 GAAP net income attributable to common stockholders for the fourth quarter of 2018 was $16.5 million. ASC 606 GAAP net income per diluted share attributable to common stockholders for the fourth quarter of 2018 was $0.25, based on 66.1 million GAAP weighted-average diluted shares outstanding.

    ASC 606 non-GAAP net income for the fourth quarter of 2018 was $24.3 million. ASC 606 non-GAAP net income per diluted share for the fourth quarter of 2018 was $0.37, based on 66.1 million non-GAAP weighted-average diluted shares outstanding.
  • Balance Sheet and Cash Flow: As of December 31, 2018, Alteryx had cash, cash equivalents, and short-term and long-term investments of $426.2 million, compared with $194.1 million as of December 31, 2017. The increase in cash is primarily related to the issuance of $230.0 million in aggregate principal amount of our 0.50% Convertible Senior Notes due 2023. Cash provided by operating activities for the fourth quarter of 2018 was $14.4 million compared to cash provided by operating activities of $12.7 million in the same period last year.

ASC 605 Financial Summary

  • Revenue: ASC 605 revenue for the fourth quarter of 2018 was $60.5 million, an increase of 57% on a year-over-year basis compared to ASC 605 revenue of $38.6 million in the fourth quarter of 2017.
  • Gross Profit: ASC 605 GAAP gross profit for the fourth quarter of 2018 was $53.8 million, or an ASC 605 GAAP gross margin of 89%, an increase compared to an ASC 605 GAAP gross profit of $32.3 million, or an ASC 605 GAAP gross margin of 84%, in the fourth quarter of 2017. ASC 605 non-GAAP gross profit for the fourth quarter of 2018 was $54.5 million, or an ASC 605 non-GAAP gross margin of 90%, an increase compared to an ASC 605 non-GAAP gross profit of $32.9 million, or an ASC 605 non-GAAP gross margin of 85%, in the fourth quarter of 2017.
  • Income (Loss) from Operations: ASC 605 GAAP loss from operations for the fourth quarter of 2018 was $(6.3) million, compared to an ASC 605 GAAP loss from operations of $(1.9) million for the fourth quarter of 2017. ASC 605 non-GAAP loss from operations for the fourth quarter of 2018 was $(1.0) million, compared to an ASC 605 non-GAAP income from operations of $1.0 million for the fourth quarter of 2017.
  • Net Loss: ASC 605 GAAP net loss attributable to common stockholders for the fourth quarter of 2018 was $(7.1) million, compared to an ASC 605 GAAP net loss attributable to common stockholders of $(1.5) million for the fourth quarter of 2017. ASC 605 GAAP net loss per share attributable to common stockholders for the fourth quarter of 2018 was $(0.12), based on 61.5 million GAAP weighted-average basic and diluted shares outstanding, compared to a GAAP net loss per share attributable to common stockholders of $(0.03), based on 59.4 million GAAP weighted-average basic and diluted shares outstanding, for the fourth quarter of 2017.

    ASC 605 non-GAAP net loss for the fourth quarter of 2018 was $(0.5) million, compared to an ASC 605 non-GAAP net income of $1.4 million for the fourth quarter of 2017. ASC 605 non-GAAP net loss per basic and diluted share for the fourth quarter of 2018 was $(0.01), based on 61.5 million non-GAAP weighted-average basic and diluted shares outstanding, compared to an ASC 605 non-GAAP net income per diluted share of $0.02, based on 62.7 million non-GAAP weighted-average diluted shares outstanding, for the fourth quarter of 2017.

Full Year 2018 Financial Highlights

ASC 606 Financial Summary

  • Revenue: ASC 606 revenue for full year 2018 was $253.6 million.
  • Gross Profit: ASC 606 GAAP gross profit for full year 2018 was $230.8 million, or an ASC 606 GAAP gross margin of 91%. ASC 606 non-GAAP gross profit for full year 2018 was $233.4 million, or an ASC 606 non-GAAP gross margin of 92%.
  • Income from Operations: ASC 606 GAAP income from operations for full year 2018 was $29.8 million. ASC 606 non-GAAP income from operations for full year 2018 was $49.1 million.
  • Net Income: ASC 606 GAAP net income attributable to common stockholders for full year 2018 was $28.0 million. ASC 606 GAAP net income per diluted share attributable to common stockholders for full year 2018 was $0.43, based on 64.7 million GAAP weighted-average diluted shares outstanding.

    ASC 606 non-GAAP net income for full year 2018 was $53.4 million. ASC 606 non-GAAP net income per diluted share for full year 2018 was $0.82, based on 64.7 million non-GAAP weighted-average diluted shares outstanding.

ASC 605 Financial Summary

  • Revenue: ASC 605 revenue for full year 2018 was $204.3 million, an increase of 55% on a year-over-year basis compared to revenue of $131.6 million for full year 2017.
  • Gross Profit: ASC 605 GAAP gross profit for full year 2018 was $181.5 million, or an ASC 605 GAAP gross margin of 89%, an increase compared to an ASC 605 GAAP gross profit of $109.8 million, or an ASC 605 GAAP gross margin of 83%, for full year 2017. ASC 605 non-GAAP gross profit for full year 2018 was $184.1 million, or an ASC 605 non-GAAP gross margin of 90%, an increase compared to an ASC 605 non-GAAP gross profit of $111.5 million, or an ASC 605 non-GAAP gross margin of 85%, for full year 2017.
  • Loss from Operations: ASC 605 GAAP loss from operations for full year 2018 was $(21.4) million, compared to an ASC 605 GAAP loss from operations of $(18.2) million for full year 2017. ASC 605 non-GAAP loss from operations for full year 2018 was $(1.9) million, an improvement compared to an ASC 605 non-GAAP loss from operations of $(7.2) million for full year 2017.
  • Net Loss: ASC 605 GAAP net loss attributable to common stockholders for full year 2018 was $(17.9) million, compared to an ASC 605 GAAP net loss attributable to common stockholders of $(19.5) million for full year 2017. ASC 605 GAAP net loss per share attributable to common stockholders for full year 2018 was $(0.29), based on 60.8 million weighted-average basic and diluted shares outstanding, compared to an ASC 605 GAAP net loss per share attributable to common stockholders of $(0.37), based on 53.0 million GAAP weighted-average basic and diluted shares outstanding, for full year 2017.

    ASC 605 non-GAAP net loss for full year 2018 was $(1.4) million, compared to an ASC 605 non-GAAP net loss of $(6.4) million for full year 2017. ASC 605 non-GAAP net loss per basic and diluted share for full year 2018 was $(0.02), based on 60.8 million non-GAAP weighted-average basic and diluted shares outstanding, compared to an ASC 605 non-GAAP net loss per basic and diluted share of $(0.11), based on 56.3 million non-GAAP weighted-average basic and diluted shares outstanding, for full year 2017.

A reconciliation of ASC 606 to ASC 605 financial information and GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these non-GAAP measures is also included below under the heading “Non-GAAP Financial Measures and Operating Measures.”

Fourth Quarter 2018 and Recent Business Highlights

  • Ended the fourth quarter of 2018 with 4,696 customers, a 38% increase from the fourth quarter of 2017. Added 381 net new customers in the fourth quarter of 2018 compared to 338 net new customers in the fourth quarter of 2017.
  • Achieved a dollar-based net expansion rate (based on annual contract value) of 132% for the fourth quarter of 2018.
  • Recognized on Deloitte’s Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.
  • Named as the No. 1 fastest-growing midsize public company in Orange County, Calif. by the Orange County Business Journal’s Fastest Growing Public Companies list.
  • Included on InformationWeek’s annual Tech Vendors to Watch: Data and Analytics list, which showcases vendors that are addressing enterprise challenges with products for advanced analytics, machine learning and data governance.

Financial Outlook (ASC 606 basis)

As of February 27, 2019, guidance for the first quarter and full year 2019 is as follows:

  • First Quarter 2019 Guidance:
    • Revenue is expected to be in the range of $69.0 million to $72.0 million, an increase of 37% to 43% year-over-year.
    • Non-GAAP loss from operations is expected to be in the range of $(5.0) million to $(8.0) million.
    • Non-GAAP net loss per share is expected to be in the range of $(0.08) to $(0.13) based on approximately 62.0 million non-GAAP weighted-average basic and diluted shares outstanding.
  • Full Year 2019 Guidance:
    • Revenue is expected to be in the range of $345.0 million to $350.0 million, an increase of 36% to 38% year-over-year.
    • Non-GAAP income from operations is expected to be in the range of $30.0 million to $35.0 million.
    • Non-GAAP net income per share is expected to be in the range of $0.36 to $0.42 based on approximately 67.0 million non-GAAP weighted-average diluted shares outstanding 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, amortization of debt discount, and other non-recurring items. 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, amortization of debt discount, and other non-recurring items. 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 are not within our control, are difficult to predict, and are subject to constant change. The actual amount of these expenses during 2019 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. 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 March 6, 2019, at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13686330. 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 and Operating Measures

To supplement our 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 share, and non-GAAP weighted-average basic and 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.

Acquisition related adjustments. We exclude amortization of intangible assets and changes in fair value of contingent consideration, and related income tax adjustments, which are non-cash, 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.

Accretion of Series A redeemable convertible preferred stock. We exclude accretion relating to our Series A redeemable convertible preferred stock from non-GAAP net loss per share because this is a non-cash item that will not recur in the periods following the three months ended March 31, 2017.

Convertible senior notes adjustments. We exclude the portion of amortization of debt discount and issuance costs, which is non-cash interest expense that relates to the equity component of our convertible notes 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.

Follow-on public offering costs. We exclude the costs relating to our follow-on public offering in September 2017 from certain of our non-GAAP financial measures because the costs do not have a direct correlation to the operation of our business.

Impairment of long-lived assets. We exclude the impairment of long-lived assets from certain of our non-GAAP financial measures, because the expenses are non-cash and do not have a direct correlation to the operation of our business.

We also adjust non-GAAP weighted-average diluted shares outstanding to include the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of each of the respective periods. In periods of GAAP net loss and non-GAAP net income, we adjust non-GAAP weighted-average diluted shares outstanding to include the effect of dilutive shares.

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 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.

In addition, for purposes of comparability with our historical financial results for 2017, we have also disclosed results for 2018 under ASC 605, the prior revenue recognition standard. A reconciliation of ASC 605 and ASC 606 financial information for 2018 has been provided in the tables included in this press release.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our outlook for the first quarter 2019 and full year 2019, our market opportunity, our ability to execute our long-term growth strategy, 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: our history of losses; our ability to manage our growth effectively; our ability to expand our sales force and increase their productivity; our ability to maintain our culture as we grow; our limited operating history under our current business model; the rate of growth in the market for analytics products and services; our dependence on our software platform for substantially all of our revenue; our ability to attract new customers 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; our ability to develop, maintain, and enhance our brand and reputation cost-effectively; 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; the application of complex revenue recognition rules and changes in financial accounting standards or practices; litigation, and related costs; security breaches; and other general market, political, economic, and business conditions.

Additional risks and uncertainties that could affect our financial results are included under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, which is available on the Investor Relations page of our website at https://investor.alteryx.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2018. 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.

About Alteryx, Inc.

Revolutionizing business through data science and analytics, Alteryx offers an end-to-end analytics platform that empowers data analysts and scientists alike to break data barriers, deliver insights, and experience the thrill of getting to the answer faster. Organizations all over the world rely on Alteryx daily to deliver actionable insights. 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.
Emily Singer
[email protected]

 

Investor Contacts
Alteryx, Inc.
Karen Moran, 844-842-1912
VP Investor Relations
[email protected]
or
ICR
Staci Mortenson
Investor Relations
[email protected]

 

Alteryx, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended
December 31,
  Year Ended

December 31,

    2018   2017   2018   2017
Revenue   $ 89,150     $ 38,588     $ 253,570     $ 131,607  
Cost of revenue   6,717     6,258     22,800     21,803  
Gross profit   82,433     32,330     230,770     109,804  
Operating expenses:                
Research and development   11,970     8,399     43,449     29,342  
Sales and marketing   34,731     17,689     109,284     66,420  
General and administrative   14,614     8,126     48,267     32,241  
Total operating expenses   61,315     34,214     201,000     128,003  
Income (loss) from operations   21,118     (1,884)     29,770     (18,199)  
Interest expense   (3,008)         (7,378)      
Other income (expense), net   1,352     72     3,042     (205)  
Income (loss) before provision for (benefit of) income
taxes
  19,462     (1,812)     25,434     (18,404)  
Provision for (benefit of) income taxes   2,921     (273)     (2,586)     (905)  
Net income (loss)   $ 16,541     $ (1,539 )   $ 28,020     $ (17,499 )
Less: Accretion of Series A redeemable convertible
preferred stock
              (1,983)  
Net income (loss) attributable to common stockholders   $ 16,541     $ (1,539)     $ 28,020     $ (19,482)  
Net income (loss) per share attributable to common

stockholders, basic

  $ 0.27     $ (0.03)     $ 0.46     $ (0.37)  
Net income (loss) per share attributable to common

stockholders, diluted

  $ 0.25     $ (0.03 )   $ 0.43     $ (0.37 )
Weighted-average shares used to compute net

income (loss) per share attributable to

common stockholders, basic

  61,454     59,363     60,829     53,006  
Weighted-average shares used to compute net

income (loss) per share attributable to

common stockholders, diluted

  66,079     59,363     64,744  

 

  53,006  
                           

 

Alteryx, Inc.
Stock-Based Compensation Expense
(in thousands)
(unaudited)
         
    Three Months Ended December 31,   Year Ended December 31,
    2018   2017   2018   2017
Cost of revenue   $ 226     $ 117     $ 797     $ 485
Research and development   917     478     3,699     1,635
Sales and marketing   1,742     660     6,153     2,302
General and administrative   1,697     1,177     5,998     4,519
Total   $ 4,582     $ 2,432     $ 16,647     $ 8,941

 

Alteryx, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
 
    As of December 31,
    2018   2017
Assets        
Current assets:        
Cash and cash equivalents   $ 89,974     $ 119,716  
Short-term investments   239,718     54,386  
Accounts receivable, net   94,922     49,797  
Deferred commissions   10,353     11,213  
Prepaid expenses and other current assets   26,846     7,227  
Total current assets   461,813     242,339  
Property and equipment, net   11,729     7,492  
Long-term investments   96,551     19,964  
Goodwill   9,494     8,750  
Intangible assets, net   7,491     7,995  
Long-term deferred commissions   12,038      
Other assets   19,051     4,876  
Total assets   $ 618,167     $ 291,416  
Liabilities and Stockholders’ Equity        
Current liabilities:        
Accounts payable   $ 5,028     $ 522  
Accrued payroll and payroll related liabilities   24,659     11,835  
Accrued expenses and other current liabilities   10,878     8,270  
Deferred revenue   84,015     110,213  
Total current liabilities   124,580     130,840  
Convertible senior notes, net   173,647      
Deferred revenue   2,130     3,545  
Other liabilities   15,992     3,527  
Total liabilities   316,349     137,912  
Stockholders’ equity:        
Preferred stock        
Common stock   6     5  
Additional paid-in capital   315,291     257,399  
Accumulated deficit   (12,908 )   (103,546 )
Accumulated other comprehensive loss   (571)     (354)  
Total stockholders’ equity   301,818     153,504  
Total liabilities and stockholders’ equity   $ 618,167     $ 291,416  

 

Alteryx, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
    Three Months Ended
December 31,
  Twelve Months Ended
December 31,
    2018   2017   2018   2017
Cash flows from operating activities:                
Net income (loss)   $ 16,541     $ (1,539 )   $ 28,020     $ (17,499 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

               
Depreciation and amortization   749     1,287     3,836     3,957  
Amortization of debt discount and issuance costs   2,719         6,652      
Stock-based compensation   4,582     2,432     16,647     8,886  
Provision for doubtful accounts, net of recoveries   368     50     382     820  
Deferred income taxes   (3,706 )   (287 )   (3,434 )   (1,425 )
Impairment of long-lived assets               1,050  
Change in fair value of contingent consideration   169         624     190  
Loss on disposal of assets   9     143     18     175  

Changes in operating assets and liabilities, net of effect of business acquisitions:

 

               
Accounts receivable   (44,337 )   (19,217 )   (45,640 )   (15,325 )
Deferred commissions   (6,628 )   (4,490 )   (12,741 )   (3,663 )
Prepaid expenses and other current assets and other assets   3,121     (1,279 )   (16,077 )   (3,508 )
Accounts payable   (1,457 )   (3,203 )   4,530     (1,483 )
Accrued payroll and payroll related liabilities   11,201     5,714     12,898     4,047  
Accrued expenses and other current liabilities   2,652     1,136     671     2,606  
Deferred revenue   27,708     31,764     29,059     39,835  
Other liabilities   733     154     644     442  
Net cash provided by operating activities   14,424     12,665     26,089     19,105  
Cash flows from investing activities:                
Purchases of property and equipment   (799 )   (1,366 )   (6,728 )   (3,669 )
Cash paid in business acquisitions, net of cash acquired           (3,537 )   (9,097 )
Purchases of investments   (102,854 )   (3,966 )   (445,705 )   (91,517 )
Maturities of investments   96,193     16,094     185,112     37,862  
Net cash provided by (used in) investing activities   (7,460)       10,762     (270,858)     (66,421)
Cash flows from financing activities:                

Proceeds from issuance of senior convertible notes, net of issuance costs

 

  (462 )       224,246      
Purchase of capped call           (19,113 )    

Proceeds from initial public offering, net of underwriting commissions and discounts

 

              134,757  
Payment of initial public offering costs       (529 )       (2,396 )
Payment of holdback funds from acquisition           (250 )    
Principal payments on capital lease obligations   (79 )   (81 )   (327 )   (328 )
Proceeds from exercise of stock options   1,656     1,780     14,154     4,342  

Minimum tax withholding paid on behalf of employees for restricted stock units

  (2,581)     (674)     (2,730)     (674)
Net cash provided by (used in) financing activities   (1,466)       496     215,980     135,701
Effect of exchange rate changes on cash and cash equivalents   (61 )   17     (166 )   25  
Net increase (decrease) in cash and cash equivalents   5,437     23,940     (28,955 )   88,410  
Cash and cash equivalents–beginning of period   85,524     95,976     119,916     31,506  
Cash and cash equivalents–end of period   $ 90,961     $ 119,916     $ 90,961     $ 119,916  

 

Alteryx, Inc.
Consolidated Statements of Operations
Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard
(in thousands, except per share amounts)
(unaudited)
 
    Three Months Ended December 31,
    2018   2017
    As Reported
(ASC 606)
 

Impacts
from
Adoption

  Without Adoption
(ASC 605)
  As Reported
(ASC 605)
Revenue   $ 89,150     $ 28,642     $ 60,508     $ 38,588  
Cost of revenue   6,717         6,717     6,258  
Gross profit   82,433     28,642     53,791     32,330  
Operating expenses:                
Research and development   11,970         11,970     8,399  
Sales and marketing   34,731     1,231     33,500     17,689  
General and administrative   14,614         14,614     8,126  
Total operating expenses   61,315     1,231     60,084     34,214  
Income (loss) from operations   21,118     27,411     (6,293 )   (1,884 )
Interest expense   (3,008 )       (3,008 )    
Other income (expense), net   1,352     160     1,192     72  
Income (loss) before provision for (benefit of)

income taxes

  19,462     27,571     (8,109 )   (1,812 )
Provision for (benefit of) income taxes   2,921     3,903     (982)       (273)    
Net income (loss)   $ 16,541     $ 23,668     $ (7,127 )   $ (1,539 )
Less: Accretion of Series A redeemable convertible
preferred stock
               
Net income (loss) attributable to common stockholders   $ 16,541     $ 23,668     $ (7,127)       $ (1,539)    
Net income (loss) per share attributable to common
stockholders, basic
  $ 0.27     $ 0.39     $ (0.12 )   $ (0.03 )
Net income (loss) per share attributable to common
stockholders, diluted
  $ 0.25     $ 0.37     $ (0.12 )   $ (0.03 )
Weighted-average shares used to compute net income
(loss) per share attributable to common stockholders,
basic
  61,454         61,454     59,363  
Weighted-average shares used to compute net income
(loss) per share attributable to common stockholders,
diluted
  66,079     4,625     61,454     59,363  

 

    Year Ended December 31,
    2018   2017
    As Reported
(ASC 606)
 

Impacts
from
Adoption

  Without Adoption
(ASC 605)
  As Reported
(ASC 605)
Revenue   $ 253,570     $ 49,266     $ 204,304     $ 131,607  
Cost of revenue   22,800         22,800     21,803  
Gross profit   230,770     49,266     181,504     109,804  
Operating expenses:                
Research and development   43,449         43,449     29,342  
Sales and marketing   109,284     (1,943 )   111,227     66,420  
General and administrative   48,267         48,267     32,241  
Total operating expenses   201,000     (1,943)       202,943     128,003
Income (loss) from operations   29,770     51,209     (21,439 )   (18,199 )
Interest expense   (7,378 )       (7,378 )    
Other income, net   3,042     160     2,882     (205)    
Income (loss) before provision for (benefit of)
income taxes
  25,434     51,369     (25,935 )   (18,404 )
Provision for (benefit of) income taxes   (2,586)       5,497     (8,083)       (905)
Net income (loss)   $ 28,020     $ 45,872     $ (17,852 )   $ (17,499 )
Less: Accretion of Series A redeemable convertible
preferred stock
              (1,983)    
Net income (loss) attributable to common stockholders   $ 28,020     $ 45,872     $ (17,852)       $ (19,482)  
Net income (loss) per share attributable to common
stockholders, basic
  $ 0.46     $ 0.75     $ (0.29 )   $ (0.37 )
Net income (loss) per share attributable to common
stockholders, diluted
  $ 0.43     $ 0.72     $ (0.29 )   $ (0.37 )
Weighted-average shares used to compute net income
(loss) per share attributable to common stockholders,
basic
  60,829         60,829     53,006  
Weighted-average shares used to compute net income
(loss) per share attributable to common stockholders,
diluted
  64,744     3,915     60,829     53,006  
                           

 

Alteryx, Inc.
Consolidated Balance Sheets
Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard
(in thousands)
(unaudited)
 
    Year Ended December 31,
    2018   2017
    As Reported
(ASC 606)
 

Impacts
from
Adoption

  Without Adoption
(ASC 605)
  As Reported
(ASC 605)
Assets                
Current assets:                
Cash and cash equivalents   $ 89,974     $     $ 89,974     $ 119,716  
Short-term investments   239,718         239,718     54,386  
Accounts receivable, net of allowance for doubtful accounts and sales reserves   94,922     (163 )   95,085     49,797  
Deferred commissions   10,353     (11,474 )   21,827     11,213  
Prepaid expenses and other current assets   26,846     10,991     15,855     7,227  
Total current assets   461,813     (646 )   462,459     242,339  
Property and equipment, net   11,729         11,729     7,492  
Long-term investments   96,551         96,551     19,964  
Goodwill   9,494     (129 )   9,623     8,750  
Intangible assets, net   7,491     (1,477 )   8,968     7,995  
Long-term deferred commissions   12,038     12,038          
Other assets   19,051     15,716     3,335     4,876  
Total assets   $ 618,167     $ 25,502     $ 592,665     $ 291,416  
Liabilities and Stockholders’ Equity                
Current liabilities:                
Accounts payable   $ 5,028     $     $ 5,028     $ 522  
Accrued payroll and payroll related liabilities   24,659         24,659     11,835  
Accrued expenses and other current liabilities   10,878     297     10,581     8,270  
Deferred revenue   84,015     (95,326)       179,341     110,213
Total current liabilities   124,580     (95,029 )   219,609     130,840  
Convertible senior notes, net   173,647         173,647      
Deferred revenue   2,130     (1,383 )   3,513     3,545  
Other liabilities   15,992     11,861     4,131     3,527  
Total liabilities   316,349     (84,551)       400,900     137,912
Stockholders’ equity:                
Preferred stock                
Common stock   6         6     5  
Additional paid-in capital   315,291         315,291     257,399  
Accumulated deficit   (12,908 )   110,069     (122,977 )   (103,546 )
Accumulated other comprehensive loss   (571)       (16)       (555)     (354)
Total stockholders’ equity   301,818     110,053     191,765     153,504  
Total liabilities and stockholders’ equity   $ 618,167     $ 25,502     $ 592,665     $ 291,416  
                                 

 

Alteryx, Inc.
Reconciliation of GAAP Measures to Non-GAAP Measures
(in thousands, except percentages and per share amounts)
(unaudited)
         
    Three Months Ended December 31,   Year Ended December 31,
    2018   2017   2018   2017
    As Reported (ASC 606)   Without Adoption
(ASC 605)
  As Reported (ASC 605)   As Reported (ASC 606)   Without Adoption
(ASC 605)
  As Reported (ASC 605)
Reconciliation of non-GAAP gross profit:                        
GAAP gross profit   $ 82,433     $ 53,791     $ 32,330     $ 230,770     $ 181,504     $ 109,804  
GAAP gross margin   92 %   89 %   84 %   91 %   89 %   83 %
Add back:                        
Stock-based compensation expense   226     226     117     797     797     485  
Amortization of intangible assets   456     456     456     1,809     1,809     1,213  
Non-GAAP gross profit   $ 83,115     $ 54,473     $ 32,903     $ 233,376     $ 184,110     $ 111,502  
Non-GAAP gross margin   93 %   90 %   85 %   92 %   90 %   85 %
Reconciliation of non-GAAP loss from operations:                        
GAAP income (loss) from operations   $ 21,118     $ (6,293 )   $ (1,884 )   $ 29,770     $ (21,439 )   $ (18,199 )
GAAP operating margin   24 %   (10 )%   (5 )%   12 %   (10 )%   (14 )%
Add back:                        
Stock-based compensation expense   4,582     4,582     2,432     16,647     16,647     8,941  
Amortization of intangible assets   517     577     461     2,029     2,246     1,225  
Contingent consideration expense   169     169         624     624     190  
Follow-on public offering costs                       676  
Non-GAAP income (loss) from operations   $ 26,386     $ (965 )   $ 1,009     $ 49,070     $ (1,922 )   $ (7,167 )
Non-GAAP operating margin   30 %   (2 )%   3 %   19 %   (1 )%   (5 )%
Reconciliation of non-GAAP net loss:                        
GAAP net income (loss) attributable to common stockholders   $ 16,541     $ (7,127 )   $ (1,539 )   $ 28,020     $ (17,852 )   $ (19,482 )
Add back:                        
Stock-based compensation expense   4,582     4,582     2,432     16,647     16,647     8,941  
Amortization of intangible assets   517     577     461     2,029     2,246     1,225  
Accretion of Series A redeemable convertible preferred stock                       1,983  
Contingent consideration expense   169     169         624     624     190  
Amortization of debt discount   2,471     2,471         6,045     6,045      
Follow-on public offering costs                       676  
Impairment of long-lived assets                       1,050  
Income tax adjustments       (1,178)               (9,097)       (998)
Non-GAAP net income (loss)   $ 24,280     $ (506 )   $ 1,354     $ 53,365     $ (1,387 )   $ (6,415 )
Non-GAAP diluted loss per share:                        
Non-GAAP net income (loss)   $ 24,280     $ (506 )   $ 1,354     $ 53,365     $ (1,387 )   $ (6,415 )
Non-GAAP weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted   66,079     61,454     62,744     64,744     60,829     56,296  
Non-GAAP net income (loss) per share, diluted   $ 0.37     $ (0.01 )   $ 0.02     $ 0.82     $ (0.02 )   $ (0.11 )
Reconciliation of non-GAAP diluted net loss per share                        
GAAP net income (loss) per share attributable to common stockholders, diluted   $ 0.25     $ (0.12 )   $ (0.03 )   $ 0.43     $ (0.29 )   $ (0.37 )
Add back:                        
Non-GAAP adjustments to net income (loss) per share   0.12     0.11     0.05     0.39     0.27     0.26  
Non-GAAP net income (loss) per share, diluted   $ 0.37     $ (0.01 )   $ 0.02     $ 0.82     $ (0.02 )   $ (0.11 )
Reconciliation of non-GAAP diluted weighted-average shares outstanding                        
GAAP weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted   66,079     61,454     59,363     64,744     60,829     53,006  
Add back:                        
Conversion of redeemable convertible preferred stock into common stock                       3,290  
Effect of potentially dilutive shares           3,381              
Non-GAAP weighted-average shares used to compute non-GAAP net income (loss) per share, diluted   66,079     61,454     62,744     64,744     60,829     56,296  

 

Alteryx, Inc.
Key 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.

 

    As of
    Mar. 31,   Jun. 30,   Sep. 30,   Dec. 31,   Mar. 31,   Jun. 30,   Sep. 30,   Dec. 31,
    2017   2017   2017   2017   2018   2018   2018   2018
Customers   2,565     2,823     3,054     3,392     3,673     3,940   4,315   4,696

 

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.

 

    Three Months Ended
    Mar. 31,   Jun. 30,   Sep. 30,   Dec. 31,   Mar. 31,   Jun. 30,   Sep. 30,   Dec. 31,
    2017   2017   2017   2017   2018   2018   2018   2018
Dollar-based net expansion rate   134%   133%   131%   130%   129%   129%   131%   132%