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 (APA™) 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.
  • 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.

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.            

About Alteryx, Inc.
As a leader in analytic process automation (APA), 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.

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

 

 

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

 

 

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

 

 

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

 

 

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)

 

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).

  

Mar. 31,

 

Jun. 30,

 

Sep. 30,

 

Dec. 31,

 

Mar. 31,

  

2020

 

2020

 

2020

 

2020

 

2021

Contract assets

 

$

75.8

  

$

82.1

  

$

95.0

  

$

62.6

  

$

74.5