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Alteryx (AYX) to Report Q2 Earnings: What's in the Cards?

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Alteryx is set to report second-quarter 2019 results on Jul 31.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average positive surprise being 119.6%.

In the last reported quarter, Alteryx’s adjusted earnings of 4 cents per share were much better than the Zacks Consensus Estimate of a loss of 8 cents.

Revenues surged 51% year over year to $76 million, which also beat the consensus mark of $71 million.

For second-quarter 2019, Alteryx forecasts revenues between $74 million and $77 million. Non-GAAP net loss is expected between 4 cents and 9 cents per share.
 

Alteryx, Inc. Price and EPS Surprise

Alteryx, Inc. Price and EPS Surprise

Alteryx, Inc. price-eps-surprise | Alteryx, Inc. Quote

 

The Zacks Consensus Estimate for revenues is $76.5 million, which indicates growth of almost 63.4% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings is pegged at a loss of 6 cents, which has been stable over the past 30 days.

Let’s see how things are shaping up prior to this announcement.

Key Factors to Consider

Alteryx is gaining from an expanding clientele, driven by increasing demand for a self-service data science and analytics platform. Also, improved awareness of the company’s brand and solutions has been a key catalyst in expanding customer base.

In the last reported quarter, dollar-based net expansion rate was 134%, up 20 basis points (bps) sequentially. The company added 277 net new customers in first-quarter 2019, bringing the total to 4,973, including 28% from the Global 2000 list.

The momentum in customer addition must have continued in the second quarter due to strong traction of the Promote and Connect solutions.

Moreover, rapid adoption of predictive analytics and AI modeling is expected to drive Alteryx’s top line in the to-be-reported quarter.

Moreover, Alteryx’s expanding partner base that includes the likes of Thomson Reuters is a key catalyst.

However, the company’s investments in strengthening sales organization and developer talent base coupled with higher sales and marketing expenses related to Annual User Conference are likely to hurt profitability in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Alteryx has a Zacks Rank #1 but an Earnings ESP of +0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may want to consider, as our model shows these have the right combination of elements to post an earnings beat.

CGI Group (GIB - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zendesk has an Earnings ESP of +7.84% and a Zacks Rank #2.

CACI International (CACI - Free Report) has an Earnings ESP of +4.02% and a Zacks Rank #2.

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