Alteryx's Sales Jump and Margins Tick Higher in the Fourth Quarter

Alteryx, Inc. (NYSE: AYX), the self-service data analytics software company, saw its sales jump in the fourth quarter of 2017. GAAP margins also ticked up, and the company improved its net losses in both the fourth quarter and for the full year.

Alteryx: The raw numbers

Metric	Q4 2017	Q4 2016	Year-Over-Year Change
Sales	$38.6 million	$24.9 million	55%
Net income	($1.5 million)	($6.0 million)	N/A
Earnings per share	($0.03)	($0.25)	N/A

Data source: Alteryx.

Man sitting in front of computer screens looking at graphics.

Image source: Getty Images.

What happened with Alteryx this quarter?

• GAAP gross profit for the fourth quarter was $32.3 million -- or a gross margin of 84% -- which was up from $20.7 million, or 83% gross margin, in the fourth-quarter 2016.

• While the company posted a GAAP loss in the quarter, earnings on a non-GAAP basis were $1.4 million, or $0.02 per share, compared to a non-GAAP net loss of $5.1 million in the year ago quarter.

• Non-GAAP net loss for the full year was $6.4 million, up from a non-GAAP net loss of $21 million for the full year 2016.

• Alteryx added 338 net new customers and now has 3,392 customers, a 46% increase from the fourth quarter 2016.

• Dollar-based net revenue retention rates were above 130% for the fifth consecutive quarter, which shows the company has a low customer churn rate.

• Alteryx finished the year with cash, cash equivalents, and short- and long-term investments of $194.1 million.

What management had to say

Alteryx's CEO, Dean Stoecker, said in a press release that the company had a "terrific" 2017, which was capped off by very strong fourth quarter.

"Demand for our complete end-to-end analytics platform for the enterprise increased, driven by our land and expand strategy. We added a meaningful number of net new customers and continue to have a very strong dollar-based net revenue retention rate," Stoecker said.

He added that the company will continue investing in its platform this year, specifically in its sales and marketing segment, in order expand its global footprint.

"As we look to 2018, we are focused on delivering innovation to strengthen our platform, investing in sales and marketing initiatives globally to capture our large market opportunity, and building out our world class teams. We believe we are building an enduring business that can deliver strong revenue growth, on our path toward long-term sustainable profitability," Stoecker said.

Looking ahead

Management expects the company's sales to be in the range of $39 million to $40 million in the first-quarter 2018 and for Alteryx's non-GAAP net loss to be $4 million, at the midpoint.

For the full-year 2018, Alteryx's management says revenue will be between $176 million and $179 million, and a non-GAAP loss from operations will be in the range of $15 million to $18 million.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Alteryx, Inc. The Motley Fool has a disclosure policy.