Tag: Alteryxs

06
Oct
2020
Posted in technology

Alteryx’s Guidance Raise Combined With a New CEO Make the Stock a ‘Buy’

Out on Wall Street, Alteryx (AYX) kicked off the week of trading with a bang. On Monday, the data analytics software company hiked up its revenue guidance for the third quarter and changed up its management team. In reaction, investors sent AYX stock up nearly 28% in Tuesday’s trading session.

The company is now guiding for between $126-$128 million in quarterly revenue, which would reflect a 22%-24% year-over-year increase. This new guidance is significantly higher than AYX’s original $111-$115 million forecast, and above the Street’s $114 million call.

Weighing in on the development for Wedbush, 5-star analyst Daniel Ives told clients, “This was an eye-popping Stanton-like performance and a major bounce back from a soft Q2 and puts AYX back on track heading into FY21 with improved execution a sigh of relief for the bulls.”

Based on Ives’ calculations, the new guidance would put Q3 EPS at $0.18-$0.19, above his and the consensus estimate of $0.12. It would also provide relief for shares after Q2 saw revenue growth decelerate to 17% year-over-year, from 43% year-over-year in Q1, as a result of a significant COVID-19-related slowdown that affected expansion activity with Enterprise and Global 2K customers, in the analyst’s opinion.

On top of this, AYX unveiled the new CEO, appointing industry veteran and current board member Mark Anderson, who will succeed Co-founder and Chairman Dean Stoecker. Stoecker was appointed as Executive Chairman and will continue serving as Chairman of the Board. In response to both news items, shares surged 30% in after-hours trading.

According to Ives, this move “should reassure AYX bulls as Anderson’s expertise and track record with scaling enterprise software organizations, most recently with Palo Alto Networks, keeps the company in good hands on its march towards $1 billion in revenue.”

Expounding on this, the analyst stated,