Alteryx: Customers Refusing To Invest In The Alteryx Platform

Apr. 10, 2022 5:49 AM ETAlteryx, Inc. (AYX)CRM, DOMO10 Comments
Karreta Advisors profile picture
Karreta Advisors
1.26K Followers

Summary

  • Q4 FY12/2021 results highlighted an unconvincing set of key performance metrics. The Trifacta deal looks expensive and likely not a gamechanger.
  • With the lack of improvement in the quarterly net expansion rate, we conclude that customers are refusing to invest in the Alteryx platform.
  • The shares remain expensive, trading on a free cash flow yield of 0.8% in FY12/2023. We reiterate our Neutral rating.

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Investment Thesis

Alteryx's (NYSE:AYX) Q4 FY12/2021 results highlighted an unconvincing set of key performance metrics. The Trifacta acquisition was expensive with limited impact on sales and will not be earnings accretive. We conclude that customers are

Alteryx Key financials including consensus estimates

Key financials including consensus estimates (Company, Refinitiv)

Alteryx Quarterly ARR growth YoY trend

Quarterly ARR growth YoY trend (Company)

Alteryx Quarterly Dollar-Based Net Expansion Rate growth YoY trend

Quarterly Dollar-Based Net Expansion Rate growth YoY trend (Company)

This article was written by

Karreta Advisors profile picture
1.26K Followers
We are an independent research house. We look at global stocks, favoring those with sustainable growth and recognized or emerging as a high quality franchise at suitable valuations. We primarily serve institutional investors.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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