AYX - Alteryx Stock Craters; Should Investors Stay the Course?
Shares of Alteryx (NYSE: AYX), a leader in analytic process automation, endured a barrage of selling on Friday following the company's second-quarter 2020 earnings report, issued after markets closed on Thursday. Alteryx stock had slumped 29% by midafternoon today as investors digested the big-data analysis software provider's last three months of performance and anemic guidance.
Alteryx reported revenue of $96.2 million, which exceeded the top of its guidance range of $90 million to $95 million. The company posted a net loss of $35.2 million, against a loss of $3.2 million in the prior-year quarter. But adjusted net income per share of $0.02 also exceeded management's previous guidance for a loss between $0.12 and $0.18.
Yet investors were extremely disconcerted by curbed growth prospects. Total revenue advanced just 17% over the second quarter of 2019. This was a continuing deceleration from recent growth rates, including the 65% top-line expansion that Alteryx notched in full-year 2019, and the 43% year-over-year revenue gain in the first quarter of 2020. For the third quarter, management projects a revenue increase of just 7% to 11%, and it forecasts 10% to 11% top-line growth for the entire year.