AYX - The Problem with Alteryx's Retention Metric
For any software company, retaining and growing customers is a valuable way to drive growth. Existing customers are a great source of new revenue at a low cost of sales and marketing dollars. Measuring the success of these efforts can be tracked in a metric called dollar-based net expansion rate (DBNER). But investors should be aware that not all companies measure it the same way.
After checking out the fine print in Alteryx 's (NYSE: AYX) earnings review, Motley Fool contributor Brian Stoffel explains the problem with this data analytics company's calculation on an episode of Fool Live that was recorded on Feb. 11 .
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The Problem with Alteryx's Retention Metric