AYX - This Tech Stock Continues to Tumble Despite Rising Revenue. Is It Time to Buy?
Down nearly 60% from its all-time high and 40% year to date, Alteryx (NYSE: AYX) has not seen the recent returns that its tech brethren have enjoyed. Despite reporting favorable second-quarter results, the stock dipped another 14%. Given these disappointing returns, it would be reasonable to assume Alteryx's core business is in trouble.
But you'd be wrong. Alteryx's revenue increased 25% over last year's second-quarter numbers. Annual recurring revenue increased even quicker and was up 27%. While customer growth was only 10%, Alteryx's land and expand business model means these new additions will produce a larger amount of revenue in the future. This approach relies on getting new clients to try Alteryx's product—the landing phase. After the benefits of the platform are realized, more licenses are purchased and the buyer expands their usage. Expansion shouldn't be a problem with Alteryx, as their customers rave about Alteryx's products.
Image source: Getty Images.
For further details see:
This Tech Stock Continues to Tumble Despite Rising Revenue. Is It Time to Buy?