AYX - Embedded Expectations Analysis - 2021 03 08
Alteryx, Inc. (AYX:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 167.6x Uniform P/E. Although management may have concerns about customer acquisition quotas, their earnings and bookings performance, and contract duration, market expectations are overly bearish. As such, strong equity outperformance is warrantedSpecifically, management may lack confidence in their ability to strengthen their partnerships with market leaders, secure expansion deals in the visualization industry, and meet customer acquisition quotas. Furthermore, management may be concerned about declines in contract duration and the impact of the pandemic on mid-market customers, and they may be exaggerating market interest in their technology. Moreover, they may lack confidence in their ability to meet their earnings guidance, recognize revenue from their deferred revenue and scheduled multiyear billings, and improve their seasonal bookings, revenue, and ARR growth
Although management may have concerns about customer acquisition, earnings and bookings performance, and declines in contract durations, market expectations are overly bearish given the firm's fast-growing, highly profitable SaaS-like business model. As such, equity outperformance is warranted for AYX
Alteryx provides data science and analytics. The company's analytics platform comprises: Alteryx Designer, its data profiling, preparation, blending, and analytics product used to create visual workflows or analytic processes; Alteryx Server, its server-based product for scheduling, sharing, and running analytic processes and applications in a web-based environment; Alteryx Connect, its collaborative data exploration platform for discovering information assets and sharing recommendations across the enterprise; and Alteryx Promote, its analytics model management product for data scientists and analytics teams to build, manage, monitor, and deploy predictive models into production applications.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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