AYX Stock: More Double-Digit Upside for This Data Specialist

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Alteryx Stock Continues to Beat Expectations

Data is the new fuel in today’s world. Businesses of all sizes and shapes want to make the most of their data. However, it is a big challenge to turn that data into improved results.

There are a few companies leading in this space, and investing in them has the potential to grow one’s money manifold.

One such example is Alteryx Inc (NYSE:AYX), which is transforming businesses through its data science and analytics products. Its software is designed to make advanced analytics accessible to anyone who is working with data. The company’s platform helps businesses discover, prepare, and analyze data.

Alteryx has been able to earn the trust of the world’s largest and best-known brands like Audi AG (OTCMKTS:AUDVF, ETR:NSU), Mcdonald’s Corp (NYSE:MCD), Unilever NV (NYSE:UN), Vodafone Group Plc (NASDAQ:VOD), and many more.

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The company’s products have been gaining traction because businesses want to use the power of data analytics in order to gain a competitive edge. Alteryx’s data analytics platform has been able to disrupt the business analytics software market, which is rapidly growing. This bodes well for AYX stock.

According to International Data Corporation, the big data and analytics software market—which reached $54.1 billion worldwide in 2017—is expected to grow at a five-year compound annual growth rate (CAGR) of 11.2%.

That growth is being driven by factors like the increasing importance of data, the ongoing shift to public cloud computing, and the growth of artificial intelligence. (Source: “Worldwide Big Data and Analytics Software Forecast, 2018-2022,” International Data Corporation, last accessed November 22, 2018.)

Alteryx continues to benefit from strong global demand for analytics. The company continues to make investments in order to benefit from industry tailwinds, and has been posting phenomenal results for many quarters.

The company has been beating expectations since it made its public debut in March 2017. Alteryx has been posting strong revenue growth, and the trend is likely to continue in the coming years, since there is no shortage of opportunities.

For the third quarter, Alteryx reported revenue of $54.2 million, an increase of 59% year-over-year. The generally accepted accounting principles (GAAP) gross profit was $48.4 million, as compared to the prior-year gross profit of $28.7 million, translating into a gross margin of 84%. (Source: “ALTERYX ANNOUNCES THIRD QUARTER 2018 FINANCIAL RESULTS,” Alteryx Inc, November 7, 2018.)

The company ended the third quarter with 4,315 customers, which is an increase of 41% year-over-year.

AYX stock has been gaining since the quarterly results announcement in early November. As the demand for data grows, Alteryx stock will likely continue making new highs.

AYX stock has gone up by more than 90% over the last year. The following chart shows this stellar rise.

alteryx stock chart

Chart courtesy of StockCharts.com

Analyst Take

Alteryx is a leading provider of self-service data analytics software. Its platform enables organizations to dramatically improve business outcomes and the productivity of their people.

The data market is evolving rapidly, and Alteryx is well positioned to continue to gain from the changes. Investors may want to consider AYX stock on any sign of weakness.