AYX Stock Forecast 2019
Alteryx Inc (NYSE:AYX) only just started trading on the New York Stock Exchange back in March 2017, but it’s been on a tear since then. Where other tech companies are limping along after the October meltdown, AYX stock has gone on to hit a new 52-week high.
While some investors may be looking for beaten-down tech stocks to add to their portfolio, Alteryx is just a great stock, with tremendous momentum and an excellent outlook for 2019.
A provider of software helps brands better implement, organize, and understand data sets, the Irvine, California-based Alteryx’s share price increased 133% in 2018 and is up 473% since going public in March 2017 at $14.00 per share.
Thanks to strong revenue growth, customer wins, and an encouraging outlook, a 2019 stock forecast of $92.00 is entirely possible. At a current price of $66.39 per share, a 2019 price target of $92.00 would represent a gain of 38.5%.
Alteryx Inc Stock Financials
On November 7, Alteryx announced its financial results for the third quarter, ended September 30, 2018. Third-quarter revenue came in at $54.2 million, a 59% increase over the $34.2 million recorded in the same prior-year period. (Source: “Alteryx Announces Third Quarter 2018 Financial Results,” Alteryx Inc, November 7, 2018.)
Gross profit for the third quarter was $48.4 million, or a gross margin of 89%. In the third quarter of 2017, the company’s gross profit was $28.7 million, or 84%.
Alteryx reported a third-quarter net loss of $200,000, or breakeven per share; In the third quarter of 2017, the company reported a net loss of $3.3 million, or $0.06 per share.
Non-generally accepted accounting principles (GAAP) net income for the third quarter was $5.3 million, or $0.08 per share, versus non-GAAP net income of $1.2 million, or $0.02 per share, for the same period in 2017.
The company ended the third quarter with 4,315 customers, a 41% increase over the third quarter of the prior year. During the quarter, it added 375 new customers, versus 231 net new customers a year ago.
As of September 30, 2018, Alteryx had cash, cash equivalents, and short- and long-term investments totaling $414.1 million, in comparison to $194.1 million at the end of 2017.
“Alteryx continues to benefit from strong global demand for analytics,” said Alteryx CEO Dean Stoecker. “Our continued focus on our 2018 strategic imperatives resulted in strong third quarter results. We intend to continue to invest in our organization to capitalize on industry tailwinds and build a foundation focused on relentless value for our customers.”
Looking ahead, the company provided guidance for the fourth quarter. Non-GAAP loss from operations is expected to be in the range of $1.0 million to $2.0 million, while non-GAAP net loss is expected to be in the range from $0.02 to $0.03 per share.
Management also upgraded its outlook for financial 2018. Revenue is now expected to be in the range of $200.5 million to $201.5 million, up from previous revenue guidance of $191.0 million to $193.0 million.
For full-year 2018, non-GAAP loss from operations is now expected to be in the range of $2.0 million to $3.0 million, a significant improvement from the previous guidance of $13.0 million to $15.0 million. Meanwhile, non-GAAP net loss per share is now expected to be in the area of $0.03 to $0.05 versus previous full-year guidance of $0.24 to $0.27 per share.
AYX Stock Analysis for 2018
Alteryx Inc had a stellar 2018. The company entered the year with AYX stock trading at $25.51 and ended it trading at $59.47 for a 12-month gain of 133%.
For comparison, the New York Stock Exchange ended the year down 11.55% and the tech-heavy Nasdaq finished 2018 5.9% in the red. The S&P 500 had an even tougher year, down 6.5%, while the S&P 500 Information Technology Sector was down 6.3% in 2018.
AYX stock continued to outperform the market because it continued to report strong quarterly results and a solid outlook.
Chart courtesy of StockCharts.com
Alteryx Inc’s share price followed its 50-day moving average and is well above its 200-day moving average. You can see on the chart above that it dipped like every other tech stock in October, during the market-wide sell-off. However, unlike most other tech stocks, it rebounded in short order, and on January 8, hit a new 52-week high of $70.47.
Why AYX Stock Could Reach $92.00 in 2019
AYX stock is a great stock with growing revenues and new customer wins. In the first quarter of 2018, the company announced that revenue increased 50% year-over-year to $42.8 million. It ended the first quarter with 3,673 customers, a 43% increase from the first quarter of 2017.
Alteryx announced that second-quarter revenue was up 54% year-over-year at $46.8 million. It ended the second quarter of 2018 with 3,940 customers, a 40% rise from the second quarter of 2017.
Now, Alteryx cannot continue to report these kinds of numbers forever. That said, its outlook for the fourth quarter is strong and it revised its full-year revenue up significantly.
The business expects to report fourth-quarter revenue of $56.5 million to $57.5 million. At the mid-point of guidance, that represents a 47.6% year-over-year increase over the $38.6 million recorded in the fourth quarter of 2017.
Full-year revenue is projected to be in a range of $200.5 million to $201.5 million. From the mid-range, this represents a 4.6% rise over the previous mid-range guidance of $191 to $193 million. It also represents a 52.7% increase over the $131.6 million reported in fiscal 2017.
The median price target for analysts covering AYX stock in 2019 is $72.00, which is just roughly 8.4% from current levels. The highest price forecast is $85.00, which is 28% from current levels.
While a 28% increase in 2019 would certainly be something to celebrate, continued strong financial results coupled with a return to optimism for the broader technology industry could help propel AYX stock’s share price a little higher, to $92.00 per share.
Is Alteryx Inc a company you should consider for the long term?
Well, AYX stock is one of a number of new tech stocks taking the tech industry by storm. Not only did it have an excellent 2018, but it has been performing well in the early days of 2019.
Despite ongoing market volatility, Alteryx continues to hang on to recent highs. 2019 should be a great year for Alteryx Inc, despite what’s going on in the rest of the sector.