Alteryx Stock: This Cloud Enterprise Stock Could Double

Alteryx Stock

Why AYX Stock Is Attractive Right Now

Continuing with our search for high-prospect technology stocks that are down significantly from their highs, Alteryx Inc (NYSE:AYX) looks compelling.

As of this writing, Alteryx stock is down by 76% from its record high of $185.75, which it reached in July 2020. While AYX stock’s high was clearly excessive, so was the subsequent selling.

Alteryx Inc is one of many big data enterprise cloud companies that has surfaced in the last few years.

The company’s software allows businesses to analyze data automatically and generate insights to help form strategies. The company has more than 8,000 customers worldwide. (Source: “Corporate Overview,” Alteryx Inc, last accessed December 1, 2022.)

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Alteryx currently has a market valuation of about $3.1 billion, versus $12.7 billion at the time of its record high.

Chart courtesy of StockCharts.com

Alteryx Inc’s Revenues Approach $1 Billion

Alteryx’s revenues have risen in the last four consecutive years, increasing by 306% from 2017 to a record $536.1 billion in 2021. The company’s revenue compound annual growth rate (CAGR) was 41.9% during the past five reported years.

This year, Alteryx is set to easily beat its 2021 revenues. In the rolling 12 months to September 2022, its revenues were $728.8 million.

Analysts’ financial estimates for the company are bullish. They expect Alteryx to ramp up its revenues by 55.5% to $833.5 million this year and 17.3% to $977.5 million in 2023. (Source: “Alteryx, Inc. (AYX),” Yahoo! Finance, last accessed December 1, 2022.)

Based on those revenue growth estimates, look for AYX to surpass $1.0 billion in revenues by 2024.

The aforementioned estimates give Alteryx Inc a reasonable valuation of 3.1 times its consensus 2023 revenue estimate.

Fiscal YearRevenues (Millions)Growth
2017$131.6N/A
2018$253.692.7%
2019$417.964.8%
2020$495.318.5%
2021$536.18.2%

(Source: “Alteryx Inc. Cl A,” MarketWatch, last accessed December 1, 2022.)

Alteryx Inc’s earnings before interest, taxes, depreciation, and amortization (EBITDA) have been inconsistent. This is to be expected, but I forecast that the situation will improve.

Alteryx delivered EBITDA income in three of the last five reported years.

Fiscal YearEBITDA (Millions)Growth
2017-$12.5N/A
2018$35.6386.1%
2019$46.430.3%
2020$18.6-59.9%
2021-$103.4-655.2%

(Source: MarketWatch, op. cit.)

Alteryx Inc’s generally accepted accounting principles (GAAP) diluted earnings per share (EPS) have also been inconsistent. As with its EBITDA, this is to be expected, and I predict that things will improve.

The company reported GAAP diluted EPS profits in two of the last five reported years.

Alteryx Inc has been attracting higher consensus adjusted EPS estimates. Analysts estimate that the company will report an adjusted loss of $0.34 per diluted share in 2022 and turn a profit of $0.05 per diluted share in 2023. (Source: Yahoo! Finance, op. cit.)

Fiscal YearGAAP Diluted EPSGrowth
2017-$0.37N/A
2018$0.43217.8%
2019$0.40-8.7%
2020-$0.37-193.4%
2021-$2.67-624.7%

(Source: MarketWatch, op. cit.)

Alteryx Inc has also managed to churn out positive free cash flow (FCF) in the last five reported years.

Fiscal YearFCF (Millions)Growth
2017$15.3N/A
2018$19.426.8%
2019$22.717.5%
2020$48.4113.0%
2021$30.4-37.2%

(Source: MarketWatch, op. cit.)

Analyst Take

Alteryx stock’s price deterioration provides a decent risk/reward opportunity for patient investors.

Institutional investors, in particular, love AYX stock; 391 institutions hold an 86.4% stake in the outstanding shares of Alteryx Inc. We’ve also been seeing strong buying from company insiders, at the rate of 287,404 shares over the last six months. (Source: Yahoo! Finance, op. cit.)

This is a good sign that Alteryx stock could be on its way up.