Why Alteryx Stock Soared 24% in November

What happened

Alteryx (NYSE: AYX) stock rocketed 24.1% higher last month, according to data from S&P Global Market Intelligence. For context, the S&P 500 returned 3.6% in November.

The data analytics software company's stock has gained 80.7% in 2019 through Dec. 2, versus the broader market's 26.5% return, making it one of the year's better-performing tech stocks.

Four screens showing various data analyses.

Image source: Getty Images.

So what

We can attribute Alteryx stock's strong performance last month largely to the company's Oct. 31 release of third-quarter results that demolished Wall Street's earnings estimate. Shares popped 8.5% the following day and continued to move higher throughout the month. 

In Q3, Alteryx's revenue soared 65% year over year to $103.4 million. Revenue growth was driven by a 30% increase in customers to 5,613 customers at the end of the quarter and a dollar-based net expansion rate of 132%. That means that the average existing customer spent 32% more in the quarter than they did in the year-ago period.

As is quite common for a relatively new public tech company (it had its IPO in 2017), Alteryx isn't consistently profitable under GAAP (generally accepted accounting principles). However, it is profitable from a non-GAAP, or adjusted, standpoint. It posted a GAAP net loss of $6.2 million, or $0.10 per share, versus net income of $10.8 million, or $0.17 per share, in the year-ago period. Its adjusted net income came in at $16.4 million, or $0.24 per share, up from $11.9 million, or $0.18 per share, in the third quarter of last year. This result crushed the analyst consensus estimate of $0.09.

Now what

Alteryx's management guided for fourth-quarter revenue of $128 million to $131 million, which represents an increase of 44% to 47% year over year. It also forecast adjusted earnings per share of $0.27 to $0.30.

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Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alteryx. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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