Delaware | 001-38034 | 90-0673106 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3345 Michelson Drive, Suite 400, Irvine, California | 92612 | |
(Address of Principal Executive Offices) | (Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ALTERYX, INC. | |||||
Date: | August 8, 2018 | By: | /s/ Christopher M. Lal | ||
Name: | Christopher M. Lal | ||||
Title: | Senior Vice President and General Counsel |
• | Revenue: Revenue for the second quarter of 2018 was $46.8 million, an increase of 54% on a year-over-year basis. |
• | Gross Profit: GAAP gross profit for the second quarter of 2018 was $41.5 million, or a GAAP gross margin of 89%, an increase compared to GAAP gross profit of $25.0 million, or a GAAP gross margin of 83%, in the second quarter of 2017. Non-GAAP gross profit for the second quarter of 2018 was $42.2 million, or a non-GAAP gross margin of 90%, an increase compared to non-GAAP gross profit of $25.4 million, or a non-GAAP gross margin of 84%, in the second quarter of 2017. |
• | Loss from Operations: GAAP loss from operations for the second quarter of 2018 was $(8.9) million, compared to a loss from operations of $(8.1) million for the second quarter of 2017. Non-GAAP loss from operations for the second quarter of 2018 was $(4.3) million, an improvement compared to non-GAAP loss from operations of $(5.5) million for the second quarter of 2017. |
• | Net Loss: GAAP net loss attributable to common stockholders for the second quarter of 2018 was $(5.3) million, compared to a GAAP net loss attributable to common stockholders of $(7.0) million for the second quarter of 2017. GAAP net loss per share attributable to common stockholders for the second quarter of 2018 was $(0.09), based on 60.7 million weighted-average basic and diluted shares outstanding, compared to a GAAP net loss per share attributable to common stockholders of $(0.12), based on 58.3 million weighted-average basic and diluted shares outstanding, for the second quarter of 2017. |
• | Balance Sheet and Cash Flow: As of June 30, 2018, Alteryx had cash, cash equivalents, short-term and long-term investments of $405.2 million, compared with $194.1 million as of December 31, 2017. The increase in cash is primarily related to the issuance of our 0.50% Convertible Senior Notes due 2023. Cash used in operating activities for the second quarter was $(5.7) million compared to cash provided by operating activities of $0.7 million in the same period last year. For the first six months of 2018, cash provided by operating activities was $6.4 million compared to $5.7 million for the same period last year. |
• | Ended the second quarter of 2018 with 3,940 customers, a 40% increase from the second quarter of 2017. Added 267 net new customers in the second quarter of 2018 compared to 258 net new customers in the second quarter of 2017. |
• | Achieved a dollar-based net revenue retention rate of 131% for the second quarter of 2018. |
• | Sold $230.0 million aggregate principal amount of our 0.50% Convertible Senior Notes due 2023, including the initial purchasers’ exercise in full of their option to purchase an additional $30.0 million of the notes. |
• | Announced the general availability of the newest version of the Alteryx platform (2018.2) at its annual user conference, Inspire 2018. The release delivers new features across the platform to improve the analytic experience for IT, business analysts and data scientists, altering how they collaborate and scale analytics across the organization, find and connect to data, and ultimately drive business-changing insights. |
• | Third Quarter 2018 Guidance: |
• | Revenue is expected to be in the range of $49.0 million to $50.0 million. |
• | Non-GAAP loss from operations is expected to be in the range of $(2.5) million to $(3.5) million. |
• | Non-GAAP net loss per share is expected to be in the range of $(0.04) to $(0.06) based on approximately 61.5 million non-GAAP weighted-average basic and diluted shares outstanding. |
• | Full Year 2018 Guidance: |
• | Revenue is now expected to be in the range of $191.0 million to $193.0 million. |
• | Non-GAAP loss from operations is now expected to be in the range of $(13.0) million to $(15.0) million. |
• | Non-GAAP net loss per share is now expected to be in the range of $(0.24) to $(0.27) based on approximately 61.0 million non-GAAP weighted-average basic and diluted shares outstanding. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 46,796 | $ | 30,319 | $ | 89,617 | $ | 58,864 | |||||||
Cost of revenue | 5,269 | 5,294 | 10,273 | 10,120 | |||||||||||
Gross profit | 41,527 | 25,025 | 79,344 | 48,744 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 10,181 | 7,147 | 20,949 | 13,169 | |||||||||||
Sales and marketing | 28,335 | 17,589 | 51,437 | 33,217 | |||||||||||
General and administrative | 11,938 | 8,427 | 21,733 | 16,110 | |||||||||||
Total operating expenses | 50,454 | 33,163 | 94,119 | 62,496 | |||||||||||
Loss from operations | (8,927 | ) | (8,138 | ) | (14,775 | ) | (13,752 | ) | |||||||
Interest expense | (1,398 | ) | — | (1,400 | ) | — | |||||||||
Other income (expense), net | (834 | ) | 337 | (64 | ) | 434 | |||||||||
Loss before benefit from income taxes | (11,159 | ) | (7,801 | ) | (16,239 | ) | (13,318 | ) | |||||||
Benefit from income taxes | (5,864 | ) | (807 | ) | (5,758 | ) | (657 | ) | |||||||
Net loss | $ | (5,295 | ) | $ | (6,994 | ) | $ | (10,481 | ) | $ | (12,661 | ) | |||
Less: Accretion of Series A redeemable convertible preferred stock | — | — | — | (1,983 | ) | ||||||||||
Net loss attributable to common stockholders | $ | (5,295 | ) | $ | (6,994 | ) | $ | (10,481 | ) | $ | (14,644 | ) | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.09 | ) | $ | (0.12 | ) | $ | (0.17 | ) | $ | (0.31 | ) | |||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 60,685 | 58,262 | 60,372 | 46,757 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue | $ | 206 | $ | 124 | $ | 345 | $ | 245 | |||||||
Research and development | 721 | 463 | 1,954 | 699 | |||||||||||
Sales and marketing | 1,613 | 524 | 2,770 | 1,183 | |||||||||||
General and administrative | 1,354 | 1,177 | 2,614 | 2,103 | |||||||||||
Total | $ | 3,894 | $ | 2,288 | $ | 7,683 | $ | 4,230 |
June 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 98,571 | $ | 119,716 | |||
Short-term investments | 232,044 | 54,386 | |||||
Accounts receivable, net | 44,592 | 49,797 | |||||
Deferred commissions | 12,859 | 11,213 | |||||
Prepaid expenses and other current assets | 10,735 | 7,227 | |||||
Total current assets | 398,801 | 242,339 | |||||
Property and equipment, net | 10,482 | 7,492 | |||||
Long-term investments | 74,608 | 19,964 | |||||
Goodwill | 9,679 | 8,750 | |||||
Intangible assets, net | 10,267 | 7,995 | |||||
Other assets | 3,454 | 4,876 | |||||
Total assets | $ | 507,291 | $ | 291,416 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,392 | $ | 522 | |||
Accrued payroll and payroll related liabilities | 11,675 | 11,835 | |||||
Accrued expenses and other current liabilities | 11,610 | 8,270 | |||||
Deferred revenue | 115,713 | 110,213 | |||||
Total current liabilities | 147,390 | 130,840 | |||||
Convertible senior notes, net | 168,255 | — | |||||
Deferred revenue | 3,023 | 3,545 | |||||
Other liabilities | 3,512 | 3,527 | |||||
Total liabilities | 322,180 | 137,912 | |||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 6 | 5 | |||||
Additional paid-in capital | 301,329 | 257,399 | |||||
Accumulated deficit | (115,606 | ) | (103,546 | ) | |||
Accumulated other comprehensive loss | (618 | ) | (354 | ) | |||
Total stockholders’ equity | 185,111 | 153,504 | |||||
Total liabilities and stockholders’ equity | $ | 507,291 | $ | 291,416 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (5,295 | ) | $ | (6,994 | ) | $ | (10,481 | ) | $ | (12,661 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 1,227 | 873 | 2,528 | 1,439 | |||||||||||
Amortization of debt discount and issuance costs | 1,261 | — | 1,261 | — | |||||||||||
Stock-based compensation | 3,894 | 2,233 | 7,683 | 4,175 | |||||||||||
Provision for doubtful accounts and sales reserve, net of recoveries | 27 | 434 | (81 | ) | 784 | ||||||||||
Deferred income taxes | (6,033 | ) | (1,048 | ) | (6,033 | ) | (1,048 | ) | |||||||
Change in fair value of contingent consideration | 162 | 158 | 455 | 158 | |||||||||||
Loss on disposal of assets | 9 | 2 | 9 | 32 | |||||||||||
Changes in operating assets and liabilities, net of effect of business acquisitions: | |||||||||||||||
Accounts receivable | (15,083 | ) | (3,517 | ) | 5,470 | 7,658 | |||||||||
Deferred commissions | (1,528 | ) | 237 | (1,746 | ) | 1,097 | |||||||||
Prepaid expenses and other current assets and other assets | (1,020 | ) | 291 | (3,604 | ) | (929 | ) | ||||||||
Accounts payable | 6,585 | 2,486 | 7,028 | 1,961 | |||||||||||
Accrued payroll and payroll related liabilities | 2,483 | 2,772 | (153 | ) | (734 | ) | |||||||||
Accrued expenses and other current liabilities | 143 | 12 | (1,515 | ) | 989 | ||||||||||
Deferred revenue | 7,251 | 2,681 | 5,364 | 2,563 | |||||||||||
Other liabilities | 189 | 49 | 188 | 208 | |||||||||||
Net cash provided by (used in) operating activities | (5,728 | ) | 669 | 6,373 | 5,692 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (2,089 | ) | (701 | ) | (3,505 | ) | (1,209 | ) | |||||||
Cash paid in business acquisitions, net of cash acquired | 5 | (5,213 | ) | (3,537 | ) | (9,097 | ) | ||||||||
Purchases of investments | (188,226 | ) | (60,018 | ) | (271,817 | ) | (76,053 | ) | |||||||
Maturities of investments | 28,374 | 4,453 | 39,374 | 12,977 | |||||||||||
Net cash used in investing activities | (161,936 | ) | (61,479 | ) | (239,485 | ) | (73,382 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of senior convertible notes, net of issuance costs | 224,775 | — | 224,775 | — | |||||||||||
Purchase of capped call | (19,113 | ) | — | (19,113 | ) | — | |||||||||
Proceeds from initial public offering, net of underwriting commissions and discounts | — | 17,577 | — | 134,757 | |||||||||||
Payment of initial public offering costs | — | — | — | (797 | ) | ||||||||||
Payment of holdback funds from acquisition | — | — | (250 | ) | — | ||||||||||
Principal payments on capital lease obligations | (83 | ) | (82 | ) | (165 | ) | (164 | ) | |||||||
Proceeds from exercise of stock options | 1,852 | 122 | 6,824 | 1,006 | |||||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (48 | ) | — | (48 | ) | — | |||||||||
Net cash provided by financing activities | 207,383 | 17,617 | 212,023 | 134,802 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (225 | ) | 22 | (56 | ) | (3 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 39,494 | (43,171 | ) | (21,145 | ) | 67,109 | |||||||||
Cash and cash equivalents—beginning of period | 59,077 | 141,586 | 119,716 | 31,306 | |||||||||||
Cash and cash equivalents—end of period | $ | 98,571 | $ | 98,415 | $ | 98,571 | $ | 98,415 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reconciliation of non-GAAP gross profit: | |||||||||||||||
GAAP gross profit | $ | 41,527 | $ | 25,025 | $ | 79,344 | $ | 48,744 | |||||||
GAAP gross margin | 89 | % | 83 | % | 89 | % | 83 | % | |||||||
Add back: | |||||||||||||||
Stock-based compensation expense | 206 | 124 | 345 | 245 | |||||||||||
Amortization of intangible assets | 451 | 236 | 897 | 301 | |||||||||||
Non-GAAP gross profit | $ | 42,184 | $ | 25,385 | $ | 80,586 | $ | 49,290 | |||||||
Non-GAAP gross margin | 90 | % | 84 | % | 90 | % | 84 | % | |||||||
Reconciliation of non-GAAP loss from operations: | |||||||||||||||
GAAP loss from operations | $ | (8,927 | ) | $ | (8,138 | ) | $ | (14,775 | ) | $ | (13,752 | ) | |||
GAAP operating margin | (19 | )% | (27 | )% | (16 | )% | (23 | )% | |||||||
Add back: | |||||||||||||||
Stock-based compensation expense | 3,894 | 2,288 | 7,683 | 4,230 | |||||||||||
Amortization of intangible assets | 579 | 238 | 1,088 | 303 | |||||||||||
Contingent consideration expense | 162 | 158 | 455 | 158 | |||||||||||
Non-GAAP loss from operations | $ | (4,292 | ) | $ | (5,454 | ) | $ | (5,549 | ) | $ | (9,061 | ) | |||
Non-GAAP operating margin | (9 | )% | (18 | )% | (6 | )% | (15 | )% | |||||||
Reconciliation of non-GAAP net loss: | |||||||||||||||
GAAP net loss attributable to common stockholders | $ | (5,295 | ) | $ | (6,994 | ) | $ | (10,481 | ) | $ | (14,644 | ) | |||
Add back: | |||||||||||||||
Stock-based compensation expense | 3,894 | 2,288 | 7,683 | 4,230 | |||||||||||
Amortization of intangible assets | 579 | 238 | 1,088 | 303 | |||||||||||
Accretion of Series A redeemable convertible preferred stock | — | — | — | 1,983 | |||||||||||
Contingent consideration expense | 162 | 158 | 455 | 158 | |||||||||||
Amortization of debt discount | 1,146 | — | 1,146 | — | |||||||||||
Income tax adjustments | (6,046 | ) | (998 | ) | (6,046 | ) | (998 | ) | |||||||
Non-GAAP net loss | $ | (5,560 | ) | $ | (5,308 | ) | $ | (6,155 | ) | $ | (8,968 | ) | |||
Non-GAAP diluted loss per share: | |||||||||||||||
Non-GAAP net loss | $ | (5,560 | ) | $ | (5,308 | ) | $ | (6,155 | ) | $ | (8,968 | ) | |||
Non-GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, diluted | 60,685 | 58,262 | 60,372 | 53,393 | |||||||||||
Non-GAAP net loss per share, diluted | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.17 | ) | |||
Reconciliation of non-GAAP diluted net loss per share | |||||||||||||||
GAAP net loss per share attributable to common stockholders, diluted | $ | (0.09 | ) | $ | (0.12 | ) | $ | (0.17 | ) | $ | (0.31 | ) | |||
Add back: | |||||||||||||||
Non-GAAP adjustments to net loss per share | — | 0.03 | 0.07 | 0.14 | |||||||||||
Non-GAAP net loss per share, diluted | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.17 | ) | |||
Reconciliation of non-GAAP diluted weighted-average shares outstanding | |||||||||||||||
GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, diluted | 60,685 | 58,262 | 60,372 | 46,757 | |||||||||||
Add back: | |||||||||||||||
Conversion of redeemable convertible preferred stock into common stock | — | — | — | 6,636 | |||||||||||
Non-GAAP weighted-average shares used to compute non-GAAP net loss per share, diluted | 60,685 | 58,262 | 60,372 | 53,393 |