Alteryx, Inc. (NYSE:AYX) Needham Virtual Infrastructure, Data Analytics Software, & Cloud Communications Conference Call November 15, 2023 1:30 PM ET Company Participants Kevin Rubin - Chief Financial Officer Suresh Vittal - Chief Product Officer Conference Call Participants Mike Cikos - Needham Mike Cikos Great. Thank you to everyone for joining us with Needham’s Tech Week. I’m Mike Cikos, and I’m pleased to announce that with us today, we have the management team from Alteryx, the CFO, Kevin Rubin; and th ...

Alteryx, Inc. (NYSE:AYX) Q3 2023 Earnings Conference Call November 6, 2023 5:00 PM ET Company Participants Mark Anderson - Chief Executive Officer Kevin Rubin - Chief Financial Officer Paula Hansen - President & Chief Revenue Officer Suresh Vittal - Chief Product Officer Ryan Goodman - Head of Investor Relations Conference Call Participants Koji Ikeda - Bank of America Sanjit Singh - Morgan Stanley Derrick Wood - TD Cowen Tyler Radke - Citi Mike Cikos - Needham & Company Joel Fishbein - Truist Securities Br ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _____________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-------------------------------------------------------- ...

Alteryx, Inc. (NYSE:AYX) Piper Sandler Growth Frontiers Conference Transcript September 13, 2023 2:30 PM ET Company Participants Kevin Rubin - Chief Financial Officer Conference Call Participants Brent Bracelin - Piper Sandler Brent Bracelin Good afternoon. My name is Brent Bracelin. I am the Co-Head of Tech Research here at Piper Sandler. Really pleased to have Kevin, the CFO of Alteryx with us. We are going to do a fireside chat here. If you have questions, raise your hand. I have a bunch of questions. Ke ...

Alteryx, Inc. (NYSE:AYX) Citi Global Technology Conference September 8, 2023 9:00 AM ET Company Participants Kevin Rubin - CFO Unidentified Analyst [abrupt start] Tech Conference here. Today we are happy to host Alteryx CFO, Kevin Rubin, and we're happy to have him to come to our Tech Conference pretty regularly for the last few years. Thanks for coming. Kevin Rubin Thanks for having us. Appreciate it. Unidentified Analyst Yeah. so my name is [YC] (ph). I work with Tyler Radke. He's stuck in the traffic for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _____________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _____________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |------------------------------------------------------------ ...

Financial Performance - The company incurred a net loss in the year ended December 31, 2022, and anticipates continuing to incur significant operating expenses in the future [95]. - The company has experienced rapid growth but may struggle to manage this growth effectively, impacting its financial condition and operating results [106]. - Quarterly operating results have historically fluctuated, making future performance difficult to predict due to various unpredictable factors [161]. - The company’s financial statements are subject to estimates and assumptions that, if incorrect, could adversely affect operating results [237]. - Impairment of goodwill or intangible assets may require significant charges to earnings, negatively impacting financial results [239]. - The company is exposed to complex tax laws, and changes in tax rates or regulations could increase future tax liabilities [240]. - The ultimate amount of tax obligations may differ from recorded amounts, potentially harming future operating results [243]. - The company may face limitations on using net operating losses (NOLs) to offset future taxable income, potentially leading to higher tax liabilities [244]. Employee and Talent Management - As of December 31, 2022, the company had 2,904 full-time employees, an increase from 1,993 as of December 31, 2021 [107]. - The company faces significant competition for skilled talent, particularly in engineering and sales, which may increase costs associated with recruitment and retention [109]. - The company faces challenges in hiring and training sufficient sales personnel and software engineers, which could adversely affect growth rates and business performance [114]. - The company relies heavily on its senior management team for strategic direction, and any loss of key personnel could adversely impact operations [167]. Market and Competition - The company has expanded its operations in multiple countries and licenses its platform to customers in over 90 countries [107]. - The company’s revenue growth is heavily dependent on the success of its subscription-based software platform, which has been expanded through new product offerings since 2017 [102]. - Intense competition from large software companies and new market entrants poses a risk to the company's market share and revenue growth [135]. - The company faces intense competition in the self-service data analytics software market, with competitors having greater resources and market recognition [136]. - The company emphasizes the importance of brand awareness and reputation in attracting and retaining customers, especially as competition intensifies [157]. Product Development and Innovation - The company has invested heavily in research and development to enhance its platform and introduce new products, including Alteryx Auto Insights and Alteryx Machine Learning [98]. - The introduction of cloud-based products has required additional investments in infrastructure, which may negatively impact operating results and gross margins [101]. - The company may face challenges in developing and marketing new products in a timely manner, which could affect market acceptance and revenue generation [99]. - Acquisitions and investments in complementary products and technologies are part of the business strategy, with the acquisition of Trifacta in February 2022 aimed at developing a low code/no code analytics automation platform [117]. - The company anticipates significant benefits from the Trifacta acquisition, but successful integration and product development efforts are critical to realizing these benefits [120]. Customer Relations and Revenue Generation - The majority of the company's revenue is generated by its direct sales force in the United States, with plans to increase the size of this force both domestically and internationally [113]. - Future revenue growth is dependent on expanding the customer base and the effectiveness of marketing efforts, both domestically and internationally [124]. - Customer renewal rates may fluctuate due to various factors, including customer satisfaction and economic conditions, impacting revenue growth [127]. - The company relies on channel partners for sales, and maintaining successful relationships with them is crucial for business performance [129]. - Sales are typically concentrated at the end of each quarter, which can lead to fluctuations in recognized revenue and potential shortfalls [159]. - The company experiences seasonality, with more agreements typically signed in the fourth quarter, impacting revenue recognition [163]. Economic and Regulatory Environment - Global economic conditions, including inflation and geopolitical events, may adversely affect the company’s business and customer purchasing decisions [104]. - Changes in tax laws, such as the Inflation Reduction Act, could materially impact the company's financial condition and effective tax rate [152]. - Compliance with international laws and regulations is complex and may increase operational costs, exposing the company to potential fines [154]. - The geopolitical conflict stemming from Russia's invasion of Ukraine has negatively affected the company's operations and employee relations in the region [153]. - The company is subject to various federal, state, and foreign regulations, with non-compliance potentially resulting in fines and sanctions [228]. Security and Risk Management - The company processes and stores sensitive customer data, increasing the risk of unauthorized access and cybersecurity incidents as it grows its cloud-based software business [185]. - The company has experienced security breaches that could harm its reputation and business operations, potentially leading to significant legal liabilities [180]. - Significant resources are devoted to addressing security vulnerabilities, but the costs may reduce operating margins and the company may not implement measures quickly enough to prevent cyber-attacks [186]. - The company maintains cyber liability insurance, but there is uncertainty regarding the adequacy of coverage for potential liabilities incurred [189]. - Any actual or perceived security breach could result in regulatory investigations, litigation, and significant damage to the company's reputation and financial condition [182]. Financial Instruments and Capital Structure - The company requires additional capital to fund growth and may need to engage in equity or debt financings, which could dilute existing stockholders [245][246]. - The initial conversion rate for the 2023 Notes is 22.5572 shares per $1,000 principal amount, equating to an initial conversion price of approximately $44.33 per share [260]. - The 2024 and 2026 Notes have an initial conversion rate of 5.2809 shares per $1,000 principal amount, with an initial conversion price of approximately $189.36 per share [260]. - The company adopted ASU 2020-06 effective January 1, 2022, which affects the accounting treatment of convertible debt securities and could impact diluted earnings per share [262][263]. - The trading price of the Notes is expected to be significantly affected by the market price of the company's Class A common stock, which has experienced volatility due to macroeconomic factors [254]. - The company may incur substantial additional debt in the future, which could impact its ability to make payments on the Notes [256]. Intellectual Property and Compliance - The company relies on a combination of patents, copyrights, trademarks, and trade secrets to protect its intellectual property, but the effectiveness of these measures is uncertain [201]. - The company's patent strategy is still in its early stages, and any patents may be challenged or invalidated, potentially impacting competitive advantages [202]. - The company has entered into confidentiality agreements to protect proprietary information, but these may not fully prevent competitors from developing similar technologies [204]. - The use of open source software may expose the company to legal risks and could require costly changes to its software offerings if compliance issues arise [210]. - The company is subject to compliance with the Health Insurance Portability and Accountability Act and the California Consumer Privacy Act, with potential civil penalties for non-compliance [220].

Financial Performance - Total revenue for the three months ended September 30, 2022, was $215.712 million, a significant increase from $123.501 million for the same period in 2021, representing a growth of 74.6%[29] - Subscription-based software license revenue reached $111.590 million for the three months ended September 30, 2022, compared to $37.477 million in the prior year, marking a 197.5% increase[29] - Gross profit for the three months ended September 30, 2022, was $183.718 million, up from $108.035 million in the same period last year, reflecting a gross margin improvement[29] - Operating expenses totaled $247.666 million for the three months ended September 30, 2022, compared to $153.616 million in the prior year, indicating a 61.1% increase[29] - The net loss for the three months ended September 30, 2022, was $(74.513) million, compared to a net loss of $(58.039) million for the same period in 2021, representing a 28.4% increase in losses[29] - Annual recurring revenue (ARR) as of September 30, 2022, was $757.7 million, up from $578.6 million as of September 30, 2021, reflecting a 31% year-over-year growth[151] - The dollar-based net expansion rate for September 30, 2022, was 121%, indicating an increase in annual contract value from existing customers compared to the same quarter in the prior year[156] Competition and Market Risks - The company faces intense competition, which could reduce demand for its platform and adversely affect revenue growth and market share[21] - The COVID-19 pandemic has impacted the company's business and operating results, with ongoing uncertainty regarding future effects[21] - The company is focused on expanding its international operations, which exposes it to additional risks that could materially affect financial condition[21] - The company has experienced fluctuations in operating results from quarter to quarter, making future results difficult to predict[22] Growth Strategy and Investments - A large portion of the company's revenue is derived from its software platform, and future growth is dependent on its success[21] - The company expects to continue investing in growth, but effective management of this growth is crucial to avoid adverse effects on revenue and profitability[21] - The company is investing in cloud infrastructure and expects to incur costs related to third-party data center hosting fees[17] - The company is developing new products and services, including Alteryx Designer Cloud and Alteryx Machine Learning, to enhance its offerings and market position[17] - The company aims to empower data workers through its Analytics Automation Platform, enhancing efficiency and decision-making across organizations[47] - The company plans to initiate steps toward facility rationalization in the fourth quarter of 2022 due to shifts in workforce dynamics and the impact of the COVID-19 pandemic[149] Acquisitions and Financial Position - The acquisition of Trifacta Inc. on February 7, 2022, was for a total consideration of $398.4 million, including $75.0 million in equity-based incentive awards[65] - The fair value of intangible assets acquired from Trifacta was $51.0 million, with completed technology valued at $48.5 million[67] - The acquisition of Hyper Anna was completed for a purchase consideration of $24.9 million, which included $10.6 million in developed technology, $10.5 million in goodwill, and $3.8 million in net assets assumed[72] - The company recognized $180.3 million of revenue from deferred revenue during the nine months ended September 30, 2022, compared to $99.7 million in the same period of 2021[61] - As of September 30, 2022, the company had gross unrealized losses of $5.2 million related to available-for-sale securities, classified in accumulated other comprehensive loss[79] - The estimated fair value of the company's Notes was $798.1 million as of September 30, 2022, down from $857.3 million as of December 31, 2021[80] Employee and Operational Metrics - The company employed 2,824 full-time employees as of September 30, 2022, indicating significant growth in headcount since the initial public offering[209] - The company anticipates further significant expansion in operations and headcount, with plans to expand into additional countries[210] - Cost of revenue increased by $32.3 million due to higher employee-related costs, with headcount rising from 150 to 303 personnel[171] Cash Flow and Liquidity - Cash and cash equivalents decreased to $87.729 million as of September 30, 2022, from $152.375 million at the end of 2021, a decline of 42.4%[32] - The company expects existing cash and cash equivalents and cash flow from operations to be sufficient for at least the next 12 months to meet working capital and capital expenditure requirements[190] - Net cash used in operating activities for the nine months ended September 30, 2022 was $112.7 million, reflecting a net loss of $286.8 million[193] Stock and Compensation - The company reported a net loss per share attributable to common stockholders of $(1.09) for the three months ended September 30, 2022, compared to $(0.86) for the same period in 2021[29] - Stock-based compensation for the nine months ended September 30, 2022, was $164.428 million, up from $85.556 million in the prior year[41] - Total unrecognized compensation expense related to unvested RSUs and performance-based RSUs (PRSUs) was approximately $474.2 million, expected to be recognized over a weighted average period of 2.2 years[117]