Alteryx(AYX) - 2022 Q3 - Quarterly Report

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]