Alteryx Inc: Stock Up 98%, Blowing Past Aggressive 2019 Stock Forecast; Remains Bullish

Alteryx Inc Shares Up 98%, with More Double-Digit Gains Ahead

Alteryx Inc (NYSE:AYX) is a tech stock we have been following for a while now. We last looked at this data specialist back in mid-January, when it was trading at around $68.00 per share. At the time, we had a 2019 stock forecast of $92.00, suggesting a 2019 gain of around 40%.

At the time, our 2019 AYX stock forecast was much more aggressive than what Wall Street analysts were calling for; our bullish outlook was a result of the company’s strong revenue growth, customer wins, and encouraging outlook.

Thanks to all of those factors—and investor optimism—AYX stock has blown past that 2019 stock forecast. On July 3, the company’s Alteryx stock hit a new 52-week high of $115.60 (for a year-to-date gain of 98.9%), before closing at $115.31.

Over the back half of 2019 and the first six months of 2020, our new stock forecast for Alteryx is $145.00, suggesting additional 25% upside potential.

AYX Overview 

Alteryx Inc is a data analytics software company. Its clients include: Ford Motor Company (NYSE:F), McDonald’s Corp (NYSE:MCD), Johnson & Johnson (NYSE:JNJ), Dell Technologies Inc (NYSE:DELL), Unilever NV (NYSE:UN), and Vodafone Group Plc (NASDAQ:VOD).

(Source: “AYX Key Statistics,” Yahoo! Finance, last accessed July 4, 2019.)

If you want to see a beautiful chart, look no further than Alteryx Inc. Since going public in March 2017, AYX stock has trended steadily higher.

In 2017, it has advanced 46.5% and in 2018, Alteryx stock increased 133%. So far, in 2019, the Irvine, California-based company has grown 98.4% and is a whopping 21.5% above its 50-day moving average.

Thanks to strong quarterly results and a strong outlook, there is no reason to believe that Alteryx will not continue to outpace the broader market for the remainder of 2019, with that momentum carrying over into 2020.

Chart courtesy of StockCharts.com

Q1 Revenue Up 51%, Gross Profit of $68.0 Million

On May 1, Alteryx announced that revenue for the first quarter of 2019 increased 51% year-over-year to $76.0 million. Net income for the quarter rose 20.4% to $5.9 million, or $0.09 per share, from $4.9 million, or $0.08 per share in the same quarter last year. (Source: “Alteryx Announces First Quarter 2019 Financial Results,” Alteryx Inc, May 1, 2019.)

Gross profit for the first quarter of 2019 was $68.0 million, or a margin of 89%, versus gross profit in the first quarter of 2018 of $45.3 million, or a margin of 90%.

At the end of the first quarter, Alteryx had cash, cash equivalents, and short- and long-term investments of $461.3 million. At the end of the fourth quarter of 2018, the company had $426.2 million.

For the second quarter ended June 30, 2019, Alteryx expects revenue to be in a range of $74.0 million to $77.0 million. This represents year-over-year growth of 44% to 50%.

For 2019, the company raised previous revenue guidance from $345.0 million to $350.9 million to a range of $355.0 million to $360.0 million. That’s a year-over-year increase of 40% to 42%.

Analyst Take

AYX stock could be a great tech stock for buy-and-hold investors and those with a short investing horizon. The company continues to report strong quarterly results, expand its international footprint, and provide strong guidance.

While the tech industry and broader markets remain bullish, many believe the markets will experience volatility over the coming 12 months. If history is any indicator, Alteryx Inc should rebound quicker than most and continue its enviable, upward trajectory.