0001689923false00016899232023-08-072023-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
________________________________________________________________ 
FORM 8-K
________________________________________________________________ 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 7, 2023
________________________________________________________________ 
ALTERYX, INC.
(Exact Name of the Registrant as Specified in its Charter)
________________________________________________________________ 
Delaware 001-38034 90-0673106
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
17200 Laguna Canyon Road,Irvine,California92618
(Address of Principal Executive Offices)(Zip Code)
(888) 836-4274
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
________________________________________________________________ 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per shareAYXNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ☐ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act    ☐


Item 2.02. Results of Operations and Financial Condition.
On August 7, 2023, Alteryx, Inc., a Delaware corporation (the “Company”), issued a press release and a stockholder letter announcing the Company’s financial results for the quarter ended June 30, 2023. The press release and the stockholder letter are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.
The information furnished with this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1  
99.2
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 ALTERYX, INC.
Date:August 7, 2023 By: /s/ Christopher M. Lal
 Name: Christopher M. Lal
 Title: Chief Legal Officer and Corporate Secretary


Exhibit 99.1
 alteryx_logoa.jpg
Alteryx Announces Second Quarter 2023 Financial Results

Annualized Recurring Revenue up 22% Year-Over-Year to $890 million
IRVINE, Calif. – August 7, 2023 – Alteryx, Inc. (NYSE: AYX), the Analytics Automation company, today announced financial results for its second quarter ended June 30, 2023.

“Customers are demonstrating a strong commitment to Alteryx as they face an increasingly dynamic macro environment, as evidenced by robust and consistent gross retention and renewal rates in Q2,” said Mark Anderson, CEO of Alteryx, Inc. “As we look to the second half of 2023, we are reinforcing our commitment to improving profitability, while also sustaining a high pace of platform innovation with Alteryx AiDIN, our generative AI and machine learning technologies, as well as cloud-connected technologies.”
Second Quarter 2023 Financial Highlights
•Revenue: Revenue for the second quarter of 2023 was $188 million, an increase of 4%, compared to revenue of $181 million in the second quarter of 2022.
•Gross Profit: GAAP gross profit for the second quarter of 2023 was $155 million, or a GAAP gross margin of 82%, compared to GAAP gross profit of $151 million, or a GAAP gross margin of 84%, in the second quarter of 2022. Non-GAAP gross profit for the second quarter of 2023 was $164 million, or a non-GAAP gross margin of 87%, compared to non-GAAP gross profit of $159 million, or a non-GAAP gross margin of 88%, in the second quarter of 2022.
•Loss from Operations: GAAP loss from operations for the second quarter of 2023 was $(116) million, compared to GAAP loss from operations of $(95) million for the second quarter of 2022. Non-GAAP loss from operations for the second quarter of 2023 was $(30) million, compared to non-GAAP loss from operations of $(30) million for the second quarter of 2022.
•Net Loss: GAAP net loss attributable to common stockholders for the second quarter of 2023 was $(120) million, compared to GAAP net loss attributable to common stockholders of $(107) million for the second quarter of 2022. GAAP net loss per diluted share for the second quarter of 2023 was $(1.70), based on 70.7 million GAAP weighted-average diluted shares outstanding, compared to GAAP net loss per diluted share of $(1.56), based on 68.3 million GAAP weighted-average diluted shares outstanding for the second quarter of 2022.
Non-GAAP net loss and non-GAAP net loss per diluted share for the second quarter of 2023 were $(26) million and $(0.37), respectively, compared to non-GAAP net loss of $(32) million and non-GAAP net loss per diluted share of $(0.46) for the second quarter of 2022. Non-GAAP net loss per diluted share for the second quarter of 2023 was based on 70.7 million non-GAAP weighted-average diluted shares outstanding, compared to 68.3 million non-GAAP weighted-average diluted shares outstanding for the second quarter of 2022.
•Balance Sheet and Cash Flow: As of June 30, 2023, we had cash, cash equivalents, and short-term and long-term investments of $748 million, compared to $432 million as of December 31, 2022. This reflects a $441 million cash inflow primarily related to the issuance of our 8.75% senior notes due 2028, net of debt issuance costs paid as of June 30, 2023, partially offset by an $85 million cash outflow related to principal payments on our 0.5% convertible senior notes due 2023 in settlement of conversions and payments at maturity. Cash provided by operating activities for the first six months of 2023 was $7 million, compared to cash used in operating activities of $(55) million for the first six months of 2022.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Operating Measures.”
Beginning with the quarter ended June 30, 2023, management elected to change the presentation of our financial statements and accompanying footnote disclosures from thousands to millions. The change in presentation had no material impact on previously reported financial information, but certain amounts reported for prior periods may differ by insignificant amounts due to the nature of rounding relative to the change in presentation. In addition, historical percentages and per share amounts presented may not add to their respective totals or recalculate due to rounding.
1

Second Quarter 2023 and Recent Business Highlights
•Ended the second quarter of 2023 with $890 million in ARR, an increase of 22% year-over-year.
•Achieved a dollar-based net expansion rate (ARR-based) of 120% for the second quarter of 2023.
•Achieved Google Cloud Ready - AlloyDB Designation, a new designation of Google Cloud technology partners that provide solutions that integrate with AlloyDB.
•Announced expanded cloud-connected platform experiences for Alteryx Designer with the Alteryx Analytics Cloud Platform, as well as new, cloud-based Alteryx Location Intelligence capabilities.
•Announced Alteryx AiDIN, an artificial intelligence (AI), machine learning, and generative AI engine that operates across the Alteryx Analytics Cloud Platform to accelerate efficiency and productivity.
•Launched the Alteryx Maveryx Community, allowing customers, community members, and employees to share the maverick's mindset of exploring the unknown and not settling for the status quo.
•Launched new integrations with Databricks to leverage the power of Alteryx Analytics Cloud with the Databricks Lakehouse Platform.
•Launched automated decision intelligence capabilities on the Snowflake Data Cloud, giving joint customers new ways to enable analytic insights through our Partner Connect Integration for Designer Cloud.
•Announced a private preview of Snowflake Execution for Desktop, which can run securely in the Snowflake Data Cloud with Snowpark Container Services.
•Announced decision intelligence and intelligent automation capabilities on Amazon Web Services designed to empower chief financial officers and finance leaders to embrace cloud and data analytics.
Workforce Management
During the second quarter of 2023, we announced a workforce reduction plan, or the Workforce Reduction Plan, intended to reduce operating costs, improve operating margins, and continue advancing our ongoing commitment to profitable growth, primarily impacting our sales and marketing and general and administrative organizations. In connection with the Workforce Reduction Plan, during the second quarter, we incurred $12 million in charges related to the statutory notice period and severance payments, employee benefits, and job placement services. As of June 30, 2023, we have made $8 million of payments, and have $4 million remaining and included in accrued payroll and payroll related liabilities in the condensed consolidated balance sheets. We expect the Workforce Reduction Plan to be substantially completed by the end of the third quarter of 2023.
Financial Outlook
We provide the financial guidance below based on current market conditions and expectations. Our guidance is subject to various important cautionary factors described below. Based on information available as of August 7, 2023, guidance for the third quarter of 2023 and full year 2023 is as follows:
 
•Third Quarter 2023 Guidance:
◦Revenue is expected to be in the range of $208 million to $212 million, representing year-over-year decline of (4)% to (2)%.
◦ARR is expected to be in the range of $901 million to $905 million, representing year-over-year growth of 19%.
◦Non-GAAP income from operations is expected to be in the range of $2 million to $6 million.
◦Non-GAAP net loss per share is expected to be in the range of $(0.08) to $(0.04) based on approximately 71.4 million non-GAAP weighted-average basic and diluted shares outstanding.

•Full Year 2023 Guidance:
◦Revenue is expected to be in the range of $930 million to $940 million, representing year-over-year growth of 9% to 10%.
◦ARR is expected to be in the range of $930 million to $940 million, representing year-over-year growth of 12% to 13%.
◦Non-GAAP income from operations is expected to be in the range of $70 million to $80 million.
◦Non-GAAP net income per share is expected to be in the range of $0.62 to $0.72 based on approximately 76.7 million non-GAAP weighted-average diluted shares outstanding, and an effective tax rate of 20%.

2

The financial outlook above for non-GAAP income from operations and non-GAAP net income (loss) per share excludes estimates for stock-based compensation and related payroll tax expense and acquisition-related adjustments. A reconciliation of the non-GAAP financial guidance measures to corresponding GAAP measures is not available on a forward-looking basis primarily because of the uncertainty regarding, and the potential variability of, stock-based compensation and related payroll tax expense and acquisition-related adjustments. In particular, stock-based compensation and related payroll tax expense is impacted by our future hiring and retention needs, as well as the future fair market value of our Class A common stock, all of which is not within our control, is difficult to predict, and is subject to constant change. The actual amount of these expenses during 2023 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of the non-GAAP financial guidance measures to the corresponding GAAP measures is not available without unreasonable effort.
Quarterly Conference Call
Alteryx will host a conference call today at 5:00 p.m. Eastern Time to discuss the company’s financial results and financial guidance. To access this call, dial 877-407-9716 (domestic) or 201-493-6779 (international). A live webcast of this conference call will be available on the “Investors” page of the company’s website at https://investor.alteryx.com.
Following the conference call, a telephone replay will be available through August 14, 2023, at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13739747. An archived webcast of this conference call will also be available on the “Investors” page of the company’s website at https://investor.alteryx.com.  
Non-GAAP Financial Measures and Operating Measures
Non-GAAP Financial Measures. To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, and non-GAAP weighted-average diluted shares outstanding. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.
We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. We exclude the following items from one or more of our non-GAAP financial measures:
Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.
Payroll tax expense related to stock-based compensation. We exclude employer payroll tax expense related to stock-based compensation to present the full effect that excluding stock-based compensation expense has on operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of the business.
Acquisition-related adjustments. We exclude amortization of intangible assets, which is non-cash and related to business combinations, from certain of our non-GAAP financial measures. In addition, we exclude acquisition and integration expenses, such as transaction costs and costs associated with the applicable retention, restructuring and successful integration of operational activities of the acquired company, as they are related to a business combination and have no direct correlation to the operation of our business.
Impairment of long-lived assets. We exclude non-cash charges for impairment of long-lived assets from certain of our non-GAAP financial measures. Impairment charges can vary significantly in terms of amount and timing, and we do not consider these charges indicative of our current or past operating performance.
3

Cost optimization charges. We exclude other cost optimization charges, which primarily include compensation costs for the impacted workforce and additional non-impairment office exit costs. Although office exits are non-recurring in nature, certain costs associated with the exits will be incurred in future periods. We exclude cost optimization charges as they do not contribute to a meaningful evaluation of our current or past operating performance.
Income tax adjustments. We utilize a fixed annual projected long-term non-GAAP tax rate in order to provide better consistency across reporting periods by eliminating the effects of items such as changes in the tax valuation allowance, excess tax benefits associated with stock options, and tax effects of acquisition-related costs, since each of these can vary in size and frequency. When projecting this rate, we exclude the direct impact of the following non-cash items: stock-based compensation expenses, amortization and impairment of purchased intangibles, and the amortization of debt discount and issuance costs. The projected rate also assumes no new acquisitions, and considers other factors including our expected tax structure, our tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. We used a projected non-GAAP tax rate of 20% for both 2023 and 2022. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix including due to acquisition activity, or other changes to our strategy or business operations. We will re-evaluate our long-term rate as appropriate.
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, we exclude stock-based compensation and related payroll tax expense and amortization of intangible assets which are recurring and will be reflected in our financial results for the foreseeable future. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.
Annualized Recurring Revenue (ARR). Annualized recurring revenue, or ARR, represents the annualized recurring value of all active subscription contracts at the end of a reporting period, and excludes the value of non-recurring revenue streams that are recognized at a point in time, such as certain professional services. We use ARR as one of our operating measures to assess the health and trajectory of our business. ARR is a performance metric and should be viewed independently of revenue and deferred revenue, and is not intended to be a substitute for, or combined with, any of these items. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by twelve. Annualizing contracts with terms less than one year results in amounts being included in our ARR calculation that are in excess of the total contract value for those contracts at the end of the reporting period.
4

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties, including statements regarding our expectations with respect to annualized recurring revenue, guidance for the third quarter and the full year 2023, and assumptions related to the foregoing; macroeconomic conditions and related impacts, including the impact to our competitive landscape, sales cycle, and contract duration; our workforce reduction plans and related impacts; our ability to execute our long-term growth, go-to-market, operations, and product strategies, including with respect to our cloud and AI offerings; our ability to achieve and improve profitability and cash flow; the anticipated value, customer acceptance, and continued innovation and availability of our products and services; the success of our sales activities; our non-GAAP tax rate for 2023; demand for data analytics products and our expectations regarding customer purchasing behavior; and other future events. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including, but not limited to: our history of losses; volatile and significantly weakened global economic conditions; our ability to develop, release, and gain market acceptance of product and service enhancements and new products and services to respond to rapid technological change in a timely and cost-effective manner; our dependence on our software platform for substantially all of our revenue; our ability to manage our growth and the investments made to grow our business effectively; our ability to develop a successful business model to sell products and services acquired or to integrate such products or services into our existing products and services; our ability to attract new customers and retain and expand sales to existing customers; our ability to establish and maintain successful relationships with our channel partners; intense and increasing competition in our market; the rate of growth in the market for analytics products and services; our dependence on technology and data licensed to us by third parties; risks associated with our international operations; our ability to develop, maintain, and enhance our brand and reputation cost-effectively; litigation and related costs; security breaches; the success of our AI initiatives; our indebtedness and risks related to our outstanding notes; and other general market, political, economic, and business conditions, including, but not limited to, impacts related to weakened global economic conditions, the ongoing conflict in Ukraine, inflationary pressures, rising interest rates, and disruptions in access to bank deposits or lending commitments due to bank failures. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, many of which relate to matters that are beyond our control and changing rapidly.
Additional risks and uncertainties that could affect our financial results are included under the caption “Risk Factors” in our filings with the U.S. Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which are available on the “Investors” page of our website at https://investor.alteryx.com and on the SEC website at http://www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events.
About Alteryx, Inc.
Alteryx (NYSE: AYX) powers analytics for all by providing our leading Analytics Automation Platform. With Alteryx, enterprises can make intelligent decisions across their organizations with automated, AI-driven insights. More than 8,000 customers globally rely on Alteryx to democratize analytics across use cases and deliver high-impact business outcomes. To learn more, visit http://www.alteryx.com.
Alteryx is a registered trademark of Alteryx, Inc. All other product and brand names may be trademarks or registered trademarks of their respective owners.
Media Contact
Alteryx, Inc.
Ana Gabriel
pr@alteryx.com

Investor Contact
Alteryx, Inc.
Ryan Goodman
ir@alteryx.com
5

Alteryx, Inc.
Condensed Consolidated Statements of Operations
(in millions, shares in thousands, except per share data)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenue:
Subscription-based software license$76 $81 $167 $144 
PCS and services112 100 220 195 
Total revenue188 181 387 339 
Cost of revenue:
Subscription-based software license2 3 4 5 
PCS and services31 27 59 49 
Total cost of revenue33 30 63 54 
Gross profit155 151 324 285 
Operating expenses:
Research and development57 57 116 107 
Sales and marketing162 133 313 249 
General and administrative50 56 97 116 
Impairment of long-lived assets2 — 2 8 
Total operating expenses271 246 528 480 
Loss from operations(116)(95)(204)(195)
Interest expense(13)(3)(18)(5)
Other income (expense), net11 (7)18 (9)
Loss before provision for income taxes(118)(105)(204)(209)
Provision for income taxes2 2 5 3 
Net loss$(120)$(107)$(209)$(212)
Net loss per share attributable to common stockholders, basic$(1.70)$(1.56)$(2.97)$(3.12)
Net loss per share attributable to common stockholders, diluted$(1.70)$(1.56)$(2.97)$(3.12)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic70,651 68,311 70,265 68,070 
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted70,651 68,311 70,265 68,070 
6

Alteryx, Inc.
Stock-Based Compensation Expense
(in millions)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Cost of revenue$5 $4 $8 $8 
Research and development14 15 28 26 
Sales and marketing24 19 47 34 
General and administrative21 20 38 35 
Total$64 $58 $121 $103 

7

Alteryx, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
 
June 30, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents$479 $105 
Short-term investments213 237 
Accounts receivable, net120 260 
  Prepaid expenses and other current assets150 145 
Total current assets962 747 
Property and equipment, net68 69 
Operating lease right-of-use assets45 51 
Long-term investments56 90 
Goodwill398 398 
Intangible assets, net54 61 
Other assets144 141 
Total assets$1,727 $1,557 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$27 $14 
Accrued payroll and payroll related liabilities74 81 
Accrued expenses and other current liabilities66 56 
Deferred revenue201 276 
Convertible senior notes, net— 85 
Total current liabilities368 512 
Long-term debt, net1,235 793 
Operating lease liabilities54 61 
Other liabilities18 17 
Total liabilities1,675 1,383 
Stockholders’ equity:
Common stock— — 
Additional paid-in capital716 623 
Accumulated deficit(652)(443)
Accumulated other comprehensive loss(12)(6)
Total stockholders’ equity52 174 
Total liabilities and stockholders’ equity$1,727 $1,557 

8

Alteryx, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Cash flows from operating activities:
Net loss$(120)$(107)$(209)$(212)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization10 10 19 17 
Non-cash operating lease cost3 5 6 10 
Stock-based compensation64 58 121 103 
Amortization (accretion) of discounts and premiums on investments, net(1)— (2)1 
Amortization of debt discount and issuance costs1 1 2 2 
Deferred income taxes2 1 3 1 
Impairment of long-lived assets2 — 2 8 
Other non-cash operating activities, net(1)8 (4)13 
Changes in operating assets and liabilities:
Accounts receivable(29)(40)137 81 
Deferred commissions(9)(5)(8)(4)
Prepaid expenses and other current assets and other assets9 (31)6 (41)
Accounts payable17 18 14 20 
Accrued payroll and payroll related liabilities17 14 (6)(12)
Accrued expenses, other current liabilities, operating lease liabilities, and other liabilities9 1 (4)(7)
Deferred revenue(7)3 (70)(35)
Net cash provided by (used in) operating activities(33)(64)7 (55)
Cash flows from investing activities:
Capitalized software development costs(5)(2)(11)(5)
Purchases of property and equipment(1)(6)(2)(13)
Cash paid in acquisitions, net of cash acquired— — — (390)
Purchases of investments(51)(44)(104)(82)
Sales and maturities of investments72 94 157 527 
Net cash provided by investing activities15 42 40 37 
Cash flows from financing activities:
Proceeds from issuance of senior notes, net of issuance costs— — 441 — 
Principal payments on 2023 convertible senior notes(83)— (85)— 
Proceeds from exercise of stock options and issuance of shares from employee stock purchase plan— — 9 5 
Minimum tax withholding paid on behalf of employees for restricted stock units(13)(12)(40)(26)
Net cash provided by (used in) financing activities(96)(12)325 (21)
Effect of exchange rate changes on cash, cash equivalents and restricted cash— (1)— (2)
Net increase (decrease) in cash, cash equivalents and restricted cash(114)(35)372 (41)
Cash, cash equivalents and restricted cash—beginning of period596 149 110 155 
Cash, cash equivalents and restricted cash—end of period$482 $114 $482 $114 
9

Alteryx, Inc.
Reconciliation of GAAP Measures to Non-GAAP Measures
(in millions, shares in thousands, except percentages and per share amounts)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Reconciliation of non-GAAP gross profit:
GAAP gross profit$155 $151 $324 $285 
GAAP gross margin82 %84 %84 %84 %
Add back:
Stock-based compensation and related payroll tax expense5 4 8 8 
Amortization of intangible assets3 4 6 6 
     Cost optimization charges1 — 2 — 
Non-GAAP gross profit$164 $159 $340 $299 
Non-GAAP gross margin87 %88 %88 %88 %
Reconciliation of non-GAAP loss from operations:
GAAP loss from operations$(116)$(95)$(204)$(195)
GAAP operating margin(62)%(53)%(53)%(58)%
Add back:
Stock-based compensation and related payroll tax expense65 59 126 106 
Amortization of intangible assets3 4 7 7 
Impairment of long-lived assets2 — 2 8 
Cost optimization charges15 — 19 — 
Acquisition transaction and integration costs1 2 2 14 
Non-GAAP loss from operations$(30)$(30)$(48)$(60)
Non-GAAP operating margin(16)%(17)%(12)%(18)%
Reconciliation of non-GAAP net loss:
GAAP net loss attributable to common stockholders$(120)$(107)$(209)$(212)
Add back:
Stock-based compensation and related payroll tax expense65 59 126 106 
Amortization of intangible assets3 4 7 7 
Impairment of long-lived assets2 — 2 8 
Cost optimization charges15 — 19 — 
Acquisition transaction and integration costs1 2 2 14 
Income tax adjustments8 10 14 18 
Non-GAAP net loss$(26)$(32)$(39)$(59)
Non-GAAP loss per diluted share:
Non-GAAP net loss$(26)$(32)$(39)$(59)
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted70,651 68,311 70,265 68,070 
Non-GAAP net loss per diluted share$(0.37)$(0.46)$(0.56)$(0.86)
Reconciliation of non-GAAP net loss per diluted share:
GAAP net loss per share attributable to common
     stockholders, diluted		$(1.70)$(1.56)$(2.97)$(3.12)
Add back:
Non-GAAP adjustments to net loss per share1.33 1.10 2.41 2.26 
Non-GAAP net loss per diluted share$(0.37)$(0.46)$(0.56)$(0.86)

10

Alteryx, Inc.
Other Business Metrics
(unaudited)
Annualized Recurring Revenue (ARR). ARR represents the annualized recurring value of all active subscription contracts at the end of a reporting period and excludes the value of non-recurring revenue streams that are recognized at a point in time, such as certain professional services. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by twelve. Annualizing contracts with terms less than one year results in amounts being included in our ARR calculation that are in excess of the total contract value for those contracts at the end of the reporting period (in millions).
Mar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,
202220222022202220232023
Annualized recurring revenue$684 $727 $758 $834 $857 $890 
Dollar-Based Net Expansion Rate. Our dollar-based net expansion rate is a trailing four-quarter average of the ARR from a cohort of customers in a quarter as compared to the same quarter in the prior year. To calculate our dollar-based net expansion rate, we first identify a cohort of customers, or the Base Customers, in a particular quarter, or the Base Quarter. A customer will not be considered a Base Customer unless such customer has an active subscription on the last day of the Base Quarter. We then divide the ARR in the same quarter of the subsequent year attributable to the Base Customers, or the Comparison Quarter, including Base Customers from which we no longer derive ARR in the Comparison Quarter, by the ARR attributable to those Base Customers in the Base Quarter. Our dollar-based net expansion rate in a particular quarter is then obtained by averaging the result from that particular quarter with the corresponding result from each of the prior three quarters.
To better align our reported business metrics, beginning in the first quarter of 2023, we revised our dollar-based net expansion calculation to utilize ARR instead of annual contract value, which, if applied to prior periods presented, would have had no more than a 1% impact on any such prior period. As a result, we have not recast prior period dollar-based net expansion rates to conform to the current definition because the impact is immaterial.
Mar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,
202220222022202220232023
Dollar-based net expansion rate 119 %120 %121 %121 %121 %120 %

Number of Customers with ARR of $250,000 or Greater. As we have grown, and as part of our enterprise-focused sales strategy, our ability to grow our base of larger customers while increasing penetration with those customers has increasingly become a key indicator of our market expansion, the growth of our business, and our future potential business opportunities. In particular, we believe that the number of customers with ARR of $250,000 or greater at the end of a reporting period is a useful indicator of the scale of customer adoption and expansion of our platform and the success of our enterprise-focused sales strategy.

Accordingly, beginning in the three months ended June 30, 2023, we will report the number of customers with ARR of $250,000 or greater instead of our total number of customers. We define a customer at the end of any particular period as an entity with a subscription agreement that runs through the current or future period as of the measurement date. A single organization with separate subsidiaries, segments, or divisions that use our platform may represent multiple customers, and we treat each identified entity with a unique nine-digit identification number provided by Dun & Bradstreet as a single customer. In cases where customers subscribe to our platform through our channel partners, each end customer is counted separately.
Mar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,
202220222022202220232023
Customers with ARR of $250,000 or greater530 566 586643660689
Remaining Performance Obligations. Remaining performance obligations represent amounts from contracts with customers allocated to unsatisfied or partially unsatisfied performance obligations that are not yet recorded in revenue in our condensed consolidated statements of operations (in millions).
Mar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,
202220222022202220232023
Remaining performance obligations$445 $495 $488 $592 $509 $502 
Contract Assets. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional in our condensed consolidated balance sheets (in millions).
Mar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,
202220222022202220232023
Contract assets$54 $76 $130 $131 $132 $127 
11
Q2 FY2023 Shareholder Letter August 7, 2023

 
We delivered Q2 revenue of $188 million, up 4% year-over-year, and non-GAAP operating loss of ($30) million, both better than our guided range. However, annualized recurring revenue (ARR), came in at $890 million, up 22% year-over-year, below our guided range. While we exceeded our outlook on both revenue and non-GAAP operating loss1, our Q2 financial results fell short of our expectations. We’ve taken swift action to identify areas for improvement, as well as opportunities to enhance execution going forward, and I’ll discuss some of these initiatives underway, shortly. But first, I’d like to start with what’s most important to our customers, which is our product innovation momentum, specifically our generative AI and cloud-connected experiences, as well as other Q2 highlights: • First, Alteryx AiDIN, our broad set of generative AI technologies that we are infusing throughout our platform. We introduced new generative AI offerings that we believe will enable our customers to significantly accelerate and scale data analytics throughout their organizations with proper governance and security. • Second, cloud-connected experiences. With Cloud Execution for Desktop, Designer users can now publish workflows to the Cloud, bringing the ubiquity of the cloud to Alteryx workflows. • Third, customer commitment remains high. We saw robust customer retention and engagement metrics again in Q2, as customers continue to leverage our unique platform to scale analytic enablement across their employee base. Customers everywhere are using Alteryx to tighten their belts and to do more with less. • Fourth, we’re seeing positive international booking trends in both Europe and Asia, important pillars of our growing, global business. • Fifth, we continue to see strong success with large enterprise organizations. Our Global 2000 penetration came in at 48%, up two points year-over-year, with a steady net expansion rate of 131%. | Shareholder Letter From our CEO Mark Anderson Chief Executive Officer 1 See pages 12-13 for reconciliations of GAAP to non-GAAP financial measures. Fellow Shareholders,

 
We are at a pivotal moment in this market. Transformative technologies like generative AI create enormous opportunities. These technologies have the potential to change how companies operate, how they analyze data, and how they win. Alteryx is uniquely positioned as the data analytics orchestration layer at the heart of it all. This is how we’ve won for years – abstracting an increasingly complex data ecosystem with easy-to-learn, easy-to-use solutions enabling our customers to scale data analytics across the enterprise. With Alteryx AiDIN, we believe we are well on our path to reinforcing this differentiated market position in the era of generative AI. Now let’s take a moment to discuss the Q2 performance and what we need to do better. While we had incorporated a tougher macro into our Q2 guidance, we encountered a pronounced change in customer buying behavior in the last two weeks of the quarter. This was especially apparent with larger customer expansion projects outside of the normal renewal cycle. As a result, many large customer upsell opportunities to which we thought we had clear line of sight ultimately pushed out of the quarter or closed with a reduced size. We recognize that we need to improve our execution on deals like these, particularly in North America. These are significant opportunities, and they require a higher level of engagement and diligence in the current macro backdrop. We’re implementing a significantly higher regimen of deal scrutiny and discipline going forward, plus enhancing sales enablement, which should, in turn, improve our pipeline quality and conversion rates. We also are focused on identifying higher probability win opportunities with a strategy more attuned to the current macro. This is absolutely key to driving improvements in our sales productivity. The business has grown substantially in the past couple years, the market is moving quickly, and there will be learnings along the way. I’ve led teams through several economic cycles at both the executive and board level. I’ve found the one consistency in times like this is that they create opportunities to adapt the business model and strengthen execution. Market Environment

 
With that in mind, we’ve identified several opportunities to improve operationally. First, we’ve made some key leadership changes within our sales organization. We have an exceptional team, and it’s important to make sure we continue to have proper stage experience for each leg of the journey ahead. To that end, we are bringing in new leaders for North America sales, as well as our Partners & Alliances team, both reporting to our President & CRO, Paula Hansen. These two new leaders will have the unique opportunity to ramp together and be very aligned on process and productivity improvements to meet this moment. Second, we are driving improved sales linearity within the quarter and are also incorporating additional deal scrutiny into the sales process. Given our increasing enterprise traction and expanding average new booking deal size, these efforts are key and should meaningfully improve our visibility and results. Third, we are redoubling our focus on sales enablement to accelerate the path to higher productivity. This includes additional coaching and training on how to navigate deals in the current economic environment. And finally, we are implementing additional cost saving initiatives across the business. We have an agile business model in which we can quickly adapt spending, and we are committed to upholding profitability as we work to improve our sales execution. It has never been more important to have a customer-centric mindset. Our customers depend on the Alteryx Analytics Platform to better understand their data and to drive more informed, mission-critical business decisions. Our telemetry data shows robust engagement for activated users across the Alteryx Analytics Platform. Designer workflows are trending toward increased complexity and automation, with approximately 65% of workflow runs now automated. We believe this indicates a higher level of repeatable value-add and stronger customer retention. Our customer and partner community enthusiasm was palpable at our recent Inspire user conferences. Over 4,000 attendees joined us at our U.S. Inspire conference in May, and our international tour is well underway across Sydney, Tokyo, and London. This elevated level of engagement with our customers gives me confidence that the recent upsell moderation is cyclical, and not structural, and that Alteryx remains well- positioned for durable, profitable long-term growth. I am a steadfast believer that discipline and focus on strategic initiatives are key to delivering long-term success. While we are focused on improving our sales execution, we are also committed to delivering an unrelenting pace of platform innovation and driving ahead with our go-to-market strategy.

 
I’m incredibly proud of the initiatives we announced in Q2. First, Alteryx AiDIN, our brand of generative AI and machine learning technologies. This includes new transformative offerings tracking for early availability later this year, as well as several offerings in customers’ hands today. The first is AI Workbench, which is designed to leverage our data analytics expertise to help our customers responsibly introduce generative AI and large language models into their enterprise. AI Workbench is designed to effectively train these models with their customer data and proper governance and security. Next, is “multi-modal.” This solution facilitates collaboration between multiple personas via different interfaces, including Alteryx Designer, coding, or a simplified whiteboard. We see this as a meaningful accelerator for our customers in their data democratization journey, as it removes barriers between stakeholders and nurtures an unprecedented collaboration experience. We’re developing these offerings with input from several Global 2000 companies and envision both AI Workbench and multi-modal to be monetizable, complementary elements within the platform. Three Alteryx AiDIN capabilities are already incorporated in our platform, including Magic Documents, Workflow Summary for Alteryx Designer, and an OpenAI Connector. These are all examples of how we are incorporating generative AI to accelerate the path from data analytics to insights for our customers. We’re already seeing signs of interest and early engagement across all three tools. Introducing Alteryx AiDIN, our brand of generative AI and machine learning technologies.”

 
Another key area of innovation focus is cloud, where we had several exciting announcements in Q2: First, Cloud Execution for Desktop, a major step forward in integrating our on-premise and cloud platform environments, with which customers can create workflows in desktop Designer, and then save, share, and execute those workflows in the cloud. And second, Location Intelligence, which introduces visualization and analysis of geospatial data to identify patterns and trends that cannot typically be found with spreadsheets. Cloud is resonating with our current customers, with approximately two-thirds of our Q2 cloud wins coming as upsells to existing customers. McLaren Racing, for example, has leveraged Alteryx Designer across a breadth of use cases ranging from production workflow optimization to social media monitoring to real- time racing analytics. In Q2, McLaren signed on for both Alteryx Auto Insights and Alteryx Machine Learning as they look to further abstract analytics for new personas and explore new operational use cases. We’re also seeing positive early trends for our cloud ELA with new customers. • We signed a cloud ELA with a multi-billion dollar oil and gas customer as they look to automate and optimize their office of the CFO with a modern, cloud-based platform, plus establish an analytical framework for new strategic initiatives. • We had a cloud-driven win with a leading provider of online real estate marketplaces, information, and analytics. This customer will leverage Alteryx to automate and optimize key data intake processes for real-estate industry benchmarking services. Cloud Innovation ALTERYX ANALYTICS CLOUD PLATFORM

 
Cloud has become an important underlying pillar of our go-to-market motion.” The cloud momentum is encouraging, and we are excited to soon roll out regional support to handle international data residency requirements for the Alteryx Analytics Cloud Platform later in Q3. Cloud has become an important underlying pillar of our go-to-market strategy. This has complemented our strategic initiatives around enterprise, partners, and customer success. Our ability to continue to expand within the Global 2000 and with many of our existing large enterprise customers is key to our long-term growth trajectory. As I mentioned earlier, in Q2 we increased our Global 2000 penetration to 48%, up from 46% last year, with our strongest ARR growth coming from our largest customers. Our Global 2000 net expansion rate was solid at 131%, with our overall net expansion rate coming in at 120%. We had an inspiring $1 million-plus ARR win with a large nonprofit health organization expanding with Alteryx Designer and adopting Alteryx Auto Insights and Alteryx Machine Learning. This customer’s nursing team has created workflows to track and forecast cold, flu, and COVID trends across its network of hospitals, plus optimize PPE inventory and distribution. It’s humbling to see Alteryx empowering these frontline workers to actually save lives with their own data. ELAs continue to gain traction, with solid year-over-year growth in number of ELAs sold. The Chemours Company is an excellent example of this, as they signed on for their initial ELA in Q2 of 2022. They’ve since implemented a broad range of use cases driving tangible ROI across multiple lines of business – finance, procurement, IT, digital marketing, and more. In one case, a single Alteryx workflow unlocked over $2 million dollars of identifiable value! As they lapped the one-year mark in Q2 of this year, they signed on for an expansion to their ELA, more than doubling the size of their original implementation. Partners continue to be a core pillar of our go-to-market strategy, unlocking access to decision makers and IT, and reducing friction in the sales motion. Partners played a role in over three-quarters of our top 20 new logo and expansion deals, with key contributions from Presidio, Slalom, and EY, among others. With our new leadership, we look forward to working even closer with our partners to build tighter and more consistent engagement programs. We had a great partner-supported win with a global property & casualty insurance company. The partner provided training to bring on new personas and hosted working sessions to explore new use cases and opportunities to drive value. This customer ultimately expanded its Alteryx implementation by approximately 7x with a new ELA as they look to further optimize processes throughout the financial organization and enhance overall corporate governance.

 
In closing, we have an incredible opportunity ahead of this company. Our market position as an analytics orchestrator across an increasingly fragmented data ecosystem is highly differentiated, and the need for data analytics at scale, with governance and security, is rising. We’re delivering on our innovation roadmap and enhancing our value proposition with new cloud-connected experiences and generative AI. We’re taking quick and decisive steps to improve certain pockets of our sales execution, and diligently calibrating spending to maintain our improving profitability momentum. Most importantly, our customers are demonstrating a strong commitment to Alteryx. Near-term environment notwithstanding, we have our eyes set on the significant addressable market opportunity, and we are positioning this company for long-term durable and profitable growth. Closing Remarks Mark Anderson Chief Executive Officer

 
Financial Update I’ll begin today with a closer look at some of the key Q2 financial metrics, and then will discuss our philosophy around growth and profitability for the remainder of 2023. ▸ First, revenue came in at $188 million, above our guided range. We saw contract duration increase sequentially to approximately 1.5 years, another important indicator of our customers’ long-term commitment to Alteryx. ▸ The revenue upside, along with strong spending discipline, drove non-GAAP operating loss of ($30) million, $18 million better than the high-end of our guided range. ▸ ARR came in at $890 million, up 22% year-over-year, but was below our guided range. While we had incorporated a weaker macro environment in our prior financial outlook, we did not anticipate the significant change in customer buying behavior that we experienced at the end of Q2. And as roughly two-thirds of the business historically lands in month three, with many deals closing in the final weeks of the quarter, the shifting market dynamics were not apparent until very late in June. 1 See pages 12-13 for reconciliations of GAAP to non-GAAP financial measures. $890 million, +22% YoY Annualized Recurring Revenue Q2 2023 Summary $188 million, +4% YoY Revenue ($116) million GAAP Loss from Operations ($30) million Non-GAAP Loss from Operations1 131% (G2K) / 120% (Overall) Dollar-Based Net Expansion Rate Kevin Rubin Chief Financial Officer

 
Our existing customer base provides three key underlying drivers that are each important to sustaining our growth momentum: customer renewals, expansion upsells at the time of renewal, and independent expansions outside of the renewal cycle. We saw healthy trends in both renewals and corresponding upsells, but it was the third element – expansion deals independent of a renewal event – where we encountered challenges. In the last two weeks of the quarter, we saw a significant divergence from historical conversion rates in which customers opted to delay or meaningfully reduce new initiatives until the time of renewal. For example, we had over ten large opportunities, which included both six and seven figure deals, outside of the renewal cycle that delayed or closed at less than 50% of our expectation. This dynamic was particularly pronounced in the U.S. region, and resulted in a significant year-over-year decline in U.S. bookings. While we attribute the change in part to macro pressures, as Mark described, we are taking measures to quickly adapt and improve our sales execution. In terms of the financial model, we have two clear initiatives for the second half of 2023: First, we’re calibrating the business model to preserve our improving profitability momentum, which assumes this phase of moderated growth persists through the remainder of the year; and Second, we’re ensuring key investment areas are well-funded to drive the long-term success of the business, including generative AI and cloud. Let’s begin with our strategy for balancing growth and profitability over the coming quarters. With the softer macro backdrop persisting into the second half, we are adapting our spending plans to continue on the path to higher profitability. We’ve highlighted several cost saving initiatives in recent quarters, such as real estate rationalization and optimization of headcount in both sales & marketing and general and administrative. Looking ahead, we will continue to focus cost saving efforts in these areas. When we decided to meaningfully expand our go-to-market motion in early 2022, we anticipated a very different macro environment. We’ve since tapered that back as the growth environment has waned, and given what we saw late in Q2, we are initiating additional cost saving initiatives in the second half of the year. This includes elimination of most open positions, scaling back spending, areas of reorganization, additional performance management, and headcount reductions. We expect these cost saving efforts to generate an annualized cost saving of over $30 million. As we closely scrutinize our spending, we’ve also identified key investment areas that we are committed to. These are areas that present significant opportunities for Alteryx to both differentiate and drive long-term durable growth. The first is generative AI and machine learning. We recently introduced Alteryx AiDIN, our brand of generative AI and machine learning technologies. We’ve recently announced several enhancements to the platform that are seeing early user engagement and interest, and we see Alteryx AiDIN as an opportunity for additional revenue streams in the years ahead. The second is cloud. Our cloud portfolio has now been generally available since February 2023, and we’re encouraged with the early traction. We’re delivering an incredible pace of innovation here with new offerings, like Alteryx Location Intelligence, as well as incremental cloud-connected capabilities that move to converge our portfolio of offerings. Balancing Growth and Profitability

 
At our investor day in May, I presented our long-term model for 25-30% non-GAAP operating margin by FY 2028. Our framework to achieving this model is through 3-4 points of margin expansion per year, and this assumes we maintain 20%+ of ARR growth per year. We continue to believe this model is an appropriate long-term balance of growth and profitability. In the intermediate-term, we are committed to delivering improved profitability at an accelerated rate. In a sense, this is an extension of actions taken in late 2022 and early 2023, and is incorporated in our plan to improve non-GAAP operating margin by over six points in 2023. Looking ahead to 2024, as we capture the full annualized benefit of recent cost saving initiatives, we expect to drive five points-plus of margin expansion, which is faster than the long-term framework would suggest. As for growth in the remainder of 2023, we’re assuming no improvement in customer buying behavior from what we saw in the last two weeks of Q2. The growth drivers we’ve previously discussed are still in place. And while we continue to see robust customer retention trends, we are taking a much more conversative posture on the pacing and magnitude of upsell and expansion projects not attached to a specific renewal event this year. 2023 Framework We have a record level of Q4 renewal opportunities that provide tangible selling events; We continue to demonstrate strong ELA momentum and have significant upsell opportunities in Q4; We believe our comprehensive portfolio of cloud offerings is gaining traction; and We have a ramping sales force supported with an expanded partner ecosystem and customer success team. We believe the business is positioned to deliver progress towards Rule of 40 next year, defined as a combination of ARR growth and non-GAAP operating margin.

 
Q3 2023 Guidance Summary $901M - $905M ARR 19% ARR Growth YoY $208M - $212M Revenue (4%) – (2%) Revenue Growth YoY $2M – $6M Non-GAAP Operating Income1 ($0.08) – ($0.04) Non-GAAP Net Loss per Share1 FY 2023 Guidance Summary $930M - $940M ARR 12% - 13% ARR Growth YoY $930M - $940M Revenue 9% - 10% Revenue Growth YoY $70M - $80M Non-GAAP Operating Income1 $0.62 - $0.72 Non-GAAP Net Income per Share1 We are executing on multiple strategic initiatives to drive improved sales productivity, enhance our pipeline visibility, and position the company for long-term durable, profitable growth. Financial Outlook 1 See pages 12-13 for reconciliations of GAAP to non-GAAP financial measures.

 
Three Months Ended June 30, Six Months Ended June 30, $ in millions1 2023 2022 2023 2022 GAAP research & development expense $57 $57 $116 $107 GAAP research & development margin 30% 32% 30% 32% Stock-based compensation and related payroll taxes 14 15 29 26 Acquisition transaction and integration costs - 1 1 2 Cost optimization charges 3 - 3 - Non-GAAP research & development expense $40 $41 $83 79 Non-GAAP research & development margin 21% 23% 21% 23% GAAP sales & marketing expense $162 $133 $313 $249 GAAP sales & marketing margin 86% 74% 81% 73% Stock-based compensation and related payroll taxes 25 20 50 36 Amortization of intangible assets - - 1 1 Acquisition transaction and integration costs - - - - Cost optimization charges 9 - 11 - Non-GAAP sales & marketing expense $128 $113 $251 212 Non-GAAP sales & marketing margin 68% 63% 65% 63% GAAP general & administrative expense $50 $56 $97 $116 GAAP general & administrative margin 27% 31% 25% 34% Stock-based compensation and related payroll taxes 21 20 39 36 Acquisition transaction and integration costs 1 1 1 12 Cost optimization charges 2 - 3 - Non-GAAP general & administrative expense $26 $35 $54 68 Non-GAAP general & administrative margin 14% 19% 14% 20% Three Months Ended June 30, Six Months Ended June 30, $ in millions1 2023 2022 2023 2022 GAAP gross profit $155 $151 $324 $285 GAAP gross margin 82% 84% 84% 84% Stock-based compensation and related payroll taxes 5 4 8 8 Amortization of intangible assets 3 4 6 6 Cost optimization charges 1 - 2 - Non-GAAP gross profit $164 $159 $340 $299 Non-GAAP gross margin 87% 88% 88% 88% GAAP loss from operations ($116) ($95) ($204) ($195) GAAP operating margin (62%) (53%) (53%) (58%) Stock-based compensation and related payroll taxes 65 59 126 106 Amortization of intangible assets 3 4 7 7 Impairment of intangible and long-lived assets 2 - 2 8 Cost optimization charges 15 - 19 - Acquisition transaction and integration costs 1 2 2 14 Non-GAAP loss from operations ($30) ($30) ($48) ($60) Non-GAAP operating margin (16%) (17%) (12%) (18%) GAAP to Non-GAAP Operating Loss Reconciliation 1 Beginning with the quarter ended June 30, 2023, management elected to change the presentation of our financial statements and accompanying footnote disclosures from thousands to millions. The change in presentation had no material impact on previously reported financial information, but certain amounts reported for prior periods may differ by insignificant amounts due to the nature of rounding relative to the change in presentation. In addition, historical percentages and per share amounts presented may not add to their respective totals or recalculate due to rounding.

 
GAAP to Non-GAAP Net Loss Reconciliation Three Months Ended June 30, Six Months Ended June 30, $ in millions, shares in thousands, except per share data1 2023 2022 2023 2022 GAAP net loss attributable to common shareholders ($120) ($107) ($209) ($212) Stock-based compensation and related payroll taxes 65 59 126 106 Amortization of intangible assets 3 4 7 7 Impairment of intangible and long-lived assets 2 - 2 8 Cost optimization charges 15 - 19 - Acquisition transaction and integration costs 1 2 2 14 Income tax adjustments 8 10 14 18 Non-GAAP net loss ($26) ($32) ($39) ($59) Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted 70,651 68,311 70,265 68,070 Non-GAAP net loss per diluted share ($0.37) ($0.46) ($0.56) ($0.86) GAAP net loss per share attributable to common stockholders, diluted ($1.70) ($1.56) ($2.97) ($3.12) Non-GAAP adjustments to net loss per share 1.33 1.10 2.41 2.26 Non-GAAP net loss per diluted share ($0.37) ($0.46) ($0.56) ($0.86) 1 Beginning with the quarter ended June 30, 2023, management elected to change the presentation of our financial statements and accompanying footnote disclosures from thousands to millions. The change in presentation had no material impact on previously reported financial information, but certain amounts reported for prior periods may differ by insignificant amounts due to the nature of rounding relative to the change in presentation. In addition, historical percentages and per share amounts presented may not add to their respective totals or recalculate due to rounding.

 
Disclosures Alteryx, the Alteryx logo and other registered or common law trade names, trademarks, or service marks of ours appearing in this letter are our property. The letter contains additional trade names, trademarks, and service marks of other companies, including, but not limited to, certain of our customers, technology partners, and competitors, that are the property of their respective owners. Except as otherwise expressly stated, we do not intend our use or display of other companies' trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. Forward-Looking Statements This letter includes “forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties, including statements regarding our expectations with respect to annualized recurring revenue, guidance for the third quarter of 2023 and the full year 2023, non-GAAP operating margin, and assumptions related to the foregoing; macroeconomic conditions and related impacts, including the impact to our competitive landscape, sales cycle, and contract duration; our workforce reduction plans and related impacts; our ability to execute our long-term growth, go-to-market, operations, and product strategies, including with respect to our cloud and AI offerings; our ability to achieve and improve profitability and cash flow; the anticipated value, customer acceptance, and continued innovation and availability of our products and services; the success of our sales activities; demand for data analytics products and our expectations regarding customer purchasing behavior; and other future events. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: our history of losses; volatile and significantly weakened global economic conditions; our ability to develop, release, and gain market acceptance of product and service enhancements and new products and services to respond to rapid technological change in a timely and cost-effective manner; our dependence on our software platform for substantially all of our revenue; our ability to manage our growth and the investments made to grow our business effectively; our ability to develop a successful business model to sell products and services acquired or to integrate such products or services into our existing products and services; our ability to attract new customers and retain and expand sales to existing customers; our ability to establish and maintain successful relationships with our channel partners; intense and increasing competition in our market; the rate of growth in the market for analytics products and services; our dependence on technology and data licensed to us by third parties; risks associated with our international operations; our ability to develop, maintain, and enhance our brand and reputation cost-effectively; litigation and related costs; security breaches; our indebtedness and risks related to our outstanding notes; and other general market, political, economic, and business conditions, including, but not limited to, impacts related to weakened global economic conditions, the ongoing conflict in Ukraine, inflationary pressures, rising interest rates, and disruptions in access to bank deposits or lending commitments due to bank failures. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, many of which relate to matters that are beyond our control and changing rapidly. Additional risks and uncertainties that could affect our financial results are included under the caption “Risk Factors” in our filings with the U.S. Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which are available on the “Investors” page of our website at http://investor.alteryx.com and on the SEC website at http://www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events. Non-GAAP Financial Measures and Operating Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. The non-GAAP financial measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of GAAP to non- GAAP financial measures has been provided in the tables included in our earnings press release. Additional information regarding our non-GAAP financial measures is included under the caption “Non-GAAP Financial Measures and Operating Measures” in our earnings press release.

 
Alteryx powers analytics for all by providing our leading Analytics Automation Platform. With Alteryx, enterprises can make intelligent decisions across their organizations with automated, AI-driven insights. More than 8,000 customers globally rely on Alteryx to democratize analytics across use cases and deliver high-impact business outcomes. To learn more, visit www.alteryx.com. Alteryx is a registered trademark of Alteryx, Inc. All other product and brand names may be trademarks or registered trademarks of their respective owners. 17200 Laguna Canyon Rd | Irvine | CA 92618

 
v3.23.2
Cover Page
Aug. 07, 2023
Document Information [Line Items]  
Document Period End Date Aug. 07, 2023
Document Type 8-K
Document Period End Date Aug. 07, 2023
Entity Registrant Name ALTERYX, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38034
Entity Tax Identification Number 90-0673106
Entity Address, Address Line One 17200 Laguna Canyon Road,
Entity Address, City or Town Irvine,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92618
City Area Code 888
Local Phone Number 836-4274
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share
Trading Symbol AYX
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001689923
Amendment Flag false
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