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Alteryx Stock Lower After Weaker-Than-Expected Guidance

Alteryx sees revenue of $520 million to $530 million for the year, lagging the Bloomberg analyst consensus of $571.2 million. The stock is lower.
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Alteryx  (AYX) - Get Alteryx, Inc. Class A Report shares dropped after the data-analytics software company's earnings forecast failed to meet expectations and two analysts lowered their price targets on the stock.

The Irvine, Calif., company expects an adjusted loss of 12 cents to 26 cents a share, weaker than the Bloomberg analyst consensus forecast of 1 cent.

And it predicts revenue of $520 million to $530 million for the full year, lagging the  consensus estimate of $571.2 million. 

The stock recently traded at $67.94, down 14%, leaving it down 47% for the last six months.

Needham analysts dropped their price target to $96 from $129 but affirmed their buy rating. 

The earnings report was mixed, they said, according to Bloomberg. Second-quarter results beat expectations while the forecasts trailed.

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Go-to market changes “may decrease near-term visibility, [but] we believe they should position AYX for better sustainable growth,” Needham said.

Rosenblatt Securities slashed its price target to $100 from $130 but also maintained a buy rating.

The revenue forecast failed to meet the investment firm's estimates “as more customers are signing shorter-duration contracts” and as Alteryx keeps shifting its go-to-market programs, Rosenblatt analysts said, according to Bloomberg.

The stock may slide in the short term but will ultimately benefit from expanding annual recurring revenue and a customer net growth rate of 129%, Rosenblatt said.

Morgan Stanley has an equal-weight rating and an $89 price target for Alteryx. 

The firm's analysts are “encouraged” by the company’s annual recurring revenue in the second quarter, but “we can’t safely state that fiscal 2021 annual-recurring-revenue guidance now looks derisked,” Bloomberg reports.