JMP Calls Alteryx A Compelling Investment, Sees 23% Upside

Premised on four tenants, JMP Securities called
Alteryx IncAYX
a compelling
investment opportunity.

4 Positives: Revenue Growth, Market Leadership, Customer Base, Financial Model

    1. The firm expects Alteryx's robust top-line growth to continue after having grown its revenues by 59 percent in 2016 and 42 percent in 2015.
    2. Alteryx is the leader in its space and provides a value proposition with secular tailwinds, integrating data prep, business intelligence/data discovery and advanced analytics into a single solution.
    3. Blue chip customer base, including, Nike Inc NKE, Southwest Airlines Co LUV, Johnson & Johnson JNJ, Amazon.com, Inc. AMZN and Microsoft Corporation MSFT, with a compelling land and expand model having over 2,300 customers and a net revenue retention rate of 135 percent.
    4. The company's financial model, with highly-recurring revenue, strong gross margins and operating margin expansion.

Expectations Going Forward

JMP Securities expects the company to report a loss of $0.54 per share on a non-GAAP basis, on 38 percent revenue growth. For 2018, the firm expects a non-GAAP loss of $0.39 per share on 38 percent revenue growth.

Alteryx provides self-service data analytics software that allows organizations prepare, blend and analyze data from a multitude of sources, helping companies take data-driven decisions.

The company recently offered 9 million of its Class A shares at an offer price of $14 per share in an IPO. Following the listing of the shares on the New York Stock Exchange on March 24 the stock closed its debut session at $15.50.

JMP Securities initiated coverage of Alteryx at an Outperform, with a $20 price target.

At last check, Alteryx shares were advancing 1.38 percent to $16.50.

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