Alteryx, Inc. (NYSE:AYX) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 05:00 pm ET


Alteryx, Inc. (NYSE:AYX) Q3 2018 Earnings Conference Call Transcript


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Greetings, and welcome to Alteryx Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

(Operator Instructions)

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Chris Lal, General Counsel. Please go ahead.

Chris Lal

Thank you, operator. Good afternoon, and thank you for joining us today to review Alteryx's third quarter 2018 financial results. With me on the call today are Dean Stoecker, Chairman and CEO; and Kevin Rubin, CFO. After prepared remarks, we will open up the call to a question-and-answer session.

(Forward-Looking Cautionary Statements)

Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release and the IR portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure.

With that, I'd like to turn the call over to our CEO, Dean Stoecker. Dean?

Dean Stoecker

Thanks, Chris, and thanks to everyone joining us today to discuss our Q3 results. Alteryx continues to benefit from increasing demand for analytics, particularly advanced analytics. And this trend, coupled with our strong execution, enabled us to deliver a very strong quarter. Q3 highlights include a 59% increase in total revenue, a 99% increase in international revenue, continued strong gross margins and $5 million in positive cash flow from operations.

We believe we are changing the conversation around analytics as customers are looking for partners that can support their analytic journeys from beginning to end and from simple to sophisticated. While our customers often start their analytic journeys with simple questions, they are increasingly seeking answers to complex problems and looking to leverage the full range of advanced analytic capabilities of our platform, including data science and machine learning, to help them make better data-driven decisions. Supporting our customers during these analytic journeys is job number one for Alteryx.

Our relentless focus on customer success is reflected in our sustained net revenue retention rate, which remains very strong at 131%, the eighth consecutive quarter above 130%. Our customers not only continue to buy more of our platform, they are recommending it to others as evidenced by our recently completed Net Promoter Score survey, where Alteryx's customers adorned us with the highest NPS in our history. The advocacy from these customers benefits us in many ways.

In Q3, we increased our net new customers by 375 and now count more than 4,300 customers in our growing worldwide community, including a quarter of the Global 2000. Some of the new customers added in Q3 include 7-Eleven, Cowen and Company, J.Crew, John Hancock, Michael Kors, Textron and Workday.

We've focused our R&D investments in making the platform easier to use for data analysts, while extending its ability to handle more sophisticated data science outcomes for the trained statisticians, both driving an increasing number in a variety of use cases in most every industry and in most every functional