Alteryx, Inc. (NYSE:AYX) Q3 2019 Earnings Conference Call Transcript
Oct 31, 2019 • 05:00 pm ET
Greetings and welcome to the Alteryx Third Quarter 2019 Conference Call. [Operator Instructions] It's now my pleasure to introduce your host Chris Lal.
Please go ahead.
Thank you operator. Good afternoon and thank you for joining us today to review Alteryx's third quarter 2019 financial results. With me on the call today are Dean Stoecker Chairman and Chief Executive Officer; and Kevin Rubin Chief Financial Officer. Additionally Scott Jones President and Chief Revenue Officer will be joining us for the question-and-answer session after prepared remarks. During this call we may make statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance but rather are subject to a variety of risk and uncertainty. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results please refer to our SEC filings available on the SEC's EDGAR system and our website as well as the risks and other important factors discussed in today's earnings release. Additionally non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release and the Investors section of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure. With that
I'd like to turn call over to our Chief Executive Officer Dean Stoecker. Dean?
Dean A. Stoecker
Thanks Chris and thank you to everyone joining us today. Alteryx delivered another solid quarter in Q3. On today's call I will be providing some high-level market trends that we believe validate our longer-term strategy. These trends are automation convergence and community. Kevin will then walk through our Q3 performance and our outlook for Q4 and full year 2019. Before we get started here are a few highlights. Revenue was $103 million up 65% year-over-year; non-GAAP operating margins were 21%; and we generated positive cash flow from operations of $7 million. We added 335 net new customers including 27 of the Global 2000. We now have over 5600 active customers including 34% of the Global 2000. Net expansion was 132% as customers continue to invest in Alteryx as their data science and analytics platform of choice across their enterprises. In the quarter we had 92% growth in the number of expands greater than $250000. We believe Alteryx is benefiting from a number of trends we expect will enable us to deliver growth for many years to come.
The first is automation. While overall IT spending levels are expected to post only modest growth in 2020 we believe there are emerging categories that will demonstrate outsized growth. One of these categories is automation. We are increasingly hearing from customers that desire to drive more operational efficiencies, and in uncertain times, companies look to do more with less. IDC indicated there would be $2 trillion spent on digital transformation in 2019. alone. And last year, the World Economic Forum found that 29% of all