Alteryx, Inc. Net Debt / EBITDA surged on 26.2x from 6.1x to 32.2x in 2020 while EBITDA dropped on 63.7%
02/09/2021 • About Alteryx, Inc. (
$AYX) • By InTwits
Alteryx, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Alteryx, Inc. is a fast growth stock: 2020 revenue growth was 18.5%, 5 year revenue CAGR was 55.9% at 2020 ROIC -0.11%
- Alteryx, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 is 2.1%. Average EBITDA Margin for the same period was 5.1%
- Alteryx, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: $26m in 2020, $11m in 2019, $7m in 2018, $4m in 2017, $4m in 2016
- The company has unprofitable business model: ROIC is -0.1%
- It operates with high leverage: Net Debt/EBITDA is 32.2x while industry average is 18.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Alteryx, Inc.'s Revenue surged on 18.5%. Revenue growth showed slowdown in 20Q4 - it was 2.6% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.9 pp from -0.50% to 8.4% in 2020. During 2016-2020 EBITDA Margin topped in 2018 at 13.3% and was declining since that time.
Gross Margin increased slightly on 0.52 pp from 90.6% to 91.1% in 2020. Gross Margin stuck to a growing trend at 2.7 pp per annum in 2016-2020. SG&A as a % of Revenue increased on 6.5 pp from 65.0% to 71.5% in 2020. During the last 5 years SG&A as a % of Revenue bottomed in 2018 at 62.1% and was growing since that time.
Net Income margin dropped on 11.4 pp from 6.5% to -4.9% in 2020. During 2016-2020 Net Income margin topped in 2018 at 11.1% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2020 Alteryx, Inc. had CAPEX/Revenue of 5.3%. The company showed CAPEX/Revenue growth of 2.5 pp from 2.8% in 2017 to 5.3% in 2020. It's average level of CAPEX/Revenue for the last three years was 3.6%. To secure its fast growth Alteryx, Inc. made large investments to CAPEX (136% of EBITDA). During the last 5 years CAPEX as a % of Revenue bottomed in 2018 at 2.7% and was growing since that time.
Return on investment
The company operates at negative ROIC (-0.1%) and ROE (-5.4%). ROIC decreased on 5.0 pp from 4.9% to -0.11% in 2020. ROE dropped on 12.9 pp from 7.5% to -5.4% in 2020. During 2016-2020 ROIC topped in 2018 at 9.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 32.2x and Debt / EBITDA is 41.1x. Net Debt / EBITDA surged on 26.2x from 6.1x to 32.2x in 2020. Debt increased on 8.3% while cash dropped on 58.1%.
Alteryx, Inc. has no short term refinancing risk: cash is higher than short term debt (204.4%).
Management team
Mark F Anderson is a the company's CEO. Mark F Anderson has spent 5 months with the company. Kevin Rubin is a Alteryx, Inc.'s CFO. Kevin Rubin has spent 4 years at the company.
Financial and operational results
FY ended 12/31/2020
Alteryx, Inc. ($AYX) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 85.8 | 131.6 | 253.6 | 417.9 | 495.3 | 18.5% |
| Gross Profit | 69.8 | 109.8 | 230.8 | 378.8 | 451.5 | 19.2% |
| SG&A | 75.3 | 98.7 | 157.6 | 271.7 | 354.3 | 30.4% |
| EBITDA | -21.3 | -14.2 | 33.6 | 53.3 | 19.3 | -63.7% |
| EBIT | -23.0 | -18.2 | 29.8 | | | |
| Tax | 0.2 | -0.9 | -2.6 | | | |
| Net Income | -24.3 | -17.5 | 28.0 | 27.1 | -24.4 | -189.8% |
| Stock Based Compensation | 3.3 | 8.9 | 16.6 | | | |
Balance Sheet
|
|---|
| Cash | 31.3 | 119.7 | 90.0 | 409.9 | 171.9 | -58.1% |
| Accounts Receivable | 35.4 | 49.8 | 94.9 | | | |
| Accounts Payable | 1.8 | 0.5 | 5.0 | | | |
| Short Term Debt | 0.3 | 0.3 | 0.0 | 74.8 | 84.1 | 12.4% |
| Long Term Debt | 0.0 | 0.0 | 173.6 | 659.6 | 711.4 | 7.8% |
Cash flow
|
|---|
| Capex | 4.3 | 3.7 | 6.7 | 11.5 | 26.4 | 130.1% |
| Acquisitions | | 9.1 | 3.5 | | | |
Ratios
|
|---|
| Revenue growth | 59.4% | 53.4% | 92.7% | 64.8% | 18.5% | |
| EBITDA growth | 5.0% | -33.3% | -336.0% | 58.7% | -63.7% | |
|
|---|
| Gross Margin | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% | 0.5% |
| EBITDA Margin | -24.9% | -10.8% | 13.3% | 12.8% | 3.9% | -8.9% |
| EBIT Margin | -26.8% | -13.8% | 11.7% | | |
| SG&A, % of revenue | 87.8% | 75.0% | 62.1% | 65.0% | 71.5% | 6.5% |
| SBC, % of revenue | 3.8% | 6.8% | 6.6% | | |
| Net Income Margin | -28.3% | -13.3% | 11.1% | 6.5% | -4.9% | -11.4% |
| CAPEX, % of revenue | 5.0% | 2.8% | 2.7% | 2.7% | 5.3% | 2.6% |
|
|---|
| ROIC | -73.2% | -20.5% | 9.2% | 4.9% | -0.1% | -5.0% |
| ROE | | | 12.3% | 7.5% | -5.4% | -12.9% |
| Net Debt/EBITDA | | | 2.5x | 6.1x | 32.2x | 26.2x |
People
|
|---|
| Insider ownership | 4.9% | 4.9% | 4.9% | | | |
| Employees | | 800 | 800 | | | |
| Revenue/Employee, th. $ | | 165 | 317 | | | |
Alteryx, Inc. ($AYX) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 109 | 96 | 130 | 161 | | 43.2% | 17.3% | 25.5% | 2.6% |
| EBITDA | -15 | -13 | 15 | 32 | | - | - | 6.7% | -26.9% |
| Net Income | -15 | -35 | 4 | 22 | | -361.6% | - | - | -28.2% |
Balance Sheet
|
|---|
| Cash | 228 | 128 | 96 | 172 | | 79.5% | 18.7% | -85.1% | -58.1% |
| Short Term Debt | 77 | 78 | 82 | 84 | | -57.4% | -57.8% | 12.2% | 12.4% |
| Long Term Debt | 677 | 677 | 699 | 711 | | 2,873.9% | 2,281.9% | 6.8% | 7.8% |
Ratios
|
|---|
| Gross Margin | 88.0% | 90.0% | 92.0% | 93.3% | | -1.5% | 1.3% | 1.3% | 1.1% |
| EBITDA Margin | -13.8% | -13.0% | 11.7% | 19.7% | | -12.0% | -6.5% | -2.1% | -8.0% |
| Net Income Margin | -14.2% | -36.7% | 3.4% | 13.7% | | -22.0% | -32.8% | 9.4% | -5.9% |
Peers in Application Software
Below you can find Alteryx, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 14.8% | 15.1% | 19.4% | 14.5% |
|---|
| Alteryx, Inc. ($AYX) | - | 53.4% | 92.7% | 64.8% | 18.5% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| Mitek Systems, Inc. ($MITK) | 90.2% | 91.1% | 86.3% | 85.5% | 87.0% |
| |
|---|
| Median (89 companies) | 63.8% | 64.4% | 65.3% | 67.9% | 69.4% |
|---|
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -4.7% | -3.3% | -3.3% | 2.7% | 7.7% |
|---|
| Alteryx, Inc. ($AYX) | -24.9% | -10.8% | 13.3% | 12.8% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 2.9% | 2.3% | 2.4% | 3.0% | 2.5% |
|---|
| Alteryx, Inc. ($AYX) | 5.0% | 2.8% | 2.7% | 2.7% | 5.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.2% | -10.2% | -10.6% | -4.5% | -2.2% |
|---|
| Alteryx, Inc. ($AYX) | -73.2% | -20.5% | 9.2% | 4.9% | -0.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| Cornerstone OnDemand, Inc. ($CSOD) | - | - | 5.5x | 2.3x | 10.9x |
| |
|---|
| Median (53 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.0x |
|---|
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
