Buying Out Dips: Alteryx
Alteryx is
a data analysis platform to process big data. Alteryx solutions allows to
process the large amounts of data “within the box” without hiring expensive
highly tailored personnel. During the pandemic the company adjusted remoted
working processes, but is now gaining on in other segments of business. Its
shares are traded 70% below their highs in 2021, while the financial situation
of the company remains stable.
The overall
target market for company’s services is estimated at $65 billion while the annual
revenue of the company is at $700 million. So, there is enough room for further
expansion. This expansion may be supported by companies from various industries
that could look for its services, such as Neftlix, Visa, Chevron and many
others.
The Q1 2022
revenues rose by 33% year-on-year to $157.9 million beating the Wall Street’s
forecast of $145 million. Alteryx operation margin rose to 25-30% compared to
0% in 2021 by slashing marketing costs. Meanwhile, gross margin rose to 88%,
one of the highest in the industry.
The
mid-term target price is at $77 per share.