Why Did Alteryx Stock Fall 29% in August?
Shares of (NYSE: AYX) dropped 28.8% last month, according to S&P Global Market Intelligence. The company's quarterly earnings results revealed dramatically slowing sales that came in well below expectations. That's a recipe for disaster for high-valuation growth stocks that rely on bullish investor sentiment about the future.
Alteryx reported just 4% revenue growth in the second quarter, which was nearly 8% lower than Wall Street's expectation. The company's 22% growth in annual recurring revenue (ARR) suggested that things aren't quite as bad as the headline figure, but the results are still worrisome.
Alteryx cited difficult macroeconomic conditions as headwinds for new bookings growth. While customer retention was high, the company is also struggling with worse-than-expected upselling. Some of its largest expansion plans with existing customers wound up being delayed or reduced, hurting the top line. These factors led Alteryx to slash its full-year revenue forecast roughly 5% to $930 million, cutting its annual growth outlook from around 15% to 10%. The company is also hiring new sales executives to combat these issues, which could be a warning sign to skeptical investors.
Source Fool.com
